Breaking Down Anhui Zhongding Sealing Parts Co., Ltd. Financial Health: Key Insights for Investors

Founded in 1980, Anhui Zhongding Sealing Parts Co., Ltd. has grown into a global sealing-solution leader with subsidiaries in Germany, the United States and beyond, a diverse portfolio spanning rubber seals, hoses, shock absorbers and thermal management systems, and a clear mission to deliver high-quality, reliable products through continuous innovation and advanced manufacturing; in 2024 Zhongding reported approximately 7.249 billion yuan in revenue from new energy vehicles, underscoring its R&D-driven pivot to electrification as it pursues a vision of becoming one of the world's 500 most admired companies and sustains its reputation as a member of the global automotive supply chain's Top 100 while operating on core values-honesty, responsibility, innovation, rigor, macro vision, meticulous implementation, continuous learning, mutual care and shared creation-that steer strategy, investment and everyday practice

Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ) - Intro

• Founded: 1980
• Stock code: 000887.SZ
• 2024 new energy vehicle (NEV) revenue: ≈ 7.249 billion yuan
• Global presence: manufacturing and sales subsidiaries in Germany, the United States, and multiple international markets

• Deliver reliable, high-performance sealing and thermal solutions that enable vehicle safety, efficiency, and longevity.
• Support customers across traditional ICE and rapidly expanding new energy vehicle segments by providing application-specific, quality-assured components.

• Become a global technology partner for automotive OEMs and industrial customers, leading in sealing and thermal management for electrified and autonomous vehicles.
• Expand global footprint while maintaining manufacturing excellence and localized customer service in key markets (Europe, North America, China).

• Quality & Reliability - rigorous process control and product testing across all production sites.
• Innovation - sustained development focus on NEV-compatible materials, thermal systems and integrated assemblies.
• Customer-centricity - engineered solutions tailored to OEM platforms and system-level integration needs.
• Sustainability - emphasis on lightweighting, recyclability of materials and energy-efficient production practices.
• Global Collaboration - leveraging international R&D and production resources to meet market-specific standards and regulations.

• Targeted R&D for NEV applications: sealing for battery packs, high-voltage harness protection, thermal management interfaces and lightweight materials.
• International R&D footprint supports localization of solutions for European and North American OEM requirements.
• Product breadth (rubber seals, hoses, shock absorbers, thermal systems) enables system-level collaboration with customers on electrification challenges.

• Strong NEV exposure: ≈ 7.249 billion yuan revenue from NEV-related business in 2024, reflecting strategic alignment with electrification trends.
• Broad OEM customer base across passenger, commercial and new-energy vehicle segments, supported by global manufacturing and technical service capabilities.
• Recognition among global tier‑1 suppliers underscores scale and integration capability in the automotive supply chain.

Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ) - Overview

• Quality-first: strict quality control covering raw material inspection, process control, and finished-product testing across all plants.
• Customer-centricity: tailor-made sealing solutions for OEMs and tier suppliers in automotive powertrain, chassis, HVAC, industrial machinery, and major appliance lines.
• Continuous innovation: sustained R&D pipeline to address electrification, emissions, and energy-efficiency demands.
• Advanced manufacturing: automation, lean production, and digitalization investments to raise yield and consistency.

• Product scope: elastomeric seals, metal-rubber bonded parts, PTFE components, and engineered polymer housings spanning >10,000 SKUs.
• Geographic reach: production and sales covering Mainland China, ASEAN, Europe, and selective North American customers.
• R&D orientation: focus areas include low-friction sealing for EV drivetrains, high-temperature materials for industrial pumps, and long-life seals for white goods.

• Yield improvements: multi-year reduction in defect rate to <0.6% through SPC and automated inspection.
• Delivery performance: >95% on-time delivery rate to tier-1 OEMs in 2023.
• Customer retention: top-10 global customers average >7 years of continuous supply relationships.
• Certifications: IATF 16949 for automotive, ISO 9001 across plants, and multiple OEM approvals for critical sealing applications.

• Capital expenditure 2023: RMB 420 million directed to automation lines, clean-room upgrades, and material characterization labs.
• Digitalization: rollout of MES/ERP integration across main plants; predictive maintenance pilots decreased unplanned downtime by ~18%.
• Material science: partnerships with university labs and polymer suppliers to extend seal life under high-temperature and low-lubricant conditions.

• Automotive electrification: development of low-torque, long-life seals for EV motor and inverter housings.
• Emission controls & fuel-efficiency: lightweight composite seals and low-friction coatings for ICE and hybrid platforms.
• Appliance reliability: extended-lifetime elastomers and bonding processes for high-cycle domestic appliances.

Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ) - Mission Statement

• Deliver best-in-class sealing systems that improve engine efficiency, emissions control, and reliability.
• Continuously invest in R&D to lead in material science, precision manufacturing, and digital production.
• Expand global manufacturing and customer footprint while maintaining strong margins and cash generation.
• Operate with high environmental, social and governance standards to ensure longevity-"Changsheng cross century".

• Aspire to be among Global 500 admired companies by leveraging product leadership and operational scale.
• Pursue "Changsheng cross century" - a multi-decade perspective guiding capex, talent development, and partnerships.
• Drive global expansion through targeted M&A, export growth, and local production in priority markets.
• Embed technological innovation (lightweight materials, sealing simulation, Industry 4.0) into core capabilities.

• Quality First - deliver defect-free components with industry-leading warranty and service metrics.
• Customer-Centricity - co-develop solutions with OEMs and Tier-1s focused on performance and total cost of ownership.
• Integrity & Compliance - strict adherence to regulatory, safety, and ethical standards across jurisdictions.
• Continuous Improvement - Kaizen-driven manufacturing and lean processes to improve OEE and reduce cost.
• Sustainability - reduce carbon footprint and material waste while increasing recycling and energy efficiency.

• Smart Manufacturing: rollout of automated assembly lines and digital quality-control to raise OEE by 10-15%.
• Materials R&D: focus on high-temperature polymers and composite seals to serve EV and hydrogen powertrains.
• Global Footprint: establish or expand plants in Southeast Asia and Europe to shorten lead times and hedge currency risks.
• Talent Attraction: competitive compensation, technical academies, and global rotation to meet vision of being highly admired.

• ESG targets include 30% reduction in CO2 intensity per unit of production by 2030 and incremental use of recycled inputs.
• Robust compliance frameworks for suppliers and operations across China, ASEAN, and Europe.
• Prudent balance-sheet management: maintain net-debt/EBITDA < 2.0x and liquidity buffers for cyclical downturns.

Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ) Vision Statement

• Deliver world-class sealing solutions through continuous R&D and smart manufacturing.
• Create shared value for customers, employees, suppliers, and communities.
• Maintain rigorous governance, transparency, and responsibility in global operations.
• Foster a learning organization that rapidly adapts to electrification and new mobility trends.

• Honesty: Upholding transparent, ethical business practices across domestic and international markets.
• Responsibility: Accountability to customers, regulators, employees, and investors.
• Innovation: Prioritizing R&D, patents, and product differentiation to stay ahead in competitive segments.
• Rigor: Applying strict quality control and process discipline throughout manufacturing and supply chains.
• Macro vision: Anticipating industry shifts (electrification, lightweighting, NVH requirements) and aligning strategy accordingly.
• Meticulous implementation: Translating strategy into measurable operational KPIs and high-quality execution.
• Continuous learning: Investing in employee capability building, cross-functional knowledge transfer, and best-practice adoption.
• Continuous progress: Pursuing steady improvement in productivity, margin expansion, and customer satisfaction.
• Care and mutual assistance: Building a collaborative corporate culture that supports employee welfare and supplier partnerships.
• Creation and sharing: Generating innovations and sharing value with stakeholders, including joint development with OEMs.

• Innovation & continuous learning: Over 150 million RMB in R&D and dozens of active patents focused on sealing materials for EV thermal management and lightweight components.
• Honesty & responsibility: Strengthened compliance programs and enhanced ESG disclosures to meet investor and regulatory expectations.
• Meticulous implementation & continuous progress: Quality yield improvements and shortened lead times through automation and lean projects across plants.
• Care & mutual assistance / creation & sharing: Joint development programs with OEMs and supplier capacity-building initiatives expanding long-term contracts and co-innovation.