Shenda's Net Profit Increased By 1134% In The First Quarter, How To Make China's Auto Interior Run Around The World?

As the top domestic automotive interior decoration enterprise, the Shenda group of Dongfang International Group is making a firm step toward the goal of "letting China's interior trim run around the world". The latest figures show that the net profit of Shenda group was 466 million yuan in the first quarter, up 1134% over the same period last year.

For Shen Da shares, the merger and acquisition of Auria is an important sign of its initial globalization. Auria, founded in 2017, has 150 years of experience in the production of global automotive soft decoration products. It has 29 manufacturing plants, 9 Commercial and technical centers and 7000 employees worldwide. It is the world's leading supplier of automotive flexible parts, providing floor system, thermal and acoustic management and other fiber based solutions.

Why was it founded in 2017 and has a history of 150 years? This has to start with the origin of the acquisition. In December 2016, Shen Da signed a takeover agreement with the IAC International Automotive Components Group group. According to the purchase agreement, Shen Da shares would like to acquire IAC's ST&A (Soft Trim and Acoustics) business related assets in cash. To complete the transaction, the two sides set up a new B1 company, and IAC injected the above assets into B1 company, which subscribed to Shenda group's 70% stake in B1 company to achieve absolute control of B1 company. At that time, B1 company was now Auria company. Therefore, although Auria is a new company in name, it has implanted the Centennial gene of IAC group ST&A business.

IAC group is an international automotive interior supplier with a history of more than 100 years. ST&A has a market share of 11%, ranking second in the world. Its products cover the overwhelming majority of leading brands in the United States and Europe, including general motors, BMW, Daimler, Ford and so on, and it covers many luxury automobile brand OEM producers.

Under the background of supply side reform, this acquisition is of great significance for introducing Shenda's leading international advanced technology, enhancing R & D and management capability, developing environmental protection technology and realizing green production. Shenda shares were also able to take the acquisition as a new starting point to create the goal of "automotive textile interior decoration Asia first" and complete the transformation of "regional suppliers" to "global suppliers".

However, last year, the whole auto industry was not optimistic. The turning point of the industry downturn period has already appeared. It is expected that the industry will be in a low trough for three years or more in the future. And Shenda's related businesses will also be transferred from strategic expansion to strategic adjustment, which is facing greater pressure for Auria, who has just acquired.

After the completion of the acquisition, Shen Da shares actively carried out the integrated management, improvement and upgrading of Auria. Shenda shareholding and Auria board have formulated the Auria overall improvement and upgrading plan around the market, products and technology, constantly increasing the investment in new project construction and the development of new products, and strengthening the close coordination and coordination of resources at home and abroad. Auria gradually gained the trust and recognition of many high-end customers. Last year, it got the new order of Mercedes Benz global project. Recently, in the fierce market competition, with the advantage of global layout, it has successively obtained the matching projects of BMW luxury models, the Volvo luxury models and the new energy vehicle type matching projects, and the new order of Fiat Chrysler project, which has effectively expanded the high-end customer market share.

Those who keep pace with the times are born, and those who go against the trend will die. The industry downturn also contains great new opportunities, creating a natural opportunity to surpass competitors. More intense market competition will speed up the industry shuffle, and also make resources lean towards truly high-quality enterprises.

Shen Da shares responsible person said that in the stock market tends to be saturated, the tentacles must be extended to the emerging market, based on consolidating the North American, European and Chinese market share, grasp the opportunities for emerging markets such as Vietnam, India, Thailand, Indonesia and other emerging markets. Relying on the strong R & D capability of the global technology platform, we will intervene in the early stage design of the products, and provide the overall solution for the automotive plant with soft decoration and acoustic system. "With the development and utilization of new energy, the rapid development of electric vehicles, driverless and intelligent transportation, in the foreseeable future, the end-users will pay more attention to the derivative function and consumption experience of automotive interior decoration. Shendai shares will continue to inherit and innovate, and strengthen the investment and R & D of fashion, environmental protection, comfortable and lightweight products."