Yongding shares won 3.3 billion yuan GMAC-SAIC car wiring harness new project

On the evening of February 14, Yongding Shares (5.06 +10.00%) announced that its wholly-owned subsidiary Shanghai Jinting Automotive Wiring Harness Co., Ltd. (hereinafter referred to as "Jinting Wiring Harness") had recently received an email from SAIC General Motors Co., Ltd., winning the bid for the new complete vehicle wiring harness project through open bidding. The lifecycle of the project is 6 years, and the total bid-winning amount is expected to be about 3.3 billion yuan. According to the announcement, Jinting Wiring Harness won the bid for the new vehicle wiring harness project of General Motors Co., Ltd. Of SAIC, with an estimated bid amount of approximately RMB 550 million yuan/year, accounting for 19.17% of the audited revenue of the Company in 2017. According to reporters, Yongding shares are mainly engaged in communications technology, overseas projects, automotive wire harnesses and superconducting materials, four industrial plates. Among them, the automotive wiring harness business mainly depends on the subsidiary company Jinting wiring harness design and development, manufacturing and sales. At present, there are many kinds of harnesses in Jinting Wire Harness Production Line, mainly including the harness of automobile body assembly, instrument panel, door control system, airbag, roof, front and EFI engine. The harnesses are mainly supplied by SAIC Volkswagen, GMAC-SAIC, Volvo and Cummins Co., Ltd. Financial data show that as of September 30, 2018, the total assets of Yongding Shares was RMB5.211 billion and the net assets was RMB2.674 billion; In 2017 and the third quarter of 2018, the Company realized revenue of RMB2, 869 million and RMB2, 244 million respectively, and realized net profits of RMB292 million and RMB2, 244 million respectively RMB yuan, 107 million yuan. Yongding shares said that after winning the project, the performance of the contract will have a positive impact on the company's future operating results, but does not affect the independence of the company's operations. It is noteworthy that at present, Jinting wire harness has received notification of winning the tender mail, but the project has not yet signed a formal contract. There are uncertainties in the signing of the contract and the terms of the contract, and the actual total amount shall be subject to the final signed contract.