Recently, Taixiang Industrial Co., Ltd. (securities abbreviation: Taixiang shares, securities code: 833874) released its 2021 semi-annual report. The report shows that, driven by the recovery of the automobile industry, Taixiang's revenue and profit both increased in the first half of this year. Among them, operating income rose 45.84 percent year-on-year to 85.1057 million yuan, while profit rose 57.09 percent year-on-year to 47.7594 million yuan.

Taixiang shares with stable performance were also selected as the third batch of specialized and new "little giant" enterprises by the Ministry of Industry and Information Technology in the first half of this year. In the face of national recognition, Taixiang shares set off again. While continuing to consolidate R & D strength, we should capture the changes in the industry and begin to lay out the precision manufacturing industry of new energy auto parts, so as to obtain more growth space.

The auto industry is picking up business performance growth rate is obvious

taixiang is a manufacturer of engine main bearing covers, a global supplier and **supplier to the Volkswagen Group, and one of the few companies in China that can supply to the Volkswagen Group's global plants and participate in the bidding for casting parts for all Volkswagen Group brands.

According to the latest "Global Automobile Production and Sales Database" released by the High-tech Industry Research Institute (GGII), global car sales in the first half of 2021 were about 40.97 million, a year-on-year increase of 26%. In terms of vehicle categories, global passenger car sales in the first half of 2021 were about 26.84 million, an increase of 24 per cent over the same period last year; global passenger car sales were about 320000, an increase of 21 per cent over the same period last year; and global special-purpose vehicle sales were about 13.81 million, an increase of 33 per cent over the same period last year.

Affected by the recovery of the global auto market, China's auto parts exports are also continuing to pick up. Data show that from February to May this year, China's exports of spare parts growth rate of 135.7, 12.0, 39.2 and 65.0, respectively.

Driven by the industry, Taixiang's performance growth rate is obvious. According to the company recently released the 2021 semi-annual report shows that Taixiang shares in the first half of the revenue and profit growth, the growth rate exceeded 40%. Among them, operating income rose 45.84 percent year-on-year to 85.1057 million yuan, while profits rose 57.09 percent year-on-year to 47.7594 million yuan.

While the operating results are growing significantly, Taixiang's operations continue to improve. In the first half of 2021, the company achieved net cash flow from operating activities of 39.1645 million billion yuan, up 5.13 percent year-on-year, and maintained a high gross margin of 59.96 percent.

in terms of market development, Taixiang shares in the first half of this year fruitful. In addition to obtaining the fixed point of Audi EA888 main bearing cover iteration EA888 five-generation new project, it also obtained the fixed point of Audi frame-type conjoined main bearing cover new project. Weapon has been highly recognized by the Volkswagen Group for its stable quality performance and delivery services, and its share in factories such as Volkswagen in Mexico has further increased. In terms of potential market development, the company has also been awarded new main bearing projects for other customers outside Volkswagen.

Selected the third batch of specialized special new"Little Giant" set out again

not only has the performance risen steadily, but the technical strength of Taixiang shares has also been recognized at the national level. In the first half of this year, Taixiang shares were selected into the third batch of specialized and new "little giant" enterprises of the Ministry of industry and information technology of the people's Republic of China. At the same time, Taixiang shares continue to consolidate research and development strength, embrace industry changes, in order to obtain greater growth space.

It is understood that in the first half of 2021, Taixiang invested a total of 5.1042 million yuan in research and development expenses, an increase of 78.47 over the same period last year. The company completed the machine plus dust removal system and equipment safety interlock system transformation and upgrading at the same time, the implementation of a number of production line transformation and process research and development, which is expected to be completed within this year, the richness of the product is expected to be further improved.

In addition, in view of the development trend of the new energy vehicle industry, Taixiang said in its semi-annual report that the company is also continuing to pay attention to seeking the right time to try and find new professional directions and products based on its core technological advantages.

According to IHS Markit, the cumulative global sales of electric vehicles in the first half of 2021 have exceeded 2.5 million, accounting for 6.3 percent of the global automotive market. It is expected that the electric vehicle market will be stronger in the second half of the year. The global electric vehicle sales for the whole year may exceed 6 million, exceeding the previous expectation of 5 million.

In the face of the "little giant" embracing the industry again, the industry brokerage also showed a positive attitude. Anxin Securities said, Taixiang shares as the automotive engine main bearing cover fine molecular field leader, technology first-mover advantage is obvious, cost control ability is strong. Starting to lay out the new energy auto parts precision manufacturing industry will benefit from the rapid development of the automotive industry.