Anhui Zhongding Sealing Parts Co.,Ltd.

Abstract of the Annual Report 2024

Stock Abbreviation: Zhongding Stock

Stock code: 000887

Stock Abbreviation: Zhongding Stock

Stock code: 000887April 2025

Ⅰ.Important Statements

This is an abstract of the Annual Report 2024.Investors are suggested to read the complete version of the AnnualReport 2024 on the media, which is designated by the China Securities Regulatory Commission(the “CSRC”) tohave a full understanding of operational results, financial statements, and future plans of the Company. Should therebe any inconsistency between the Chinese version and English version, the Chinese version shall prevail.All directors attended the Annual Report Meeting of the Board of Directors.Modified Audit Opinion

□ Applicable √ N/A

The preliminary plan for dividend distribution and converting capital reserves into share capital for commonshareholders which were considered and approved by the Board during the reporting period.

√ Applicable □ N/A

Converting capital reserves into share capital

□ Yes √ No

The Board has considered and approved the following dividend payout plan for the Reporting Period: based on theCompany's total shares of 1,316,489,747，the Company should distribute a cash dividend of RMB 1.5 (tax inclusive)and 0 stock dividend (tax inclusive) per 10 shares to all the shareholders and should not convert capital reserves intoshare capital.The preliminary plan for dividend distribution for preferred shares in the reporting period was approved by theBoard

□ Applicable √ N/A

Ⅱ.Company Profile

1. Company Information

2. Main Business or Product Profile during the Reporting Period

(1)The Auto Industry Situation during the Reporting Period

In 2024, automobile production and sales reached 31.282 million and 31.436 million, respectively, withyear-on-year growth of 3.7% and 4.5% respectively. In 2024, the production and sales of passenger vehicles were 27.477

million and 27.5663 million, respectively, up 5.2% and 5.8% year-on-year. In 2024, the cumulative production and salesof new energy vehicles in China will be 12.888 million and 12.866 million, respectively, up 34.4% and 35.5%year-on-year. (Data from China Association of Automobile Manufacturers statistical analysis)

(2)The main business of the company during the reporting period

1)The company has been continuously promoting the improvement of cost control and refined management in itsoverseas factories, and further advancing the construction of overseas raw material production and mold manufacturingbusinesses. By reducing the manufacturing costs of overseas enterprises, optimizing expenses and other measures, thespeed and certainty of the recovery of overseas business have been increased. Through continuous managementimprovement, both domestic and overseas businesses have maintained a continuously positive growth trend, and thecompany's overall profits have gradually increased. Based on years of cooperation with overseas enterprises, the companyhas gradually strengthened the strategy of management output and cultural output, strengthened the cost control ofoverseas enterprises, promoted business integration and market expansion, and at the same time, fully utilized theadvantages of the Chinese engineer talent pool, further accelerating the absorption and innovation of technology. In theautomotive field, the company will continue to focus on the strategic goal of the intelligent chassis system, drive thecompany's business to advance towards intelligence, maintain stable growth of traditional businesses, and rapidly developincremental businesses. At the same time, the company will actively promote the layout in the fields of humanoid robots,low-altitude economy, AI, etc., especially focusing on the humanoid robot field as the core strategic goal of the company.The company continues to rank among the "Top 100 Global Automotive Components Industry Companies" (ranked89th).

2)Intelligent Chassis system business-Air suspension system

a.Introduction of Products

Compared with the traditional steel car suspension system, the air suspension has many advantages. The mostimportant point is that the elastic coefficient of the spring, which is the hardness of the spring, can be automaticallyadjusted according to the needs. According to different road conditions and the signals from the distance sensor, theon-board computer will determine the change in the vehicle height, and then control the air compressor and exhaust valveto make the spring automatically compress or extend, thereby reducing or increasing the ground clearance of the chassis,in order to increase the stability of the vehicle at high speeds or the passability in complex road conditions. The airsuspension system enables a car to have the comfort of a sedan while also having the handling performance of an off-roadvehicle. The air suspension system includes air compressors, control units, multi-system sensors, air springs, shockabsorbers, etc.

b.Future Market potentialWith the advent of the era of new energy vehicles, the demand for intelligence in new energy cars has emerged,and at the same time, the air suspension system for chassis protection is no longer exclusive to high-end models.Due to the much higher stability requirements of the new energy vehicle chassis system compared to pure fuelvehicles, the air suspension system has gradually become the mainstream configuration for new energy vehicleplatforms.Advanced voice intelligent systems, intelligent air suspension systems, and outstanding autonomous drivingfunctions are all the core of current automotive intelligence. Tesla and new autonomous vehicle brands such as NIO,Li Auto, and Xiao Peng have also equipped air suspension systems and other such technologies and intelligentfunctions. With the further improvement of air suspension system technology and the increasing recognition ofowners for the ultimate experience of air suspension products, in the future, more and more cars will be equippedwith air suspension systems to enhance the superiority and customer satisfaction of their products.In addition, apart from being used in passenger cars, air suspension systems are also widely adopted in mostmedium-sized and above buses and light commercial vehicles in developed countries. Heavy trucks, except forengineering vehicles, almost all road transport vehicles use air suspension. The GB7258 "Technical Conditions forMotor Vehicle Operation Safety" that came into effect in China in 2018 also requires: "The rear axle of dangerousgoods transport trucks with a total mass of 12,000 kg or more, all dangerous goods transport semi-trailers, andthree-axle box-type and shed-type semi-trailers should be equipped with air suspension."The air suspension system has gradually moved from the high-end to the popular level and will eventuallybecome an indispensable part of automobiles, especially intelligent automobiles.c.Company industry position and business promotionThe German AMK subsidiary of the company, as a leading high-end supplier of air suspension systems in theindustry, has been a top-three player since the 1990s. Since entering the air suspension system business in the 1990s,it has continuously improved its product assembly technology and has been deeply involved in the industry for over

two decades, providing components for world-class original equipment manufacturers such as Jaguar Land Rover,Volvo, Audi, Mercedes-Benz, and BMW. The domestic air suspension market is still in its infancy. AMK China hasbeen accelerating the development of a supply chain system that optimizes the performance and cost of airsuspension systems in the Chinese passenger vehicle market. AMK will continue to develop steadily based on thestrategic goal of "accelerating localization, technological iteration and upgrading, and strengthening and completingthe industry". AMK China has already obtained orders from several new car startups and leading domestic brandenterprises.

The subsidiary, Dingyu Technology, relying on Zhongding's core advantages in rubber research andmanufacturing, focuses on the research and production of air springs and continuously pushes for technologicalbreakthroughs, improving product performance. Currently, air springs and air tank products have been awardedproject contracts, and the company is also accelerating the layout of the magnetic fluid damping system project. Theconstruction of the project production line is currently accelerating.As of now, the company's domestic air suspension business has received a total order value of approximately

15.2 billion yuan, of which the total order value of assembly products is approximately 1.7 billion yuan. It isexpected to obtain more project contracts in the future.

3)Intelligent Chassis System Business-Lightweight chassis system

a. Introduction of Products

Automobile metal parts are widely used in the chassis system of automobiles, including the steering system,suspension system, braking system and driving system. The lightweighting of automobiles has become a widelyrecognized consensus in the automotive manufacturing industry. The lightweighting of the chassis plays a crucialrole in the performance of the entire vehicle. Lightweight chassis products such as aluminum alloy control armassemblies have high unit value and are the core components for operational stability and comfort.

b. Future market potentialDue to the need for environmental protection and energy conservation, the lightweighting of automobiles hasbecome a global trend in automotive development. The lightweighting of automobiles is not only applicable totraditional fuel-powered vehicles, but also for new energy electric vehicles. Reducing the weight of the vehicle bodyand achieving lightweighting is equally important for new energy electric vehicles, as it is related to the mainrange-extended issue of these vehicles. Experiments have shown that in terms of acceleration performance, a

1.5-ton vehicle would approximately take 10 seconds to accelerate to 60 kilometers per hour; if the weight isreduced by 25%, it can be reduced to 8 seconds.

Implementing lightweighting on the chassis yields much greater benefits in terms of fuel consumption andhandling compared to the lightweighting of other components to the same extent. Most components on the chassisbelong to the off-axle weight. In contrast, the weight of the vehicle body (structural components, strengthening parts,and covering parts) belongs to the on-axle weight. Generally, it is believed that the effectiveness of off-axle weightreduction is 5 to 15 times that of on-axle weight reduction. At the same time, lightweighting of off-axle weightimproves the ratio of on-axle weight to off-axle weight, which is similar to an athlete removing the sandbag tied totheir legs, significantly improving the response speed and comfort during acceleration, braking, and steering of thevehicle.c. Company industry position and business promotionIn recent years, the company has vigorously developed chassis lightweighting system assembly products.Meanwhile, its subsidiary, Sichuan Wangjin Company, has a core technology of ball head hinge assembly products,

which are the core safety components and performance parts of the chassis system and possess globally leadingtechnology with a very high technical threshold.As the company continuously advances its business in chassis lightweighting system assembly products, it hasreceived orders from multiple traditional and new force vehicle manufacturers such as Mercedes-Benz, Changan,GAC, and BYD. While maintaining the steady development of its domestic lightweight business, the company isalso actively laying out the overseas lightweight market. Currently, the lightweight factories of the company inSlovakia and Mexico are under orderly construction. In 2024, the company's cumulative lightweight business ordersare approximately 14.2 billion yuan.

4)TMS system

a. Introduction of ProductsThe German subsidiary of the company, TFH, has been continuously promoting the research and developmentas well as production of thermal management pipeline products. Building on the foundation of traditional thermalmanagement pipelines, the company has vigorously advanced the business of the total assembly of thermalmanagement pipeline systems for new energy vehicles, and actively expanded the application of new materials inproducts. The company has vigorously developed the application of nylon pipes and TPV materials, and hasactively cooperated with several OEM customers to carry out advanced development projects.At the same time, the subsidiary Zhongding Intelligent Thermal System is also actively laying out the totalassembly products of temperature control systems in three major fields: new energy vehicles, new energy storage,and supercomputing centers. Based on its own advantages in system integration and algorithm strategies, it hascreated intelligent, green, and modular thermal management products.

b. Future market potentialThe battery modules of new energy vehicles have much higher requirements for temperature control thanthose of traditional vehicles. At the same time, with the company's digestion and absorption of the TFH pipeline

assembly technology, the unit value of the company's fluid pipeline products has increased from about 30 yuan ontraditional vehicles to nearly 1,000 yuan for new energy vehicles, and up to 1,500 yuan for extended-range newenergy vehicles. Meanwhile, the thermal management system of automobiles will reach a unit value of about5,000 yuan. With the continuous development of new energy vehicles, the rapid growth of AI computing powerdemand, and the increasingly strict PUE energy efficiency requirements, the market for new energy vehiclethermal management systems, new energy storage systems, and supercomputing center thermal managementsystems is also expanding rapidly.c. The company's industry status and business promotionThe company has been continuously promoting the research and production of thermal management pipelineproducts for many years. Its subsidiary, German TFH, is an outstanding supplier of engine and new energy vehiclebattery thermal management pipeline assembly products, possessing exclusive production technologies such as thecreatube process and core technologies for TPV hoses and nylon pipes. The company ranks among the top twoglobally in its respective niche field. The company has vigorously promoted the business of thermal managementpipeline system assemblies for new energy vehicles and has already provided components for new energy vehicleplatforms such as BMW, Volvo, Audi, Volkswagen, Geely, XPeng and Ideal.The subsidiaries Zhongding Fluid and Zhongding Intelligent Thermal Systems lead the development ofthermal management system assembly business, actively laying out the research and production of thermalmanagement system assemblies and core components, and possessing independent intellectual property rights. Theyhave already launched a series of products such as energy storage liquid cooling units, supercomputing centerimmersion liquid cooling units, thermal management controllers, temperature and pressure integrated sensors, andrefrigerant flow channels. The company is also actively promoting the implementation of more new energy vehiclethermal management products. In 2024, the company's thermal management system business has cumulativelyreceived orders of approximately 11.7 billion yuan.

5)Sealing System

The company's subsidiaries, such as KACO in Germany and PRECIX in the United States, possess theworld's top three sealing system technologies. KACO and other enterprises under the sealing System have beenactively promoting the layout of new energy and have successfully developed high-performance new energymotor seals. Meanwhile, the company has currently developed and mass-produced products such as sealingsystems for new energy battery modules and bridge assemblies, which are used to support new energy vehicleplatforms of Volvo, NIO, SAIC, GAC, etc.The automotive sealing industry is a high-tech barrier sector with extremely high reliability requirements.Dynamic sealing is the most technically challenging part of the sealing industry, especially the high-speed oil sealfor new energy vehicle motors, which represents the most advanced technological level in the global sealingindustry. In recent years, the company has continuously accelerated the pace of business expansion, especiallymaking significant breakthroughs in American cars and domestic brand customers, and its market share in theindustry has steadily increased.6）Humanoid robot businessHumanoid robots are the core strategic business for the company's future development. The company's

subsidiary, Anhui Ruisibo Company, focuses on expanding the business related to humanoid robot componentassembly products. Currently, the company's technical team has a core competitive advantage in the field ofharmonic reduction products, and the related production line equipment is under debugging. At the same time, thecompany's existing sealing, rubber business and lightweight business are also applied in the field of robotics. Thesealing products, rubber products and connecting rod products related to humanoid robots are also beingdeveloped simultaneously, and some products have already completed the designated matching. The company iscurrently focused on the production of harmonic reducers and will gradually expand into related product fieldssuch as force sensors in the future, ultimately achieving the production and manufacturing of robot joint assemblyproducts.At present, the company and its subsidiaries have signed strategic cooperation agreements with ZhejiangWuzhou Xinchun Group Co., LTD., Shenzhen Zhongqing Robot Technology Co., LTD., and Efort IntelligentEquipment Co., LTD., enhancing the company's core advantages in the field of humanoid robot componentassembly products and accelerating the production and supporting of the company's robot harmonic reducers andcomponent assembly products. At present, the related business is being accelerated.

(3) The Analysis of Core Competitiveness

The Competitiveness of Global Leading Technology, International Management Ability, SustainableInnovation Culture

a. The competitiveness of global leading technology

Since entering the air suspension system business field in the 1990s, the company has continuously improvedits product assembly technology, delved into the industry for over two decades, and possesses core technologies inthe niche market. In the field of chassis lightweighting, it possesses the core technology of ball joint hingeassemblies. The company has been promoting the research and development and production of thermalmanagement system products. It possesses its own patented exclusive production technology, the creatube process,as well as the core technologies of TPV hoses and nylon tubes. The company ranks globally in the industry of itsspecific field. Meanwhile, the company has now entered the field of humanoid robots and is engaged in thesupporting business of related component assembly products, possessing the core technology of harmonic reducerproducts. In 2016, Zhongding Co., Ltd. collaborated with Tsinghua University to establish an academicianworkstation with Wang Yuming, an academician of the Chinese Academy of Engineering and a professor atTsinghua University, as the core research team, to strengthen innovation cooperation and solve major keytechnical problems. In addition, Zhongding Co., Ltd. has also carried out industry-university-research cooperationwith domestic universities and research institutions such as Tsinghua University, University of Science andTechnology of China, Tongji University, and Anhui University. It has 1,281 independent intellectual propertyrights, including 259 foreign patents, 203 Chinese invention patents, 776 utility model patents, 10 design patentsand 33 software Copyrights. Twenty-eight national standards and twelve industry standards have been formulated.

b. The core competitiveness of international management ability

Since 2003, the company has established logistics centers overseas and began its overseas acquisitionjourney in 2008. It has gone through three stages of overseas acquisitions: "global acquisition", "localization inChina", and "overseas control". Through these experiences, the company has accumulated rich international

management experience. Currently, the company has entered the third stage of overseas control. It has constructeda global organizational structure system based on the five major business divisions and is further promoting theglobal collaborative strategy. It is achieving global strategic coordination, platform coordination, technologycoordination, and product coordination at a higher level, shifting from capital output to industrial output,management output, and cultural output.

c. Continuously innovation cultural competitivenessThe company has long obtained certifications for quality, environment and laboratory systems such asIATF16949, ISO14001, and ISO/IEC17025. As early as 2003, it initiated the "Digital Zhongding" plan andimplemented the Limma ERP system throughout the company. In 2016, the company officially invested tens ofmillions of yuan to launch the SAP informatization project. In recent years, it has achieved full online operation ofthe main enterprise and realized the construction of the global SAP informatization platform, thereby enhancingthe comprehensive operational efficiency of the enterprise. Through years of practical exploration, the companyhas established a set of scientific cost management methods and promptly takes effective measures for continuousimprovement. During its development process, the company continuously learns and introduces advancedmanagement experience and applies it to its own use. It has successively launched and promoted Six Sigma andAmoeba Management, achieving rapid improvement in management level.It is precisely because the company has its own core competitiveness during the continuous developmentprocess that it is in an absolute leading position in the domestic industry. The company has global synchronousR&D, production, sales and service capabilities. In the future, the brand value and core competitiveness of thecompany will be further enhanced.

(4) Main business analysis

1) Overview

In 2024, the production and sales of automobiles reached 302.82 million units and 314.36 million unitsrespectively, with year-on-year growth rates of 3.7% and 4.5% respectively. In 2024, the production and sales ofpassenger vehicles were 274.77 million units and 275.63 million units respectively, with year-on-year growthrates of 5.2% and 5.8% respectively. In 2024, the cumulative production and sales of China's new energy vehiclesreached 128.88 million units and 128.66 million units respectively, with year-on-year growth rates of 34.4% and

35.5% (data from the statistics and analysis of the China Automobile Industry Association). Since 2008, thecompany's internationalization strategy has gradually entered the harvest period. By the end of the reportingperiod, the production proportions in Asia, Europe, and America were 65.25%, 24.41%, and 10.34% respectively.Through the effective integration of global resources, the company's technology, brand, profit level, and customerbase have been rapidly enhanced, achieving the dual drive of internal expansion and external extension; at thesame time, the company concentrated its advantageous resources to increase the exploration efforts in new energyand environmental protection vehicles, automotive electronics, and system assemblies, preparing well for projectincubation and reserves for the company's future sustained and rapid development.

In 2024, the company achieved operating revenue of 18.854 billion yuan, an increase of 9.33% year-on-year;net profit attributable to shareholders of the listed company was 1.252 billion yuan, an increase of 10.63%year-on-year; the company continued to rank among the "Top 100 Global Automotive Components Industry"

(ranked 89th) and "Top 50 Global Non-Tire Rubber Products Industry" (ranked 10th, domestic 1st).a. The display of Overseas mergers and acquisitions projects results in ChinaOver the past few years, the company has been actively promoting the domestic implementation of its overseasenterprise acquisition business strategy, and the performance growth has exceeded expectations. Please refer to thetable below for details.

Unit: ten thousand yuan

Anhui WEGU

b. The customer structure of OEM supportingThrough overseas mergers and acquisitions, the integration of global technologies and products, and theenhancement of brand advantages, the product sales have shifted towards mid-to-high-end models. The top tenmain vehicle manufacturers' customers are detailed in the following table:

The total direct and indirect sales revenue of the top ten customers was 9.821 billion yuan, accounting for

52.09% of the company's 2024 operating income. The concentration of high-end customers was relatively high.c. New energy vehicle projectThe company has actively established a presence in the field of new energy vehicles, with an intelligent chassissystem as its core. At the same time, it is at the international leading level in multiple new energy sectors such asthermal management systems, chassis lightweighting systems, and air suspension systems. In 2024, the business inthe new energy field achieved sales of 7.249 billion yuan, accounting for 40.20% of the 2024 annual automotivebusiness revenue. Among this, the sales in the new energy field in China in 2024 were 5.461 billion yuan,accounting for 56.01% of the 2024 annual domestic revenue.

2) Revenue and Cost

a. Composition of operating revenue

Unit: yuan

Intelligent chassis-AirSuspension System

Overseas

b. Information about industries, products, regions, and sales models that account for more than 10%of the company's operating revenues or profit

Unit: yuan

By Product

IntelligentChassis-rubberbusiness

By Sales Methods

3) Main accounting data and financial indicators

a. Main accounting data and financial indicators in the past three yearsWhether the company needs to retrospectively adjust or restate accounting data for previous years? Yes □ NoThe reasons of Adjusting or restating accounting dataAccounting policy change

Unit: yuan

b. Main Accounting Data by Quarter

Unit: yuan

Whether there are significant differences between the above financial data or the total value previouslydisclosed quarterly or interim reports.

□ Yes √ No

4) Shareholders and Shares

a.Total number of common shareholders and shareholdings of the top ten common shareholders at the

period-end

Unit：share

period

Shareholders holding more than 5%, the top 10 shareholders and the top 10 shareholders of unlimitedtradable shares participate in the refinancing business to lend shares? Applicable ?N/A

Unit：share

The top 10 shareholders and the top 10 shareholders of unlimited outstanding shares have changed from theprevious period due to refinancing lending/restitution reasons

? Applicable √ N/A

b.Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their

Shareholdings

? Applicable √ N/ADuring the reporting period, the Company had no preferred shareholders' shareholdings.

c.Disclose the property rights and control relationship between the Company and the actual controllerin block diagram form

5)Status of bonds existing on the date of approval in the annual report

? Applicable √ N/AⅢ. Important issues

N/A