Business Performance - The company successfully launched 16 new customer projects in the first half of 2021, marking a strong performance for three consecutive years, with 14 of these being new business acquisitions[7]. - Total customer project orders amounted to $1.3 billion, with 89% of these projects won from competitors, including a breakthrough with a Japanese OEM for REPS products[7]. - The signed business order volume from order to delivery reached $24.5 billion, indicating strong demand and a solid backlog[7]. - In the first half of 2021, the company achieved a total order volume of $24.5 billion, slightly down from $24.6 billion at the end of 2020[11]. - The company maintained a 100% retention rate of existing business over the past three years, with approximately 50% of new orders coming from newly acquired business[10]. - Revenue for the first half of 2021 reached $1,734,394 thousand, a 43.3% increase compared to $1,210,720 thousand in the same period of 2020[33]. - Gross profit for the first half of 2021 was $226,472 thousand, representing an 85.6% increase from the previous year's $122,029 thousand[33]. - Adjusted EBITDA for the first half of 2021 was $212,890 thousand, up 84.1% from $115,666 thousand in the first half of 2020[33]. - The company reported a pre-tax profit of $93,027 thousand, a significant increase of 399.2% compared to a loss of $31,089 thousand in the same period of 2020[33]. - Profit attributable to equity holders of the company was $83,143 thousand, a dramatic increase of 6,290.7% from $1,301 thousand in the first half of 2020[33]. Market Strategy and Innovation - The company continues to focus on technological leadership and adapting to major trends, including software and electrification[7]. - The company is selectively seeking acquisitions and alliances to enhance its growth strategy, particularly targeting growth in China and emerging markets[2]. - The company is focusing on expanding its product portfolio to cover B to D segment vehicles, as well as light commercial vehicles (LCV) and heavy trucks (3.5 to 6 tons)[14]. - The company is well-positioned to support the electrification trend, particularly in the electric pickup truck segment, with products like HO REPS and ball-spline half shafts set to be used in the upcoming GMC Hummer EV[20]. - The company is preparing for the increasing interest in steer-by-wire (SbW) technology, positioning itself as a leading supplier in performance, safety, and value[15]. - The company is actively collaborating with two major global vehicle manufacturers on future SbW projects, leveraging its modular SbW technology[16]. - The company is responding to the growing demand for software-supported steering functions and other software-centric motion control applications[21]. - The company is developing a centralized software team to support EPS systems and advanced steering functions[23]. - The company announced a new strategic software team to enhance its global software engineering capabilities, consolidating expertise across four locations[22]. Financial Health and Challenges - The ongoing supply chain challenges have led to increased input costs and logistics time, impacting financial performance in the first half of 2021[29]. - Despite challenges from global semiconductor shortages, Nextrer actively collaborates with OEM customers and suppliers to mitigate impacts on vehicle production requirements[29]. - The group faced challenges from raw material inflation, transportation and logistics costs, and semiconductor chip shortages, which impacted operational efficiency despite the recovery in light vehicle production[46]. - The company reported a total comprehensive income of $78,318 thousand for the six months ended June 30, 2021, compared to a loss of $12,257 thousand in the same period of 2020[100]. - The company incurred a net cash outflow from financing activities of $(175,364) thousand, compared to $(28,438) thousand in the previous year, primarily due to higher loan repayments[111]. - The company faced rising costs in certain commodities and logistics, which adversely affected its operating performance in the first half of 2021[114]. Employee and Corporate Governance - The company is committed to becoming the employer of choice, focusing on employee engagement and satisfaction[7]. - The new collective bargaining agreement with UAW will be effective until March 2026, establishing a strong and sustainable future for employees and the company[28]. - Nextrer has received multiple awards for its human resources management and workplace environment, including recognition as an ideal workplace in Mexico and Poland[31]. - The company is committed to enhancing employee health and safety while advancing its environmental, social, and governance (ESG) initiatives[29]. - The company is integrating sustainability into its global business strategy, achieving various recognitions such as being named one of America's Most Responsible Companies for two consecutive years[29]. - The company is committed to high standards of corporate governance, ensuring transparency and protection of shareholder rights[70]. Shareholder Value and Stock Options - The company aims to enhance shareholder value through a six-point profit growth strategy, which has guided decision-making during the challenges posed by the COVID-19 pandemic[6]. - The board did not recommend any interim dividend for the six months ended June 30, 2021[74]. - The company granted stock options totaling 16,416,350 shares, with an exercise price ranging from ¥5.150 to ¥12.456 depending on the grant date[79]. - The total number of shares held by directors and key executives through stock options was 5,621,880 shares, representing approximately 0.22% of the total issued shares[81]. - The company has a stock option vesting schedule requiring one year of holding from the grant date, with one-third of the options vesting annually[79]. Assets and Liabilities - As of June 30, 2021, the total assets of the company amounted to $3,161,891 thousand, a decrease from $3,305,741 thousand as of December 31, 2020, representing a decline of approximately 4.3%[93]. - The total liabilities as of June 30, 2021, were $1,184,808 thousand, an increase from $1,384,756 thousand as of December 31, 2020, reflecting a decrease of about 14.4%[96]. - The company's intangible assets rose to $686,031 thousand, up from $657,493 thousand, marking an increase of approximately 4.3%[93]. - The company’s deferred tax assets decreased to $6,416 thousand from $11,805 thousand, a decline of approximately 45.6%[93]. - The total borrowings of the group as of June 30, 2021, were $114.3 million, a decrease of $134.3 million from $248.6 million as of December 31, 2020[62].

Company Overview - Nexteer Automotive reported a focus on advanced steering and powertrain systems, emphasizing their competitive advantage in hardware, software, and electronics integration[3]. - The company has over 110 years of expertise in vehicle integration and product craftsmanship, which supports their commitment to delivering reliable and safety-focused products[3]. - Nexteer Automotive serves major global automotive manufacturers, including BMW, Ford, and Toyota, highlighting their extensive customer base[4]. - The company operates manufacturing plants and technical centers globally, ensuring a robust operational footprint[5]. - Nexteer Automotive's headquarters is located in Auburn Hills, Michigan, USA, which serves as a central hub for their operations[8]. Product Offerings - The company is dedicated to innovation in the steering and powertrain systems market, aiming to provide value-added services and solutions[3]. - Nexteer Automotive's product lines include Electric Power Steering (EPS) systems and Hydraulic Power Steering (HPS) systems, showcasing their diverse offerings[13]. - The company has developed cost-competitive brushed motor column-assisted EPS (BEPS) tailored for emerging markets, with customers including SAIC-GM-Wuling and Changan[14]. - The hydraulic power steering (HPS) system is utilized by major manufacturers including FCA and General Motors, with exclusive use in GMC Sierra and Chevrolet Silverado[15]. - The company’s advanced steering column and intermediate shaft (CIS) products are used in various models from General Motors, Ford, FCA, and Toyota, enhancing safety and ergonomics[16]. - The company’s steer-by-wire (SbW) technology supports advanced safety features and flexible vehicle layouts, becoming a preferred choice for automated driving solutions[18]. Financial Performance - In 2019, the company reported a revenue of $3,575,657 thousand, a decrease of 8.6% compared to $3,912,170 thousand in 2018[70]. - The gross profit for 2019 was $538,702 thousand, down 19.5% from $668,847 thousand in the previous year[70]. - The adjusted EBITDA for 2019 was $525,096 thousand, reflecting a decline of 15.2% from $619,564 thousand in 2018[71]. - The company secured customer projects worth $7 billion in 2019, with 50% attributed to new business expansion[24]. - The total signed business order volume reached a historical high of $26.4 billion, representing a 4.4% increase compared to 2018[24]. Market Trends and Innovations - The software is projected to account for 40% of vehicle value by 2030, up from 10% in 2015[20]. - The anticipated growth in electric vehicles (EVs) is expected to drive demand for the company's EPS systems, which are compatible with both traditional internal combustion engine (ICE) and electric vehicle platforms[43]. - The company is positioned to lead the electrification trend, with its high-power EPS systems set to transform heavy-duty trucks from hydraulic to electric steering[44]. - The integration of advanced safety features, such as the Autonomous Emergency Steering (AES), is designed to reduce collision risks and enhance driver confidence[41]. - The company is focusing on advanced safety and performance technologies, particularly through its Software-based Steering (SbW) solutions, which enhance stability control and reduce braking distances[39]. Global Expansion and Operations - The company opened a new technology center in Suzhou, China, in January 2020, covering over 30,000 square meters, aimed at enhancing engineering capabilities and customer responsiveness[34]. - The new Chennai plant in India began production in May 2019, expanding regional capacity for CEPS systems and DL components[35]. - The company established its first African factory in Morocco, which began production in the third quarter of 2019, supporting various customer projects in Europe and Africa[36]. - The company relocated its Liuzhou plant in China to a new facility in June 2019, enhancing productivity to meet the demand for EPS systems in the Asia-Pacific market[36]. - The company launched 34 new projects in 2019, involving EPS, DL, and steering columns, with a notable number of DL projects nearing EPS project numbers[34]. Customer Relationships and Retention - The company emphasizes a customer-centric approach, focusing on understanding and meeting customer needs and expectations[3]. - The company has a strong commitment to building lasting relationships with customers and suppliers, positioning itself as a preferred partner in the automotive industry[3]. - The company achieved a 100% retention rate of existing business for the second consecutive year[24]. - The North America division secured 13 new projects in 2019, indicating growth in existing customer orders and new project acquisitions[66]. Challenges and Risks - The company faced challenges in 2019 due to a slowdown in automotive production demand and various adverse financial factors, impacting overall performance[78]. - Currency fluctuations negatively impacted the company's financial performance, with an estimated revenue loss of approximately $55.9 million due to stronger USD against CNY and EUR[85]. - The company's net profit attributable to equity holders dropped by 38.8% in 2019, influenced by a non-recurring tax benefit of $27.1 million in 2018[82]. - The global light vehicle production decreased by 5.8% in 2019 compared to 2018, impacting the company's revenue[83]. Corporate Governance and Leadership - The board of directors is responsible for managing and operating the business, with key executives overseeing strategic vision and execution[119]. - Zhao Guibin serves as the CEO and Vice Chairman, having over 20 years of experience in the automotive industry, and is responsible for leading the global strategic committee[121]. - The company has experienced significant leadership continuity, with key executives having long tenures in their respective roles[130]. - The management team includes executives with diverse backgrounds in finance, operations, and technology, enhancing the company's strategic capabilities[129]. Sustainability and Corporate Social Responsibility - The company emphasized its commitment to corporate social responsibility, integrating sustainability into its global business strategy[68]. - The company made charitable contributions totaling $0.5 million in 2019, with employees volunteering over 15,500 hours for local charitable work[166]. - The company is committed to environmental, social, and governance (ESG) practices, adhering to relevant laws and regulations[165]. Stock Options and Shareholder Information - The stock option plan allows for a maximum of 249,780,400 shares to be issued upon exercise, representing approximately 9.96% of the company's issued share capital as of the report date[178]. - The company proposed a final dividend of approximately $81.5 million, representing slightly over 35% of net profit, or $0.0325 per share, subject to shareholder approval[162]. - As of December 31, 2019, the company's distributable reserves were approximately $532.6 million, down from $576.5 million as of December 31, 2018[163].

Business Growth and Expansion - The signed business order volume increased to $25.6 billion, a 1.6% growth from $25.2 billion as of December 31, 2018[10] - Successfully launched 21 new customer projects across multiple product lines, regions, and customers[10] - Continued to expand global business presence in strategic regions including India, Morocco, and China[10] - The value of signed business orders increased by 1.6% to approximately $25.6 billion as of June 30, 2019, compared to $25.2 billion on December 31, 2018[11] - The company plans to launch over 50 customer projects in 2019, with approximately two-thirds of these projects located in the Asia-Pacific region[16] - The company has diversified its customer base by adding five new EPS customers over the past two years, enhancing its order book[16] - The company continues to focus on revenue growth and market share expansion by replacing competitors and winning new business[15] - The company celebrated the production of its 60 millionth EPS system in February 2019, achieved just 14 months after the 50 millionth milestone, indicating ongoing global expansion into new customers and markets[19] Technological Advancements - Strengthened technological leadership and software expertise to drive business growth in automotive and new mobility applications[10] - The company’s advanced steering technologies support SAE-defined levels 1 to 5 of ADAS performance, with steer-by-wire (SbW) unlocking new advantages for manufacturers[20] - The company continues to collaborate with major clients like FCA and Waymo to commercialize higher levels of vehicle automation, with plans to launch additional projects in 2020[21] - The new CEPS Gen 3.5 system integrates more technology and higher performance into a smaller space, aimed at enhancing reliability and software capabilities for global OEMs[19] - The company is well-positioned to benefit from the growing trend of electrification and various EVs, leveraging its industry-leading REPS and SPEPS systems[21] Operational Efficiency and Corporate Responsibility - Focused on operational efficiency and corporate social responsibility initiatives[10] - The company emphasizes the importance of resource allocation, prioritization, and efficiency improvements to meet customer expectations for quality and timing[16] - NEXTEER is committed to enhancing operational efficiency through standardized design, material, and manufacturing processes across all production sites[26] Financial Performance - Revenue for the first half of 2019 was $1,832,273, a decrease of 10.5% compared to $2,046,982 in the same period of 2018[32] - Gross profit for the first half of 2019 was $288,895, down 21.8% from $369,579 in the previous year[32] - Net profit attributable to equity holders for the first half of 2019 was $131,124, a decline of 34.3% from $199,605 in the same period of 2018[32] - Adjusted EBITDA for the first half of 2019 was $276,914, a decrease of 16.3% compared to $331,004 in the previous year[32] - The company's revenue for the six months ended June 30, 2019, was $1,832.3 million, a decrease of $214.7 million or 10.5% compared to $2,047.0 million for the same period in 2018[39] - The net profit attributable to equity holders for the six months ended June 30, 2019, was $131.1 million, representing 7.2% of total revenue, down from $199.6 million (9.8%) in the prior year[44] Regional Performance - Revenue by region showed a decline across all segments, with North America contributing $1,274.4 million (69.5%), Asia-Pacific $305.4 million (16.7%), and Europe, Middle East, Africa, and South America $252.5 million (13.8%) for the six months ended June 30, 2019[40] - The North America segment's revenue decreased by $68.5 million or 5.1%, primarily due to a 2.5% decline in light vehicle production among manufacturers[41] - The Asia-Pacific segment experienced a revenue drop of $112.9 million or 27.0%, attributed to unfavorable foreign exchange and a 13.5% decline in production demand from Chinese manufacturers[41] - The Europe, Middle East, Africa, and South America segment saw a revenue decline of $33.4 million or 11.7%, influenced by a 5.3% decrease in production among manufacturers in these regions[41] Corporate Governance and Management - The company has adopted internal controls and corporate governance policies to ensure effective and transparent operations[68] - The board appointed Mr. Wang Jian as the chairman effective from June 3, 2019, replacing Mr. Zhao Guibin, who will serve as vice chairman[72] - The company has adopted a risk management and internal control system, which is regularly reviewed for effectiveness[71] - The board believes that the separation of the roles of chairman and CEO will not harm the balance of power and authority within the company[69] Environmental and Social Responsibility - The company achieved its highest EcoVadis rating (Silver) and received Environmental Stewardship Recognition for its sustainability efforts[28] - The company has a stock option plan in place, with options granted for 12,972,770 shares at an exercise price of HKD 12.456 per share, representing approximately 0.518% of the issued share capital[184] - The total provision for environmental liabilities as of June 30, 2019, was $68,280,000, reflecting ongoing commitments related to environmental responsibilities[173] Investment and Capital Expenditures - Capital expenditures and intangible asset investments totaled $114.7 million and $78.5 million, respectively, reflecting significant investment in capital equipment and product development[55] - The company had capital commitments of $160,327,000 for the acquisition of property, plant, and equipment as of June 30, 2019, compared to $154,590,000 as of December 31, 2018[196] Joint Ventures and Partnerships - The joint venture CNXMotion, co-owned with Continental Automotive, is developing reliable control functions and showcased new features at a recent exhibition in Sweden[23] - The partnerships with Changan and Dongfeng provide unique market channels, capturing approximately 20% of domestic automotive sales in China[23] - The group's investment in joint ventures amounted to $17,075,000 as of June 30, 2019, compared to $17,944,000 as of December 31, 2018[199]