Recently, BAIC FOTON Automobile Co., Ltd. (BAIC FOTON hereinafter) signed a cooperation agreement with Tiancheng Controls (TC), which enables all-round cooperation in BAIC FOTON’s Xuanhua Plant, aiming to further deepen the strategic cooperation between both sides in the field of commercial vehicle seats and meet the demands of BAIC FOTON of local seat supply; meanwhile, achieving cost reduction and efficiency improvement through localization and lean supply chain. Since BAIC FOTON has been an important strategic partner of commercial vehicle seat business, signing of the cooperation agreement and proceeding of subsequent projects will bring the cooperation to a new milestone, which will further enhance TC’s market share and leadership in the domestic market.

Both sides reached an agreement that since TC is the key supplier of BAIC FOTON, priority will be given to be selected as a supplier of new product development under the same conditions of product quality, supply capacity and price conditions; meanwhile, TC will support the development of BAIC FOTON throughout the process of product design, development, proposal, quality assurance, cost optimization, and manufacture.

Being the key supplier of BAIC FOTON, with perfect R&D system and excellent ability of product realization, TC has supplied heavy duty truck seats to BAIC FOTON and will be prioritized the development and supply of seats for medium trucks and light trucks, etc. And, to ensure the capability of local supply, we have set up plants in Beijing and Shandong, where main production bases of BAIC FOTON are located. In the future, it will cooperate in an all-round way on the application of BAIC FOTON's sub-brand vehicle model seats to make more contributions to BAIC FOTON's market share at home and abroad.

Over the past 30 years, we focus on seats. With accumulation of R&D and manufacturing technology, our products cover construction machinery and commercial vehicle seats, passenger car seats, aviation seats and core-parts. In the domestic market, we have a large market share in the construction machinery and commercial vehicle seat industry, whose products are supplied to benchmarking enterprises in the construction machinery industry such as SANY Heavy Industry, XCMG, Zoomlion, Lonking and Liugong, as well as commercial vehicle enterprises including Dongfeng, Sinotruk, FAW, FOTON Daimler, JAC and Shaanxi Automobile. In overseas markets, our construction machinery and commercial vehicle seats are effective in cost, large in variety and strong in service capability, which win recognition of local dealers and end-users; meanwhile, we also directly supply to world-leading OEMs, like Caterpillar, a world-renowned construction machinery manufacturer. We get accreditation of Caterpillar’s global procurement system and are rated as a platinum supplier, which highlights the recognition in product quality and brand of overseas customers and reflects our international competitiveness.

In the first half of this year, sales revenue of construction machinery and commercial vehicle seat business achieved 363 million yuan, an increase of 7.55% year-on-year, mainly due to the increase in commercial vehicle seat business.

We are highly vertically integrated in complete seat, frame, slider, recliner, pumping, foam and trim cover. Our R&D team, forward-looking and international, has mastered a number of key technologies in lightweight matrials like carbon fiber composite materials and aluminum alloy frame. We have modular frame design and lightweight metal materials, which ensure advantages in outstanding safety and lightweight. Recliner is high in strength, light in weight and small in size, which obtains a couple of national patents. Combined with ergonomics, foam and trim cover products can ensure both comfort and safety. The industry-leading technical strength makes us a national high-tech enterprise.

In addition, Passenger Car Division has established cooperative relations with OEMs such as SAIC, BAIC, Dongfeng Motor, Chery and JAC, etc, among which SAIC is a strategic key account, products covering SAIC Roewe i5, i6, SAIC MAXUS MIFA, SAIC New Energy ei5, ei6, ER6, EX21 ans EC32, etc.

ACRO Aircraft, a subsidiary located in UK, is a world-renowned aircraft seat supplier. Being the supplier of Boeing and Airbus, world's largest aircraft manufacturers, it can supply both line-assembling and face-lift aircraft seats for customers throughout the world.

At present, the rise of startup carmakers is expected to redefine the seat supply chain, which will bring opportunities to domestic passenger car seat suppliers. After the development and adjustment of Chinese independent brands, the rise of NEVs has provided a historic opportunity for the rapid rise of emerging automobile seat enterprises in the industry, and a broader platform and marketplace for them to participate in the market competition. With the trend of increasing price of passenger cars, demanding seat functions, lightweight and intelligence, the value of automobile seats will increase year by year.

As a leading manufacturer in China, Tiancheng Controls is equipped with advanced production technology and enjoys excellent market reputation. With high quality and good comfort as the core competence, we will continue product innovation and quality improvement. With many years of experience, mass production capacity and cost control, we’ve started lean management and digitalization, which will improve the cost control and operational efficiency. The advantages in highly vertical integration, mature project experience, capacity reserves and cost control will enable us a rapid enterance to a new era of localization.