Rating Outlook Commentary

Daniel Zhou, Vice President, and Analyst at Moody’s stated: “The Positive outlook reflects our expectation that Yanfeng International will maintain solid financial performance amid intensifying industry competition, underpinned by resilient profitability and a healthy leverage profile. The company’s competitive and diversified product portfolio, effective cost controls, and growing diversification across customers and geographies jointly reinforce its robust financial fundamentals.”

Daniel Zhou added: “The rating affirmation takes full account of Yanfeng International’s leading market position, strong liquidity profile, prudent financial management, and operational support from its key indirect shareholder - SAIC Motor Corporation Limited.”

Key Rationale Supporting the Baa3 Rating

Moody’s noted that the Baa3 rating is primarily backed by the following core strengths: the company holds a leading market position globally in automotive interiors, seating, and passive safety components; its comprehensive product portfolio and continuously diversified customer base support steady revenue growth; and it maintains ample liquidity and strong overall financial fundamentals.

In recent years, amid headwinds weighing on growth in China’s automotive market, Yanfeng International has demonstrated strong operational resilience by accelerating overseas business expansion and advancing its transition toward new energy vehicles (NEVs). Its NEV-related business share has continued to rise, supported by a growing roster of emerging OEM customers. Leveraging its global manufacturing network, the company has further unlocked growth opportunities. Even amid volatility in raw material and logistics costs, its profitability has remained within a sound range relative to the industry.

Seizing Opportunities Amid Industrial Transformation, Deepening Global Market Presence

Moody’s Baa3 investment-grade rating and upgraded Positive outlook fully validate the international capital market’s recognition of Yanfeng International’s global transformation, NEV business development, and rigorous financial governance. Faced with profound shifts across the global automotive industry, Yanfeng International will build on its innovation leadership in smart cabins. Drawing on its full-cockpit R&D and manufacturing capabilities, the company will iterate technologies for mobility’s “third space”, deploying production-ready cutting-edge technologies via its XiM concept cabin platform to upgrade cabins into multi-functional mobile spaces. Meanwhile, Yanfeng International will step up expansion into overseas markets, maintain prudent operations, seize opportunities in the global NEV sector, and deliver high-quality component solutions for OEM customers worldwide.

Looking ahead, competition in the global automotive industry will continue to intensify, and transformation within the NEV sector will deepen. Yanfeng International will remain focused on innovation leadership in smart cabins, steadily expand its global footprint, maintain a prudent operating strategy, seize structural industry growth opportunities, and continue creating value for its global OEM partners.