Harbin Dongan Auto Engine Co., Ltd. Business Report FY ended Dec. 2022
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2022 | FY ended Dec. 31, 2021 | Rate of change (%) | Factors | |
| Sales | 5,767.08 | 6,585.56 | (12.43) | -Affected by the overall decline in commercial vehicle sales, the company's sales volume declined, and sales and selling expenses decreased accordingly. |
| Operating income | 145.62 | 91.97 | 58.33 | |
| Ordinary income | 149.04 | 93.04 | 60.19 | |
| Net income | 142.99 | 98.21 | 45.60 |
Product development trends
-The Company's M16NE and M16NL engines based on the M series high-efficiency engine platform have been successfully started. As upgraded products based on technical solutions of the existing M series high-efficiency platform, the M16NE and M16NL high-efficiency engines feature lightweight materials such as aluminum alloy in the engine cylinder block, and boast an ultra-high compression ratio of 14/15, dual-injection airways, deep Atkinson, high-tumble airways, integrated exhaust manifolds in the cylinder heads, and deeply optimized wear reduction structures. With the support of technologies such as high-efficiency cooling EGR and high-energy ignition, the engines achieve the high targets of engine thermal efficiencies of over 41% and 42%, meeting the requirements of the Phase V fuel consumption limit for passenger vehicles and the Phase IV fuel consumption limit for commercial vehicles. The M16NL and M16NE engines target the markets of conventional commercial vehicles and new energy commercial vehicles, respectively. (From a Dongan Auto press release dated January 31, 2023)
-The Company has completed prototype assembly and related acceptance tests for its in-house DAM15NTDE dedicated hybrid engine. The engine meets Stage V Emission Standard for Passenger Cars, China 6B, and RDE (Real Drive Emission) regulations. It is applicable to medium or large SUVs, A- or B-segment sedans, pickups and so on. The engine adopts technologies such as a 350-bar direct injection system, Miller cycle, high compression ratio, fully electronically controlled superchargers, a low pressure EGR (Exhaust Gas Recirculation) system, and variable oil pumps. Dongan Auto Engine plans to complete the high and low temperature tests for this engine in 2022, so that the product can be ready for mass production in early 2023. (From a press release dated July 13, 2022)
-The Company's DAN20 series gasoline engine and DAM15KE range extender assembly won the "Spearhead of Product" and "Spearhead of Innovation" awards, respectively, at the 3rd China Source Power Awards sponsored by China Automotive News. The DAN20 series engines are available in horizontal as well as in-line models, and the engine is compact, resulting in a higher minimum ground clearance. The thermal efficiency is 37.2%, meeting China's 6B standard. In addition to Beiqi Foton’s Ollin and Toano, the DAM15KE is installed in more than 10 models, including Dongfeng, Golden Dragon, Chery Commercial Vehicle, and Tangjun Ouling, and some models will soon be put into mass production. The DAM15KE is a range extender engine for New Energy Vehicles. By adopting various technologies, the engine has achieved improved fuel efficiency, smaller size, lighter weight, and higher efficiency. In addition to Dianka Commercial Vehicles, a commercial EV brand under ENOVATE Motors, DAM15KE will be adopted and mass-produced by Hozon Auto, Foton Forland, Changan Kaicheng, and others. (From a press release dated on January 19, 2022)
Strategic partnerships
-The Company has established a strategic partnership with Anhui Jianghuai Automobile Group Co., Ltd. (JAC Group). Harbin Dongan Auto Engine has achieved mass production of the powertrain system installed on JAC’s Refine L6 MAX high-end MPVs. Harbin Dongan Auto Engine is currently promoting the installation and project approval of related products in JAC's new MPVs, light trucks, and pickups. The strategic partnership between the two companies has promoted their comprehensive cooperation in sectors such as passenger vehicles, commercial vehicles, light commercial vehicles, and hybrid vehicles. (From a press release dated June 28, 2022)
-The Company established a strategic partnership with Beijing Automobile Works Co., Ltd. (BAW). They have signed supply contracts for SUVs and light-duty trucks currently in production as well as new model pickups, MPVs, and SUVs being planned by BAW. (From a press release dated May 17, 2022)
Outlook
-For the fiscal year ending December 2023, the company expects to sell 700,000 units of engines and transmissions and generate sales of CNY 6.5 billion. (From 2022 Annual Report)
R&D expenditure |
| FY ended Dec. 31, 2022 | FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | |
| R&D expenditure (CNY millions) | 291.60 | 324.92 | 106.94 |
| R&D expenses as percent of sales(%) | 5.06 | 4.93 | 3.16 |
-As of Dec. 31, 2022, the Company has 482 R&D staff, accounting for 14.5% of the total staff.
Domestic investment
-In April 2022, the Company began construction of a new energy hybrid system manufacturing base in Harbin's Pingfang District. The base will be built on approximately 530,000 square meters by utilizing the assets of Harbin Hafei Automobile Industry Group, a subsidiary of Changan Automobile, and DAE. With a total investment of CNY 1.25 billion, the plant will mainly produce gasoline engines, range extenders, ATs, and DHTs. Construction will take place in three phases. (From a press release dated April 8, 2022)
-The Company unveiled two special investment projects in its investment plan for 2022. The first project is the construction of a production line for high-efficiency extended-range engines, involving the transformation of the machining center, marking machines, tightening machines, gluing machines and other equipment. This project will be built by Harbin Dongan Automotive Engine Manufacturing Co., Ltd. (DAE), a subsidiary of Harbin Dongan Auto Engine, with a total investment of CNY 72.33 million. The second project is a process capability improvement project, involving cylinder head automatic grinding equipment and cylinder block final cleaning machines. This project will be built by Harbin Dongan Auto Engine with a total investment of CNY 24 million. In addition, there is a small technical measures project with a total investment of CNY 60 million. Harbin Dongan Auto Engine and DAE will contribute CNY 30 million each. (From a press release dated March 15, 2022)
-The Company plans to build the first phase of a new base for new energy hybrid systems in Harbin. The project, with an estimated investment of CNY 488 million, aims to annually process and test 100,000 units, and assemble 200,000 units of M15N/16N series engines. The construction will last for 18 months and the new base will start production in 2023. (From a press release dated March 15, 2022)