Financial overview

(in  million yuan)	FY2010	FY2009	Rate of Change(%)	Factors
Sales	2,306.67	1,289.98	78.81%	The effective measures taken by the Company to open up new markets, reinforce quality control, shorten lead time, cut inventory, improve labor costs,  and optimize management. -The rapid growth of domestic automobile market. -Sales of major products increased a lot
Operating profit	248.32	49.70	399.64%	New instrument meters, sensors, and flexible shafts product that were recently developed contributed the results.
Ordinary profit	243.90	49.00	397.76%
Net profit	218.61	43.22	405.81%

 

Change of Shareholders

-Dongfeng Motor Co., Ltd. will establish a new company to oversee its auto parts business. As a result, Dongfeng Motor will transfer all the shares it has in the Group's automotive parts production subsidiaries, which includes Dongfeng Electronic Technology Co., Ltd., to the new company. (From a press release, December 31, 2009)

 

-On April 15, Dongfeng Motor Co., Ltd. and Dongfeng Motor Co., Ltd. Parts & Components Business Unit signed an agreement for Dongfeng Motor to transfer the shares it has in the Company to Dongfeng Motor Co., Ltd. Parts & Components Business Unit. Under the agreement, Dongfeng Motor is going to transfer all 203 million shares it has in the Company. This number of shares is equivalent to 65 percent of the Company's  shares. Since the Parts & Components Business Unit is Dongfeng Motor's subsidiary, Dongfeng Motor will essentially still maintain control over the Company, as it currently does. (From a press release, April 20, 2010)

 

-The Company is going to transfer 55 percent of the shares it has in its subsidiary, Xiangfan Dongchi Auto Parts Co., Ltd., to another subsidiary called Dongfeng Xiangfan Instrument System Co., Ltd. This is being done to reorganize the operations of Xiangfan Dongchi, which has been under the control of Dongfeng Xiangfan, to which it supplies its products. The result will enable Xiangfan Dongchi to reorganize in order to further strengthen its management. (From a press release, May 11, 2010)

 Acquisition

-The Company is going to purchase an additional 20 percent of the shares in Zhanjiang DENI Carburetor Co., Ltd., which is its joint-venture company with Keihin Corporation of Japan and other companies. Keihin, which has been scaling back its investment, made an offer to withdraw from the joint business completely by transferring the whole 20 percent shareholding to its partners.  DETC has decided to acquire the whole amount, expecting future growth in business and profitability at the joint venture. (From an announcement by the company, February 1, 2011)

The company's R&D activities include building a first-class center and simultaneously developing products together with OEMs.

Products currently under development:
-Integrated instrument panels
-ABS/ASR systems
-Air pressure disc brake assemblies
-Car ECUs
-CV/PV trim
-Car generators and starter motors
-Car navigator systems
-Sensors

In 2010, the Company developed 25 new products and  put into mass production; the Company was approved 33 patents.

Major Investment Projects for 2010

(in million yuan)

Projects	Planned amount of investment (in million yuan)	Amount invested in FY 2010	Percentage of amount already spent
Information System Hardware Improvement	1.48	1.26	80%
Instrument Meter Molding	0.42	0.38	90%