Dongfeng Electronic Technology Co., Ltd. (DETC) Business Report FY ended Dec. 2024

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	Rate of Change (%)
Sales	6,815.07	6,850.32	(0.51)
Operating income	339.10	337.77	0.39
Ordinary income	337.11	332.54	1.37
Net income	289.20	288.67	0.18

Invested in subsidiary

-The company announced that it plans to raise up to CNY 1.4 billion through allotment of shares. The proceeds will be used to transform EV 3-in-1 and 5-in-1 die-casting technology, as well as improve manufacturing capacity of EV powertrain and core components. Dongfeng (Shiyan) Nonferrous Casting Co., Ltd., a holding subsidiary of DETC, will run the project to transform EV 3-in-1 and 5-in-1 die-casting technology, which will improve the production and manufacturing capacity of aluminum alloy die-casting parts. The project mainly focuses on customized products, with a production capacity determined by the new product marketing plan set by clients. In collaboration with clients such as Nidec Corporation, DETC will supply parts to Dongfeng Nissan e-power and EV models. Upon the completion of the construction, the annual production capacity of non-ferrous metal castings is expected to increase by 905,800 units. Dongfeng Electric Drive Systems Co., Ltd. will run the project to improve manufacturing capacity of EV powertrain and core components. Upon the completion of the construction, an annual production capacity of 600,806 electric motors, 867,312 starters, 422,815 traction motors, and 153,675 integrated electric drive systems will be delivered. (From a press release dated July 28, 2023)

Dongfeng Motor Corporation Technical Center signs technical cooperation framework

-The company announced the signing of a technical cooperation framework agreement between Dongfeng Electric Drive Systems Co., Ltd. (DFEDS), its subsidiary, and Dongfeng Motor Corporation Technical Center (DFTC). The two parties will further strengthen cooperation in development and manufacturing fields such as automotive electronics, electrical equipment, and New Energy; co-build a cooperation platform; and promote the application of future electrical architecture. Next, they will conduct comprehensive cooperation on technology exchange platform construction, market development, and intellectual property protection; innovate cooperation processes; accelerate the transformation of technological innovation achievements; and enhance market competitiveness to achieve win-win development. (From a DFPC press release dated June 27, 2023)

Business plan

-The company expects total operating revenue of CNY 7.1 billion and total operating costs of CNY 6.2 billion in 2024.

R&D Expenditure

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021
R&D Expenditure	290.55	277.12	245.74
Ratio of R&D expenses to sales (%)	4.26	4.05	3.13

-As of Dec. 31, 2023, the Company has 585 R&D staff, accounting for 13.66% of all staff.

R&D Activities

-Dongfeng Technology Research Institute, a company-level research institute, has established an efficient innovation team for intelligent cockpit, new energy electric drive, wire-controlled chassis and integrated thermal management technology based on its automotive electronic control capabilities. It has 5 technical centers and 585 R&D personnel; it currently owns 513 patents, including 222 invention patents.