Harbin Dongan Auto Engine Co., Ltd. Business Report FY ended Dec. 2021
Financial Overview |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change (%) | Factors | |
| Sales | 6,585.56 | 5,382.35 | 22.35 | -The increase in sales was mainly due to the increase in sales of engines and transmissions, the completion of the reorganization and integration of the Company with Harbin Dongan Automotive Engine Manufacturing Co., Ltd. (DAE) and the development of four new customers, including Leapmotor and Shaanxi Automobile Group Commercial Vehicle. |
| Operating income | 91.97 | 57.42 | 60.17 | |
| Ordinary income | 93.04 | 61.81 | 50.53 | |
| Net income | 98.21 | 55.58 | 76.70 |
Reorganization and integration with DAE
-In September 2021, Harbin Dongan Automotive Engine Manufacturing, an engine manufacturing subsidiary, was integrated into the company's business. With this, Dongan Engine has integrated its high-efficiency engine and AT development functions, enabling it to respond to the light-duty commercial vehicle, long-range New Energy Vehicle, hybrid vehicle, and middle- and high-end passenger car and pickup truck markets. The products are mainly for Changan Automobile, Foton, Li Auto, Dongfeng, Changan Kuayue, Chery, Geely, JAC, Shandong Wuzheng, and others. (From the 2021 Annual Report）
Product development trends
-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)
-In collaboration with AVL STC, the Company will develop the "M15NTDE" and "M16N" high-efficiency hybrid special engines and the large-displacement "D25/D25TD" high-efficiency self-priming and supercharged direct injection engines, as well as hybrid special DHT products simultaneously to provide integrated solutions for New Energy Vehicles (NEVs). The company's proprietary "M15K" and "M16K" products, which are compliant with the China-6 standards, are the mainstay products for the light-duty commercial vehicle market in China. In addition, Ideal ONE uses the company's DAM12TD. Changan Automobile's powertrain "Blue Whale Power" is said to be equipped with the D20TGDI. (From various media sources)
Outlook
-For FY2022, the company expects to sell 769,000 units of engines and transmissions and generate sales of CNY 6.83 billion. (From 2021 Annual Report)
R&D Expenditure |
(CNY millions) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D Expenditure | 324.92 | 106.94 | 84.02 |
| Ratio of R&D expenses to sales(%) | 4.93 | 3.16 | 4.33 |
-As of Dec. 31, 2021, the Company has 459 R&D staff, accounting for 13.75% 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)