Financial Overview

(in million yuan)

	Dec.2010	Dec. 2009	Difference (%)	Factors
Sales	717.71	400.28	79.30%	-Sales increased as a result of the overall growth of the auto industry -Opened up new markets and increased 14 OEMs for clutches in 2010 -Sales of clutches (model:φ330-φ430) reached 307.82 million, increased 84.99%.
Operating profit	40.71	(44.73)	-	Increases in profit were mainly due to the following factors: -sales increased as the profit increased, -improved labor costs,  and optimized management
Ordinary profit	41.38	(40.25)	-
Net profit	33.72	(34.44)	-

 Collaboration

-Jilin Automobile Brake Factory, the parent company of the Company signed an agreement with NTC of Australia on strategic and technical partnerships. Through this collaboration, Jilin Dongguang Group will enter into the markets of car electronics and electronics control products, aiming to further advance into the international market. NTC is a global designer and developer of transmission systems for automobiles and marine vessels. (From new releases issued by multiple sources on October 20, 2010)

Award

-On January 10, 2011, the Company was awarded the Excellent Supplier Award for 2010 from Shenyang Xinguang Brilliance Automobile Engine Co., Ltd. (From a press release, January 17, 2011)

R&D Structure

-Jinling Auto Parts R&D Center (together with Jilin University, Changchun Faway Automobile Components; Changchun Yidong Clutch Co., Ltd.; Fawer Automotive Parts Limited Company; Changchun Xuyang Industry(Group) Co.,Ltd. and the Technology Center of China FAW Group) 

 

Product Development

-The Company applied for 7 technology patents.

Capital investment projects for FY2010

in millions of yuan)

Project	Capital	Budgeted amount	Amount invested in FY2009	Ratio of amount already invested	Status
Construction of a new plant in the Changchun High Technology Development Zone and transfer of operations there	Own funds	128.02	65.42	51.1%	Completed

 

Investment in China

-The Company announced that it has decided to change the purpose of the funds that it raised from issuing new shares of stock. Instead of spending 5.2 million yuan that it had originally planned to use in establishing a semi-automated assembly line for producing passenger vehicle clutches, the company will use it to increase the production capacity of its existing production line. It will invest a total of 23.63 million yuan to increase its clutch production capacity to 2.5 million sets. Operations on the upgraded line will begin in 2011. (From an announcement by the company on July 9, 2010)