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CONTENTS
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  4. Dongfeng Electronic Technology Co., Ltd. (DETC)
  5. Dongfeng Electronic Technology Co., Ltd. (DETC) Highlights for FY2006

Dongfeng Electronic Technology Co., Ltd. (DETC) Highlights for FY2006

Business Highlights

Performance for FY2006 (million yuan)
in 
million yuan		 FY2006 FY2005 Factors
Sales 919.99 904.43 - Sales decreased year-on-year due to price cuts of automotive components. 
Net profit 2.12 (115.42) Gross profit and net profit rose year-on-year as a result of the following factors:
- company-wide initiatives to reduce costs; 
- the Company enhanced its profitability by developing new products, and increasing supply to car OEMs and customers overseas.  

Joint venture established
In January 2006, Dogleg Visteon (Shiyan) Automotive Trim Systems Co., Ltd. was established as a joint venture between the Company and Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd. with a registered capital of 88 million yuan. The Company will invest in kind with production equipment of its existing plant of Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd, while  Dongfeng Visteon (Wuhan) Automotive Trim Systems will invest in capital. The new joint venture has already obtained interior trim business for the Teana of Dongfeng Nissan Passenger Vehicle. Furthermore, the joint venture has developed new products for Dongfeng-Peugeot-Citroen Automobile, and is expanding production of interior trims for passenger cars. The joint venture partner, Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd. is a company  established in September 2003 jointly with U.S. Visteon and its Chinese subsidiary, Yanfeng Visteon Automotive Trim Systems Co., Ltd.

<Shareholding ratio>
・The Company -- 60%
・Dongfeng Visteon (Wuhan) Automotive Trim Systems Co., Ltd. -- 40%

In February 2006, Shanghai Johnson Controls Automotive Electronics Co., Ltd. was established as a joint venture with U.S. Visteon with a registered capital of 5 million dollars. The new joint venture will manufacture electronic components for automobiles, including instrument panels for passenger cars, information displays and body controllers. The Company provided manufacturing facility owned by its subsidiary, Shanghai Dongke Auto Component Co., Ltd., to the new joint venture. 

<Shareholding ratio>
・The Company -- 50.01%
・Johnson Controls -- 49.99%

Internally developed ABS placed on the market
-In April 2006, the Company put on the market ABSs of its own development. In China, it was made mandatory to install ABSs on new vehicles including large long-distance tourist buses and trailers, effective in February 2005. In view of a growing ABS market in China, the Company is focusing on production and sales of ABSs.

Investment Activities

Capital investments for FY2006
Project Investment amount
(million
 yuan)		 Progress as of Dec. 2004
Expanding facility making roof exterior trims for the D310 heavy-duty commercial vehicles 12.17 Completed 

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