Dongfeng Electronic Technology Co., Ltd. FY2008

Business Highlights

Financial overview
million yuan)
FY2008 FY2007 Rate of Change(%) Factors
Sales 1,168.07 1,074.75 8.7% - Sales largely increased in the first half of the year thanks to strong demand in the commercial vehicle market. Despite a decrease in the second half due to the rapidly deteriorating global economy, its full year sales rose 8.7 percent from last year's result.
Operating profit (52.03) 15.08 (445.0%) The Company plunged into the red mainly due to the following factors:
- increased costs
- decreased inventory values
- the Company recorded loan-loss reserves
Ordinary profit (59.56) 10.38 (673.8%)
Net profit (60.72) 11.14 (645.1%)

In July 2008, the Company launched its proprietary antilock brake systems (ABSs). These ABSs will be used in a number of vehicles built by Dongfeng Motor Commercial Vehicle, Yutong Bus, and Beiqi Foton Motor.

Capital increase
- In May 2008, the Company decided to increase its investment in Shanghai Johnson Controls Automotive Electronics Co., Ltd., which is its joint-venture company with Johnson Controls. As a result, the registered capital of the joint-venture company will be raised from 5 million U.S. dollars to 17 million U.S. dollars. However, this actually lowers the shareholding ratio held by DETC, reducing it from 50.01 percent to 40 percent. (From an announcement made by the company on May 31, 2008)
Note: This project is yet to be completed as of December 2008, since necessary procedures have not been finalized at Johnson Controls.

Investment Activities

Major investment projects for 2008 (in million yuan)
Projects Planned amount of investment
(in million yuan)
Amount invested in FY2008 Percentage of amount already spent
Constructing new molding facility 2. 53 2.53 100%
Installing additional die casting equipment (1000-ton, 1300-ton, and 2000-ton) 7.50 2.10 28%