Dongfeng Electronic Technology Co., Ltd. (DETC) Business Report FY ended Dec. 2012
|(in million yuan)|
|FY ended Dec. 31, 2012||FY ended Dec. 31, 2011||Rate of Change (%)||Factors|
|Operating profit||179.31||199.07||(9.93)||-Slowdown of domestic automobile market.|
-The decrease in sales was due to the reduction in OEM market share and reduction in orders stemming from the Diaoyu Islands incident.
-The Company plans to reach sales of 2.5 billion yuan in FY 2013.
Transfer of Shares
-Dongfeng Automobile Electronics Co., Ltd., a subsidiary of the Company, transferred a 37 percent stake in Xiangfan Dongchi Auto Parts Co., Ltd. to Shanghai Hujing Microelectronics Co., Ltd. After the transaction, Dongfeng Automobile Electronics still held an 18 percent stake in Xiangfan Dongchi Auto Parts.(From the Company's 2012 annual report)
-The Company sold part of the shares it owns in Shanghai Kongsberg Automotive Dong Feng Morse Co., Ltd., which reduced its shareholding ratio in the company from 49 percent to 25 percent. The Company hoped to raise at least 19.8 million yuan from the transaction. (From a press release, April 21, 2012)
-Dongfeng Visteon Automotive Trim Systems Co., Ltd., a joint venture established by the Company, Yanfeng Visteon Automotive Trim Systems, and Visteon in 2003, developed a series of new products in the first half of 2012. These products were well-received by customers. The Company supplied 8 new products to Dongfeng Peugeot Citroen, including two items to be exported, the Company's proprietary door trims for the Dongfeng 2CN, fenders for the GAC Mitsubishi 3X45, door trims for the Dongfeng Nissan Teana, instrument panel modules for the Venucia D50, and instrument panels for the Dongfeng Motor S30 and A60. (From a press release, September 26, 2012)
-In March 2012, the procurement team of Baotou Beiben Heavy-Duty Truck visited the Company's Automobile Braking System Company. The Company's officials gave a presentation on its development activities, production capacity, and quality levels, and gave a tour of its production facility to the procurement team. The representatives from Baotou Beiben demonstrated their intent to improve their relationship with the Company. 60 percent of the ABS systems manufactured by DETC Automobile Braking System Company are supplied to Baotou Beiben, which as been a customer of the Company since March 2012. (From a press release, March 21, 2012)
Subsidiary Name Change
-On October 8, 2012, Dongfeng Xiangfan Instrument System Co., Ltd., a subsidiary of the Company, held a ceremony to celebrate its name change to Dongfeng Automobile Electronics Co., Ltd.(From a press release on October 10, 2012)
-The Company's R&D activities include constructing a new, first-class technical center and cooperating with OEMs to develop various products.
-Products that are currently under development include:
- Integrated instrument panels
- ABS/ASSR systems
- Air pressure disc brake assemblies
- Car ECUs
- CV/PV trim
- Car generator and starter motors
- Car navigation systems
-In 2012, the Company had 38 of its patents approved. In 2011, the Company had 27 of its patents approved. In 2010, the Company developed and started mass production of 25 new products. Also, the Company had 33 of its patents approved in 2010.
Major Investment Projects for 2012
|(in million yuan)|
|Projects||Planned Amount of Investment||Amount Invested in FY ended Dec. 31, 2012||Percentage of Planned Investment Already Spent|
|Caohejing R&D Center||44.20||0.66||88.76%|
|Construction of Zhanjiang DENI Carburetor Co., Ltd Mazhang Plant||86.48||3.48||12.19%|
|Renovations to older plants||18.52||13.01||70.27%|