Financial Overview

(in million yuan)

	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	Rate of Change (%)	Factors
Sales	4,824.93	4,901.61	-	-Sales decreased due to fierce market competition.
Operating profit	299.36	306.37	-	-Sales decreased, thus, profit decreased.
Ordinary profit	314.31	455.25	-
Net profit	280.93	381.55	-

New Company

-Dongfeng Visteon Wuhan Automotive Trim Systems Co., Ltd., the Company's subsidiary, set up a new wholly owned subsidiary in Japan. The new company is called Dongfeng trim Japan Co., Ltd. It is capitalized at 5 million yen, mainly R&D and design automotive trims. (From the Company's 2015 annual report)

-The Company announced that Dongfeng Visteon Wuhan Automotive Trim Systems Co., Ltd., which is a 50-50 joint venture between DETC and Yanfeng Automotive Trim Systems Co., Ltd., has established a joint-venture company with Grupo Antolin of Spain. The new company is called Dongfeng Antolin (Wuhan) Automotive Toppings Co., Ltd. It is capitalized at CNY 20 million, of which 49 percent was invested by Dongfeng Visteon Wuhan Automotive Trim Systems and the remaining 51 percent was provided by Grupo Antolin. The Wuhan facility would produce interior components such as roof trims and door panels. (From an announcement by the Company on January 26, 2015)

-The Company announced that Dongfeng Visteon Wuhan Automotive Trim Systems Co., Ltd., which is a 50-50 joint venture between DETC and Yanfeng Automotive Trim Systems Co., Ltd., has established a joint-venture company with Grupo Antolin of Spain. The new company is called Dongfeng Antolin (Wuhan) Automotive Trim Co., Ltd. It is capitalized at CNY 20 million, of which 51 percent was invested by Dongfeng Visteon Wuhan Automotive Trim Systems and the remaining 49 percent was provided by Grupo Antolin. The Wuhan facility would produce interior components such as roof trims. (From the Company's 2015 annual report)

Transfer of Shares

-The Company announced that Zhanjiang DENI Vehicle Parts Co., Ltd., its subsidiary would acquire 100 percent of Dongfeng (Shiyan) Nonferrous Casting Co., Ltd., also a subsidiary of DETC. Currently, Dongfeng (Shiyan) Nonferrous Casting is owned 99 percent by DETC and 1 percent by Shanghai Dongyi Auto Trading Co., Ltd. Zhanjiang DENI Vehicle Parts would pay CNY 58 million to DETC and CNY 0.58 million to Shanghai Dongyi Auto Trading for acquiring a 100 percent stake. The transaction is completed in January 2015 at the price of CNY 58.06 million. (From the Company's 2015 annual report)

Competitors

Product	Competitors	Market share
Sensors	Sensata	6%（Commercial Vehicle）
Clusters	Continental, Zhejiang Automobile Instrument	8.4%（Commercial Vehicle）
Automotive interior products	Faurecia, Mobis	-
Automotive electronics	Wabco, Zhejiang Wanan Technology	22.8%
Valve products	Wabco	9.4%
Automotive die-casting products	Guangdong Hongtu Technology	-

Business Plan for Next Year

-In 2016, the Company plans to reach CNY 4.5 billion sales.

R&D Expenditure

	FY ended Dec. 31, 2015 (million yuan)	FY ended Dec. 31, 2014 (million yuan)	FY ended Dec. 31, 2013 (million yuan)
R&D Expenditure	158.29	181.44	97.55
Ratio of R&D expenses to operating income	3.28%	3.70%	3.16%

R&D Facility

-The Company has five professional technology centers, namely, Shanghai Technology R&D center, Instrumentation and Body Electronics R&D center, Braking and Chassis Electronics R&D center, Trim Systems R&D center and Die Castings R&D center.

Patent

-In 2015, the Company received a total of 86 patents, including 2 invention patents, 66 utility model patents and 18 design patents.

Major Investment Projects for 2015

(in million yuan)

Projects	Planned Amount of Investment	Amount Invested in FY ended Dec. 31, 2015	Progress of the project
Mazhang plant construction	210.12	28.90	99.00%
Zhengzhou plant construction	16.73	0.87	100.00%
New plant in Yancheng joint plant project	17.00	15.28	89.86%