Dongfeng Electronic Technology Co., Ltd. (DETC) Business Report FY ended Dec. 2017

Financial Overview

(in million CNY)
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016 Rate of change Factors
Sales 6,101.71 5,224.43 16.79% -Stable orders from current customers; sales increase.
Operating profit 314.43 269.19 16.81%


Ordinary profit 315.12 275.04 14.57%
Net profit 277.24 233.64 18.66%

Registration Delete of Subsidiary

-The Company has decided to eliminate a registration of its sub-subsidiary, Chongqing Dezhong Machinery Manufacturing Co., Ltd. The sub-subsidiary was established in 2005 with a registered capital of Chinese yuan (CNY) 8.55 million as a supplier of carburetors for motorcycles and automotive components. It’s a subsidiary of Dongfeng Electronic Technology’s subsidiary, Zhanjiang DENI Vehicle Parts Co., Ltd. The deregistration is necessary for the following two reasons. First of all, there is a need to relocate the company, following the industrial transformation of the industrial park where the company's rental factory is located. Secondly, its sales are severely declining due to the stagnation in the motorcycle industry. Chongqing Dezhong Machinery Manufacturing’s carburetor business will be absorbed into Zhanjiang DENI Vehicle Parts Co., Ltd. (From a corporate announcement on July 13, 2017)


Product Competitors Market share
FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
Sensors Sensata - 5.8%(Commercial Vehicle)
Clusters Continental, Zhejiang Automobile Instrument 5.7%(Commercial Vehicle) 8.1%(Commercial Vehicle)
Automotive interior products Calsonic Kansei, Faurecia, Mobis, Seoyon E-Hwa, 嘉华 21.7% (instrument panel)
30.9% (door panel)
8.1% (sub-dashboard)
18.9% (instrument panel)
29.6% (door panel)
7.4% (sub-dashboard)
Automotive electronics Wabco, Zhejiang Vie Technology 20% (Commercial Vehicle) 18% (Commercial Vehicle)
Valve products Wabco 7.9% (Commercial Vehicle) 8.2% (Commercial Vehicle)
Automotive die-casting products Guangdong Hongtu Technology - -

Business Plan for Next Year

-In 2018, the Company plans to reach CNY 6.285 billion sales.


-In 2017, Guangzhou Dongfeng Adient Automotive Seating Co., Ltd., a joint venture of the Company, obtained "2017 Excellent Supplier Award" from Dongfeng Nissan.

R&D Expenditure

FY ended Dec. 31, 2017
(million CNY)
FY ended Dec. 31, 2016
(million CNY)
FY ended Dec. 31, 2015
(million CNY)
R&D Expenditure 190.74 189.97 158.29
Ratio of R&D expenses to operating income 3.13% 3.64% 3.28%

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.

-As of Dec. 31, 2017, the Company has 505 R&D staff, accounting for 10.46% of all staff.

Investment in 2017

(in million CNY)
Project Budget Investment in 2017 Project progress
Technical center building 89.00 34.71 100.00%
U-shape production line for combined instrument 2.00 1.72 85.91%
Injection mold for UC back door 2.40 1.44 59.83%
D560 combined instrument assembly of Dongfeng Commercial 1.45 1.25


Injection mold 1.44 1.01


D320U production line of Dongfeng Commercial 1.14 0.87


IPU assembly testing equippment for NEV trial manufacturing 1.44 0.64


Injection mold 8.88 1.66


Commercial vehicle D320 project 19.98 3.80


Commercial vehicle D560 project 9.98 0.60


I/795B 15.08 19.65


J16 30.00 31.47 100.00%