Dongfeng Electronic Technology Co., Ltd. (DETC) Business Report FY ended Dec. 2018

Financial Overview

(in million CNY)
FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of Change (%) Factors
Sales 6,673.08 6,101.71 9.36 -Stable orders from current customers; sales increase.
Operating profit 359.78 314.43 14.42


Ordinary profit 333.44 315.12 5.81
Net profit 287.62 277.24 3.74

Recent Development

-The Company announced a plan to acquire Dongfeng Motor Parts And Components Group by issuing new shares to shareholders of Dongfeng Motor Parts And Components, Dongfeng Motor Corporation and Shenzhen DFS Industrial Group Co., Ltd. The cost for the corporate merger is expected to be around CNY 4.68 billion. After the merger, Dongfeng Electronic Technology will be the remaining company and assume all assets, liabilities, business operations, workforce, contracts and any other rights and duties of Dongfeng Motor Parts And Components, while Dongfeng Motor Parts And Components will be dissolved after losing its corporate status. All the shares in Dongfeng Electric Technology owned by Dongfeng Motor Parts And Components Group will disappear. As a result, Dongfeng Electric Technology will be owned 86.27% by Dongfeng Motor, 0.09% by Shenzhen DFS industrial group, and 13.64% by other shareholders. When the process for the merger completes, all parts business of Dongfeng Motor Parts and Components will be integrated into Dongfeng Electric Technology, and all the business under current Dongfeng Motor Parts and Components will be listed. Dongfeng Electric Technology also plans to raise CNY 500 million by issuing new shares and allocate the funds to the capital investment in facilities to make aluminum wheels for passenger vehicles, after the corporate acquisition. (From a press release on February 1, 2019)

-The Company celebrated the openings of Dongfeng Automobile Chassis System Co., Ltd. and Dongfeng Electric Drive System Co., Ltd. on November 17 and 18, 2018, respectively. The former integrates four automotive component suppliers under the Dongfeng Automobile Group, and its registered capital is CNY 479 million. Its primary products are automobile chassis parts and assemblies such as steel wheels, aluminum wheels, steel leaf springs, air suspensions, and drive shafts. The latter was established as Dongfeng Electronic Technology Co., Ltd. acquired Dongfeng Motor Electric Equipment Co., Ltd. and merged it with its affiliate Dongfeng Automobile Electronics Co., Ltd. Its primary products include driving motors, motor controllers, vehicle controllers, instrument meters, automotive electronics, sensors, alternators, and starters. (From a release on Dongfeng Automobile Group website on November 19, 2018)


-On July 7, 2018, the Company announced a plan to consolidate new energy vehicle businesses of the group and acquire 100% of the shares of Dongfeng Motor Electric Equipment Co., Ltd. at the cost of CNY 200 to 250 million. The scheme is going to allow the company to complete its electric power system business.  Currently, Dongfeng Motor Parts And Components Group Co., Ltd. owns a 98.78% stake in Dongfeng Motor Electric Equipment and the company is planning to buy the rest, 1.22%, within two months. After all these transactions, Dongfeng Electronic Technology is going to buy all the shares from Dongfeng Motor Parts And Components Group. (From a press release on July 9, 2018)

Subsidiary Cancellation

-In 2018, the Company canceled its subsidiary Shanghai Dongfeng Automobile Industry Co., Ltd. (From the Company's 2018 annual report)


Product Competitors
Sensors Sensata
Clusters Continental, Zhejiang Automobile Instrument
Automotive interior products Marelli (Formerly Calsonic Kansei), Faurecia, Mobis, Seoyon E-Hwa, Jiahua
Automotive electronics Wabco, Zhejiang Vie Technology
Valve products Wabco
Automotive die-casting products Guangdong Hongtu Technology

Business Plan for Next Year

-In 2019, the Company plans to reach CNY 6.574 billion sales.

R&D Expenditure

FY ended Dec. 31, 2018
 (million CNY)
FY ended Dec. 31, 2017
 (million CNY)
FY ended Dec. 31, 2016
 (million CNY)
R&D Expenditure 117.14 190.74 189.97
Ratio of R&D expenses to operating income 1.76% 3.13% 3.64%

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, 2018, the Company has 544 R&D staff, accounting for 12.23% of all staff.

Investment Project

(in million CNY)
Budget Investment in 2018 Project Progress (%)
Edge tool 1.3 1.29 100
Plant 15.4 10.85 100
Vehicle terminal assembly 1.46 1.25 85.41
Gear room 1.2 - 100
Machining center 5.5 5.39 100
Die casting machine 18.2 14.84 95.73
Injection mold 21.4 9.54 88.88
Automatic detection station 1.3 1.27 100
Comprehensive test box 2.4 - 100
Assembly line 1.4 1.40 100