Harbin Dongan Auto Engine Co., Ltd. FY2007
|In million yuan||2007||2006||Difference%||Factors|
|Sales||1,852.54||2,176.37||(14.9%)||- Sales decreased year-on-year due to a decline in car sales at the Company's major customers|
|Operating profit||145.63||47.12||209.1%||- Profit increased significantly as a result of the Company's using new accounting standards, which boosted the gain on investments in its subsidiaries.|
Greater sales at Harbin Dongan Automotive Engine Manufacturing Co., Ltd.
- At Harbin Dongan Automotive Engine Manufacturing Co., Ltd. in 2007, sales of engines used in mini vehicles jumped 80 percent year-on-year, to 300,000. Mitsubishi Motors Corporation has a 15.3 percent shareholding in Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Mitsubishi Motors also licenses engine technology to Harbin Dongan Automotive Engine Manufacturing.
|Recent capital investment projects (as at the end of Dec. 2007)||(in million yuan)|
|Items||Planed amount of investment||Amount invested in 2007||Percentage already invested out of the total planned investment||Notes|
|Installing additional production equipment to manufacture DA2 multi valve electric control fuel injection engines||130.00||2.70||71.4%||- Having completed the installation work, the Company is conducting trial production.|
|Additional production lines to manufacture BS14R gears||21.00||5.83||27.8%||- Having completed the installation work, the Company is conducting trial production.|
|Additional production lines to manufacture crankshafts||160.00||8.83||5.5%||- New production equipment is scheduled to be delivered soon.|
|Additional production lines to manufacture DA6 engines||10,00||0.2||1.2%||-|
Additional investment project for 2007
- In July 2007, the Company established an additional production line to manufacture transmission cases, by acquiring a manufacturing facility from Harbin Dongan Engine (Group) Co., Ltd. for 7.65 million yuan.
Capital expansion project to boost production capacity
- In September 2007, the Company announced that it will issue new shares to raise additional funds for use in the following investment projects. Funds generated from issuing the shares will be used to complete project No.1. The company will cover the shortage in funds for completing project No.2 by relying on its existing resources and borrowing from banks.
|Project||Amount of investment (in million yuan)|
|1.||Developing an advanced platform for DA468QL1/471QL engines in order to meet
China V emissions standards; while still making sure that these engines are capable of producing 50kW of power. Also,
to upgrade the production lines that manufacture these proprietary engines.
|2.||Developing DA6 engines and building production lines to manufacture 200,000 engine cylinder blocks and cylinder heads a year for use in these engines||800.00|