Financial Overview

In million yuan	2009	2008	Difference%	Factors
Sales	2,155.20	1,754.33	22.85%	Sales increased year-on-year because of the following factors: -The sales by OEMs of cross-over vehicles  increased - A large increase in sales of engines used in cross-over vehicles - The needs by new customers remarkably increased
Operating profit	233.94	158.64	47.47%	-Profits grew due to increased sales.
Ordinary profit	234.09	160.20	46.13%
Net profit	234.09	160.20	46.13%

-The Aviation Industry Corporation of China and the China Ordnance Equipment Group Corporation agreed to transfer the shares of stock they own in Harbin Dongan Auto Engine to China Changan Automobile Group Holdings Co., Ltd., which is wholly owned by the China Ordnance Equipment Group. After the the concerned entities have approved the transfer of these shares of stock, the company will essentially owned by the China Changan Automobile Group, while being managed by the China Ordnance Equipment Group. (From an announcement by the company, November 11, 2009)

 

Harbin Dongan Automotive Engine Manufacturing Co., Ltd.(DAE)

-DAE, a joint venture between Mitsubushi and the Company, began manufacturing 4-speed and 5-speed automatic transmissions. The production capacity is expected to be doubled to 300,000 units. The expansion will make the company China's first manufacturer to have production technologies in three areas, which are engines, manual transmissions, and automatic transmissions(From a press release, February 1, 2010)

Engines

- Developed the DAK10A and DAK10B engines based on the DA468QA and DA468QB engines.
- The Prototype of the DA5 series 1.3Lrear-drive MPI Engine has passed the ignition test.
- Prototype assembly of the DA5 series 1.3L Front-drive MPI engine and the 1.3L rear-drive VVT engine has been completed.
- Developed the DA471QLR engine and the DAT13R transmission for the Piaggio
- Developed the BS10-2DQ transmission for Chery
- Developed the K10ARU engine and the BSA10F transmission for JAC

Recent Capital Investment Projects (as at the end of Dec. 2009)

(in million yuan)

Items	Planed amount of investment	Amount invested in 2009	Amount invested in 2008	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	7.00	3.19	86.12%	Mass production already began
Additional production lines to manufacture BS14R gears	21.00	1.91	1.85	91.47%	Mass production already began
Additional production lines to manufacture crankshafts	160.00	12.99	71.75	58.49% (per annual report page 65 )	-The equipment installed during the first stage was  put into use for mass- production. -The second stage of the project has started.