Harbin Dongan Auto Engine Co., Ltd. Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million yuan)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Difference (%) Factors
Sales 855.47 1,243.20 (31.19) -Engine sales did not meet expectations in new markets, which is difficult to make up the main distribution driven by Hafei and Changhe Automobile sales decrease.
Operating profit (555.78) (73.77) -
Ordinary profit (557.10) (65.41) -
Net profit (557.10) (65.41) -

-In 2013, The Company produced 108,344 units engines,40.88% decrease than previous year.The Company sold 114,469 units units engines, 37.40% decrease than previous year.(From the Company's 2013 annual report)

-The Company announced that the company has been ranked among one of the 50 most profitable companies in the state of Heilongjiang . New developments in 2012 included the all-new 4G13V MR engine and the 4G18V FR engine for multi-purpose mini commercial vehicles, as well as the 4G1 V and the 4G15M2 series engines based on the existing 4G1 platform. The company produced products worth 2.16 billion yuan, up 47.36 percent from the previous year, while generating more than 100 million yuan in profit. Sales in the  Heilongjiang  Province alone totaled 340 million yuan, which was a rise of 46.97 percent from those in 2011. The company believes its business has made a significant contribution to the development of the local economy. (From a press release, March 18, 2013)


-In April 2014, the Company's subsidiary, Harbin Dongan Auto Engine Co., Ltd., started delivering its D20VVT engines to the Beijing Plant of Chang'an Automobile. It supplied 24 units of the D-series engines to the Beijing facility, while providing 156 units to the automaker’s Baoding Plant. (From a press release on April 22, 2014)

-The Company's subsidiary, Harbin Dongan Automotive Engine Manufacturing Co., Ltd., announced that it will mass-produce its 4G15T series engines for Changan Automobile's CS35, the first SUV from the automaker. New engines were already installed on 12 prototype vehicles, of which 10 vehicles are used for crash testing and 2 for exhaust gas measurement. The company is upgrading the product lineup of its 4G series engines with the 4G15T engine and the 4G15 MIVEC engine. (From a press release on March 25, 2014)

-In March 2014, Harbin Dongan Automotive Engine Manufacturing Co., Ltd., a joint venture between the Company and Mitsubishi Motors Corporation, announced that it delivered six D-series engines to Chonqing Changan Automobile. The joint venture’s new production line is capable of producing 45,000 D-series engines per year on a double-shift system. (From a press release on March 18, 2014)

-Harbin Dongan Automotive Engine Manufacturing Co., Ltd., a joint venture between the Company and Mitsubishi Motors, announced that it will mass-produce the 4G94D+MT engines compliant with the China V standards for the Hawtai Motor Santafe. The engines are the company’s first China V technology. The company, which launched the China V engine project at the end of January 2013, achieved mass production in only three months. It intends to introduce the knowhow in upgrading its other engine series to meet the China V standard. (From a press release, May 13, 2013)

-In 2013, the Company's M series engine successfully supplied for 3 models of Changan Automobile. The shares in Baoding Changan Automobile improved significantly. Customers such as Beqi Foton, NLM Motor, Chery, FAW Jilin have started installing M-series engines. (From the Company's 2013 annual report)

-The Company announced that it has developed the DAM15D dual VVT engine. Chongqing Changan Kuayue Automobile’s KY10 small trucks powered by the DAM15R series engines are already put on the Chinese road. (From news releases issued by multiple sources, April 9, 2013)

New Company

-In April 2014, the Company announced that it will establish a new company to develop, produce and sell transmissions in Harbin City. (From an announcement by the Company on April 29, 2014)

Technical Support

-The Company that it will offer technical support for Hebei Zhongxing Automobile’s CP2 (development code) project. It will assist with the development of 4G94S engines and automatic transmissions for 240 vehicles. (From a press release on April 28, 2014)


-The Company was awarded the following awards:
  • Changhe Automobile  "2010 Top Ten Outstanding Supplier";
  • FAW Group "2010 Outstanding Supplier ";
  • FAW Group  "2009 Outstanding Supplier ";
  • Changhe Automobile  "2009 Car Excellent Supplier";
  • FAW Group "2007 Quality Assurance Award";
  • FAW Group  "2005 Quality Reliable Supplier";
  • Chery Automobile "2004 Excellent Supplier".

Business Plan for Next Year

-In 2014, the Company plans to reach 0.95 billion sales and sell 130,000 units powertrains. (From the Company's 2013 annual report)


R&D Facility

-The Company has Heilongjiang Provincial Enterprise Technology Center. The technical center has 20 years experience in engine design and development. As of Dec. 2013, the center has about 500 staff.

R&D Expenditure

-In 2013, the Company's R&D expenses is 322,700 yuan, 3.77% of the Company's total sales.


-As of Dec. 2013, the Company has 178 patents in total.

Product Development

Product Development situation
Engine products
M Series three-cylinders engine booster platform Complete product design at the end of September 2013, complete the performance test in December 2013.
M Series Dual VVT engine Complete reliability test, cooperate with Baoding Changan Bus, Beiqi Foton, NLM Motor to carry out vehicle matching technology.
M Series four-cylinder precursor engines To be mass production in 2015.
M Series upright rear drive engine Cooperate with Baoding Changan Bus and Beiqi Foton to carry out vehicle matching technology.
Transmission products
DAT12F precursor transmission The maximum load capacity is 120N · m, applicable to micro-engines with rated torque below 120N · m.
DAT15R rear-wheel drive transmission Based on BS14R transmission, the maximum load capacity is 145N · m, applicable to miniature engine with rated torque below 145N · m, which is under test validation.

-In April 2014, Harbin Dongan Automotive Engine Manufacturing Co., Ltd, a subsidiary of the Company, announced that it has developed and assembled its first original 6-speed manual transmission (MT). The new MT is currently undergoing bench testing. Compared with 5-speed MTs, the 6-speed MT offers higher transmission efficiency, optimum design, and smoother gear shifting. (From a press release on May 6, 2014)

-The Company has developed the DAM10T small turbocharged engines that meet the China V emissions standards. The three-cylinder environmentally-friendly engines are available in three sizes: 0.8-liter; 1.0-liter, and 1.2-liter. The engines’ maximum torque is comparable to that of 1.5-liter engines, and their maximum output is equal to that of 1.3-liter engines. (From news releases issued by multiple sources on December 31, 2013)

- The Company announced that it has developed the DAM15D dual VVT engine. The new engine offers the maximum output of 81KW/6000rpm, maximum torque of 144N.m/45rpm, and the best fuel efficiency of 245g/kWh. The engine consumes 345g/kWh at 2000rpm/2bar.(From news releases issued by multiple sources, April 9, 2013)

Investment Activities

Recent Capital Investment Projects (as at the end of Dec.2013)

(in million yuan)
Items Planed amount of investment Amount invested in 2013 Percentage already invested out of the total planned investment Project progress
Additional production lines to manufacture crankshafts 160.00 2.73 85.08% 100%
Establishing a production line to produce dual VVT small displacement engines 531.16 29.16 34.33% 34.33%
Setting up a production line for electronic-control, small displacement gasoline engines 155.63 4.56 7.58% 7.58%
Constructing a production line to make 6-speed transmissions for small passenger vehicles 197.26 21.51 69.94% 69.94%