Harbin Dongan Auto Engine Co., Ltd. Business Report FY ended Dec. 2015
Financial Overview |
(in million yuan) |
| FY ended Dec. 31, 2015 | FY ended Dec. 31, 2014 | Difference (%) | Factors | |
| Sales | 1,261.40 | 743.20 | 69.72% | -The Company sold 108.3 thousand units of M series engines, increase by 400% on a year-over-year basis, which accounting for 70.4% of the total. |
| Operating profit | 18.00 | 20.85 | - | - |
| Ordinary profit | 23.44 | 32.43 | - | - |
| Net profit | 23.44 | 32.43 | - | -The profit of Dongan Mitsubishi, the subsidiary of te Company, decreased. |
-In 2015, the Company produced 162.9 thousand units engines, increase by 64.15% than previous year. The Company sold 153.9 thousand units engines, increase by 60.51% than previous year. And the sales reached CNY 1.26 billion.
Recent Development
-The board members of the Company voted to dissolve Harbin Dongan Liyuan Piston Co., Ltd. that has been operating in the red over the past few years. Harbin Dongan Liyuan Piston was established in 2002. It was formed jointly by Harbin Dongan Auto Engine, which invested 35%, and Hebei Tianma LiYuan Industry (currently called the Liyuan Piston Industry Group), which invested 65%. The joint venture is capitalized at CNY 15 million. In 2015, the engine piston supplier generated CNY 3.57 million in sales and posted a net loss of CNY 1.27 million. (From an announcement by the company on April 16, 2016)
-The Company announced that it has successfully ignited its DAM12TGDI direct-injection turbo engine. This engine, developed in-house by the company, features an all-aluminum case, high compression ratios, DOHC4 valves, and Dual VVT technologies. It offers up to 85kW/L, maximum torque of 180Nm/L, and meets the China 5 emissions standards. The company says the engine is capable of meeting the China 6 emissions standards as well. (From a press release on February 16, 2016)
-Harbin Dongan Automotive Engine Manufacturing Co., Ltd., a subsidiary of the Company, announced that it produced its sixth lot (nine units) of D20TGDI engines for Chongqing Changan Automobile on September 14, 2015. These engines will be supplied to Chongqing Changan's research center and will undergo real-car tests and road tests. D20TGDI engines are scheduled to be used on Changan's new SUV. (From a press release on October 9, 2015)
Product Platform Plan of the Company
-As of 2015, for engine, the Company finished preliminary the establishment of M series turbocharged direct injection platform and new energy range extender platform. M series turbocharged direct injection platform had two series, 3-cylinder series and 4-cylinder series, 6 lineage in total.
-As of 2015, for transmission, the Company focused on the development of T10R、 T15R platform, and finished the establishment of 5-speed and 6 speed transmission platform including T15F、 T20F6、 T18R.
Production Status of Products
-Hebei Changan MD/S201 project and Nanjing Changan F102 project achieved mass production.
-Baoding Changan Bus project went smoothly.
-Expanded the cooperation with BAIC Group. Changhe M20 project, BAIC M40S project achieved mass production. BAIC Ollin's transformation project from diesel engine to gasoline engine supplied in batch. BAIC Foton PM project, which changed into the Weifang factory, achieved mass production. The project of BAIC new energy vehicles to install DAM10E range extender got the approval. The project of T15R transmissions installing on Changhe K14B engine achieved mass production.
-M series with 3-cylinder engine installing project (FAW Jilin V60 project) achieved mass production.
-NLM Motor project achieved bulk supply.
-Beijing Guoan （Shenzhen）'s project of range extenders installing on DAM10AR went smoothy, and supplied the prototype.
-T15E1、T30RE1 EV transmission project entered the mass production stage, and totally installed more than 600 units.
Production Capacity
-Current production capacity of the Company:
| Main factory | Designed production capacity (thousand units per year) |
Production capacity in 2015 (thousand units) |
Capacity utilization |
| M series engine | 160 | 160 | 77% |
| F series engine | 190 | 190 | 23% |
-As of 2015, the Company increased the production capacity of M series engine to 200 thousand units, and will undergo the technological transformation so as to increase the production capactiy further.
-Current production capacity of Harbin Dongan Automotive Engine Manufacturing Co., Ltd., the subsidiary of the Company:
Current prduction capacity:
| Main factory | Designed production capacity (thousand units per year) |
Production capacity in 2015 (thousand units) |
Capacity utilization |
| Engine | 300 | 360 | 120% |
| Transmission | 300 | 300 | 5.6% |
Production capacity under construction:
| Factory under construction | Planned amount of investment (in million yuan) |
Amount of investment (in million yuan) |
Accumulated amount of investment (in million yuan) |
Predicted date of production | Predicted production capacity (in thousand units) |
| Engine factory | 669.16 | 71.80 | 71.80 | 2017 | 150 (same line) |
Development Strategy
-Sales volume plan of engines in the future three year:
| Target | 2016 | 2017 | 2018 |
| Sales volume (in thousand units) | 271 | 306 | 335 |
| Sales (in billion yuan) | 2.17 | 2.46 | 2.64 |
Business Plan for Next Year
-In 2016, the Company plans to reach 2.17 billion sales and sell 271,000 units powertrains. (From the Company's 2015 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. 2015, the center has more than 400 staff.
R&D Expenditure
| FY ended Dec. 31, 2015 (million yuan) |
FY ended Dec. 31, 2014 (million yuan) |
FY ended Dec. 31, 2013 (million yuan) |
|
| R&D Expenditure | 36.34 | 33.65 | 32.27 |
| Ratio of R&D expenses to operating income | 2.88 | 4.53% | 3.77% |
Patents
-As of Dec. 2015, the Company has 206 patents, 5 of them are invention patents, and finished the patent protection of M series products.
Product Development
-The Company announced in February 2015 that it succeeded in starting its newly developed 1.2-liter DAM12TL engine. The three-cylinder in-line engine for front-engine, rear-wheel-drive architecture meets the China V emissions standards. It is a small 1.2-liter engine with three cylinders equipped with a turbocharger. The engine offers a rated output of 85kW and a maximum torque of 174Nm. It uses 71kW less power and requires 145Nm less torque per 1 liter compared with current products. (From news releases issued by multiple sources on February 10, 2015)
Recent Capital Investment Projects (as at the end of Dec.2015) |
(in million yuan) |
| Items | Planned amount of investment | Amount invested in 2015 | Project progress |
| Establishing a production line to produce dual VVT small displacement engines | 531.16 | 16.60 | 43.40 |
| Constructing a production line to make 6-speed transmissions | 197.26 | 0.09 | 7.66 |
| Setting up a production line for electronic-control, small displacement gasoline engines | 155.63 | 6.76 | 76.26 |