Harbin Dongan Auto Engine Co., Ltd. Business Report FY ended Dec. 2018

Financial Overview

(in million yuan)
FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of change (%) Factors
Sales 1,293.01 1,811.50 (28.62) -Sales and production decline due to fierce competition and reduced OEM needs.
Operating profit 4.98 41.94 (88.13) -
Ordinary profit 5.57 42.73 (86.96) -
Net profit 5.57 42.73 (86.96) -Engine sales decline as do net profits of the Company's shareholder (Harbin Dongan Automotive Engine Manufacturing).

-Engine production in February 2019 totaled 13,777 units for a 25.8% y/y increase. The Company plans to produce 26,395 engines in March, achieving a y/y increase of 28.5%. (From a Dongan Power press release on March 12, 2019)


-In August 2018, the Company started the State VI DAM16KL+T18R powertrain project to equip those powertrains in Dongfeng Tuyi T15 light trucks. It will realize mass production of the new truck in Q1 2019. (From a Dongan Power press release on August 24, 2018)

New Plant

-On June 11, 2018, the Company started construction of the D20TGDI upgraded engine plant, which has an investment of CNY 490 million and covers a site area of 41,475 sqm. The plant will have an annual production capacity of 150,000 units of D20TGDI engines, 120,000 units of D-series cylinders, and 80,000 units of D-series cylinder heads. In 2019, the Company plans to spend CNY 490 million to expand production capacity of its 6AT. (From news released on June 13, 2018)

Pass the Audit

-On January 12, 2019, the Company won a supply qualification from Chang'an Auto's QCA2.0 project. (From a Dongan Power press release on January 18, 2019)


-The Company won the following awards:
Excellent supplier technology innovation gold award issued by Foton Motor;
National excellent award issued by Changhe, BAIC Wevan, and BAIC Group;
Excellent supplier award issued by Baoding Chang'an
Excellent supplier award issued by Baoding Chang'an Bus
(From a Dongan Power press release and January 3, 2019)

Production Capacity

-Current production capacity of the Company:

Main factory Designed production capacity
(thousand units per year)
Production capacity in 2017
(thousand units)
Capacity utilization
M series engine 266 266 60.61%
F series engine 90 90 5.73%

-Current production capacity of Harbin Dongan Automotive Engine Manufacturing Co., Ltd., the subsidiary of the Company:
Current prduction capacity:

Product Designed production capacity
(thousand units per year)
Capacity utilization
4GI series engine 150 37.54%
4G9/D series engine 150 16.20%
AT series 150 30.12%
MT series 150 8.44%

Business Plan for Next Year

-In 2019, the Company plans to reach 1.903 billion sales and sell 238,000 engine units.

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. 2018, the Company has 251 R&D technical staff.

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 73.51 67.26 52.32
Ratio of R&D expenses to operating income 5.69 3.71% 2.06%


-As of Dec. 2018, the Company has 256 patents, 8 of them are invention patents, and finished the patent protection of M series products.

Product Development

-In 2018, the Company basically completed testing and verification of engine and transmission prototypes, being able to start mass production of some of the prototypes.
1) Engine development projects:
-M series three-cylinder booster/direct inject platform (M12T/TGDI)
-M series four-cylinder booster/direct inject platform (M15TGDI)
-M series hybrid platform (M10E/M12TGDI)
-M series natural in-take platform (M15K/M16K)
2) Transmission development projects:
-T18R 5-gear rear-drive transmission
-T15F 5-gear front-drive transmission

New Products

-In February, 2018, the Company started production of the DAM12T engine, which can be produced at the same time on multiple platforms. (From news issued on February 2, 2018)

-In January 2018, the Company completed development of the M16K natural aspired engine that has an output of 88 kW and up to 158 Nm of torque. It features technologies such as 11.5-high compression ratio, wide-domain DVVT, Atkinson, EGR. It can achieve an oil economy of 10% compared to the last generation engine. (From news issued on January 5, 2018)


(in million CNY)
Project Budget Investment in 2018 Project progress
F series engine assembly line transformation 81.09 6.47 65.91%
M series engine quality improvement 15.54 7.16 46.08%
VVT 531.16 1.97 98%
Transmission quality improvement 17.24 0.04 100%
Six-gear transmission 197.26 0.60 -
Small emission 155.63 - 85.44%
Quality improvement 19.80 1.22 -
Casting ability improvement 55.61 1.69 81.11%
Product quality improvement project 28.38 6.66 22.20