Financial Overview

On February 1, 2013, Dongfeng Motor Parts and Components Group Co., Ltd. has announced its 2012 business results and sales targets for 2013. The company achieved its 2012 sales target by generating 7.3 billion yuan. Sales of components for passenger vehicles climbed 21 percent from the previous year’s result to 1.3 billion yuan, which accounted for 18 percent of overall revenue. The percentage exceeded last year’s performance by 5.3 percentage points. The company says it aims to increase its overall sales to 7.7 billion yuan in 2013. (From a press release, February 1, 2013)

Subsidiary Business Outlook

-Shanghai Fleetguard Filter Co., Ltd. announced its business objectives of generating 900 million yuan in net sales and achieving 198 million yuan in operating profit for FY 2013. (From a press release on March 20, 2013)

-On January 20, 2013, Dongfeng Motor Fastener Co., Ltd., which is a subsidiary of the Company, announced its business results for 2012. The company said its revenue has reached 390 million yuan, of which 15.4 percent was generated through sales of new products. The figures were 1.6 percent larger than the company’s original target. Sales of fasteners for passenger vehicles gained 18.38 percent from the previous year to 86 million yuan, which accounted for more than 20 percent of the total revenue. For 2013, the company is forecasting its yearly sales to reach 510 million yuan, of which 200 million yuan is projected to come from sales of automotive products. (From a press release, January 22, 2013)

Pass the Test

-In January 2014, Dongfeng Motor Electric Co., Ltd., a subsidiary of the Company, announced that its alternators have passed Dongfeng Motor Commercial Vehicle’s TQ2 testing. The commercial vehicle manufacturer’s TQ (Top of Quality) assessment consists of the following three processes: the TQ0 for project planning and product designing; the TQ1 for standardizing dies and tools; and the TQ2 for standardizing production processes. Dongfeng Motor Electric has satisfied the conditions for starting mass-production of the alternators after solving problems pointed out in the TQ0 stage. (From a press release on January 26, 2014)

Come into Production

-In November 2013, Dongfeng Motor Fastener Co., Ltd., a subsidiary of the Company, announced that its new plant in Wuhan started operating. The subsidiary is investing CNY 193 million in the new 76,600-square-meters facility. The construction project is carried out in two phases to ensure the capacity to produce 20,000 tons of high-strength fasteners for passenger vehicles per year. Having completed the first phase of the project, the plant will produce 10,000 tons of fasteners per year. (From a press release on November 21, 2013)

-In July 2013, Shanghai Fleetguard Filter Co., Ltd., a subsidiary of the Company, said two production lines at its new Wuhan Plant became operational. The whole plant site covers 53,900 square meters. The first phase of the construction project began in 2010 to set up a 14,580-square-meter factory and a 4,536-square-meter sub-building on 22,570 square meters. The second phase of the project will cover approximately 9,500 square meters of land. When the plant becomes fully operational, its annual production capacity for filters is expected to reach 20 million units. (From a press release, August 18, 2013)

-Dongfeng Motor Suspension Spring Co., Ltd., a subsidiary of the Company, completed the first phase of its plant construction project at the Shiyan Economic Development Zone and started new operations there on June 28, 2013. This construction project on 178,000 square meters of land was launched on November 21, 2011. The new plant covering 80,000 square meters will have the annual capacity to produce 60,000 tons of high-performance lightweight leaf springs. The plant’s completion represents the Dongfeng Motor Parts and Components Group’s inauguration at the Shiyan Economic Development Zone. (From a press release, July 2, 2013)

Awards

-Dongfeng Motor Electric Co., Ltd.,the Company's subsidiary, has received the Quality Improvement Award from Dongfeng Commercial Vehicle Company. (From a press release on December 25, 2013)

R&D Activities

-In FY 2012, the Company developed 167 new products. The ratio of new product sales to total sales in 2012 was 16.83%. Cost reductions due to new technology totaled 7.67 million yuan, 6.14 million of which was contributed from material technology while 1.53 million was derived from manufacturing technology. (From a press release on March 11, 2013)