Dongfeng Motor Parts And Components Group Co., Ltd. Business Report FY ended Dec. 2017
Sales
-In 2017, the Company has sales of CNY 14.509 billion, a 14.47% y/y increase. Net income of its main business totaled CNY 13.760 billion, a 14.65% y/y increase. It aim to achieve sales of at least CNY 14.729 billion, and will change CNY 15.718 billion. (From news issued on January 31, 2018)
Sales of Subsidiaries
-In 2017, Dongfeng Behr Thermal Systems Co., Ltd., a subsidiary of the Company, achieved net income of main business sales of CNY 1.373 billion, a 26.06% y/y increase. It will achieve net income of main business sales of CNY 2.56 billion by 2020. (From news issued on January 24, 2018)
-In 2017, Shanghai Fleetguard Filter Co., Ltd., a joint venture of the Company, reached sales of CNY 1.298 billion, a 27.32% y/y increase. It has over 700 staff by 2017. It obtains 38 new projects in 2017, a 58% y/y increase. Its new contracts value about CNY 113 million, a 98% y/y increase. (From news issued on January 11, 2018)
-During the period from January to November in 2017, Dongfeng Motor Suspension Spring Co., Ltd., the Company's subsidiary, had sales of CNY 21.93 million, a 263.96% y/y increase and a 86.15% improvement compared to that planned in budget. It had an annual production capacity of 10,000 sets of suspension spring. It will have an annual production capacity of 30,000 set by 2020. (From news issued on December 25, 2017)
Contracts
-In August 2017, Dongfeng Yanfeng (Shiyan) Automotive Trim System Co., Ltd., a shareholder of the Company, obtained several purchase orders from eGT New Energy Automotive Co., Ltd. (eGT) for both interiors and exteriors. eGT was funded by Renault-Nissan and Dongfeng Corporation. Located in Shiyan, Hubei, it specializes in NEV passenger vehicles. (From news issued on September 28, 2017)
-In September 2017, Dongfeng Motor Electric Equipment Co., Ltd. obtained a purchase order of 2,100 units of A170010J-P0900 drive motor from Dongfeng Electric Vehicle Co., Ltd. (From news issued on September 28, 2017)
New Plant
-On January 17, 2018, Dongfeng Brose Automotive Systems Co., Ltd. announced that the company is now constructing a new plant in the Economic & Technological Development Zone in Wuhan City, Hubei Province, with an investment of Chinese yuan (CNY) 500 million. The new plant is expected to be completed in the second quarter of 2018. All its facilities will be completed and the workforce to be relocated in the third quarter. Established in 2007, Dongfeng Brose Automotive Systems supplies door systems, window regulators and seat systems to automakers such as Dongfeng-Peugeot-Citroen Automobile, Changan Ford, Geely, Chery, GAC FIAT, Fujian Daimler, BYD, Lear, Renault and Dongfeng Getrag. (From a press release on January 25, 2018)
New Companies
-On May 31, 2018, Dongfeng Motor Parts And Components Group Co., Ltd. and Fawer Automotive Parts Limited Company signed an agreement on the establishment of a new joint company. The two parties are going to invest Chinese yuan (CNY) 15 million and CNY 35 billion, respectively, in setting up Dongfeng Fawer Pump Co., Ltd. The new company will be owned 30% by Dongfeng Motor Parts And Components and 70% by Fawer Automotive Parts. In the future, the joint company is going to deepen the alliance with Dongfeng group companies and supply oil pumps, water pumps and electric pumps and other pumps for commercial, passenger, and new energy vehicles. The new joint company will be built in Shiyan New Industrial Park, Hubei. It's expected to generate sales of CNY 260 million in 2023. (From a press release on June 4, 2018)
-On May 13, 2018, Dongfeng Motor Parts And Components Group Co., Ltd. and US Cooper Standard singed a joint venture agreement in Wuhan. The two companies are going to set up a joint manufacture of piping systems and sealing materials. The new company's main products are fuel lines, brake lines, fuel delivery systems and automotive sealing systems. It also will take over the piping business from Dongfeng Motor Pump Co., Ltd. The new company's headquarters plant will be in Wuhan. It also will build a plant in Shiyan based on the piping plant of current Dongfeng Motor Pump. The plant in Wuhan will make products for passenger car manufacturers, and the plant in Shiyan will produce products for commercial vehicles manufacturers and other clients. (From a press release on May 16, 2018)
-On March 26, 2018, Dongfeng Motor Parts And Components Group Co., Ltd. and Federal-Mogul Holdings LLC of the U.S. have signed an agreement on the establishment of a new joint company. The two companies are going to make a collective investment of Chinese yuan (CNY) 400 million to build a plant in Dongfeng Motor Parts And Components Group's industrial park in Zhangwan, Shiyan. The joint manufacturer is going to design, manufacture and sell pistons for internal-combustion engines. The new company is expected to generate sales of CNY 380 million in 2022, exporting some of its products to North America. The joint company is to design and produce high-performance pistons for engines for China and the Dongfeng Group, to improve heat-efficiency of conventional fuel-powered engines, contribute to the reduction of carbon emissions, and comply with several environmental protection laws. (From a press release on March 27, 2018)
-On December 14, 2017, Fawer Automotive Parts Limited Company said that it signed a letter of intent on an establishment of a joint venture with Dongfeng Motor Parts and Components Group Co., Ltd. The new company will be built in Shiyan City, Hunan, as a manufacturer of industrial pumps such as automotive oil pumps, water pumps, and electric pumps. The two parties have yet to decide the name of the joint company, the total investment and shareholding ratios. (From a corporate announcement on December 14, 2017)
-Dongfeng Motor Parts And Components Group Co., Ltd. and Nexteer Automotive China officially established their joint business, Dongfeng Nexteer Steering Systems (Wuhan) Co., Ltd., on October 23, 2017. The new company is going to supply steering technologies to Dongfeng group companies for their passenger cars and form strategic alliance agreements. At the same time, it provides driving assistant and autonomous driving technologies to the Dongfeng group companies. First of all, the company will supply single pinion assist electric power steerings (SPEPS). Then it starts supplying column-assist electric power steerings (CEPS), rack-assisted electric power steerings (REPS) and dual pinion assist electric power steerings (DPEPS). It also plans to supply programs for advanced steering technologies for sophisticated driving assistant and autonomous driving systems. Dongfeng and Nexteer plan to launch the first mass production of the EPSs by the end of 2019. According to their business plans, they aim to achieve 20% shares in the Dongfeng car markets and sales of Chinese yuan (CNY) 1.2 to 1.4 billion by 2023. (From a press release on October 31, 2017)
-Faurecia S.A. announced on July 5, 2017, a plan to set up a new joint venture with Dongfeng Motor Parts And Components Group Co., Ltd. to explore a new opportunity in the clean mobility business. The establishment of the joint company will allow them to broaden their already-established alliance in the area of automotive interior components. The purpose of the new company is to provide Dongfeng’s passenger and commercial vehicle brands with advanced clean mobility system solutions. They will build the company in Xiangyang, Hubei, anticipating an operational launch in 2018. In 2021, the new company is expected to generate sales of Chinese yuan (CNY) 1.2 billion. (From a press release on July 5, 2017)
Strategic Cooperation
-Dongfeng Motor Parts And Components Group Co., Ltd. and Fawer Automotive Parts Limited Company signed a strategic cooperation framework agreement on June 14, 2017, in Changchun, Jilin. The two companies will jointly develop technologies and share resources to expand their businesses. (From a press release on June 19, 2017)
-In August 2017, Dongfeng Automobile Fastener (Wuhan) Co., Ltd. (Dongfeng Fastener), a subsidiary of the Company, signed a strategic cooperation agreement with Xingtai Iron & Steel Corp. The partners will collaborate in high-strength fasteners and new material development. Dongfeng Fastener's Wuhan Plant started production on November 18, 2013. It is a major project of Dongfeng Fastener with an investment of about CNY 200 million. It specializes in fasteners for passenger vehicles and will have an annual production capacity of 20,000 tons of fastener. (From news issued on September 15, 2017)
Acquisition
-On July 7, 2018, Dongfeng Electronic Technology Co., Ltd. announced a plan to consolidate new energy vehicle businesses of the group and acquire 100% shares in Dongfeng Motor Electric Equipment Co., Ltd. at the cost of Chinese yuan (CNY) 200 to 250 million. The scheme is going to allow the company to complete its electric power system business. Currently, Dongfeng Motor Parts And Components Group Co., Ltd. owns a 98.78% stake in Dongfeng Motor Electric Equipment and the company is planning to buy the rest, 1.22%, within two months from now. After all these transactions, Dongfeng Electronic Technology is going to buy all the shares from Dongfeng Motor Parts And Components Group. (From a press release on July 9, 2018)
Start of Production
-In September 2017, the 100 millionth carburetor of Zhanjiang DENI Vehicle Parts Co., Ltd. (Zhanjiang DENI), a shareholder of the Company, came off the assembly line. It will sell over 40,000 sets of EFI system in 2017 and will become a business unit developed in high speed of Zhanjiang DENI. Zhanjiang DENI aims to produce the 1 millionth EFI product by 2020. (From news issued on September 21, 2017)
-In November 2017, the 800,000th transmission motor of Dongfeng Brose Automotive Systems Co., Ltd. (Dongfeng Brose), the Company's shareholder, came off the assembly line. Dongfeng Brose now mainly supply the next-genaration Brose DCT motors to well-known transmission makers such as Dongfeng GETRAG Transmission Co.,Ltd. and Jiangxi GETRAG Transmission Co., Ltd. On April 6, 2016, the first 6DCT150 double-clutch AT that is equipped with Dongfeng Brose's transmission motor came off the assembly line at Dongfeng GETRAG's workshop. The ATs were first supplied to FAW and SAIC, and will be supplied to Dongfeng Passenger Vehicle. (From news issued on November 17, 2017)
Awards
-In December 2017, Dongfeng Behr Thermal Systems Co., Ltd. (Dongfeng Behr), the Company's subsidiary, obtained "Best Supplier Award" from Dongfeng Commercial Vehicle, "Cooperation Award" from Dongfeng Peugeot Citroen, and "Best Customer Support Award" from Dongfeng Commins. Dongfeng Behr also developed silicone clutches for FAW Jiefang and cooling modules for BAIC Foton. Its R&D center passed CNAS certificate renewal procedure and examine. (From news issued on Janaury 24, 2018)
-In 2017, Dongfeng Yanfeng (Shiyan) Automotive Trim System Co., Ltd., the Company's shareholder, obtained "Best Supplier Award" from Dongfeng Commercial Vehicle, and "Excellent Supplier Award" from Dongfeng Corporation and Dongfeng Honda. It obtained purchase orders of 20,000 units from Xpeng, Sinogold, and GAC Component. (From news issued on January 24, 2018)
-In 2017, Dongfeng Automobile Electronics Co.,Ltd. (Dongfeng Electronics), the Company's shareholder, obtained "Excellent Product Development Supplier Award" from Dongfeng Commercial, "2017 Excellent Supplier Award" from Hualing Xingma, "2017 Excellent Supplier Award" and "2017 Innovative Integration Development Award" from Baotou Beiben Heavy-Duty Truck, "Big Wheel Drag Special Contribution Award" from YTO Group. Dongfeng Electronics applied for 45 patents in 2017, and obtained 19 authorized patents in 2017. It has sales of CNY 13.12 million in 2017. (From news issued on January 19, 2018)
Patents
-In 2017, the Company obtained 88 authorized patents including 14 invention patents. (From news issued on January 31, 2018)
Subsidiary's Development Goal
-In December 2017, Dongfeng Motor Propeller Shaft Co., Ltd. announced its goal for the next three phase of development: complete loss turning from 2018 to 2019; an operation profit rate of 6% and sales of CNY 505 million by 2022; and becoming an industry giant of transmission steering system by 2025. (From news issued on December 25, 2017)
R&D Expenditure
-In 2017, the Company spent CNY 590 million in R&D activities. (From news issued on January 31, 2018)
R&D Center
-Dongfeng Behr Thermal Systems Co., Ltd., which is a joint venture of Dongfeng Motor Parts and Components Group Co., Ltd., announced that it began operations of its new R&D center. Construction of this two-story center started in February 2014. The center has 5,000 square meters of space. The first floor with an area of 3,000 square meters will be used to perform testing and prototype production. The second floor that has an area of 2,000 square meters will be used as an office space and meeting rooms. (From a press release on July 13, 2015)