Dongan Power plans to invest in 488 million to build a new base of new energy hybrid system with an assembly capacity of 200000 units per year.

On March 14, Dongan Power (600178) issued an announcement that the company intends to make use of resources in Harbin to promote industrial agglomeration, realize the doubling of industrial scale, and form an integrated R & D and manufacturing base of traditional and new energy power with economic scale. to build a new base of new energy hybrid system in Harbin by China Arms and equipment Group and China Changan Automobile Group Co., Ltd., with a total planning area of about 51 hectares.

According to reports, the construction goal of the new base of the new energy hybrid system is 100000 units per year for the addition and commissioning of M15N/16N series engines and 200000 units per year for assembly. The construction period of the project is 18 months and the production capacity will be reached by 2023. The estimated amount of investment is 488 million yuan, and the project is funded by the enterprise itself.

The announcement information shows that due to historical reasons, Dongan Power and China Aviation Development Harbin Dong'an engine Co., Ltd. (hereinafter referred to as "China Aviation Development Dong'an") share the plant area, and the land rights used by the company belong to AVIC Dong'an. Some of the factories and sites used are leased to AVIC Dong'an, and the main energy sources, such as electric power, belong to China Aviation Development Dong'an. According to the 14th five-year Plan of China Aeroengine Group, China Aviation Development Dongan asked the company to move out of the existing plant. At the same time, the company's existing plant can not meet the needs of the next generation of high-efficiency engine products, in order to meet the market demand, the company outsourced some parts, the capacity utilization rate is still at a high level, the existing plant can not meet the needs of the new production line, which has seriously restricted the future development.

Dongan Power said that the products of the new base project of the new energy hybrid system can meet the requirements of four stages of commercial vehicles, five stages of fuel consumption of passenger vehicles and national 6b (including RDE) emission limits, keep up with the policy guidance and technology development trend of the new energy vehicle industry, speed up the pace of integrated research and development and industrialization of efficient and extended range power, respond quickly to the market, and meet the needs of users. The highest thermal efficiency can reach 43%, which is in the leading level in China. After the implementation of the project, it will enhance the company's market position and competitiveness, enhance the company's sustainable profitability, and become a new profit growth point of the company.

On the same day, Dongan Power also released its annual report for 2021. Last year, the company realized operating income of 6.586 billion yuan, an increase of 22.35% over the same period last year, and realized a net profit of 90.6751 million yuan belonging to shareholders of listed companies, an increase of 104.80% over the same period last year.

The annual report reveals that in 2021, Dongan Power and Dongan Auto Development have been reorganized and integrated. After the integration, Dongan Power has the ability to independently develop high-efficiency engines and automatic transmissions, forming an integrated advantage of new energy powertrain, covering light commercial vehicles, new energy extended range power and hybrid vehicle markets, mid-and high-end passenger cars and pickup markets. The main supporting customers are Changan Automobile, Futian Automobile, ideal Automobile, Dongfeng shares, Changan Crossing, Chery Automobile, Geely Automobile, Jianghuai Automobile, Shandong Wuzheng and so on.

Thanks to the rapid improvement of new product development and new market development capabilities, as well as the continuous mass production of matched projects, Dongan Power engine sales have ranked first among independent gasoline engine enterprises for 22 consecutive months. In 2021, the company sold 671400 units of complete engines for the whole year, an increase of 21% over the same period last year, of which 616500 engines were sold, with a market share of 3.23%, an increase of 0.46% over the same period last year. The sales volume accounts for 44.88% of the independent gasoline engine enterprises, and its market share ranks first in the domestic independent gasoline engine enterprises, the extended range power field of new energy vehicles, the commercial vehicle gasoline engine market and the independent AT transmission export market.

Based on 2022, Dongan Power also announced this year's performance target of 769000 units sold, with an operating income of 6.83 billion yuan.

In addition, according to the plan, during the 14th five-year Plan, Dongan Power will focus on scientific and technological innovation, promote the implementation of Dongan Power's "1235" strategy, and build a "powertrain base for commercial vehicles, middle and high-end passenger vehicles of the Group", relying on the Group's extended range Power system Research Institute, guided by the Group's "133th" strategy and China's Changan "Mission 1347" plan. "accelerate the transformation and upgrading to the new energy power system", and create an automobile industry ecosystem that integrates R & D and manufacturing base, resource integration platform and industry integration leader. By 2025, efforts will be made to achieve a production and marketing scale of more than 1 million units and a revenue of more than 10 billion yuan to build a "double-hundred" scale enterprise.