DONGFANG Electrotechnical Machinery Works, one of nine enterprises granted State Council approval to seek a public listing in Hongkong, has been requisitioned to produce turbine generators for the Three Gorges Project on the Yangtze. While the prestige attached to such a project will probably guarantee the 35-year-old Sichuan-based plant enough business for the rest of the decade, it might have an undesirable effect on profits. Harbin Electric Machinery Works in Heilongjiang will also be involved in the project but Dongfang Electrotechnical, which is located much closer to the Three Gorges, is expected to shoulder a large percentage of the work. Although Mr Liu Shigang, a senior engineer, conceded that the company was ''heavily booked'', he stressed that the project was unlikely to pose serious production problems. ''We now have over one billion yuan [about HK$1.45 billion at official rates] of domestic contracts on hand and about another 500 million yuan in foreign contracts. Our production plan for 1993 is already fully scheduled,'' he said. According to Mr Liu the company has set a target of 390 million yuan for volume of business this year, about 50 million yuan higher than last year. But he would not be drawn on the profit margins of the Three Gorges contracts, saying negotiations with the government were still under way. Profits last year were a disappointing two million yuan, but the figure was attributed to China's unique accounting methods. These will be revised according to international accounting practices and a new balance sheet is expected to be ready by July and will be made available to foreign investors interested in buying shares in the gigantic operation. A company delegation is due to arrive in the territory next month to prepare for its Hongkong listing. ''We will meet officials from the Hongkong stock exchange in April to discuss our listing and by that time we may have more details on our financial position,'' said Mr Liu. The hugh size of the company - it comprises 14 factories and a workforce of 30,000 - is said to be the main reason for the length of time taken to evaluate the assets. It is understood that the Hongkong listing will not include Dongfang Enterprise, which owns four other Chinese enterprises in addition to the turbine producer.