Weichai Power: Net profit attributable to shareholders of the parent increased by 50%

HONG KONG, Aug 23, 2024 - (ACN Newswire) - On 22 August 2024, Weichai Power (000338.SZ; 2338.HK) released its semi-annual report. According to the announcement, in the first half of 2024, Weichai Power achieved income of RMB 112.49 billion, a year-on-year increase of 6.0%; net profit attributable to shareholders of the parent was RMB 5.90 billion, a year-on-year increase of 51.4%; and net profit attributable to shareholders of the parent after deducting non-recurring profit and loss was RMB 5.48 billion, a year-on-year increase of 51.8%. At the same time, the Company announced its interim dividend payout plan for 2024, with a cash dividend ratio increased to 55%.

Power System: Empowering and expanding product advantages with technology, steadily increasing market share

Weichai Power insisted on independent innovation, continuously accelerated the commercialization of scientific and technological achievements, and promoted the expansion of differentiated product advantages. It has launched the world's first diesel engine with body thermal efficiency of 53.09%, setting a new world record for four consecutive times; and launched a new generation of LNG engines, with overall improvements in power, reliability, economy, and comfort. In the first half of 2024, total engine sales volume of Weichai Power was approximately 400 thousand, representing a year-on-year increase of 9.8%. Among them, sales volume of heavy-duty truck engines reached approximately 161 thousand units, with a market share of 40.5%; market share of LNG heavy-duty truck engines reached 63.1%; and market share of 6x4 tractor-trailer engines with 500 horsepower and above reached 44.6%. Besides, the sales volume of M series engines of the Company reached approximately 3,600 units, and the product structure continued to improve, with overseas revenue accounting for 75.6%.

Heavy-duty truck: Continued breakthroughs in segment markets, significant improvement in operational quality.

Benefiting from the recovery of domestic demand and the gradual manifestation of China's heavy-duty truck export competitiveness, the heavy-duty truck industry has shown a trend of recovery. Shaanxi Heavy-duty Automobile continuously improves its product market competitiveness, with a focus on breaking through advantageous segment markets, achieving improvements in both production and sales scale and operational efficiency. In the first half of 2024, Shaanxi Heavy-duty Automobile sold approximately 63 thousand heavy-duty trucks, a year-on-year increase of 3.6%. Among them, sales volume of LNG heavy-duty trucks reached approximately 17 thousand units, an increase of 134.3% year-on-year; sales volume of new energy heavy-duty trucks reached 2,840 units, a year-on-year increase of more than doubling. At the same time, Shaanxi Heavy-duty Automobile has deeply explored the potential of overseas markets, with export volume of heavy-duty trucks reaching approximately 30 thousand units, a year-on-year increase of 15%, realizing the highest level in the same period in history.

Agricultural equipment: Actively responding to the rural revitalization strategy, leading the industry's high-end transformation.

Weichai Lovol Intelligent Agriculture focused on building three core capabilities of "smart agricultural machinery, precision agriculture, and digital agricultural services", actively promoted product transformation and upgrading, and leads China's agricultural machinery industry towards high end with its own high-quality development. In the first half of 2024, Weichai Lovol Intelligent Agriculture sold approximately 77 thousand units of various types of agricultural machinery, a year-on-year increase of 17.5%; the achievements of large-scale and high-end transformation were highlighted, with the proportion of tractors above 100 horsepower increasing by 8 percentage points year on year and the proportion of tractors above 200 horsepower increasing by 3 percentage points year on year. Weichai Lovol Intelligent Agriculture achieved revenue of approximately RMB 9.8 billion, a year-on-year increase of 28.1%, reaching the best level in the same period in history; achieved a net profit of approximately RMB 560 million, a year-on-year increase of 34.8%.

Intelligent logistics: Revenue reaching a new historical high, significant increase in profitability.

In the first half of 2024, Weichai Power's holding subsidiary, KION Group, achieved revenue of approximately EUR 5.74 billion, a year-on-year increase of 2%, reaching a new high in the same period in history. Among them, the forklift business achieved revenue of approximately EUR 4.31 billion, and the supply chain solutions business achieved revenue of approximately EUR 1.45 billion. Benefiting from improved operating quality and increased operational efficiency, KION Group's profitability continues to strengthen. In the first half of 2024, it achieved a net profit of approximately EUR 180 million, a year-on-year increase of 24.1%; the adjusted EBIT margin was approximately 7.8%, representing an increase of 1.6 percentage points year on year. Based on the strong development momentum in the first half of the year, KION Group has further confirmed its full-year performance outlook, defining its continued growth and positive operating expectations.

In future, the Company will continue to seize the opportunities brought by the new quality productive forces and the transition from old to new drivers of growth, focus on value creation, reform deepening, layout optimization, and technological innovation, firmly promote in-depth reforms, strengthen development quality, reinforce development vitality and boost growth momentum. Changing gears and speed up to enhance growth force and gathering strength to promote development, the Company is accelerating to build a world-class company.