Weichai Power's net profit attributable to shareholders in the first half of 2023 increased by 63% year-on-year, continuing to highlight its leading position

On the evening of August 30th, Weichai Power released its interim results for 2023. The report shows that the company achieved operating income of 106.135 billion yuan in the first half of the year, representing a year-on-year growth of 22%. The net profit attributable to the parent company reached 3.899 billion yuan, representing a year-on-year increase of 63%. The net profit attributable to the parent company after deducting non-recurring gains and losses increased by 124% year-on-year to 3.61 billion yuan, and the gross profit margin rose by 1.7 percentage points year-on-year to 19.4%. The net cash flow from operating activities increased by 1235% year-on-year to 12.89 billion yuan, demonstrating strong cash flow.

Since the beginning of 2023, the overall economic operation has shown a positive and upward trend. Market demand has gradually recovered, and more favorable factors for the development of the industry have emerged. From January to June this year, the sales volume of China's heavy truck industry reached 488,000 units, representing a year-on-year growth of 29%. As a leading enterprise in China's heavy truck industry chain, Weichai Power has achieved remarkable performance in this regard.

The market segments such as high-horsepower and natural gas engines are full of highlights, with both market share and revenue achieving a double increase

It is understood that Weichai Power's main products include a full range of engines, gearboxes, axles, hydraulic products, heavy-duty vehicles, forklifts, supply chain solutions, fuel cell systems and components, agricultural equipment, automotive electronics and components, etc. Among them, engine products are exported to more than 150 countries and regions around the world. It is widely applied and serves the global markets of trucks, buses, construction machinery, agricultural equipment, ships, power and so on. "Weichai engines", "FAST transmissions", "Hande axles", "Shaanxi Automobile Heavy Trucks", "Linde Hydraulics", "Weichai Lovol Smart Agriculture" and others have gained the trust of customers, forming a brand cluster effect.

In the first half of this year, in the face of a complex development situation, Weichai Power System made plans, made reasonable arrangements, and implemented precise policies. It continuously deepened reforms, actively explored niche markets, continuously increased investment in research and development, and strictly prevented business risks. The overall operational quality continued to improve, and it maintained a steady development.

During the reporting period, Weichai Power achieved a steady increase in market share in various market segments, and the market position of each product continued to lead.

Specifically, in the first half of this year, Weichai Power sold 367,000 engines, a year-on-year increase of 29%. Among them, the market share of domestic heavy-duty truck engines with over 500 horsepower reached 31.7%, up by 19.7 percentage points year-on-year, and its profitability has significantly improved. The export sales volume of engines reached 39,000 units, up 52% year-on-year. Among them, the sales volume of heavy-duty truck engines increased by 81% year-on-year to 142,000 units, and the market share rose to 38.4%, with the leading position of the company continuing to stand out. In addition, 425,000 gearboxes were sold in the first half of the year, representing a year-on-year growth of 33%. The export sales volume was 22,000 units, representing a year-on-year growth of 93%. Sales of axles reached 361,000 units, representing a year-on-year growth of 31%.

In addition, in the first half of the year, Weichai Power's strategic high-end products continued to make efforts, and its large-bore engines performed strongly. In the first half of the year, the revenue of large-bore engines increased by 77% year-on-year, and the sales volume rose by 48%. Both production and sales reached new highs. High-end Hydraulics has continuously strengthened technological research and development, promoting the full implementation of strategic products. During the reporting period, it achieved domestic revenue of 500 million yuan, representing a year-on-year growth of 46%. The hydraulic powertrain products were first matched with 80-ton excavator products, featuring reliable performance and remarkable economy, making it the new king of the mining industry.

In the commercial vehicle business, Weichai Power has been accelerating the upgrading of its industrial chain structure and continuously enhancing the competitiveness of its products by focusing on the leading strategy of complete vehicles and machines. As a result, its product sales have seen a significant increase, and its market growth rate has ranked first for several consecutive months. Data shows that in the first half of the year, the commercial vehicle business sold a total of 61,000 heavy-duty trucks, representing a year-on-year growth of 58%. The export sales volume reached 26,000 units, representing a year-on-year growth of 97%. The core competitive advantages have been continuously enhanced, and strong breakthroughs have been made in key market segments. In addition, seizing the opportunity of the rising popularity of natural gas heavy-duty trucks, Shaanxi Heavy Duty Truck Group's cumulative sales of natural gas products exceeded 10,000 units in the first half of the year, a year-on-year increase of 241%, and its market share rose by another 2.8%. The high reliability, lightweight, high horsepower and low gas consumption have been recognized by users. Engineering dump trucks have continuously topped the charts and maintained their leading position in the industry. The cargo truck achieved a breakthrough in both sales volume and market share, with sales volume increasing by 107% year-on-year and market share rising by 2.2 percentage points.

Not only that, the smart logistics business achieved sales revenue of 5.6 billion euros, a year-on-year increase of 2%. The profit income of the industrial vehicles and services business significantly increased, and the operating performance far exceeded expectations.

Persist in promoting innovation to continuously highlight the leading position of the leading enterprises

Weichai Power's outstanding market performance is attributed to the continuous improvement of its R&D capabilities, and the innovative achievements it continuously launches have been constantly leading the development of the industry.

During the reporting period, Weichai Power adhered to innovation-driven development and seized the "commanding heights" of heavy truck technology. Actively promoting the upgrade of high-end heavy-duty trucks, successfully launched the upgraded version of the Delong X6000 17H840 high-horsepower high-end product, once again setting a new record for the horsepower list of domestic heavy-duty trucks and leading the development of the high-horsepower tractor market in China.

In addition, it has been actively promoting the industrial layout of new energy heavy-duty trucks, integrating industry resources, matching leading industry independent electric drive and electronic control technologies, achieving batch deliveries in Xinjiang, Sichuan, Heilongjiang and other places, filling market gaps, and significantly enhancing brand influence.

In the first half of this year, the world's largest horsepower natural gas commercial vehicle engine product, WP15NG, was officially put into mass production. All technical and performance indicators are comprehensively leading, once again guiding the industry towards high-end and high-horsepower transformation and upgrading. The world's largest horsepower heavy-duty truck engine, WP17H, has been officially launched. Customized for complex application scenarios such as mountainous and high-altitude trunk roads, it once again sets a new power record for domestic brand heavy-duty trucks.

With the continuous optimization of product structure, breakthroughs in niche markets, and the sustained leadership of high-end products, the foundation for high-quality development has been continuously consolidated. Weichai Power's ability to resist cycles and fluctuations has significantly improved, and its market share and revenue have both increased.

Looking ahead, Weichai Power will continue to seize the development opportunities in domestic and international markets, adhere to technology leadership and innovation-driven development, accelerate product upgrading and technological breakthroughs, focus on the coordinated development of complete vehicles and machines, support the continuous improvement of smart logistics, accelerate the comprehensive development of high-end technology and diversified business forms, and promote new breakthroughs in structural adjustment.