Weichai achieved a double harvest of revenue and profit by delivering 400,000 units of National VI engines offline

Facing the backdrop of carbon peaking and carbon neutrality, Weichai Power seized opportunities, improved quality and efficiency in the first half of the year, and performed outstandingly in all business indicators. The leading position of the advantageous business has been further consolidated, the contribution of overseas business performance has significantly increased, breakthroughs have been continuously made in new energy, new technologies and new business forms, the industrial structure, cycle structure and regional structure have been further optimized, and the risk resistance capacity and comprehensive competitiveness have been continuously enhanced.

On August 31, Weichai Power released its interim results for 2021. During the reporting period, it achieved a double harvest of revenue and profit. In the first half of 2021, Weichai Power achieved operating revenue of 126.39 billion yuan, representing a year-on-year growth of 33.8%. The basic earnings per share is 0.80 yuan. The performance in the first half of this year far exceeded expectations.

The National VI emission standard has long been known as the "strictest ever" emission standard. It not only involves a large number of parameters but also has very strict requirements for indicators. As a complex systematic project, the upgrade to National VI standards is not only a test of the R&D capabilities of enterprises, but also a test of the matching verification between engines and vehicles.

The report shows that Weichai Power's engine sales reached 671,000 units. Among them, the just-completed delivery of 400,000 units of National VI engines has set a new record for the rapid growth of National VI power and accumulated a lot of experience for Weichai products in terms of National VI standards. To address the fuel consumption pain point and expand its leading position in the industry, Weichai has increased its investment in research and development and launched the Weichai National VI engine, which saves 8% more fuel than the National V engine. With five major systems, namely the high-efficiency intake and exhaust system, high-efficiency combustion system, low-friction and low-power consumption system, high-efficiency air management system, and low-back pressure after-treatment system, it has set a new benchmark for fuel efficiency. Weichai's full range of National VI products are positioned at the high end and have achieved a comprehensive upgrade of "more fuel-efficient, more powerful, safer and more reliable, more adaptable, more comfortable and smarter", which makes them highly competitive in the market. Meanwhile, compared with the National V emission standards, Weichai's National VI engines have reduced NOx by 80%, PM2.5 by 90%, and CO by 15%.

Weichai gathers global high-end talents, continuously initiates research and development on key core technologies, and promotes the low-carbon emission transformation and upgrading of China's diesel engine industry chain. Over the past decade, Weichai's engine division has cumulatively invested more than 30 billion yuan in research and development. In 2020, the company's total investment in research and development reached 8.294 billion yuan. In the first half of this year, the company's R&D investment reached as high as 4.631 billion yuan, growing steadily at a year-on-year rate of 28.05%, far exceeding that of its competitors in the same category.

In the first half of this year, Weichai actively explored the domestic green energy market and has launched a batch of hydrogen fuel cell buses across the country, contributing to the creation of hydrogen fuel cell demonstration cities. Actively integrate the advantageous resources of the entire industrial chain, form industry-university-research cooperation with domestic universities and research institutions, and take the lead in establishing the only national-level fuel cell center in the country - the National Fuel Cell Technology Innovation Center. During the reporting period, new plug-in hybrid products were launched and received bulk orders. The heavy-duty truck equipped with a 160kw hydrogen fuel cell system has completed the cold-region test. Weichai's power batteries have been mass-supplied to high-end niche markets such as aerial work platforms, airport tractors, and forklifts, and have achieved batch exports. The new energy power system of Weichai has been supplied to the world's first pure electric bulldozer. The person in charge of the relevant business of the enterprise stated that in the future, Weichai will actively promote high-efficiency standard-load logistics transport vehicles in accordance with the National VI standards to meet market demands.

In the second half of the year, Weichai will focus on the major strategies of carbon peaking and carbon neutrality, seize the new opportunities in the National VI market, accelerate technological upgrading and product advancement towards high-end, leverage the driving advantages of complete vehicles and machines, and achieve an increase in the market share of engines. Support the strong recovery of intelligent logistics and the strategic landing in the Asia-Pacific region; Accelerate the implementation of new energy and intelligent connected vehicles, significantly enhance the performance contribution of hydraulic and large-bore engines, and achieve new breakthroughs in structural adjustment.