CIMC Vehicles Becomes the Top Semi-trailer Manufacturer in the World for 11 Consecutive Years Starting a Business for the Third Venture in High Spirit towards a Promising Future
As the world’s leader in the sophisticated manufacturing of semi-trailers and specialty vehicles, CMIC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group”, Stock code: 301039.SZ/01839.HK) is pleased to announce that Global Trailer, the world's leading magazine for semi-trailers, has recently officially released the Top 50 Semi-trailer Manufacturers from Around the World Based on Production Output for the Period from 1 July 2022 to 30 June 2023. As the only Chinese enterprise on the list, CIMC Vehicles takes the lead with a production output of nearly 152,000 units. Since 2013, CIMC Vehicles has been the top semi-trailer manufacturer in the world for 11 consecutive years.
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At the beginning of the third venture, CIMC Vehicles has achieved remarkable performance. In the first half of 2023, the net profit attributable to shareholders of the Company reached RMB1.90 billion, representing a significant increase of 418.52% compared to the same period last year. This achievement marks a historic milestone and represents a breakthrough for the Group.
As the world’s leader in sophisticated manufacturing of semi-trailers and specialty vehicles, a pioneer in high-quality development of road transport equipment in China, and an explorer and innovator in new energy specialty vehicles in China, CIMC Vehicles has seized the opportunity of high-quality development arising from starting the third venture to develop main businesses. Adopting a "dual-wheel" drive structure, the Group consolidated its fundamentals in “Intercontinental Operation” and pooled resources to promote all businesses under the “National Unified Market for Commercial Vehicle and Specialty Vehicles”.
In the Chinese market, the Group will promote the efficient deployment of the “Star-chained Manufacturing Network”. Through the integration of production and manufacturing resources, it has achieved a leapfrog improvement in market share, sales, and profits. It has also become a benchmark for the supply-side reform of the domestic semi-trailer industry, a model of high-quality development and a paradigm of dual-wheel drive. The “Star-chained Manufacturing Network” will promote the changes in end-to-end business models in the domestic semi-trailer business, which focuses on three categories of semi-trailers and integrates the procurement (LTS), production (LTP), circulation (LTL), manufacturing (LoM) and distribution (sales channels) resources of seven domestic semi-trailer plants. It will also promote continuous cost reduction and steady improvement in price competitiveness, shorten the cycle of product delivery, enhance mass delivery capacity relying on modular inventory, launch integrated tractor and trailer products, and promote the sales of new vehicles.
For the overseas market, due to the forward-looking strategic arrangements, CIMC Vehicles has constructed six overseas "Light Tower" Plants. These have greatly improved production efficiency and their development has created the potential for the Group’s explosive performance in overseas markets.
In the first half of 2023, the Group’s North American Business maintained a growth trend. The North American Business recorded a revenue of RMB6.23 billion with a year-on-year increase of 34.67%, higher than expected. Additionally, the North American Business successfully delivered new energy refrigerated trailers to local customers, becoming an industry benchmark for new energy refrigerated trailers.
In the European market, CIMC Vehicles operated “SDC” and “LAG” brands. SDC ranked first in the UK market. LAG, an over 70-year-old company, ranked among the best in the European tank trailer market, with its high commercial value, low fuel consumption, and low weight. In the first half of this year, leveraging on a stable global supply chain system and advantages of intercontinental operation, the revenue from European Business increased by 28.12% to RMB1.63 billion year-on-year, and the gross profit margin increased by 1.81 percentage points.
In emerging markets, with the promotion of “Belt and Road” initiative and the full expansion of the “going global” strategy for China’s commercial vehicles, the semi-trailers in emerging markets have vast space for high growth. The Group followed the development trend of emerging markets and actively captured opportunities for high growth in emerging markets. CIMC Vehicles has developed its businesses in Southeast Asia, the Middle East, South Africa, Central America and other regions. It continues to tap into the incremental market demand and achieve rapid growth.
For a long time, CIMC Vehicles has proactively pursued low-carbon and green manufacturing, establishing the Sophisticated Manufacturing System represented by the "Light Tower" Plants. The Group has promoted the upgrading and renewal of environmentally friendly equipment and production lines, gradually achieving cost reduction and efficiency increase. Through years of relentless efforts, the Group has set a new benchmark for green and environmentally friendly practices in the industry. Up to now, CIMC Vehicles has built 23 "Light Tower" Plants at home and abroad. Among these, four have been rated as “national-level green plants”. The Group has taken solid steps towards sustainable development.
Over the past 20 years, CIMC Vehicles has made concerted efforts to start the first venture featuring “earth breaking” and for the second venture featuring “intercontinental operation” relying on audacious and innovative strategic design and planning as well as targeted deployment and effective execution. At present, as China faces a complex and severe international environment and the arduous task of carrying out domestic reform, the Group has always maintained its strategic focus, constructed a new development pattern, accelerated the innovation and exploration of new energy and promoted high-quality development, starting a business for the third venture in high spirit toward promising future.
Since the launch of the third venture, the Group has intensified the in-depth exploration of the new energy sector, actively promoted the development and innovation of new energy and intelligent products and developed an innovative platform that supports new energy tractors and trailers and provides integrated solutions for the transformation of traditional tractors and trailers.
Those who work will succeed, and those who walk will arrive at their destination. In the journey of the third venture, the Group will pool resources to promote all businesses and enter the new energy commercial vehicle industry with innovative technology and business models. Meanwhile, the Group will rely on innovation to drive endogenous growth and achieve a steady improvement in the operation quality of six major businesses or groups, promoting the high-quality development of the road transportation equipment industry.