CIMC Vehicles Achieves Significant Leap in 2023:Revenue Reaches RMB25,087 Million Net Profit Soars Remarkably by 120% YoY
(21 March 2024, Hong Kong) CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group,” Stock code: 1839.HK/301039.SZ) announced its annual results for the twelve months ended 31 December 2023 (“the Reporting Period”).
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 published its 2023 annual report showcasing a year of outstanding performance, reaching new heights, and making significant strides in both international and domestic operations.
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During the Reporting Period, CIMC Vehicles achieved a revenue of RMB25,087 million (in RMB, same below), representing a year-on-year increase of 6.21%. The net profit attributable to the Company’s shareholders reached RMB2,456 million, representing a significant increase of 119.66%. The net profit attributable to the Company’s shareholders after deducting non-recurring profit or loss reached a historic high of RMB1,553 million, representing a substantial growth of 69.68%. The gross profit margin increased to 18.96%, an improvement of 5.68 percentage points. The Group’s total assets and total equity attributable to shareholders stood at RMB23,838 million and RMB15,447 million, respectively, representing an increase of 7.29% and 15.62% from the end of 2022. The net cash flow generated from operating activities surged significantly by 55.14% to RMB1,790 million. Basic earnings per share grew YoY by 121.82% to RMB1.22. The weighted average return on net assets reached 17.93%, representing an increase of 8.75 percentage points compared to the previous year. A total of 139,015 units/sets of vehicles of various types were sold worldwide.
After fully launching its third venture in 2023, CIMC Vehicles upholds its intercontinental operations, resulting in impressive performance across various business units and the overall group. Among them, Star-Chained Light Tower Pioneer Group deployed the "Star-chained Manufacturing Network," solidifying its domestic market foundation and vigorously expanding into the "Belt and Road" markets. Its revenue reached RMB4,522 million, with a year-on-year increase of 1.34 percentage points in gross profit margin, maintaining the top market share in the domestic semi-trailer industry for five consecutive years. Champion Tanker Business Group has capitalized on opportunities in segmented markets, broadened its international expansion path, and initiated the research and development of integrated new energy tractors and trailers. It resulted in a strong performance, with revenue reaching RMB4,908 million, representing a year-on-year increase of 35.00%. The sales volume of concrete mixer trucks has ranked No. 1 in China for seven consecutive years, maintaining a leading position in the global tanker market. The North American business has actively implemented the "Deep Space Exploration Plan," established a new development pattern of "Shared Narrowband Evolution," and maintained a growth momentum in profitability, with revenue reaching RMB10,776 million, with year-on-year improvement in gross margin. The European business has continued to optimize manufacturing and value streams, reduce costs and increase efficiency, and achieved growth against the trend, with revenue reaching RMB3,024 million, a year-on-year increase of 15.39%, and an increase of 5.48 percentage points in gross profit margin. The dump truck and heavy-duty truck businesses have undergone organizational restructuring, completed their establishment, actively promoted new energy products, and seized market share. Hence, revenue reached RMB707 million. The market share of urban waste trucks in China has increased to 15.55%. The “Sanhao development”, namely “excellent tractors with excellent trailers”, “excellent horses with excellent saddles”, and “excellent trucks with excellent tanks”, has become a valuable strategic exploration for the high-quality development of commercial vehicles in China.
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It is worth mentioning that, in the face of an increasingly complex environment, CIMC Vehicles has taken practical actions to transform its thought and executed the "Star-chained Manufacturing Network", exploring more refined, resilient, and high-quality ways of growth. The "Star-chained Manufacturing Network" integrates resources from seven semi-trailer factories, connecting the links of procurement, production, distribution, and consumption, resulting in significant improvements in market share, sales, and profits. It aims to become a benchmark for supply-side reform, a typical example of high-quality development, and a model of dual-driven growth. Currently, the "Star-chained Manufacturing Network" has entered the implementation phase comprehensively.
Looking ahead, CIMC Vehicles will firmly prioritize driving the "Star-chained Manufacturing Network" and promoting the "Sanhao development" as its top priority. It will continue to adhere to the principles of "Intercontinental Operation, Local Manufacturing" build a "reliable" organization and further drive the commercialization process of integrated new energy trailers. It aims to establish a new development pattern, accelerate the creation of new productive forces, achieve high-quality development, and traverse the starry sea of the third venture.