CIMC Vehicles Achieved Revenue with YoY Increase of 28.29% and Net Profit of RMB479 million with Significant YoY Increase of 285.25%
During the first quarter, CIMC Vehicles achieved a revenue of RMB6,584 million, representing a year-on-year increase of 28.29%; the net profit attributable to shareholders of the Company was RMB479 million, representing a significant increase of 285.25%; and net profit attributable to shareholders of the Company after deducting non-recurring gains or losses was RMB479 million, representing a year-on-year increase of 361.57%.
With Solid Foundation for the Domestic Business, Operational Advantages in North American Business Remained
The Group’s Light Tower Pioneer Business
seized the opportunity for product change and accelerated the establishment of
business groups. In addition, Light Tower Pioneer Business actively seized
opportunities in overseas markets and vigorously explored emerging markets.
Light Tower Pioneer Business achieved revenue growth with a significant
increase of 5.0 percentage points in gross profit margin. Champion Tanker
Business Group actively identified opportunities in market segments, optimized
the product mix and actively explored emerging markets, thus increasing its
sales volume. For TB Business Group - Dump Truck Business, the Group actively
promoted the integration of resources in its three LTP plants and enhanced the
research and development and promotion of new energy urban dump truck products
to continuously enhance the competitive advantage of products. For TB Business
Group - Urban Distribution Van Truck Bodies Business, the Jiangmen LTP
Production Center of TB Business Group - Urban Distribution Van Truck Bodies
Business gradually released its production capacity, continuously carried out
product development, iteration and optimization, expanded its in-depth link
with new energy tractor manufacturers, and seized the opportunity from market
recovery. The Group's North American business continuously grew, with a
year-on-year increase in revenue and gross profit margin. For European
Business, the Group’s European Business continuously optimized its
manufacturing process and value stream, resulting in a steady increase in
revenue during the?reporting period as guided by the intercontinental operation strategy.
With Mild Industry Recovery, CIMC Vehicles Continuously Builds New Growth Driver
In the first quarter of 2023, China's economic development achieved a good start, with a year-on-year increase of 4.5% in GDP. Due to the fact that the road transportation network has become basically smooth, continued recovery of infrastructure investment, steady progress in imports and exports, and national policy guidance, heavy truck sales showed a monthly increasing trend. According to the government work report's plan for 2023, the quota for special government bonds, which is the main source of infrastructure investment, is set at RMB 3.8 trillion, higher than RMB 3.65 trillion set in the same period last year. The issuance of special bonds will help accelerate the commencement of infrastructure projects, and the demand for heavy trucks and construction machinery is expected to further increase.
As an industry leader, CIMC Vehicles conforms to the trend of electrification and intelligence in the automotive industry and accelerates innovation and exploration in the field of new energy. It has already produced and sold innovative products such as new energy lightweight urban dump trucks, pure electric mining vehicles, concrete mixer trucks with battery charging and swapping, and new energy refrigerated vans. In 2023, CIMC Vehicles will continue to focus on R&D of new energy product, enhance the leading advantages of products in lightweight, intelligence, and adaptability, define a new integrated product, promote the standardization and serialization of various technical modules, accelerate the increase in the market penetration rate of new energy products through the resource integration with tractor manufacturers, and create new growth drivers.