DJ CIMC Vehicles Sustained Performance Growth in the First Three Quarters, with Net Profit Rising by 244.6% year-on-year to RMB2.277 Billion
EQS Newswire / 26/10/2023 / 09:00 UTC+8
CIMC Vehicles (Group) Co., Ltd.
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(Stock Code: 1839.HK/301039.SZ)
CIMC Vehicles Sustained Performance Growth in the First Three Quarters, with Net Profit Rising by 244.6% year-on-year
to RMB2.277 Billion
(25 October 2023, Hong Kong) 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) published
its financial report for the third quarter of 2023. In the first three quarters of 2023, CIMC Vehicles fully
implemented the core strategic measures while starting a business for the third venture. With breakthroughs in its
operations, the Group sustained its growth in performance. It sold 116,273 units/sets of vehicles of various types
worldwide, maintaining its world-leading position in manufacturing semi-trailers for the eleventh year in a row.
The Third Quarterly Report of 2023 revealed that CIMC Vehicles achieved revenue of RMB19.568 billion from January to
September 2023, a year-on-year increase of 12.42%; the net profit attributable to shareholders of the Company reached
RMB2.277 billion, a significant year-on-year increase of 244.64%; the net profit attributable to shareholders of the
Company after deducting non-recurring gains or losses was RMB 1.404 billion, a significant year-on-year increase of
112.59%; basic earnings per share reached RMB 1.13, a year-on-year increase of 242.42%; and weighted average return on
net assets was 16.62%, a year-on-year increase of 5.52 percentage points.
With Steady Improvement in Profitability, the Six Major Businesses or Groups Demonstrated Strength
Since 2023, there has been a complex and severe international environment. European and US governments have continued
to raise interest rates, inflation has continued, and the recovery of the global manufacturing industry has diverged.
As China's economy shifts to a new stage of high-quality development, the Chinese government's implementation of a
series of stabilizing growth policies has effectively consolidated resilient economic growth. As the endogenous driving
forces have strengthened, economic and consumption recovery has emerged, and the domestic heavy truck industry has been
poised for recovery.
From January to September 2023, the Group actively seized growth opportunities in overseas markets, and its
profitability in the global semi-trailers market was improved. Specifically, the North American semi-trailer market is
gradually returning to stable. North American Business has firmly seized the market opportunities and achieved
year-on-year growth in profitability. Furthermore, the Group has achieved strong business growth in the European and
emerging markets, with a year-on-year improvement in profitability. The business in the Chinese market maintained a
stable development trend and gained market share in market segments.
In terms of the six major businesses or groups, Light Tower Pioneer Business Group implemented the strategic initiative
of structural reform of the domestic semi-trailer production organization, promoted the comprehensive reshaping,
optimized and streamlined personnel, thereby increasing the gross profit margin of domestic semi-trailers year-on-year.
Moreover, Light Tower Pioneer Business Group seized the opportunity of strong demand in emerging markets. It developed
and integrated channel resources, increasing the revenue and gross profit margin of the semi-trailer business in
emerging markets year-on-year. North American Business continued its growth momentum and consolidated its
intercontinental operation niche, improving both revenue and gross profit margin year-on-year. European Business has
achieved remarkable results in cost reduction and efficiency increase and made a profit breakthrough. Champion Tanker
Business Group has moved forward against the headwind and started exploring overseas markets, increasing its market
share, sales, and revenue year-on-year. TB Business Group - Dump Truck Business innovated and explored new energy
development. TB Business Group - Urban Distribution Van Truck Bodies Business optimized organizational development and
promoted business transformation.
"Star-chained Manufacturing Network" has Reached New Stage, and the Commercialization Process of Integrated New Energy
Tractor and Trailer Products is Accelerating
In 2023, the Group launched the "Star-chained Manufacturing Network", committed to promoting the structural reform of
China's semi-trailer production organization, breaking through the bottleneck of the semi-trailer business, bringing
about end-to-end business model changes, and promoting potential improvements in sales and profits. Eventually, the
Group will achieve the vision of high-quality industry integration, distribution model innovation, and continuous
improvements in market share and profitability.
While starting the third venture, CIMC Vehicles actively integrated the production, circulation, distribution, and
consumption resources of seven domestic semi-trailer plants. Presently, the new organization of "Star-chained
Manufacturing Network" has been well formed. The Star-chained LTP production line investment will be implemented. The
Group has also built an innovative and entrepreneurial platform that supports new energy tractors and trailers and
provides integrated solutions for transforming traditional tractors and trailers, accelerating the commercialization of
new energy semi-trailers.
Looking ahead, CIMC Vehicles will pool superior resources to promote all businesses under the "National Unified Market
for Commercial Vehicle and Specialty Vehicles". Meanwhile, the Group will rely on innovation to drive endogenous growth
and steadily improve the operational quality of six major businesses or groups. Additionally, CIMC Vehicles will adhere
to the new development concept of "innovation, coordination, green, openness, and sharing" to continue forging the
endogenous force for starting the third venture and contribute to the construction of Chinese modernization.
-Ends-
About CIMC Vehicles (Group) Co., Ltd
CIMC Vehicles (Group) Co., Ltd. ("CIMC Vehicles", Stock code: 301039.SZ/01839.HK) is the world's leader in the
sophisticated manufacturing of semi-trailers and specialty vehicles, a pioneer in the high-quality development of road
transport equipment in China, and an explorer and innovator in new energy specialty vehicles in China. According to the
2023 Global OEM Ranking List published by Global Trailer, CIMC Vehicles ranked first among semi-trailer manufacturers
in the world, for the eleventh year in a row.
CIMC Vehicles had six major businesses or groups, namely "Light Tower Pioneer Business", "North American Business" and
"European Business" engaged in the global semi-trailer market, "Champion Tanker Business Group" with a focus on
sophisticated manufacturing of truck bodies for specialty vehicles and van truck bodies, "TB Business Group - Dump
Truck Business" and "TB Business Group - Urban Distribution Van Truck Bodies Business", covering four major markets in
the world, more than 40 countries and regions, and had 23 "Light Tower" Plants at home and abroad.
For enquiries, please contact LBS Communications Consulting Limited:
Joanne Chan Tel: (852)3679 3671 Email: jchan@lbs-comm.com
Jason Ho Tel: (852)3752 2675 Email: jho@lbs-comm.com
Isaac Chan Tel: (852)3752 2673 Email: ichan@lbs-comm.com File: CIMC Vehicles Sustained Performance Growth in the First Three Quarters, with Net Profit Rising by 244.6% year-on-year to RMB2.277 Billion
26/10/2023 Dissemination of a Financial Press Release, transmitted by EQS News. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com
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(END) Dow Jones Newswires
October 25, 2023 21:00 ET (01:00 GMT)
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