CIMC Vehicles Continue to Rank No. 1 in the Global Semi-trailer Manufacturer Hitting New Height in "Intercontinental Operation"
(22 September 2021—HONG KONG) The world’s leading manufacturer of sophisticated manufacturing for semi-trailers and specialty vehicles, CMIC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group”, Stock code: 301039.SZ/01839.HK) continued to rank the first in the global semi-trailer manufacturer in terms of production volume, according to the 2021 Global OEM Ranking List for semi-trailer manufacturers announced by Global Trailer. It is the ninth time for the Group to successfully become the first in the global semi-trailer manufacturer since 2013. Economies of scale has been highlighted by CIMC Vehicles’ Sophisticated Manufacturing System.
According to the Global Trailer’s top global OEM ranking list for semi-trailer manufacturers announced in 2021, CIMC Vehicles was the world’s No. 1 semi-trailer manufacturer.
According to the Global Trailer’s 2021 Global OEM Ranking List for semi-trailer manufacturers, CIMC Vehicles was the world’s No. 1 semi-trailer manufacturer for the ninth year. The Group began to explore the construction of “Sophisticated Manufacturing System” since 2014. At present, CIMC Vehicles has globally established 13 “Light Tower” Plants for the production of semi-trailers, 6 “Light Tower” Plants for the production of truck bodies of specialty vehicles, and 2 “Light Tower” Plants for the production of truck bodies for refrigerated trucks. The construction of “Sophisticated Manufacturing System” has laid the foundation for CIMC Vehicles to unlock the economies of scale. The actual production volume of CIMC Vehicles during the statistical period (from July 1, 2020 to June 30, 2021) amounted to approximately 161,066 units/set, representing an increase of 7% year-on-year, more than tripled compared to the next contender on the ranking list, continued to top the list.
Global Trailer addressed that under the COVID-19 pandemic, there has been “new order” competition pattern in the global semi-trailer market. The pandemic severely impacted the semi-trailer manufacturers all over the world. On the other hand, semi-trailer manufacturing industry over the world has shown recovery and growth momentum from the impact of the epidemic, such as the continuous strong momentum of semi-trailer manufacturing in Germany; a surging demand for semi-trailer sales in Poland, and the development of sustainable green vehicles has also been emerging in Europe and other areas. As the global economy has been affected by the pandemic, the Chinese government has proposed a new development pattern with domestic circulation being the mainstay and the domestic-international dual circulation reinforcing each other, which has provided broad development room for the logistics and transportation market and the sophisticated manufacturing industry in China. As the semi-trailers and specialty vehicles industry leader, CIMC Vehicles becomes more competitive and has strong growth in each business segment in the global market.
CIMC Vehicles told "Global Trailer" that the total revenue of the Group's business in the global market during in 2020 amounted to RMB 26.247 billion, representing a year-on-year increase of 13.0% and hitting a record high. For 2020, CIMC Vehicles sold a total of 131,327 units (2019: 117,707 units) of semi-trailers worldwide. A total of 56,449 sets (2019: 46,267 sets) of truck bodies for specialty vehicles and 6,049 units (2019: 4,455 units) of truck bodies for refrigerated trucks were sold in China.
In the Chinese semi-trailer market, looking forward to the "14th Five-Year Plan", China is constructing a complete system for domestic demand, proposed a new development pattern with ‘the domestic circulation as the mainstay and the domestic and international dual circulation reinforcing each other. As new national standards came into force with stricter implementation, the five core models of semi-trailers in China has undergone a comprehensive transformation, and the opportunities for upgrades are significant.
In terms of overseas semi-trailer market, with the fluctuation of raw materials and the increase in ocean freight rates, new challenges are presented to the supply chain and manufacturing capability of overseas manufacturing industries. CIMC Vehicles is expected to further leverage its core competitiveness advantages through Intercontinental Operation, crossover design, global supply chains and global distribution.
Looking ahead, the global specialty vehicles industry will be developing towards the direction of new energy. With the acceleration of the research and development of new energy projects, CIMC Vehicles is expected to further enhance its competitive advantages in quality of products, market share, and formulation of industry standard. The Group will continue to implement the development plan of "building a Sophisticated Manufacturing System to cope with major changes", and will further deepen the " Sophisticated Manufacturing System", and hit new height in "Intercontinental Operation".
CIMC Vehicles expressed “In the next three to five years, China’s semi-trailer industry will enter a period of major changes, and the new national standards will motivate the comprehensive transformation of the core semi-trailer models in the Chinese market. The Group actively cooperates with upstream and downstream companies and develops jointly to provide integrated tractor-trailer solutions, intelligent connection solutions for cargo space, financial support, and comprehensive service solutions. The Group will further increase its domestic semi-trailer market share and gross profit margin of domestic semi-trailers and achieve gross profit growth as the development goal, so as to further expand its leading position in the semi-trailer business in China. In the overseas market, the Group will deepen the “Intercontinental Operation, Local Manufacturing”, continue to implement Sophisticated Manufacturing System, optimize the production line layout of the overseas semi-trailer business, and achieve sales and gross profit growth in the overseas market. B optimizing the layout of the global supply chain and improving the risk resistance and supply capacity of local chemical plants, we are committed to creating greater value for local customers.”
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About CIMC Vehicles (Group) Co., Ltd.
CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles”, Stock code: 301039.SZ/1839.HK) commenced trading on the ChiNext board of Shenzhen Stock Exchange on 8th July 2021 and becomes the world’s leading high-end semi-trailers and specialty vehicles manufacturer. The Group is the world’s No.1 semi-trailer manufacturer in terms of production volume according to Global Trailer in 2021, and engages in the manufacture, sale and after-sales services of seven major categories of semi-trailers in global major markets. The Group also actively engages in the production of truck bodies for specialty vehicles, and the sales of fully-assembled specialty vehicles in China. At the same time, the Group is also a leading manufacturer of truck bodies for refrigerated trucks in China; semi-trailer products including container chassis trailers, flatbed trailers, curtain-side trailers, van trailers, refrigerated trailers, tank trailers and other special types of vehicles; truck bodies for specialty vehicles including truck bodies for urban dump truck and concrete mixers. Products are sold in China under the “Tonghua”, “Huajun”, “SCVC SAILING”, “Ruijiang Vehicles”, “Lingyu Vehicles”, “Liangshan Dongyue”, “Pioneer Series”, “CIMC Light Tower” and “TB” brands, in North America under the “Vanguard” and “CIE” brands, and in Europe under the “SDC” and “LAG” brands which are both well-known with long history. The Group owns “Light Tower" Plants that represent the strength of China’s sophisticated manufacturing capabilities. These plants focus on product standardization, modular design and production, and serve to actively promote the compliance of semi-trailers and specialty vehicles and quality development.
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