CIMC Vehicles Successfully Forged Ahead Against the Headwinds in 2022， Net Profit Increases by 24%, Revenue from Overseas Markets Soared by 70%, Starting the Third Venture
(28 March 2023, 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 2022 (“the Reporting Period”).
As 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, CIMC Vehicles successfully forged ahead against the headwinds including a slowdown of global economic growth and a weak specialty vehicle market. The Group achieved brilliant performance in overseas businesses and demonstrated sound fundamentals of domestic businesses, outperforming the peers in the industry.
During the Reporting Period, CIMC Vehicles recorded a revenue of RMB23,621 million. The Group’s gross profit margin increased significantly by 2.26 percentage points year-on-year. The net profit attributable to shareholders of the Company was RMB1,118 million, representing a year-on-year significant increase of 24.11%. The net profit attributable to shareholders of the Company after deducting non-recurring profit or loss was RMB916 million, representing a year-on-year significant increase of 43.99%. Its total assets amounted to RMB22,217 million, a year-on-year increase of 2.00%. The net assets reached RMB13,360 million, representing a year-on-year increase of 7.86%. The net cash flow from operating activities increased to RMB1,154 million. Earnings per share amounted to RMB0.55/share. During the Reporting Period, the Group sold a total of 151,870 units of various types of vehicles worldwide.
In addition, the Group announced its proposed profit distribution plan that it intends to distribute a cash dividend of RMB0.30 (tax inclusive) per share to all Shareholders.
With Coordinated Development of Six Major Businesses or Groups, Revenue from Overseas Markets Soared by 70% Year-on-Year
Amid difficulties including a slowdown of global economic growth and a weak specialty vehicle market, CIMC Vehicles successfully forged ahead against the headwinds and recorded a brilliant increase in revenue from overseas businesses by 70% by implementing the “Light Tower Manufacturing Network” strategy and integrating superior resources.
In specific, Light Tower Pioneer Business seized the opportunities from the development of the national unified market and built the “LTP + LoM” Light Tower Manufacturing Network, improving the production efficiency. It promoted the structural reform of semi-trailer production organizations, actively planned business groups , and accelerated the progress in new retail changes. The revenue from Light Tower Pioneer Business reached RMB4,981 million; The gross profit margin of Light Tower Pioneer Business rebounded by 1.11 percentage points. The market share of semi-trailers of the Company in China increased to 14.45%, and the Company ranked first in China for the fourth year in a row.
For North American Business, through the arrangement for various LTP production centers and LoM manufacturing plants, the Company accelerated the release of the production capacity. Moreover, it alleviated the supply chain shortage worldwide and shipping difficulties, achieving a brilliant results performance: an increase in sales volumes and prices of its three main products, and profit hitting a record high. The revenue from North American Business was RMB10,760 million, representing a year-on-year significant increase of 122.28%, and its gross profit margin increased by 6.03 percentage points year-on-year.
In terms of refrigerated trailers in North America, the Company also made a breakthrough with profit hitting a record high. During the Reporting Period, the Company’s revenue from refrigerated trailers in North America increased significantly by 164.05% to RMB4,003 million, and its share of the refrigerated trailer market in North America continued to increase. The revenue from van trailers in North America increased by 60.13% to RMB3,127 million, and maintained a leading position in the van trailer market in North America.
Regarding European Business, despite energy and supply chain crises, the Company overcame the difficulties and constructed the LoM manufacturing plants in Southampton in the UK, Mansfield, and Pijnacker in the Netherlands. The Company completed the arrangement of the “Light Tower Manufacturing Network”, optimizing production capacity and efficiency. In 2022, the revenue from European Business reached RMB2,621 million, representing a year-on-year increase of 10.48%. Meanwhile, the Company transformed SDC with profits hitting a five-year high.
Champion Tanker Business Group identified opportunities in market segments, developed lightweight and green new energy products, and actively explored the international market. The revenue from Champion Tanker Business Group was RMB3,636 million and the gross profit margin increased by 0.60 percentage point. The Company ranked first in China in terms of the sales volume of concrete mixer trucks for the sixth year in a row and had 26.32% of the market in China.
TB Business Group - Dump Truck Business carried out organizational marketing reform, deepened cooperation with tractor manufacturers, expanded the wide-body mining truck market, and established overseas businesses. With its product research and development innovation and “Light Tower Manufacturing Network”, the Company occupied a leading position in the dump truck retrofitting industry. In 2022, the revenue from TB Business Group - Dump Truck Business was RMB881 million.
The Jiangmen LTP Production Center of TB Business Group - Urban Distribution Van Truck Bodies Business was put into operation. It actively adjusted its target market and product structure. Moreover, it reached strategic cooperation with a number of well-known and leading new energy vehicle companies to establish various pre-LoM manufacturing plants. In 2022, the revenue from TB Business Group - Urban Distribution Van Truck Bodies Business of the Company was RMB366 million.
Enhancing Exploration and Innovation in the Field of New Energy, Thereby Generating a New Growth Driver for Results Performance
Driven by the “carbon peaking and carbon neutrality” strategic goal of China and the trend of “being electric, connecting to network, being intelligent, and sharing with others” (new four modernizations), the progress of new energy integration for commercial vehicles in China continues to accelerate. CIMC Vehicles took advantage of the trend to enhance its exploration and innovation in the field of new energy, thereby generating a new growth driver for results performance.
In 2022, Champion Tanker Business Group launched more than 10 types of concrete mixer trucks with battery charging and swapping. During the Reporting Period, the sales volume of new energy concrete mixer trucks increased significantly by 500.00%. The market share of TB Business Group - Dump Truck Business’s new energy dump trucks increased to 37.2%. Seizing opportunities from the increment in new energy products, TB Business Group - Urban Distribution Van Truck Bodies Business achieved an 18.83% growth in sales of new energy products. The TB KG hydrogen-energy refrigerated trucks won the honor of the “No.1 Hydrogen-energy Refrigerated Truck in 2022”.
Announcing Plan to Start a Business for the Third Venture to Promote High-quality Development
Looking ahead, as China’s economy has entered a new stage of development, CIMC Vehicles set a new strategy according to the situation, announce its plan to start a business for the third venture; adopted a new development philosophy, continued to construct “Light Tower Manufacturing Network”, and realized intensive growth by innovation; constructed a new development paradigm, expand the business scope, and expedite the exploration of the innovation in new energy; eliminated supply constraints and promoted high-quality development.
CIMC Vehicles established 25 “Light Tower” Plants at home and abroad. In the future, the Group will deepen the construction of the “Light Tower Manufacturing Network”. By utilizing sophisticated manufacturing production lines and capacity, CIMC Vehicles achieved mutual complementation of superior resources and efficient synergy of the six major businesses or groups.
CIMC Vehicles’s Light Tower Pioneer Business will start the “Star-chained Manufacturing Network” through the structural reform of semi-trailer production organizations in China. Moreover, it promotes the business development under “excellent tractors with excellent trailers”, achieving increase in both market share and profitability; North American Business will consolidate and promote business expansion in the local market, improve production efficiency, explore room for growth of new energy products, and increase the market share; European Business will optimize the manufacturing process, improve the supply of key parts and components, and explore new products and businesses; Champion Tanker Business Group will promote business development under “excellent tractors with excellent tanks”, explore new energy businesses, and strive to become a global leader in tank logistics equipment; TB Business Group – Dump Truck Business will promote the business development under “excellent horses with excellent saddles”, expand the market share of dump truck products, and properly make plans for the iteration of new energy products in the future; TB Business Group – Urban Distribution Van Truck Bodies Business will increase the market share of refrigerated van truck bodies and dry van truck bodies, accelerate the progress in upgrading the green transformation, and create green intelligent transportation solutions.
2023 is a crucial year in the 14th Five-Year Plan as it links the previous year and the following years. This year, CIMC Vehicles will show great courage to tackle any difficulties, make the best efforts, and demonstrate the entrepreneurial spirit of the third venture. Although the road is long and arduous, perseverance will lead us to a bright future.