CIMC Vehicles Achieves Revenue of RMB [5,153] Million in Q1 2024 Accelerates the Forging of "New Quality Productive Forces"
(26 April 2024, Hong Kong) CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group,” Stock code: 1839.HK/301039.SZ) announced its first quarter results for the three months ended 31 March 2024.
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, during the first quarter of 2024, CIMC Vehicles achieved revenue of RMB5,153 million (in RMB, same below). The net profit attributable to the Company’s shareholders reached RMB265 million, while the net profit attributable to the Company’s shareholders after deducting non-recurring profit or loss reached RMB262 million. A total of 29,483 units/sets of vehicles of various types were sold worldwide.
Building a solid foundation in various businesses or groups, "Star-chained Manufacturing Network" shines with outstanding strategic results
For the domestic market in the first quarter of 2024, the Chinese economy started steadily and the commercial vehicle market achieved a promising start. Meanwhile, China's logistics demand showed signs of recovery, with the national logistics volume accelerating. CIMC Vehicles actively explores the "New Quality Productive Forces" in the commercial vehicle industry, with the strategic effectiveness of the "Star-chained Manufacturing Network" highlighted. The "Sanhao Development Centre" deepens the new marketing concept, contributing to the thriving development of the domestic market. In addition, against the backdrop of easing inflation pressures and expectations of Federal Reserve interest rate cuts, the North American semi-trailer market continues to experience continuous commpetition of supply and demand. In Europe, the semi-trailer market is experiencing a slowdown in market demand due to sustained inflation and geopolitical influences. Leveraging the Light Tower Manufacturing Network and global supply chain management advantages, the Group continues to reduce costs, improve efficiency, enhance economies of scale, and maintain performance in overseas markets in line with expectations.
Specifically, Star-Chained Light Tower Pioneer Group, along with the continued manifestation of stable economic policies in China, witnessed an accelerated recovery in logistics demand. CIMC Vehicles fully implemented the "Star-chained Manufacturing Network," systematically advanced the operation of the order center, optimized production planning and efficiency, expanded sales channels with dealers and major customers, and established a new platform for industry chain cooperation to enhance the proportion of modular vehicle sales in the domestic market. Concurrently, Star-Chained Light Tower Pioneer Group vigorously explored the "Belt and Road" market and strengthened the delivery of overseas orders. During the reporting period, Star-Chained Light Tower Pioneer Group's sales volume increased by 18.9% year-on-year, and revenue increased by 12.3% year-on-year.
Champion Tanker Business Group continued to drive innovation in products and technology, and it is deeply engaged in the research and development of integrated new energy tractors and trailers. It explored new models and applications in various scenarios, provided integrated solutions, and continuously led the development of the global tanker market. During the reporting period, Champion Tanker Business Group's revenue increased by 14.2% year-on-year.
Moreover, the North American Business stabilized the fundamental aspects of the Group's operations, enhanced the service experience for major clients, controlled operational risks, and continuously strengthened operational resilience. The European Business actively optimized manufacturing processes and supply chain management, achieving lean management and a year-on-year increase in gross profit margin. The Dump Truck and Heavy Cargo Truck Business continued to integrate production resources, deepen the research and development of new energy products, enhance market competitiveness, and gradually restore profitability.
Accelerating the forging of "New Quality Productive Forces" and solidly promoting high-quality development
As we enter the second quarter of 2024, CIMC Vehicles will continue to implement the "Star-chained Manufacturing Network," accelerating the structural reform of the semi-trailer production organization, focusing on building business groups. Seizing the opportunity of the new round of "Trade-in for New" policy in the transportation equipment industry, the Company aims to achieve breakthrough growth in the domestic semi-trailer business. Champion Tanker Business Group will continue to promote the "Champion Tanker Star-chained Manufacturing Network," jointly advancing the construction of a unified national market for tankers through light tower manufacturing network construction. The North American Business will continue to promote the transformation and upgrading of its governance structure, establish a new development pattern of "New Quality Productive Forces," enhance development resilience, and achieve steady business performance. The European Business will consolidate the high-quality development of its business and actively seek breakthrough opportunities. The Dump Truck and Heavy Cargo Truck Business have gradually emerged from a period of low operation and entered a stage of stable and positive operation.
"New Quality Productive Forces" was an internal requirement and focus for promoting high-quality development. In the future, CIMC Vehicles will accelerate the development of "New productive forces," forging resilience and navigating through cycles. Through practical actions, the Group will transform its thinking, explore more refined, resilient, and high-quality ways of growth, and solidly promote high-quality development.