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Weichai Power recently announced that in the first half of the year, the company's performance maintained its momentum of rapid growth, and its net profit nearly doubled. Thanks to the further implementation of the weight-based charging policy and the rapid growth of fixed asset investment, heavy-duty trucks, engineering machinery and other markets have witnessed rapid growth, which has led to the growth of Weichai Power's business. In the first half of the year, the company achieved a total operating revenue of 20.98 billion yuan, a year-on-year increase of 36.76%, a net profit of 1.66 billion yuan, a year-on-year increase of 95.22%, and a per-share earnings of 3.19 yuan.
Weichai Power, as a manufacturer of automobiles and parts with the advantages of powertrain resources, includes China's No. 1 brand engine, No. 1 brand transmission, No. 1 brand heavy-duty axle, and has obvious market advantages and brand influence. In the first half of 2008, all parts of the company's gold industrial chain took full advantage of synergies, and each business segment saw rapid growth.
As of June 30, 2008, Weichai sold a total of 202,000 diesel engines of different types, an increase of 43.9% over the same period of 2007, and sales reached a record high. The sales of heavy truck engines were 137,000 units, a year-on-year increase of 61%, and the market share was 36.1%, which was 2.7 percentage points higher than the same period of last year; the construction machinery engine sales were 60,000 units, of which 5 tons and above are used for engine sales of 59,000. Taiwan, the market share reached 84.4%; heavy truck sales reached 43,000, an increase of 40% year on year, the increase steadily ranked first in standard heavy truck Steyr; transmission sales reached 331,000 units, compared to the same period in 2007 Growth of 35.9%, continue to maintain industry leading position.
On the basis of ensuring the domestic market, Weichai has increased its efforts in developing overseas markets, especially in emerging economies such as Russia and India, and exports have experienced doubling growth. In the first half of the year, Shaanxi Heavy Duty Trucks exported 6,999 heavy vehicles, an increase of 203.6% year-on-year; engine exports reached 15,917 units, an increase of 124.2% year-on-year. The export market has become another major profit growth point for the company.
At the same time, the company is committed to the adjustment of product structure and continuously promote the upgrading of products. With the implementation of weight-based toll collection and the continuous increase in demand for road transport, the market trend of large horsepower and large tonnage has been formed. The company's integrated competitive advantage in high-power engine, multi-gear transmission, and large-tonnage axle and bridge is prominent.
Weichai owns the only mature 12L large-displacement engine platform in China with 1900 revolutions. It adopts unique WEVB vehicle braking technology and has ten years of technical reserves and market inspection conditions. In the first half of the year, the company's 12L engine sales reached 20,371 units, an increase of 214.3% over the same period last year.
At the same time, Weichai's 12 to 16-speed gearbox has also become a hot spot for market demand. In the first half of the year, it created a single-month production and sales that exceeded 10,000 units. In the first half of the year, total sales increased by 108.0% over the same period of last year. In view of the continuing high oil prices and the scarce energy situation, Weichai, together with Canadian Westport Innovation Corporation and Hong Kong Peixin Corporation, jointly established Weichai Power Westport New Energy Engine Co., Ltd., dedicated to R&D, manufacturing, design and sales of high-performance, high-efficiency Alternative energy engines are used in the power supporting market for motor vehicles, generator sets and marine equipment.
On June 28, 2008, Weichai Power and Foton Motor signed the "Strategic Cooperation Framework Agreement", which further strengthened the strategic cooperation with Foton Motor through equity cooperation and ensured its heavy-duty vehicles and gearboxes for the next five years. The supporting rate is not lower than the matching rate of the company's Foton auto heavy-duty vehicle products in 2007 and will increase year by year. At the same time, the two parties will further strengthen cooperation in service network, technology research and development, marketing, brand communication and promotion to realize the resources of both parties. Complementary and shared.
On July 16, Weichai again signed a strategic cooperation agreement with Baotou North Mercedes-Benz in Beijing. Through this cooperation, the two parties further deepened their cooperation in product matching and market development, established a solid strategic cooperation relationship, and effectively consolidated the stability of the market support.
So far, Weichai Power owns three stable customers, namely Shaanxi Heavy Duty Truck, Foton Motors, and North Mercedes-Benz, and has covered key customer markets such as Chongqing Hongyan and Jianghuai Automobile. At the same time, it also provides strategic support for high-power engines with FAW and Dongfeng. In turn, Weichai Power’s dominance of China’s strongest auto parts and powertrain systems industry group has been solidified for a long time.
Weichai Power is confident of the market outlook in the second half of the year. Chairman of Weichai Tan Xuguang stated: “As China’s strongest and largest automotive parts and components group, Weichai Power will accelerate the development of the powertrain segment, commercial vehicle segment and auto parts segment, and maximize the cooperation of company resources. The effect enhances the company's ability to resist risks and builds the company into a global leading supplier of transportation and engineering equipment with power as its core."
View related topics: Weichai Power: Expanding Auto Parts Gold Industry Chain
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