【Group News】CIMC Vehicles: Revenue in the first three quarters increased by over 20% year-on-year

On the evening of October 26, CIMC Vehicles (301039.SZ/01839.HK), the world's leading manufacturer of high-end semi-trailers and special vehicles, disclosed the 2021 third quarter report. The financial report shows that in the first three quarters of 2021, CIMC's leading advantage in the vehicle industry has further expanded, and the scale effect of high-end manufacturing has continued to be released. Operating income has grown steadily to RMB 22.56 billion, a year-on-year increase of 20.0%; net profit attributable to shareholders of listed companies 790 million yuan.

In terms of sales volume, CIMC Vehicles sold a total of 163,300 units/set of various semi-trailers, special-purpose vehicle tops, and light vans worldwide, an increase of 21.0% year-on-year. In addition, as of the end of September 2021, the total assets of CIMC Vehicles reached 23.09 billion yuan, an increase of 16.5% from the end of the previous year.

Steady growth in various business segments in the domestic market

Actively develop low-carbon green products

At present, CIMC Vehicles has three main business segments, namely semi-trailer business, special vehicle top-fitting business and light van body business. In the first three quarters of 2021, the revenue of these three business segments in the Chinese market has grown steadily.

In terms of semi-trailer business, China's semi-trailer industry has entered a period of great change, the industry is accelerating its integration, the second-generation semi-trailer national standard enforcement has become stricter, and the quality and carrying capacity of semi-trailer products have improved. Affected by factors such as the downturn in the macro economy, rising global commodity prices, and declining demand for tractors, the demand for semi-trailers in the third quarter showed a downward trend and then an upward trend. In the first three quarters of 2021, product iterations and upgrades continued to stimulate demand. CIMC Vehicles China's semi-trailer business sales and revenue increased significantly by 26.5% and 22.7% year-on-year.

As for the special-purpose vehicle top-fitting business, with the implementation of the sixth phase of the national motor vehicle pollution emission standards, the short-term homogeneity competition in the industry has intensified, and the domestic heavy-duty truck market demand slowed down in the third quarter. The company actively explores the market, intensifies the research and development of new energy special vehicles, and promotes a joint development strategy with OEMs. In the first three quarters of 2021, CIMC Vehicles has further expanded its leading advantages in concrete mixer trucks and urban muck trucks. The sales volume and revenue of the special-purpose vehicle top-loading business have increased by 17.5% and 16.5% year-on-year.

In terms of the light van body business (hereinafter referred to as "TB" business), in the context of the accelerated growth of China's light van market demand, CIMC Vehicles has proactively launched the "terabyte" brand, focusing on the cold storage of TB business Production and sales of vans and dry vans.

In the field of refrigerated compartments, the Chinese government has clearly accelerated the plan for cold chain logistics, and further promoted the standardization of cold chain equipment and the development of new cold chain storage equipment, which stimulated the accelerated development of cold chain logistics. In the first three quarters of 2021, the sales of refrigerated vehicles in the Chinese market increased significantly year-on-year, and the income and sales of refrigerated vans of CIMC Vehicles continued to increase.

In the dry van field, the Chinese government previously announced the "Notice on Further Strengthening the Production and Registration Management of Light Trucks and Small and Mini Passenger Vehicles", and the compliance governance of light trucks has been continuously strengthened. CIMC Vehicles actively develops dry cargo body business for urban logistics distribution, and promotes the transformation and upgrading of urban logistics distribution through a high-end manufacturing system.

In the future, as the Chinese government advocates green and low-carbon transportation and strengthens green infrastructure construction, CIMC Vehicles will actively develop and promote new energy, intelligent, digital and lightweight green products to enhance the company’s core competition for sustainable development To inject vitality into sustainable transportation development.

Optimize localized production line layout

Significant recovery in overseas markets

While the scale of the domestic market is expanding steadily, CIMC Vehicles' overseas markets have also recovered significantly. Benefiting from the recovery of the global economy, demand for semi-trailers in overseas markets has continued to be released, the new crown pneumonia epidemic has reshaped consumption habits, and orders in the overseas semi-trailer market have surged.

It is reported that CIMC Vehicles has deepened the business philosophy of “transoceanic management and local manufacturing”, provided convenience to customers by strengthening local manufacturing and local procurement, and actively optimized global supply chain management and global logistics distribution systems. The above-mentioned measures have also created long-term development opportunities for CIMC Vehicles in the external circular economy.

In the first three quarters of 2021, the revenue of CIMC Vehicles' semi-trailer business in the North American market increased by 8.6% year-on-year. While gradually resolving the impact of global headwinds on the company, benefiting from the optimization of localized production lines in the North American market and the rapidly increasing market demand, the sales of refrigerated semi-trailers in North America increased significantly by 178.5 percent year-on-year.

In addition, CIMC Vehicles seized the opportunity of the rapid rebound in the European semi-trailer market to further enhance the production line and capacity layout of high-end manufacturing. In the first three quarters of 2021, sales and revenue in the European semi-trailer market increased significantly by 40.9% and 36.4% year-on-year.

According to the latest data released by "Global Trailer" on the ranking of global semi-trailer manufacturers by output in 2021, CIMC Vehicles continued to rank first among global semi-trailer manufacturers. This is the ninth year that CIMC Vehicles has successfully won the global ranking of semi-trailer manufacturers since 2013. The No. 1 throne, the "high-end manufacturing system" highlights the scale effect.

According to the data, CIMC Vehicles has been exploring the construction of a "high-end manufacturing system" since 2014. At present, it has built 13 semi-trailer production "lighthouse" factories, 6 special-purpose vehicle top-mounted production "lighthouse" factories, and 2 refrigerated vans around the world. Body production "lighthouse" factory. From the design concept to the manufacturing process, the “Lighthouse” factory of CIMC Vehicles continuously delivers the green concept of “saving energy consumption and reducing pollution” through its products, continues to implement intelligent construction and the Chinese government’s “dual-carbon” work strategy, and leads semi-trailers. And special vehicles to the industry's green and sustainable development.

CIMC Vehicles pointed out that in the future, the company will actively use the raised funds to strengthen innovation drive and realize digital transformation, laying a good mechanism for the further research and development of smart and interconnected semi-trailer products and a new generation of new energy refrigerated delivery vehicles. Before 2025, it aims to fully realize the "high-end manufacturing system" and "new management infrastructure", adding a new chapter to China's smart manufacturing and high-end manufacturing.