CIMC Vehicles' First Annual Report After A+H Listing Record Revenue of RMB27.65 Billion for the Year
(25 March 2022) – CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group”), the world’s leading high-end semi-trailers and specialty vehicles manufacturer, today announced its first annual results after its “A+H” listing. In the first year of the “14th Five[1]Year Plan”, CIMC Vehicles actively responded to the opportunities and challenges, and achieved a record high annual revenue by optimizing its strategic planning and business focus.
CIMC Vehicles had a solid operation in 2021. During the Reporting Period, the Group achieved revenue of RMB27,647.8 million, an increase of 4.3%; net profit of RMB987.7 million. Total assets and net assets reached RMB21.8 billion and RMB12.4 billion respectively, an increase of 9.9% and 18.5%. Earnings per share reached RMB0.48.
During the Reporting Period, the Group sold a total of 200,069 units of various types of vehicles worldwide, up 3.0% year-on[1]year. Solid growth in four major markets of the global semi-trailers business, of which the revenue increased to RMB15.3 billion, up 12.5% year-on-year. Overseas business rebounded rapidly, with revenues in the North American market and the European market grown by 14.9% and 2 7 . 6 % re s p e c t i ve l y, h i g h l i g ht i n g t h e advantages of Intercontinental Operation and strengthening the Group’s global leading position. At the same time, the Group proposed dividends of RMB0.2 per ordinary share (tax inclusive) for 2021.
CREATE SPACE FOR STRATEGIC MOBILITY – SIX MAJOR BUSINESSES OR GROUPS TO GOVERN NEW INTERCONTINENTAL OPERATION TERRITORY
I n 2 0 2 1 , w i t h t h e n e w n o r m a l o f t h e pandemic, the global economic growth gradually picked up, and the demand for global automobile manufacturing, logistics and transportation gradually recovered. To achieve further breakthroughs in market share, consolidate the leading global position and gain competitive advantages, CIMC Vehicles has established six major businesses or groups: “Champion Tanker Business Group”, “Light Tower Pioneer Business”, “TB Business Group”, “Urban Dump Truck Business”, “North American Business” and “European Business”, aiming to remove barriers in operation and achieve the linkage between production and sales and the maximization of benefits.
In 2021, the national fixed asset investment increased to RMB54.5 trillion, representing a year-on-year increase of 4.9%, with steady growth in infrastructure investments. C h a m p i o n Ta n k e r B u s i n e s s G r o u p manufactures and sells two core products, namely tank trailers, and concrete mixer trucks bodies, has achieved a strategic breakthrough in the tank trailers business and has launched pure electric concrete mixer trucks and developed the electric fuel-saving system of concrete mixer truck bodies, thus reducing the comprehensive fuel consumption of concrete mixer trucks under China VI by 25%. The sales volume of concrete mixer trucks ranked first in China for five consecutive years, with a market share of 29.3% in China. During the Reporting Period, Champion Tanker Business Group maintained a stable per formance with revenue of RMB10,889.4 million
In 2021, the road freight volume in China increased by 14.2% year-on-year to 39.14 billion tons, and the revenue freight ton[1]kilometer increased by 14.8% year-on-year to 6.9 trillion ton-kilometers. Light Tower Pioneer Business is deeply engaged in semi[1]trailer products in the China market. During the Reporting Period, the revenue from the Light Tower Pioneer Business was RMB6,397.6 million with the sales volume of container chassis trailers increased significantly by 48.5% year on year. In addition, as the Chinese government encouraged the development of intensive and efficient transportation organization models including trailer sharing and rental, drop and pull transportation, “Vanguard Trailer Rental”, a service platform of life cycle management of semi-trailer products, under Light Tower Pioneer Business, recorded a significant year[1]on-year revenue growth of 66.6%.
TB Business Group mainly consists of refrigerated van truck bodies and dry van truck bodies. With modular product design and the latest generation of dual-mode foaming technology with independent intellectual property rights, TB Business Group provides high-quality products and services for cold chain transportation in China. With the promotion of rural revitalization and improved urban logistics, distribution and transportation network, TB Business Group seized the opportunity o f c o m p l i a n t u r b a n d i s t r i b u t i o n v a n transportation and launched compliant truck bodies for urban distribution of dry van truck bodies. During the Reporting Period, the revenue of TB Business Group of the Company reached RMB465.2 million.
In terms of Urban Dump Truck Business, in 2021, the Company actively cooperated with tractor manufacturers in promoting the transitioning of specialty vehicles facelift business system to the green and sophisticated manufacturing. The Company actively enhanced product competitiveness, expanded its new energy pure electric dump truck business by successfully developing pure electric urban dump truck bodies, pure electric mining truck bodies, pure electric sand and gravel truck bodies, and pure electric coal truck bodies, etc., thus increasing the new energy product orders, effectively getting ahead in the market. The annual revenue of urban dump truck business amounted to RMB1,888.5 million.
L e v e r a g i n g o n t h e a d v a n t a g e s o f Intercontinental Operation, the Company actively implemented the strategic measures of North American Business, gave play to the advantages of global resource integration, controlled the global logistics and distribution costs through centralized purchase and digital management of the global supply chain, optimized the arrangements for local production and manufacturing, and actively captured the business growth opportunities. The revenue of the North America Business reached RMB4,840.7 million for the year. Among them, the revenue of refrigerated trailers in North America increased significantly by 122.3% to RMB1,516.2 million, ranked third in North America. The revenue of van trailers in North America increased by 11.0% to RMB1,952.8 million, being one of the top in the North America market.
The European Business consists of LAG and SDC, which are wholly-owned subsidiaries of the Company in Europe. According to the data provided by the United Kingdom S o c i e t y o f M o to r M a n u f a c t u re r s a n d Transport, SDC ranked first in the market of the United Kingdom, with its market share increased to approximately 27.5%, representing a year-on-year increase of 4.8 percentage points. Under the guidance of the intercontinental operation strategy, the Company leveraged its competitive advantages of intercontinental operation and further expanded its market share. The revenue of the European Business reached 2,372.3 million, achieved quality growth.
CREATE ROOM FOR PROFIT GROWTH UNDER THE “INTERCONTINENTAL OPERATION” STRATEGY TO HIT NEW HEIGHT
Under the current industry transformation, the Company implemented the core measure of the “Sophisticated Manufacturing System”, and further enriches the connotation of the Sophisticated Manufacturing System by adding the fifth cornerstone of “EPS” to the four cornerstones, namely upgrading “product modules”, improvement of “Light Tower” Plants, new retail construction and continuous promotion of organizational development. The Company embraces digital transformation and upgrades in all aspects, enhances innovative technological means, and keeps moving towards the crucial period of sophisticated manufacturing.
Moreover, the Six Businesses or Groups Established by the Company will continue to enable itself to operate in a variety of management scenarios from strategy and operations to synergistic development.
Champion Tanker Business Group will integrate existing tank business from core enterprises of CIMC Vehicles, including dry bulk tank trailers, liquid tanks and concrete mixers to form a synergy and make joint efforts. Champion Tanker Business Group will promote the “Champion Tanker Strategic Development Plan”, optimize the internal capacity of the business, promote organizational development and establish manufacturing enterprises for market segments, so as to redress the imbalance between supply and demand. Under the strategy, the total sales volume of Champion Tanker Business Group will increase against the market trend, and rise in both gross profit margin and net profit contribution.