ShenzhenAugust 26, 2022/ PR Newswire /-301039.SZ/01839.HK, the global leader in the high-end manufacturing of semi-trailers and special-purpose vehicles, held its 2022 interim results conference.
According to the 2022 report of CIMC vehicles, in the first half of 2022, CIMC vehicles achieved an operating income of 11.2 billion yuan (in RMB, the same below) and a net profit of 370 million yuan belonging to the shareholders of the parent company. The total assets and net assets belonging to shareholders of listed companies reached 22.38 billion yuan and 11.77 billion yuan respectively, an increase of 2.7% and 0.2% respectively over the end of 2021. The overseas market is booming by leaps and bounds, with revenue growing by 59.2% year-on-year, revenue in North America and Europe up 115.2% and 6.4% respectively, and the gross profit margin of global semi-trailer products increased by 0.5% year-on-year. The leading position of the world has been further enhanced.
Specific to the six major businesses or groups, in the first half of 2022, Lighthouse Vanguard business maintained steady profitability; North American business actively seized the growth opportunity of cross-ocean operation, and both revenue and profitability increased significantly; European business achieved strategic breakthroughs and achieved quality growth; Qiang Crown Business Group broke through the influence of many unfavorable factors, and the main products maintained a leading position. The urban slag truck business continues to develop and launch new energy products; the high-end manufacturing and production base of Taibyte Business Group is basically completed, and the production capacity is gradually released.
Performance resilience is highlighted. Improve the quality of management
In the first half of 2022, with repeated global epidemics, the economic situation at home and abroad has become more complex, and uncertainty and urgency have become the new normal. Against the background of the overall decline of China's commercial vehicle market, CIMC vehicles actively implement various strategic measures, integrate the company's superior resources, promote the layout of six major businesses or groups, and take a series of open source and cost control measures. to achieve a 1.1 percentage point year-on-year increase in gross profit margin to 11.2%.
At the same time, the strong performance of CIMC's overseas business to some extent makes up for the stillness of the domestic special purpose vehicle business. The operating cash flow of the company in the first half of 2022 is much better than that in the second half of 2021, which fully demonstrates the company's operational resilience.
Continuous verification of transoceanic business strategy Strong performance of overseas business
Specifically, driven by both policy and market factors, the integration of China's logistics and transportation industry is accelerated, and China's semi-trailer industry is facing upgrading iteration and further transformation to scale manufacturing. Based on the company's "lighthouse manufacturing network" strategy, Lighthouse Vanguard business speeds up digital upgrading, and gives full play to the efficiency of the "Lighthouse" factory through production line optimization and regional planning to achieve business breakthroughs. In the first half of 2022, Lighthouse Vanguard's business revenue reached 2327.1 million yuan, and its "trailer gang" company successfully completed round A financing.
In terms of North American business, the North American logistics transportation and semi-trailer market got rid of the impact of the epidemic and began to fully recover, and the North American semi-trailer market was in short supply. Relying on its advantages in cross-ocean operation, CIMC has actively implemented the strategic measures of its North American business, controlled global logistics and distribution costs and optimized the layout of local manufacturing through centralized procurement and digital global supply chain management, overcoming the impact of "traffic jams" in the global supply chain and making a new record profit. In the first half of 2022, the performance of the North American business was eye-catching, with the volume and prices of the three main products rising together, leading to a substantial increase in operating income by 151.6% to 4628.9 million yuan, a 4.0% increase in gross profit margin and a significant increase in profitability.
It is worth mentioning that the market demand for refrigerated semi-trailers in North America, one of the three main products, continues to rise. CIMC vehicles actively seized the opportunity of market growth and released the refrigerated semi-trailer capacity of the North American business. Using the established high-end manufacturing system network, North American business has formed a flexible, reliable, low-cost, close product delivery network to actively meet the product delivery needs of North American customers. In the first half of 2022, revenue from refrigerated semi-trailers in North America rose 189.4% from the same period last year, and gross profit margin rose 3.0 percentage points from the same period last year.
In terms of European business, under the guidance of the transoceanic business strategy, SDC actively improved the production line of the localized "Lighthouse" factory, completed the upgrading and construction of the production line of the pioneer manufacturing plant in South Hampton and Mansfield manufacturing plant in the UK, expanded the modular design and standardized production of products, basically completed the construction of high-end manufacturing system, and greatly improved production efficiency and production capacity. In the first half of 2022, the European business strategic plan showed results, with revenue rising 14.1% to 1,272.0 million yuan, achieving quality growth.
As for Qiang Crown Business Group, the terminal demand of heavy truck market continues to be depressed due to the superimposed factors such as the slowdown of China's infrastructure and real estate investment growth, the switching of emission standards, the early release of market demand, and the intensification of homogeneous competition in the industry. Although the market is in the doldrums, Qiang Guan Business Group will turn challenges into opportunities, continuously improve the "lighthouse manufacturing network", give full play to the collaborative advantages of the three major production bases, constantly subdivide the market, extend the industrial chain and integrate the resource advantages of upstream and downstream. In the first half of 2022, the revenue of Qiangguan Business Group reached 2142.2 million yuan, and the gross profit margin increased by 0.8% compared with the same period last year.
In terms of urban slag truck business, urban slag truck business actively carries out product optimization and transformation, deepens the joint development with the main engine factory, and continues to develop the field of new energy heavy trucks. In the first half of 2022, the business income of urban dregs reached 478.5 million yuan.
In terms of Taibyte business group, through the introduction of North American cold box technology and European trunk box technology, Taibyte business group continues to digest, absorb, innovate and upgrade, and build a lighthouse production line with international advanced level of refrigerated box body and highly automated dry goods box. promote the landing of the "lighthouse manufacturing network" system. In the first half of 2022, the revenue of Taibyte Business Group reached 130.5 million yuan.
Promote the research and development of new energy products and boost the "double carbon" strategy
With the promotion of the "double carbon" strategy and the national new energy policy, the permeability of new energy commercial vehicles continues to increase. CIMC vehicles actively promote the research and development and innovation of new energy products, promote the high-quality development of the road transport equipment industry, and contribute to the realization of the national "double carbon" strategic goal.
In terms of new energy product innovation, CIMC vehicles actively develop new energy lightweight urban slag trucks, which adopt ultra-high strength wear-resistant steel to ensure the realization of lightweight process and match the new energy chassis. It has a leading advantage in lightweight, durability, corrosion resistance and load capacity. At the same time, CIMC vehicles introduce pure electric mining cards, which adopt advanced "ERS" technology to achieve "heavy load downhill" energy recovery, energy saving rate of more than 85%, equipped with line-controlled chassis to achieve long-term endurance. In terms of concrete mixers, CIMC vehicles are guided by market demand and have developed a variety of new energy pure electric including charging and replacement type concrete mixer products, with small capacity batteries to provide rotating power of mixing tanks, energy saving, emission reduction, and cost reduction; in terms of urban distribution vehicles and refrigerated vans, CIMC vehicles actively jointly develop new energy refrigerated vehicles in conjunction with the mainframe factory to achieve chassis weight reduction of more than 1000KG.
At the same time, the company develops innovative business models under new energy and self-driving scenarios, and builds lightweight and long-life semi-trailer solutions around the rapid development trends of new energy heavy trucks, regional self-driving and special line formation driving, so that customers' choice and purchase of products will be transformed from price to value-oriented, establish close cooperative relationship with customers, and form an innovative exploration direction based on technology, business and investment. Occupy the development opportunity in the new energy commercial vehicle market.
Deepen the strategic layout of the six major businesses or groups Promote high-quality development
Looking forward to the second half of 2022, China's economy has entered a "new normal", changing from the stage of rapid growth to the stage of high-quality development. The economic structure has shifted from "incremental capacity expansion" to "adjusting stock and optimizing increment", and the driving force of economic development has shifted from "relying on resources and low-cost labor" to "innovation-driven". With the continuous development of stable growth policies, the accelerated landing of infrastructure projects, and the orderly recovery of supply chain and logistics and transportation, multiple positive factors will support China's steady economic recovery, and the profits of downstream manufacturing enterprises are expected to improve.
In the face of new opportunities and challenges, CIMC vehicle management will actively implement various strategic measures, integrate the company's superior resources, and actively layout local manufacturing while adhering to transoceanic operation to optimize efficiency. Increase the capacity of product assembly, delivery, after-sales service and financial services in the country and location of the market, deeply cultivate and expand the influence of localized brands, and are determined to take root in the local market for a long time. The company will also expand its profitability in the full value chain and increase profit opportunities throughout the life cycle to ensure the sound development of the six major businesses or groups.
In the future, CIMC will continue to build a high-end manufacturing system, actively deepen the strategic layout of the six major businesses or groups, and further increase its domestic market share through the coordination of production and marketing, so that overseas semi-trailer categories will gain competitive advantages in North America, Europe and emerging markets, and further enhance their leading position in the world.
At the same time, CIMC vehicles will consolidate the main business in accordance with the core initiatives and resources of the six major businesses or groups. Through high-quality products and services, strong innovation, strong demand capture rate and brand influence, networked and intelligent production organization, as well as a complete industrial system, accelerate the reform that is conducive to improving the efficiency of resource allocation, actively implement the standardization strategy and improve the assessment and evaluation system of "development achievements" Explore a new path for high-quality development.