In March, the annual "two sessions" was held. As one of China’s most important annual meetings, the hot topics attracted much attention.

Keyword 1: New Energy Vehicles

The report points out that the Chinese government will continue supporting sales of new energy vehicles and encourage local governments to carry out Rural Subsidy Programs for Green Smart Home Appliances and Change of the Old for New Programs.

To meet high demand in the new energy commercial vehicle market, CIMC Vehicles has seized first-mover advantage to develop the business. It was reported that Lingyu Vehicles, a CIMC Vehicles subsidiary, promoted key “From[1]Fuel-To-Electricity” projects with FAW Jiefang last year to jointly develop pure electric concrete mixer trucks. As of now, Lingyu Vehicles has launched three pure-electric concrete mixer trucks. Moreover, Xi'an CIMC's new energy urban dump truck and Zhenjiang "TB"’s refrigerated vans are also developed towards "new energy".

Keyword 2: Carbon Peak Action

The report notes that China will promote achieving peak carbon and carbon neutrality in an orderly manner, implement a peak carbon action plan, support the energy revolution, guarantee energy supplies, leverage on owned natural resources, adhere to pragmatic principles, form overall planning, and promote the transformation to low[1]carbon energy.

Data shows that CIMC Vehicles has pioneered the construction of "Sophisticated Manufacturing System" and "Light Tower" Plants since 2014, and has built 21 "Light Tower" Plants at home and abroad, to date. It has also applied automated, intelligent and digitalized environmental protection and emission-reduction facilities to various production chains. Compared with traditional plants, "Light Tower" Plants significantly reduce the unit costs of vehicles, personnel demand, energy consumption and more, while significantly improving raw materials utilization and environmental protection.

Keyword 3: Advanced Manufacturing Industry

The report suggests that the manufacturing industry’s core competitiveness should be further enhanced. The Government will guide financial institutions to increase medium and long-term loans to manufacturing, launch a batch of industrial[1]based reengineering projects, promote the upgrading of traditional industries, accelerate the development of advanced manufacturing clusters, and implement national strategic emerging industry cluster projects.

Under the strategic guidance of the manufacturing, CIMC Vehicles has embarked on a 20-year development program to establish its Sophisticated Manufacturing System and secure a leading position in the semi-trailer sector. Looking to the future, CIMC Vehicles will consolidate its "Intercontinental Operation, Local Manufacturing" business model. It will also and maximize its production, assembly, global supply chain management, and global distribution logistics management capacity in 23 production and 10 assembly plants across the world – and thereby improve its core competitiveness to capture development opportunities within logistics and other industries.

Keyword 4: Rural Revitalization

The report proposes strengthening the construction of the county commercial system and developing agricultural products processing, rural e-commerce and express logistics distribution according to local conditions.

In the overall environment, CIMC Vehicles eagerly seized development opportunities within the van segment of the light transport vehicles market. In April last year, it launched its "TB" brand which primarily focuses on dry cargo van truck bodies for urban distribution and refrigerated van truck bodies.

This represents an important step by CIMC Vehicles to promote the transformation and upgrading of urban logistics and distribution through its Sophisticated Manufacturing System. Furthermore, on 2 March, it delivered batches of grain transport vehicles developed by CIMC Light Tower, a CIMC Vehicles subsidiary, to clients.

Keyword 5: Infrastructure Investmen

The report states that a batch of qualified major projects, new infrastructure, renovation of old public facilities and other construction projects will launch this year. Limited investment in infrastructure investment will be conducted ahead of schedule in line with the national major strategic objectives in the "14th Five-Year Plan".

CIMC Vehicles seized new market opportunities, made a series of strategic advances in the specialty-vehicle loading business, strengthened cooperation with tractor manufacturers in new energy chassis and intelligent connected driving, comprehensively promoted key “From-Fuel-To[1]Electricity” projects, and successfully developed two rechargeable and one rechargeable pure electric mixer trucks. All these have given the Company a leading position in the industry in terms of R&D and green energy use.

Keyword 6: Innovation-driven

The report proposes consolidating an innovation[1]driven development strategy to strengthen the real economy’s foundations. The Government will also promote scientific and technological innovation, facilitate industrial optimization and upgrading, solve supply constraints, and rely on innovation to improve development quality.

In recent years, CIMC Vehicles has actively pursued innovation, especially in cold chain logistics transportation. In 2021, the Company comprehensively upgraded and launched its innovative K2 dual-mode foaming technology with independent intellectual property rights. As a dedicated solution for the manufacture of refrigerated van truck bodies, this helps provide high-quality products and services for cold chain transportation in China.

Keyword 7: Digitalization

The report proposes strengthening the overall transition to a digital China, helping develop the digital economy, building digital information infrastructure. It also recommends accelerating development of the industrial Internet, cultivating and expanding digital industries.

The construction of CIMC Vehicles’ plants was comprehensively based on digitalization. From a business perspective, the system provides seamless digitalization, integrating with the Company’s cloud-based business platforms. At the same time, CIMC Vehicles also established 2+8 core digital systems to ensure the stability of its basic business functions. Currently, the Company has initially established a modular R&D and design system for semi-trailers, light and durable bodies concrete mixer trucks, and bodies for environmental-friendly urban muck trucks, and refrigerated van bodies. Looking ahead, the Company will conduct a comprehensive digital upgrade of all these product designs.

Keyword 8: Specialization, Refinement, Uniqueness and Innovation

The report recommends cultivating uniquely specialized and innovative enterprises with the government strongly supporting them by providing capital, talent and incubation platforms. In the first three batches of national “Little Giant” enterprises featuring specialization, refinement, uniqueness and innovation published by the Ministry of Industry and Information Technology, three of CIMC Vehicles subsidiaries were selected: CIMC Vehicle (Jiangmen) Co., Ltd. ("CIMC Jiangmen"), Zhumadian CIMC Huajun Vehicle Co., Ltd. and Gansu CIMC Huajun Vehicles Co., Ltd