On the evening of 26 April, 2022, CIMC Vehicles released its 2022 First Quarterly Report. In the first quarter of 2022, CIMC Vehicles gave overall consideration to epidemic prevention and control as well as production and operation. Against the backdrop of the pandemic in various regions of China, CIMC Vehicles actively overcame the unfavorable factors of operation and grasped the growth opportunities of overseas market to achieve relatively sound development under the situation of domestic epidemic outbreak.

As indicated in its 2022 First Quarterly Report, during the first quarter of 2022, the revenue of the Group was RMB5,132.3 million, and the net profit attributable to shareholders of the Company was RMB124.5 million. The Group sold a total of 33,205 units/sets in the world, including 26,766 semi-trailers, 5,110 truck bodies for specialty vehicles and 1,329 lightweight van truck bodies.

OVERSEAS MARKETS CONTINUE TO GROW SIGNIFICANTLY AMID FLARE-UPS OF THE PANDEMIC

In 2021, according to the actual operational and strategic management needs, 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”, which helped remove internal barriers in operation and formed an all-round management from strategy, operation to coordinated development. 

By the first quarter of 2022, the six major businesses or groups of CIMC Vehicles began to gradually realize high yields, and the performance of the overseas market was outstanding.

In terms of Champion Tanker Business Group, due to the implementation of China VI emission standards on July 1,2021, and the cessation of granting licenses for China V-compliant commercial vehicles, the market demand for commercial vehicles in China was in a stagnant period and continuously declined until the beginning of 2022, resulting in the slowdown in the business performance of Champion Tanker Business Group. In March 2022, the performance of Champion Tanker Business Group gradually improved.

For Light Tower Pioneer Business, the market demand for semi-trailers in China was curbed by the delayed delivery of orders as a result of logistics and transportation snags in China arising out of the flare-ups of the pandemic. Light Tower Pioneer Business actively grasped the opportunity from product renewal and further increased the market share of semi-trailers in China. As the Chinese government encouraged intensive and efficient transportation organization models, including trailer sharing and rental, and drop and pull transportation, Light Tower Pioneer Business continuously developed the semitrailer sharing and rental business, so as to respond to the Chinese government’s call for the rural revitalization and the improvement in the urban logistics, distribution and transportation network.

With respect to TB Business Group, the C h i n e s e g ove r n m e nt p ro m o te d r u ra l revitalization and improved the urban logistics, distribution and transportation network. During the reporting period, the Group actively optimized the production capacity arrangements for refrigerated truck bodies and dry van truck bodies to capture the opportunities from the development of cold chain logistics and urban distribution.

Regarding Urban Dump Truck Business, the demand for urban dump trucks in China declined in the first quarter of 2022, which affected the performance of the Urban Dump Truck Business of the Group. The new energy heavy truck business ushered in a new prospect of development. The Group deepened its strategy of joint development with tractor manufacturers and invested in the research and development for the promotion of new energy urban dump trucks to continuously improve the product competitiveness.

For the Nor th American Business, the demand for semi-trailers in the Nor th American market was released continuously, and North American Business of the Group achieved brilliant growth with a significant year-on-year increase of 108.8% in revenue.

As far as European Business is concerned, due to geopolitical conflict in Europe, there were risks and opportunities for European Business of the Group with a steady increase in sales volume and revenue.

C I M C V E H I C L E S S E I Z E S T H E OPPORTUNITY TO SEEK GROWTH W I T H T H E S O P H I S T I C AT E D MANUFACTURING SYSTEM LEADING DEVELOPMENT

In the second quarter of 2022, despite the flare-ups of the pandemic, the Chinese government practically ensured the stability and smoothness of the logistics supply chain and material transportation in China and promoted the stability of the industrial chain. CIMC Vehicles will seize the opportunity from logistics and transportation recovery in China, gradually release the pent-up order and production demand, actively expand its business, build and upgrade “Light Tower” Plants as planned, give full play to the role of the “Light Tower Manufacturing Network”, improve production efficiency by using newly upgraded production lines and equipment, maximize product production costs, and continuously improve product profitability, so as to achieve a high-quality recovery of the overall operation.

Data show that CIMC Vehicles has invested in the construction and upgrading of more than 20 Light Tower production lines over the past six years. For the next step, CIMC Vehicles will actively prepare the upgraded version of “Light Tower” Plants: Light Tower Manufacturing Network. The Group will construct a trans-regional operation network of 1#-5# semi-trailers in China, expedite the product launch, improve the utilization rate of LTP core production equipment, effectively connect the global semi-trailer business in the long run, and provide guarantee for the development of CIMC Vehicles’ businesses.

Looking ahead, CIMC Vehicles will solidify the construction of the “Sophisticated Manufac turing System” and the “New Management infrastructure”, develop an innovative business model of “Products + Services + Finance”, and actively integrate its business in the global market to better facilitate the influence of global geopolitics on the Group, so as to promote the steady development of the six major businesses or groups under intercontinental operation