On August 23, CIMC Vehicles (301039.SZ) saw a significant surge in its stock price following the release of its half-year report the previous evening. In the first half of the year, the company achieved revenue of 10.7 billion RMB and a net profit attributable to shareholders of 563 million RMB. While these impressive results are noteworthy, CIMC Vehicles also announced a generous dividend plan, intending to distribute a cash dividend of 2.80 RMB (tax included) for every 10 shares to all shareholders, amounting to a total cash dividend of 525 million RMB (tax included), which represents 93.25% of the net profit for the period.

In the first half of this year, with domestic transportation market demand weakening, sluggish growth in the end market, and ongoing inventory pressure, the overall operation of China's commercial vehicle industry faced significant challenges. Against this backdrop, CIMC Vehicles is actively exploring ways to build new productive forces, leading the semi-trailer industry into a new development paradigm. As CEO Li Guiping quoted during the company's interim performance press conference regarding the macro environment: "Those who excel in chess, at moments of crisis and danger, not only save themselves but also defeat the enemy.“

Steady Performance and High Dividend Payouts

As we enter 2024, the global economy is characterized by both resilience and volatility amid a complex and changing international environment, which has also impacted the specialized vehicle industry. Despite these industry challenges, CIMC Vehicles continues to achieve leading results, with significant recovery in profitability in the Chinese market, alongside increases in both sales and gross margin. The company has also shown impressive performance in international markets 

across various continents. Overall, the company's profitability and cash flow remain stable.

This stability gives CIMC Vehicles the confidence to continue rewarding shareholders with high dividends. The company has also disclosed its 2024 interim profit distribution plan: based on 1.874 billion shares, it intends to distribute a cash dividend of 2.80 RMB (tax included) for every 10 shares to all shareholders.

Since its listing on the A-share market in 2021, CIMC Vehicles has achieved a cumulative net profit attributable to shareholders of 5.04 billion RMB and has distributed a total of 2.14 billion RMB in dividends, with a dividend payout ratio exceeding 40%. "I believe the company will continue to create value for shareholders and provide better returns in the future," Li Guiping stated at the performance announcement.

Building New Quality Productive Forces, Exemplifying Leadership Responsibility

Regarding the understanding and implementation of new productive forces, Li Guiping provided an in-depth introduction during the performance announcement, mentioning that the company will build new quality productive forces in the semi-trailer industry through new manufacturing, new services, and new models.

Among these, the "Star-chained Manufacturing Network" is an important practice of new productive forces, initiated by CIMC Vehicles at the beginning of 2023. Li Guiping explained that the "Star-chained Manufacturing Network" can be roughly divided into three phases: Identify Phase (IDP); Build Up Phase (BUP); and Implementation Phase (IMP).