Business Review
(25 March 2026, Hong Kong) — CIMC Vehicles (Group) Co. Ltd. (“CIMC Vehicles” or the “Company”, Stock code: 301039.SZ) held its 2025 Annual Results Conference. CIMC Vehicles defied market expectations with bold transformations, guided by the principle of “Star-Chained Only”, achieving initial success in countering involution and striving to become a top-tier listed company while driving the industry toward high-quality development. achieving an initial victory against “involution‑style” competition, striving to become an “outstanding student” among listed companies and to steer the industry toward high‑quality development.
With the successful conclusion of the three‑year Star‑Chained Plan, CIMC Vehicles’ operations became more resilient and higher in quality, with its three major business segments working in strong synergy. The Star‑Chained Plan delivered results exceeding expectations: according to the annual report, in 2025 the Company achieved revenue of RMB20.18 billion (in RMB henceforth), with a gross profit margin of 15.9%, net cash generated from operating activities of RMB1.58 billion, and cash reserves of RMB6.60 billion, while Q4 net profit attributable to shareholders increased by 28.70% quarter‑on‑quarter (“QoQ”).
At the same time, the Company disclosed its 2025 profit distribution proposal of a cash dividend of RMB0.21 Yuan per share (tax inclusive).
According to the 2024 Global OEM Ranking List for semi‑trailer manufacturers published by Global Trailer, the production volume of CIMC Vehicles’ production centers and manufacturing plants for semi‑trailers in China, North America and Europe reached 112,000 units, ranking first in the world for the thirteenth consecutive year. Additionally, the Company supplied 29,000 various specialized truck bodies (referred to as EV·DTB truck body products) to China’s new energy heavy truck manufacturers and leading fuel/gas-powered heavy truck manufacturers. Following the Company’s first launch of pure electric tractors and trailers in 2024, its EV‑RT business in 2025 further accelerated the building and closed‑loop development of the electric tractor‑trailer ecosystem.
“Star-Chained Plan” Concluded successfully, Driving High‑Quality Development of Chinese Semi‑Trailer Business
In 2025, the revenue from global semi-trailer business amounted to RMB14,372 million, contributing a gross profit of RMB2,440 million.
The Company’s Chinese semi‑trailer business achieved high‑quality development. amid an external environment defined by industry-wide overcapacity and homogeneous competition, the Company forged new competitive advantages and achieved a strategic breakthrough in countering involution-typed competition.
Under the “Star-Chained Only” initiative, the six-month “Rush to Harvest” campaign successfully integrated new quality productive forces with innovative marketing capabilities, ensuring the effective execution of key priority tasks. Consequently, in the Chinese market, Star-Chained semi-trailers and liquid tankers achieved a 15.00% YoY (“YoY”) increase in sales, a 14.65% YoY growth in revenue, and a 3.3% YoY improvement in gross margin ratio.
With annual models as the core strategic focus, the Company has extended its footprint across the value chain – promoting innovation in upstream productive services and building barriers around core components on the downstream side. In 2025, the Company launched multiple innovative products, including the Star-Chained Only rear dump semi-trailer (7A), the “Ouguan” series of premium liquid tankers, and the “Stellar Storm” vehicle transporters. Sales of annual models accounted for approximately 40% of the Company’s Star-Chained semi-trailer and liquid tanker sales across the Chinese and Global South markets. Against the backdrop of intensified competition within the domestic unified market, according to statistics from the Hanyang Specialty Vehicle Institute, the Company’s market share in semi-trailers exceeded 22.2%, securing its top national ranking for seven consecutive years. Concurrently, its market share in liquid tankers surpassed 26.5%, achieving a growth-against-the-trend to lead the industry.
Regarding new-quality productive forces, the Star-Chained production lines established in late 2024 fully realized their operational effectiveness. In 2025, labor hours for LTP semi-trailers and liquid tankers decreased by approximately 30% to 40%. The centralized procurement organization was comprehensively upgraded, achieving a centralized procurement rate of over 80%, thereby providing replicable operational capabilities to drive sustainable high-quality growth.
Regarding new-quality marketing capabilities: The number of “Sanhao Center” increased to 24, which, alongside the 23 delivery and service centers established in 2025, form a fortified network covering key customer markets. To date, the Company has established 9 flagship stores to explore innovative business models, including maintenance and repair, used vehicle refurbishment, pre-owned vehicle trading, and trailer leasing.
The Company’s Global South operations achieved high-quality growth. Capitalizing on robust demand across emerging markets, the Company optimized its governance structure and resource allocation, formulated localized growth strategies for key regions, and developed modular vehicle models tailored to diverse market requirements. In 2025, revenue from the semi-trailer business in the Global South market reached RMB3.09 billion, representing a YoY increase of 17.7%; sales volume surged by 29.1% YoY. Alongside this scale expansion, profitability improved significantly, with gross margin ratio rising by 1.3 percentage points YoY. Performance in traditional stronghold markets across the Middle East, Africa, and Southeast Asia delivered standout growth, with key markets such as Vietnam and Thailand recording increases exceeding 70%. Furthermore, strategic breakthroughs were achieved in emerging regions, including Central Asia.
In 2025, the Australian business was integrated into the Global South direct management structure and aligned closely with the Star-Chained Plan. Profitability of Australian business was maintained at historically robust levels. According to vehicle registration data from the National Road Transport Association of Australia, the Company has consistently ranked among the top six in Australia for three consecutive years, further solidifying its market leadership.
The European semi-trailer business followed a pattern of “stable volume, revenue growth, and margin compression.” In 2025, combined sales volume of SDC and LAG remained broadly stable YoY, while revenue grew by 5%. SDC fortified its market leadership in the UK. LAG prioritized operational stability, advancing regional integration in Poland and product standardization to strengthen its strategic resilience for the upcoming market recovery.
The North American semi-trailer business demonstrated resilience in a subdued market. the refrigerated trailers segment maintained orderly manufacturing and shipment schedules in North America. By leveraging pre-assembled inventory accumulated during the market trough, the Company ensured robust fulfillment for urgent orders. The van trailer segment demonstrated resilience in a subdued market, sustaining profitability and capturing modest market share gains through strong execution and deep customer stickiness. The container chassis trailers prioritized destocking accumulated inventory, achieved a phased reduction in operational losses through stringent cost control and disciplined administrative expense management. The Company anticipates a gradual demand recovery in the U.S. market by mid-2026.
Proactively initiated structural reforms in the production organization of DTB business, achieved steady growth in both sales and revenue
In 2025, the DTB business of the Company achieved steady growth in both sales and revenue, while further strengthening its market share in core products. Meanwhile, drawing on the successful experience of the Star-Chained Plan, the Company proactively initiated structural reforms in the production organization of its DTB business, resulting in a significant YoY increase in operating profit.
In 2025, the Company commenced structural reforms in its DTB • mixer truck production organization. By integrating resources from its mixer truck manufacturing entities in Wuhu and Luoyang, the Company established the CIMC Vehicles DTB • Cement Mixer Truck (including Powder Tanker Semi-trailer) Business Group. This initiative created a unified operational system focused on capacity optimization and resource synergy, enabling the end-to-end integration of order, production, and delivery workflows, thereby significantly enhancing operational efficiency and quality.
Simultaneously, the Company intensified its research and development and commercialization of new energy solutions, deepening collaboration with OEMs across the full value chain spanning product R&D, manufacturing, and sales. Consequently, sales of EV-DTB products – specifically designed for new energy heavy-duty truck chassis – witnessed exceptional growth. Notably, both EV-DTB • dump truck and EV-DTB • mixer truck segments recorded YoY increases exceeding 100%. Total sales of the Company’s new energy product series exceeded 11,000 units, representing YoY growth of over 100%. Through efficient delivery and exceptional product quality, the Company continued to create greater value for its customers.
EV-RT electric tractor-trailer business achieved pivotal breakthroughs, Global Debut of the EV-RT Ecosystem
As a cornerstone of the Company’s future-oriented strategy, the EV-RT electric tractor-trailer business achieved pivotal breakthroughs in 2025. This progress marks a decisive step forward in the Company’s mission to become a standard-setter for technical excellence in the new energy heavy-duty truck era: Global Debut of the EV-RT Eco-system, defining a New Industry Paradigm, Global First Engineering Electric Trailer Platform and Prototype Vehicles, Innovative Business Concepts to Build Long-Term Competitive Advantages, Deep Participation in and Promotion of National and Industry Standard Upgrades.
The domestic semi-trailer market saw an overall sales increase of 12% YoY, with a market share reaching 14.04%, ranking 1st in China for the 6th consecutive years. Revenue from the star-chained semi-trailer business saw a 16.8% YoY revenue growth, with sales volume increasing by 20.9% against the trend, and the gross profit margin rising to 14.4%. Capacity utilization reached its highest level in five years, resulting in a 30% boost in production efficiency and a substantial 23% growth in per capita output value. Additionally, the Company fully developed Star-chained marketing operations, and progressed the business model of CIMC-SHAC “Sanhao development”.
In 2025, the Company firmly adhered to the strategic positioning of the electric tractor-trailer business as an “Explorer, Builder, and Entire Value Chain Promoter,” laying a solid foundation for the subsequent development of the EV-RT business.
Guided by the "Star-Chained Only" Strategy, Continuously Enhancing Long-Term Competitiveness
Facing a complex and volatile global economic environment, CIMC Vehicles defied market expectations with bold transformations. Guided by the "Star-Chained Only" strategy, the Company continuously enhanced its long-term competitiveness through strategic layout and business advancement:
1. Expanding and enriching the "Entire-Value Chain" operational model, deeply exploring value and building capability moats across six key segments;
2. Improving and optimising the global supply chain, strengthening supply assurance capabilities for critical components;
3. Optimising the business governance structure for the Global South market, unifying sales channels in local markets, and deepening understanding and mastery of local end customers;
4. Deepening the governance structure of Vanguard Global Trailer Holding;
5. Commencing the construction of a parallel and independent governance structure for CIMC Vehicles Europe Company (CVEC);
6. Deepening the "excellent horses with excellent saddles" business model, promoting structural reforms in the production organisation of DTB manufacturing enterprises;
7. Building the "EV-RT" ecosystem to accelerate rapid iteration of EV-RT electric tractor-trailer products.
Looking ahead, the Company is dedicated to building upon the initial successes of the ‘Star-Chained Plan’. We are committed to deepening our ‘Bold Transformation’ framework and launching the “Stellar Plan” (2026–2030), with the strategic ambition of achieving a transformative leap in corporate value during the 15th Five-Year Plan period. During the Stellar Plan period, CIMC Vehicles will extensively establish R&D organizational structures and significantly increase investment in research and development.
The Stellar Plan will build upon the solid foundation in semi-trailer and liquid tanker production organizations established by the Star-Chained Plan, fully reaping the rewards of its predecessor’s achievements. The Stellar Plan will be implemented in three strategic phases: Stellar 1-2-3. Driven by this initiative, the Company is dedicated to expanding the Hard and Soft Stuffs and industry influence of the Star-Chained Plan across five key dimensions:
1. Expanding the Boundaries of the Full-Value-Chain Curve to Become a Unique Full-Value-Chain Operator and Significantly Scale Up Incremental Business in Productive Services;
2. Scaling Up the “Star-Chained Plan” to Significantly Expand Incremental Business in the North American Semi-Trailer Market;
3. Strategically Launch the “European Semi-Trailer Star-Chained Plan” to Build New-Quality Productive Forces and New Quality Marketing Capabilities for Semi-Trailers Across Asia, Africa, and Europe;
4. Becoming the World’s Only Full-Portfolio Leader in Specialized Vehicles;
5. Striving to Build the EV-RT Ecosystem and Becoming a Key Player in New Strategic Landscape to Advance Substantive Progress in EV-RT Emerging Business.