CIMC Vehicles Achieves Operating Net Profit of RMB1.35 Billion in 2024

Star-Chained Plan Achieves Remarkable Results

Pure Electric Tractors and Trailers Usher in a New Development Chapter

(26 March 2025, Hong Kong) On 26 March, 2025, CIMC Vehicles (301039.SZ) held its 2024 Annual Results Conference. The Company demonstrated a positive and steady business performance, with its three major business segments achieving high-quality development.

According to the annual report data, in 2024, CIMC Vehicles achieved revenue of RMB21.0 billion (in RMB henceforth), and operating net profit reached RMB1.35 billion. The gross profit margin reached 16.3%, cash reserves amounted to RMB5.8 billion, and net cash generated from operating activities reached RMB2.19 billion, a YoY increase of 22.4%.

At the same time, the company disclosed its 2024 profit distribution plan, proposing a cash dividend of RMB0.28 per share (tax inclusive). Combined with the interim cash dividend of RMB0.28 per share (tax inclusive) already distributed, the total annual dividend for 2024 amounts to RMB0.56 per share (tax inclusive).

In 2024, the Company, driven by an entrepreneurial spirit, fully advanced its third venture initiative, reshaping its three major businesses: global semi-trailers, EV·DTB truck bodies, and pure electric tractors and trailers. The Company sold a total of 101,700 semi-trailers through its production centers and manufacturing plants in China, North America, and Europe. According to the 2024 Global OEM Ranking List published by Global Trailer, CIMC Vehicles ranked first among semi-trailer manufacturers in the world, for the twelfth year in a row. Additionally, the Company supplied 25,000 EV·DTB truck body products to China's new energy heavy truck manufacturers and leading fuel/gas-powered heavy truck manufacturers. For the first time, it also introduced pure electric tractors and trailers to the market, with primary practical applications in port transportation and concrete logistics.

The Global Semi-Trailer Business Will Leverage the "Star-Chained Plan" and "Big Leap Plan" to Deeply Explore the Value of Each Segment in the Entire-Value Chain

In 2024, the global semi-trailers business achieved revenue of RMB14.95 billion, contributing a gross profit of RMB2.661 billion. Amidst the involution-style competition within the semi-trailer industry, CIMC Vehicles vigorously implemented the "Star-Chained Plan" and the "Big Leap Plan" and fully established new productive forces in semi-trailers with significant results.

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”.

At the same time, the Company launched the "Big Leap Plan" successfully achieving the first-phase construction targets, and establishing preliminary “hard power” and “soft power” in production management. In addition, the Company participated in drafting and released the enterprise standards for “Edible Oil Tank Vehicles for Road Transportation”, enhancing safeguards for domestic edible oil safety.

The Global South Market experienced remarkable growth in 2024. CIMC Vehicles achieved performance breakthroughs in Southeast Asia, the Middle East, and Africa, with sales operation extensively covered 50 nations and regions in total, featuring a “three pillar markets + multiple growth markets” sales structure across the Middle East, Africa and Southeast Asia. Its 2024 revenue increased by 6% and gross profit margin leaping 5.8 percentage points.

The European and Australian semi-trailer businesses outperformed market expectations. In Europe, the Company systematically implemented supply chain localization, lifting gross margins by 2.4 percentage points despite challenging conditions. Australia operations focused on product quality and detailing, achieving record-breaking profitability, its market share in Australia has maintained a top-six ranking in the industry for two consecutive years

For the semi-trailer business in North America, the Company is actively enhancing the North American governance structure and further strengthening supply chain resilience. Leveraging the cost advantages from its global supply chain, its gross margin remained stable at 20.2%.

Deepen the "Excellent Horse with Excellent Saddle" Business Model, Transforming into the Preferred “Truck Bodies Entrusted Installation with Chain Enterprises" for New Energy Heavy Truck-Tractors Chassis Manufacturers

As the sole provider of three major categories of DTB products in the industry and the only enterprise capable of comprehensively covering core markets in the Yellow River Basin and middle-lower Yangtze River Basin with six plants, CIMC Vehicles has leveraged its marketing advantages while promoting the business model of “Excellent Tractors with Excellent Trailers”, the EV·DTB business delivered a total revenue of RMB3.03 billion and contributed a gross profit of RMB150 million, representing an increase in gross profit of RMB70 million as compared to 2023.

Over the past two years, the Company made a comprehensive push for the business model of “Excellent Tractors with Excellent Trailers”. With annual models as the hold, we carried out yearly iterations on the truck body design, better integrating the sub-frame with the heavy truck underframe to significantly reduce the weight. In 2024, the Company was transitioning the business focus from the “Complete mixer truck business” to the “EV・DTB business of mixer trucks”, launching a unified design of EV-DTB mixer trucks for pure electric heavy truck-tractors chassis. With unified order handling, centralized procurement, standardized production processes, and delivery from two sites, we have essentially realized the business model of “Excellent Tractors with Excellent Trailers”.

CIMC Vehicles Pursues “Pure-Electric Integrated Tractor-Trailer Products”, Striving to Become an Explorer, Builder, and Promoter Across the Entire-Value Chain

Through close cooperation with strategic automotive manufacturers, the Company has established a technology innovation platform for pure electric tractor and trailer (EV-RT). Within the “Excellent Tractors with Excellent Trailers” cooperative framework, the Company was driving continuous advancements in both technology and practical applications for pure electric tractors and trailers.

The Company’s self-developed J-RT1.0 pure electric tractor-trailer mixer truck has been put into operation in batches in Xi’an, achieving an energy consumption reduction of up to 37.7%. Additionally, the CIMC-SHAC “Excellent Tractors with Excellent Trailers” Initiative for New Energy Vehicles was delivered in bulk to customers in Chongzuo, Guangxi, known as the “Land Gateway to ASEAN”, advancing innovative practice of building a green cross-border transportation system.

Become an Entire-Value Chain Operator for Semi-trailers to Enhance Long-term Competitiveness

To address the various vortices of global geopolitics and strengthen long-term competitiveness, CIMC Vehicles will actively implement the following measures: Firstly, the global semi-trailer business will leverage the "Star-Chained Plan" and "Big Leap Plan" to deeply explore the value of each segment in the entire-value chain. Secondly, it will reshape the global supply chain for semi-trailers. Thirdly, it will establish a parallel and independent governance structure for the North American semi-trailer business. Fourthly, it will deepen the "Excellent Horse with Excellent Saddle" business model, transforming into the preferred “Truck Bodies Entrusted Installation with Chain Enterprises" for new energy heavy truck-tractors chassis manufacturers. Fifthly, it will further advance the CIMC-SHAC "Sanhao Development" to effectively expand applications in Global South market.

Looking Ahead, CIMC Vehicles is accelerating the evolution into an “Entire-Value Chain” operator for star-chained semi-trailer. In 2025, the Company targets “Star-chained Semi-trailer” and “Big Leap Tankers” to achieve further increases in gross margin, with profit contributions to double year-on-year. Also, CIMC Vehicles will evolves “Intercontinental Operations” into a “Borderless Enterprise” through its third venture. And the Company will pursue “Pure-electric Integrated Tractor-trailer Products”, striving to become an explorer, builder, and promoter across the entire-value chain. Targeting to fully establishing new productive forces and export it to the world to continue high-quality development in the future!

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About CIMC Vehicles (Group) Co., Ltd

In 2024, CIMC Vehicles (301039.SZ) sold a total of 101,700 semi-trailers through its production centres and manufacturing plants in China, North America, and Europe. According to the 2024 Global OEM Ranking List published by Global Trailer, CIMC Vehicles ranked first among semi-trailer manufacturers in the world, for the twelfth year in a row.

Additionally, the Company supplied 25,000 EV·DTB truck body products to China's new energy heavy truck manufacturers and leading fuel/gas-powered heavy truck manufacturers.

In 2024, the Company also introduced pure electric tractors and trailers to the market, with primary practical applications in port transportation and concrete logistics for the first time.