Investment Rating - The report maintains a "Buy" rating for Weichai Power (2338 HK) with a target price of HKD 18.60, indicating a potential upside of 26.7% from the current price of HKD 14.68 [1][6]. Core Insights - Weichai Power's net profit for 2023 increased by 84% year-on-year to RMB 9 billion, aligning with the previously announced profit range of RMB 8.58 billion to RMB 9.32 billion [1]. - The company's revenue grew by 22.2% to RMB 213.96 billion, with an improved gross margin of 21.1%, up from 17.8% in 2022 [1][5]. - The fourth quarter of 2023 saw a net profit increase of 58% year-on-year to RMB 2.5 billion, driven by a 20% revenue growth to RMB 53.6 billion and a gross margin increase of 3.3 percentage points to 23.7% [1]. - The dividend payout ratio has risen to 50% for 2023, up from 40% in 2022, with a final dividend of RMB 0.293 per share [1]. Financial Overview - Revenue and Profit Forecasts: - 2022: Revenue of RMB 175.16 billion, Net Profit of RMB 4.91 billion - 2023: Revenue of RMB 213.96 billion, Net Profit of RMB 9.01 billion - 2024E: Revenue of RMB 235.46 billion, Net Profit of RMB 11.84 billion - 2025E: Revenue of RMB 252.95 billion, Net Profit of RMB 13.71 billion - 2026E: Revenue of RMB 269.54 billion, Net Profit of RMB 14.85 billion [4][7]. - Earnings Per Share (EPS) is projected to grow from RMB 1.05 in 2023 to RMB 1.38 in 2024E, reflecting a year-on-year growth of 31.3% [4][7]. - The price-to-earnings (P/E) ratio is expected to decrease from 12.9 in 2023 to 9.8 in 2024E, indicating improved valuation metrics [4][7]. Business Segment Performance - The engine business experienced a robust recovery with a revenue increase of 55% year-on-year to RMB 60.8 billion, and segment profit surged 1.7 times to RMB 7.7 billion [1]. - Forklift production and warehouse technology services saw a tenfold profit increase to RMB 4.9 billion, benefiting from a low base effect [1]. - The demand for natural gas engines is expected to remain strong, with Weichai holding nearly 70% market share in this segment [1]. Market Position and Outlook - The report anticipates continued growth in heavy-duty truck engine sales, supported by a replacement cycle and strong demand for natural gas trucks [1]. - The overseas business, particularly through Kion Group, is expected to recover, contributing positively to revenue and profit growth [1].

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) Key takeaways from post-results call Target Price RMB20.40 During the post-results call yesterday, Weichai expected the industry HDT (Previous TP RMB20.40) demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is Up/Downside 23.6% expected to fall by 10% YoY to 600k units while exports are expected to grow Current Price RMB16.51 20% YoY to 300k units. Weichai expects the LNG price to ...

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) 4Q23 net profit +58% YoY; Payout increased to 50%; Higher earnings forecast on margin Target Price RMB20.40 Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with (Previous TP RMB17.80) the profit range of RMB8.58-9.32bn announced in Jan. In 4Q23, net profit grew Up/Downside 25.4% 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final Current Price RMB16.27 di ...

Financial Performance - Operating revenue for the year ended December 31, 2023, was approximately RMB 213,958 million, an increase of about 22.2% compared to RMB 175,158 million in 2022[2]. - Net profit attributable to shareholders of the parent company was approximately RMB 9,014 million, up approximately 83.8% from RMB 4,905 million in the previous year[2]. - Basic earnings per share were approximately RMB 1.04, representing an increase of about 84.5% compared to RMB 0.57 in 2022[5]. - Operating profit for the year was RMB 12,905 million, compared to RMB 5,834 million in 2022, reflecting significant growth[4]. - Total comprehensive income attributable to shareholders of the parent company was RMB 9,389 million, compared to RMB 6,781 million in 2022[5]. - The company reported a total profit of RMB 13,151 million, up from RMB 6,085 million in the previous year[4]. - The company reported capital expenditures of approximately ¥18.33 billion, indicating ongoing investment in growth initiatives[18]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[18]. Assets and Liabilities - As of December 31, 2023, total current assets increased to RMB 197.93 billion, up from RMB 168.48 billion in 2022, representing a growth of approximately 17.5%[6]. - Cash and cash equivalents rose to RMB 92.86 billion, compared to RMB 70.84 billion in the previous year, marking an increase of about 31.0%[6]. - Total liabilities reached RMB 221.56 billion, an increase from RMB 189.56 billion in 2022, reflecting a growth of approximately 16.9%[7]. - The company's total assets amounted to RMB 334.25 billion, up from RMB 293.67 billion in the previous year, indicating a growth of around 13.8%[8]. - The total equity attributable to shareholders increased to RMB 79.34 billion, compared to RMB 73.18 billion in 2022, which is an increase of approximately 8.9%[8]. - The total amount of accounts payable increased to RMB 60.13 billion, up from RMB 45.56 billion in the previous year, indicating a growth of around 32.0%[7]. Research and Development - Research and development expenses amounted to RMB 8,045 million, an increase from RMB 7,731 million in the previous year[4]. - The company has strengthened its R&D capabilities by establishing strategic partnerships with international firms such as Bosch and AVL[49]. - The company plans to increase R&D investment to strengthen core technological competitiveness and improve product reliability[57]. Market Performance - The agricultural equipment segment generated external sales of approximately ¥16.03 billion, showing a robust performance in this area[18]. - The company experienced a significant increase in external sales in the automotive and automotive parts segment, reaching approximately ¥62.62 billion[18]. - The company sold a total of 116,000 heavy trucks in the year, representing a 45% year-over-year increase; export sales reached 52,000 units, up 51% year-over-year[50]. - The agricultural equipment business saw an increase in market share despite a downturn in the overall market, focusing on high-end products and launching the P3404-8V intelligent tractor, which improved operational efficiency by 30% and reduced fuel consumption by 10%[52]. Credit and Receivables - Accounts receivable as of December 31, 2023, totaled CNY 27.29 billion, with a credit loss provision of CNY 3.54 billion, representing 12.96% of the book value[24]. - The company has identified several customers with significant credit risk, with the highest provision for credit loss at 100% for certain accounts due to poor repayment capacity[26]. - The overall credit loss provision strategy includes both individual and collective assessments, with 82.72% of the total provision based on collective assessment methods[25]. Governance and Management - The company emphasizes a stable dividend policy, considering financial performance and capital expenditure before recommending dividends[109]. - The board approved the audited consolidated financial statements for the year on March 25, 2024[132]. - KPMG was appointed as the auditor on June 28, 2023, replacing Deloitte[131]. - The company has adopted a securities trading compliance code for directors this year, confirming adherence to the standards[129]. Future Outlook - For 2024, the company projects sales revenue between RMB 224,700 million and RMB 235,400 million, representing a growth of approximately 5% to 10% compared to 2023[65]. - The company aims to enhance resilience and deepen global operations while focusing on technological advancements and structural upgrades in 2024[56]. - The company aims for a revenue of at least RMB 210.2 billion in 2024, with a sales profit margin of no less than 8%[120].

此报告最后部分的分析师披露、商业关系披露和免责声明为报告的一部分，必须阅读。 下载本公司之研究报告，可从彭博信息：BOCM 或 https://research.bocomgroup.com 交银国际研究 首次覆盖 重卡 收盘价 目标价 潜在涨幅 2024年3月14日 港元14.70 港元18.60 +26.5% 潍柴动力 (2338 HK) 潍 柴 动 力 (2338 重卡结构性机遇的主要受益者，市占率和盈利有望双升，首予买入 HK)：重卡结构性  天然气重卡渗透率提升的主要受益者，首予买入评级。我们首次覆盖潍柴 成个长股评机级遇的主要受 H股（2338 HK）/A股（000338 CH），给予买入评级，目标价18.6港元/ 买入 人民币19.8元，基于12.1倍/14.1倍的市盈率，接近上一轮2016年上升周 益者，首次覆盖买 期前的估值水平。我们预测2024-2025年盈利会持续恢复。鉴于其在重卡 发动机，特别是天然气重卡发动机强大技术储备、市场份额，以及2023- 入 1年股价表现 25E的强劲复苏，我们认为股价仍然具备上升潜力。 2338 HK 恒生指数 50%  柴油和天然气价差令天然气重卡经 ...

Financial Performance - The company's operating revenue for Q3 2023 reached ¥54,247,796,643.25, representing a 23.90% increase year-over-year[3] - Net profit attributable to shareholders for Q3 2023 was ¥2,601,668,386.35, a significant increase of 181.20% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥2,028,351,264.32, up 344.10% year-over-year[3] - Basic earnings per share for Q3 2023 was ¥0.30, an increase of 182.46% compared to the same period last year[3] - In Q3 2023, Weichai Power reported a net profit of CNY 7,996,994,567.86, a significant increase from CNY 3,736,254,637.16 in Q3 2022, representing a growth of approximately 114%[14] - The company's operating profit reached CNY 9,396,597,108.89, compared to CNY 3,807,996,650.06 in the same period last year, indicating an increase of about 147%[14] - The total profit for the quarter was CNY 9,638,078,576.03, compared to CNY 3,950,224,195.19 in the same period last year, reflecting an increase of approximately 144%[14] - The total comprehensive income for the period was CNY 9,487,763,277.59, compared to CNY 7,086,300,485.13 in the same quarter last year, an increase of about 34%[15] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥20,088,767,771.42, reflecting a remarkable increase of 931.08%[5] - The net cash flow from operating activities for Q3 2023 was ¥20,088,767,771.42, a significant improvement from -¥2,417,192,030.53 in Q3 2022[17] - Total cash inflow from investment activities reached ¥29,239,760,658.15, compared to ¥24,979,918,263.28 in the same period last year[17] - The net cash flow from investment activities was -¥3,701,715,396.58, an improvement from -¥12,372,364,827.92 year-over-year[17] - Cash inflow from financing activities totaled ¥7,813,071,684.86, down from ¥27,145,175,802.61 in Q3 2022[17] - The net cash flow from financing activities was -¥9,146,637,081.69, compared to a positive cash flow of ¥5,565,211,987.45 in the previous year[17] - The total cash and cash equivalents at the end of Q3 2023 amounted to ¥70,009,878,376.33, an increase from ¥59,482,474,707.63 at the end of Q3 2022[17] Assets and Liabilities - Total assets as of the end of Q3 2023 amounted to ¥325,221,278,958.00, a 10.75% increase from the end of the previous year[3] - Total current assets amount to RMB 194,741,485,403.67, an increase from RMB 168,484,220,366.25 at the beginning of the year[10] - Current liabilities rose to RMB 142.00 billion, up from RMB 119.74 billion, indicating an increase of 18.54%[12] - Total liabilities reached RMB 214.93 billion, compared to RMB 189.56 billion in the previous year, reflecting a growth of 13.38%[12] - The company's goodwill increased to RMB 24.63 billion, up from RMB 24.02 billion, showing a growth of 2.54%[12] - The total equity attributable to shareholders of the parent company increased to RMB 77.37 billion, compared to RMB 73.18 billion, marking a rise of 5.99%[12] Shareholder Information - Total number of common shareholders at the end of the reporting period is 324,303, with the top 10 shareholders holding significant stakes[6] - Hong Kong Central Clearing and Settlement System holds 22.22% of shares, amounting to 1,938,786,286 shares[6] - Weichai Holding Group Co., Ltd. owns 16.30% of shares, totaling 1,422,550,620 shares[6] - The total number of preferred shareholders at the end of the reporting period is not applicable, indicating no preferred shares issued[8] Research and Development - Research and development expenses for the quarter were CNY 5,650,409,153.82, slightly up from CNY 5,514,231,392.45 in Q3 2022, reflecting a year-over-year increase of approximately 2.5%[14] Taxation - The company's tax expenses for the quarter were CNY 1,641,084,008.17, compared to CNY 213,969,558.03 in Q3 2022, indicating a substantial increase[14] - The company reported a total tax payment of ¥3,680,108,564.59, compared to ¥2,591,299,719.14 in the previous year[17]

Share Structure and Governance - As of June 30, 2023, the total number of issued shares is 8,726,556,821, comprising 6,783,516,821 A shares and 1,943,040,000 H shares[10]. - The company has appointed several new directors, including Zhang Quan as Vice Chairman and Ma Changhai, Wang Decheng, and Ma Xuyao as Executive Directors in June 2023[3]. - The company is committed to enhancing its corporate governance with the establishment of various committees, including the Audit Committee and Remuneration Committee[5]. - The company is committed to transparency and accountability in its financial reporting and corporate governance practices[5]. Strategic Development and Market Expansion - The company is focusing on strategic development and investment, with Tan Xuguang as the Chairman of the Strategic Development and Investment Committee[6]. - The company is actively expanding its market presence and exploring new investment opportunities to drive growth[6]. - The company aims to enhance product competitiveness and deepen enterprise reform to maintain high-quality development[41]. - The focus will be on technological innovation and breakthroughs in the high-horsepower market to increase market share[42]. Financial Performance - Revenue for the first half of 2023 amounted to approximately RMB106,135 million, an increase of approximately 22.3% compared to the same period in 2022[12]. - Net profit attributable to shareholders reached approximately RMB3,899 million, representing an increase of approximately 63.1% year-on-year[12]. - Basic earnings per share was approximately RMB0.45, reflecting an increase of approximately 64.7% compared to the previous year[12]. - The Group's net profit for the period was approximately RMB4,785 million, representing an increase of approximately RMB1,826 million or 61.7% from approximately RMB2,959 million in the corresponding period last year[87]. Operational Efficiency and R&D - The company is focused on research and development of new products and technologies to maintain its competitive edge in the market[6]. - The company is enhancing its operational efficiency through strategic investments and partnerships[6]. - The company has actively expanded segment markets and increased investment in research and development to enhance overall operational quality[16]. - Research and development expenses for the first half of 2023 amounted to RMB 3.72 billion, slightly up from RMB 3.69 billion in the first half of 2022[143]. Sales and Market Share - Sales volume of engines increased to 367,000 units, a year-on-year increase of 29%, with a market share of domestic heavy-duty engines (500hp or above) reaching 31.7%, up 19.7 percentage points[20]. - Heavy-duty truck sales totaled 61,000 units, representing a year-on-year increase of 58%, while export volume reached 26,000 units, up by 97%[23]. - The sales volume of natural gas products exceeded 10,000 units, marking a year-on-year increase of 241% and an increase in market share of 2.8%[23]. - The company launched an upgraded Delong X6000 17H840 high-horsepower product, setting a new record in the domestic heavy-duty truck market[25]. Cash Flow and Financial Position - Operating cash flows generated during the period amounted to approximately RMB12,893 million, with a portion used for debt repayment and business expansion[88]. - As of June 30, 2023, the Group's cash and cash equivalents (net of interest-bearing debts) amounted to net cash of RMB30,871 million, indicating a net cash position[88]. - The Group's total liabilities amounted to approximately RMB213,061 million, with current liabilities of approximately RMB139,326 million[92]. - The gearing ratio as of June 30, 2023, was approximately 24.8%, down from approximately 26.1% as of December 31, 2022[88]. Dividend Distribution - A cash dividend of RMB 1.58 per 10 shares was approved for the 2022 profit distribution, with a total of 8,639,291,296 shares eligible for distribution[36]. - The board proposed a cash dividend of RMB 2.26 per 10 shares for the 2023 interim dividend distribution[37]. Economic Outlook - The company expects global economic growth to continue slowing down, while China's economy is anticipated to accelerate recovery in the second half of 2023[40]. - Infrastructure investment is expected to gradually accelerate, driving demand for construction vehicles such as dump trucks and mixer trucks[40]. Investment and Capital Utilization - The total amount of unutilized proceeds as of June 30, 2023, is detailed in the application plan for future use[121]. - The company plans to apply the remaining proceeds to relevant investment projects and will cover any shortfall in investment amounts using internal funds or other financing methods[126]. - The total amount of proceeds proposed to be applied to investment projects is RMB 13 billion, with RMB 4.47 billion already applied as of 30 June 2023[125]. Accounting and Compliance - The interim financial statements for the period from 1 January to 30 June 2023 have been reviewed and found to be in accordance with the relevant accounting standards[129]. - The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, ensuring compliance with relevant disclosure requirements[172]. - The Group adopts the accrual basis for accounting, with historical costs as the primary measurement basis for financial reporting[175].

Financial Performance - The operating revenue for the six months ended June 30, 2023, was approximately RMB 106.14 billion, representing a growth of about 22.3% compared to the previous period[3]. - The net profit attributable to shareholders of the parent company was approximately RMB 3.90 billion, reflecting a significant increase of approximately 63.1% year-over-year[3]. - Basic earnings per share were approximately RMB 0.45, up from RMB 0.27 in the same period last year[4]. - The total profit for the period was RMB 5.75 billion, with a tax expense of RMB 961.90 million[3]. - The company reported a total comprehensive income attributable to shareholders of the parent company of RMB 6.89 billion, compared to RMB 5.18 billion in the prior year[4]. - The company reported a significant increase in interest expenses, totaling RMB 1.33 billion, compared to RMB 576.90 million in the previous period[3]. - The company’s other income for the period was RMB 128.46 million, down from RMB 196.31 million in the previous year[3]. - The pre-tax profit for the period was approximately 5.75 billion, reflecting strong operational performance[17]. - The company reported a significant increase in external customer sales compared to the previous period, with a rise from approximately 86.77 billion to 106.14 billion[18]. - The company achieved a pre-tax profit of approximately 3.42 billion in the previous period, highlighting a year-over-year growth[18]. - The company reported a total of CNY 5.75 billion in total profit for the first half of 2023, compared to CNY 3.42 billion in the same period of 2022[38]. - Income tax expenses rose from approximately RMB 465 million in the same period last year to about RMB 962 million, an increase of approximately 106.9%, driven by a significant rise in total profit[72]. - Net profit for the period was approximately RMB 4,785 million, an increase of about RMB 1,826 million or 61.7% compared to RMB 2,959 million in the same period last year[73]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 322.61 billion, an increase from RMB 293.67 billion as of December 31, 2022, representing a growth of approximately 9.85%[5]. - Current assets totaled RMB 190.27 billion, up from RMB 168.48 billion, reflecting a growth of about 12.93%[5]. - Cash and cash equivalents increased to RMB 76.75 billion from RMB 70.84 billion, marking an increase of approximately 8.56%[5]. - Total liabilities reached RMB 213.06 billion, compared to RMB 189.56 billion, indicating a rise of around 12.43%[6]. - Current liabilities totaled RMB 139.33 billion, an increase from RMB 119.74 billion, which is a growth of approximately 16.38%[6]. - Long-term borrowings stood at RMB 22.82 billion, slightly up from RMB 22.78 billion, showing a marginal increase of about 0.18%[6]. - Shareholders' equity totaled RMB 109.55 billion, compared to RMB 104.11 billion, reflecting an increase of approximately 5.25%[6]. - The company reported a significant increase in accounts receivable, which rose to RMB 27.39 billion from RMB 21.42 billion, a growth of about 27.87%[5]. - The total amount of inventory increased to RMB 36.73 billion from RMB 33.37 billion, representing a growth of approximately 7.09%[5]. - The company’s total non-current assets reached RMB 132.34 billion, up from RMB 125.18 billion, indicating a growth of around 5.69%[5]. Research and Development - Research and development expenses amounted to RMB 3.72 billion, slightly increasing from RMB 3.69 billion in the previous period[3]. - The company continues to enhance its R&D investment to strengthen product competitiveness and meet customer demands more effectively[46]. - The company has established a product R&D system targeting various market segments to improve overall R&D capabilities[46]. - The company is committed to increasing R&D efforts in core technologies such as fuel cell technology and electric drive components[54]. Market Performance - The company operates through four main business segments: Engine production and sales, Automotive and automotive parts, Intelligent logistics, and Agricultural equipment[15]. - The sales volume of heavy trucks in China reached 488,000 units, a year-on-year increase of 29%[45]. - The sales volume of construction machinery in the same period was 379,000 units, a decline of 12% year-on-year[45]. - The sales volume of agricultural equipment was 227,000 units, reflecting a year-on-year decrease of 17.4%[45]. - The company’s strategic high-end products generated revenue of RMB 1.71 billion, a year-on-year increase of 77%[47]. - The company’s intelligent agricultural machinery sales maintained a leading position in the market, with significant performance improvements, including a 30% increase in overall operational efficiency and a 10% reduction in fuel consumption[49]. - The company’s new energy business has seen significant scale development, with electric powertrain products achieving over 5% improvement in overall efficiency[51]. - The company’s natural gas heavy-duty truck sales exceeded 10,000 units, a year-on-year increase of 241%, with market share rising by 2.8%[48]. Shareholder Information - The company plans to distribute a cash dividend of RMB 2.26 per 10 shares to all shareholders, based on a total of 8,639,291,296 shares entitled to profit distribution[43]. - The company distributed a cash dividend of RMB 1.58 per 10 shares for the 2022 fiscal year, with a total distributable share count of 8,639,291,296 shares[52]. - The total number of shareholders is 350,205, with 349,968 holding A-shares and 237 holding H-shares[96]. - The top 10 shareholders hold approximately 66.71% of the total shares, with the largest being Hong Kong Central Clearing and Settlement Limited at 22.22% (1,938,710,526 shares)[97]. - The state-owned Weichai Holding Group Co., Ltd. holds 16.30% (1,422,550,620 shares) of the total shares[97]. Financial Guidance and Future Outlook - Future guidance indicates a continued positive outlook for revenue growth, driven by market expansion and new product developments[19]. - The company anticipates a recovery in consumer demand supported by infrastructure investment and export needs, which will drive overall sales levels[53]. - The company aims to enhance product competitiveness through continuous innovation and technology leadership[54]. - The company plans to accelerate the development and market introduction of new products, focusing on high-power market strategies[54].

Financial Performance - The company's operating revenue for Q1 2023 was CNY 53.43 billion, representing an increase of 18.25% compared to CNY 41.10 billion in the same period last year[4]. - Net profit attributable to shareholders for Q1 2023 was CNY 1.86 billion, a significant increase of 68.29% from CNY 1.05 billion year-on-year[4]. - The net profit after deducting non-recurring gains and losses reached CNY 1.74 billion, up 94.14% from CNY 897 million in the previous year[4]. - Basic and diluted earnings per share for Q1 2023 were CNY 0.21, reflecting a 69.94% increase from CNY 0.12 in the previous year[4]. - Operating profit for Q1 2023 was RMB 2.57 billion, up 53.0% from RMB 1.68 billion in the same period last year[14]. - Net profit for Q1 2023 amounted to RMB 2.25 billion, representing a 57.0% increase compared to RMB 1.43 billion in Q1 2022[14]. - The total comprehensive income for Q1 2023 reached CNY 2,860,983,279.48, compared to CNY 2,228,777,942.28 in the same period last year, indicating an increase of about 28.4%[15]. - The basic and diluted earnings per share for Q1 2023 were both CNY 0.21, up from CNY 0.13 in Q1 2022, reflecting a growth of 61.5%[15]. Cash Flow and Liquidity - The company's cash flow from operating activities showed a net outflow of CNY 471.62 million, an improvement of 85.37% compared to a net outflow of CNY 4.60 billion in the same period last year[4]. - The net cash flow from operating activities for Q1 2023 was negative at CNY -471,621,705.85, an improvement from CNY -3,223,047,780.56 in Q1 2022[17]. - Cash and cash equivalents at the end of Q1 2023 totaled CNY 63,897,268,240.11, an increase from CNY 62,358,062,778.23 at the end of Q1 2022[18]. - The cash inflow from operating activities amounted to CNY 41,965,267,489.26, compared to CNY 41,145,252,085.84 in the previous year, showing a growth of approximately 2%[17]. - The cash outflow from investing activities was CNY 7,827,492,944.19, down from CNY 11,201,992,841.58 in Q1 2022, indicating a reduction of about 30.5%[17]. - The net cash flow from financing activities was negative at CNY -666,404,399.07, a decline from CNY 3,235,962,767.93 in Q1 2022[18]. Assets and Liabilities - Total assets at the end of Q1 2023 amounted to CNY 307.48 billion, representing a 4.70% increase from CNY 293.67 billion at the end of the previous year[4]. - The company's total liabilities as of Q1 2023 were RMB 200.50 billion, up from RMB 189.56 billion in the previous year[13]. - The total current liabilities increased to RMB 60.51 billion from RMB 45.56 billion, showing a growth of approximately 32.8%[12]. - The total equity attributable to shareholders of the parent company was RMB 75.58 billion, an increase from RMB 73.18 billion year-over-year[13]. - Shareholders' equity attributable to the parent company was CNY 75.58 billion, up 3.27% from CNY 73.18 billion at the end of the previous year[4]. Operational Metrics - The company reported a significant increase in operating profit of 52.88% year-on-year, driven by improved business conditions and increased sales[7]. - The company experienced a 32.80% increase in accounts payable, attributed to increased sales and procurement scale[7]. - Accounts receivable increased to RMB 29.35 billion from RMB 21.42 billion, representing a significant rise of approximately 37.1%[12]. - Inventory levels rose to RMB 35.33 billion, compared to RMB 33.37 billion at the start of the year, marking an increase of around 5.9%[12]. - The company reported a significant increase in accounts receivable financing, which rose to RMB 10.25 billion from RMB 6.97 billion, a growth of approximately 47.5%[12]. Research and Development - Research and development expenses for Q1 2023 were RMB 1.83 billion, a decrease of 5.5% from RMB 1.94 billion in the previous year[14]. Market Expansion - Weichai Power's subsidiary, Weichai Lovol, has received approval for its initial public offering on the ChiNext board, indicating future market expansion opportunities[10].

Industry Performance - In 2022, China's heavy-duty truck industry sales volume decreased by 51.8% to 671,900 units, while light-duty truck sales fell by 23.4% to 1,618,000 units[18]. - The construction machinery industry delivered 814,000 units, marking a year-on-year decrease of 20%, including 341,000 diesel forklift trucks[18]. - Agricultural equipment sales increased by 11.6% to 510,000 units, indicating growth in this sector despite overall market challenges[18]. - The heavy-duty truck industry experienced a sales decline of approximately 51.8%, with total sales of about 671,900 units[51]. - The light-duty truck industry delivered 1,618,000 units, reflecting a year-on-year decrease of approximately 23.4%[49]. - The construction machinery industry delivered 814,000 units, including 341,000 units of diesel forklift trucks, marking a year-on-year decrease of approximately 20%[49]. - The agricultural equipment industry delivered 510,000 units, showing a year-on-year increase of approximately 11.6%[49]. Financial Performance - In 2022, the company's revenue decreased by 20.5% year-on-year to approximately RMB 175,158 million, while net profit attributable to shareholders fell by 48.3% to approximately RMB 4,905 million[20]. - Basic earnings per share decreased by approximately 50.0% year-on-year to RMB 0.57[20]. - The actual sales revenue for 2022 was approximately RMB 175.2 billion, a decrease of about 20.5% compared to the expected increase of 5%[58]. - The gross operating margin for the year was 17.8%, a decrease of approximately 1.2% compared to the previous year, affected by increased production costs and low gross profit margins of certain products[64][67]. - EBIT for the year was approximately RMB 7,487 million, a decrease of approximately RMB 8,108 million or 52.0% from RMB 15,594 million in the previous year, with EBIT margin decreasing from 7.1% to 4.3%[70][72]. - The Group's net profit decreased by approximately 53.4% from approximately RMB 12,184 million in 2021 to approximately RMB 5,683 million in the current year[77]. - The net profit margin for the year was approximately 3.2%, a decrease of 2.3 percentage points from approximately 5.5% in the previous year[77]. Market Expansion and Product Development - The company launched the world's first commercial diesel engines with thermal efficiency exceeding 51% and 52%, setting new world records in the internal combustion engine industry[21]. - The company completed the development of a full series of industry-leading 15-260kW fuel cell products, establishing a leading position in the hydrogen energy sector[32]. - The company aims to enhance core competitiveness in fuel cells, motors, motor controllers, and electric powertrain products through market-oriented R&D[42]. - The company plans to develop new products such as China VII and low-carbon internal combustion engines while exploring feasible technical routes[42]. - The company is focused on technological innovation and engineering management in diesel engines and power systems[112]. - The company is investing heavily in new product development, with a budget allocation of 5 billion RMB for R&D in advanced engine technologies[36]. - The company has completed two strategic acquisitions in the past year, enhancing its capabilities in electric vehicle technology and expanding its product portfolio[36]. Strategic Initiatives and Future Outlook - The company expects sales revenue in 2023 to be approximately RMB 192.7 billion, representing an overall growth of approximately 10% compared to 2022[60][61]. - The commercial vehicle industry is expected to recover in 2023, with significant increases in heavy truck sales driven by infrastructure investment and improved market conditions[38]. - The penetration rate of the new energy market is expected to increase significantly, providing new opportunities for the company's new energy business segment[38]. - The company aims to enhance its position in the high-end agricultural machinery market and become a leader in the new intelligent agricultural ecology[40]. - The company will focus on consolidating its leading position in core markets and increasing sales volume in strategic markets[40]. - The company emphasizes in-depth reform and technology leadership as part of its strategic principles for 2023[39]. Corporate Governance and Management - The Group's core competitiveness is built on three aspects: quality, technology, and cost-effectiveness[158]. - The Group adheres to an operational strategy of driving development through both products and capital operations, focusing on quality, technology, and cost-effectiveness[158]. - The Group is recognized as one of the strongest vehicle and equipment manufacturing conglomerates in China[158]. - The company has a strong management team with extensive experience in various positions within the industry[115]. - The Chairman and CEO, Mr. Tan Xuguang, has been recognized as a significant figure in the industry, receiving multiple national awards[112]. Shareholder Information and Dividends - The company plans to distribute a cash dividend of RMB 1.58 per 10 shares, based on 8,639,291,296 shares eligible for profit distribution as of December 31, 2022[34]. - The Board proposed a cash dividend of RMB 1.58 per 10 shares, based on a total of 8,639,291,296 shares eligible for profit distribution[161]. - As of December 31, 2022, the company's distributable reserves amounted to RMB 39,075,770,312.48[175]. Employee and Training Initiatives - The Group employed approximately 87,600 employees, with a total remuneration of approximately RMB 29,535 million[101]. - The Group incurred training expenses of approximately RMB 27 million, providing a total of 3,965,637 hours of training to 40,917 participants during the year[101]. - The training strategy focused on empowering individuals and the organization to achieve strategic targets, covering various management and operational areas[101].