Investment Rating - The industry investment rating is "Overweight," indicating an expected outperformance of the industry index relative to the benchmark by more than 5% over the next six months [62]. Core Views - June sales figures for the heavy truck industry exceeded expectations, with production, wholesale, and export volumes all showing positive growth [5][7]. - The market structure indicates a recovery in domestic sales for Foton, while Jiefang and Dongfeng saw an increase in export market share [6][39]. - The heavy truck segment is experiencing a significant increase in new energy vehicles, while natural gas truck sales are declining [7][28]. Summary by Sections Sales Tracking - In June, wholesale sales of heavy trucks reached 98,000 units, with year-on-year growth of 37.1% and month-on-month growth of 10.2%, surpassing expectations [4][19]. - Terminal sales for June were 69,000 units, showing a year-on-year increase of 47.0% and a month-on-month increase of 9.7%, also exceeding expectations [4][15]. - Export sales in June were 29,000 units, with year-on-year growth of 23.8% and month-on-month growth of 10.5%, again surpassing expectations [4][19]. - The current total industry inventory stands at 144,000 units, with a slight decrease in channel inventory [20]. Market Structure Tracking - The market share for heavy truck manufacturers in June was as follows: Jiefang 19.8%, Dongfeng 21.1%, Heavy Truck 16.9%, Shaanxi Heavy Truck 11.1%, and Foton 13.4% [6][37]. - In the export market, the shares were: Jiefang 17.2%, Dongfeng 13.3%, Heavy Truck 42.7%, Shaanxi Heavy Truck 15.5%, and Foton 7.3% [6][39]. - The penetration rate for new energy heavy trucks reached 25.9%, with a significant year-on-year increase of 159% in sales [7][28]. Engine Market Structure - Weichai maintained the largest market share in the engine segment at 17.9%, although it saw a decline compared to previous periods [8][48]. - The market shares for natural gas engines were reported as follows: Weichai 49.0%, Cummins 19.6%, and others [55]. Investment Recommendations - The report recommends focusing on companies such as China National Heavy Duty Truck Group and Weichai Power, highlighting the potential for performance improvement in FAW Jiefang and Foton [57].

Core Insights - The event highlighted the advancements in agricultural technology, particularly focusing on the capabilities of the "Dongfanghong" brand, which is recognized for its reliable quality and performance [1][2] - The "Dongfanghong" brand is associated with modern agricultural practices, showcasing products like the LF2204 unmanned tractor that features all-weather operation, automatic obstacle avoidance, and precise sowing [1] - The company operates with over 8,000 employees under an 8-hour work system, indicating a significant workforce dedicated to agricultural machinery production [2] Company Overview - "Dongfanghong" is positioned as a leader in agricultural machinery, with a comprehensive range of equipment that covers all stages of farming, including plowing, planting, managing, and harvesting [2] - The company is perceived as a "wisdom cradle" for modern agriculture, reflecting its innovative approach and technological advancements in the industry [2] Visitor Insights - International guests, such as journalists from Egypt, expressed admiration for the technological innovations and the historical significance of the "Dongfanghong" brand, indicating its global recognition [1] - The engagement of foreign visitors with the products suggests a growing interest in China's agricultural technology on the international stage [1][2]

Core Insights - The internal combustion engine (ICE) industry in China is undergoing a historic transition from "scale expansion" to "value enhancement" amid the backdrop of the "dual carbon" strategy, the rise of new productive forces, and the global restructuring of industrial chains [1][2] - The "14th Five-Year Plan" serves as a crucial guide for the ICE industry, emphasizing low-carbon and zero-carbon development paths while promoting technological innovation and industrial collaboration [2][4] Policy and Technological Breakthroughs - The ICE industry is expected to encounter three major opportunities during the "14th Five-Year Plan," driven by national strategic design and the industry's own innovative vitality [2][4] - National policies, such as the "Hydrogen Energy Industry Standard System Construction Guide (2023 Edition)" and the "Industrial Structure Adjustment Guidance Catalog (2024 Edition)," provide strong support for the low-carbon transition of the ICE industry [4] Strategic Needs and Industry Advantages - The demand for major technological equipment is critical for national economic security and industrial upgrading, necessitating a focus on advanced equipment in power, rail transport, and aerospace [3] - The ICE industry has established itself as a cornerstone of China's manufacturing sector, with a complete domestic supply chain and growing research and testing capabilities [4][10] Market Demand and Innovation - The core development trend for the next generation of ICEs is "high efficiency, low carbon, and near-zero pollutant emissions," driven by both policy mandates and market demand [5][6] - The industry is focusing on multi-dimensional technological innovations, including the development of alternative fuels such as ammonia, hydrogen, and methanol [5][11] Challenges and Strategic Focus - The ICE industry faces multiple challenges, including the need to meet stringent emission regulations and enhance the reliability of alternative fuel engines [8][9] - A systematic response plan is required, focusing on nine key areas such as strengthening foundational research, consolidating traditional industry advantages, and enhancing international competitiveness [9][12] Achievements and Future Directions - By the end of the "14th Five-Year Plan," China has solidified its position as the world's largest manufacturer of ICEs, with significant technological advancements and a stable sales volume between 76 million to 82.6 million units from 2021 to 2024 [10][11] - The industry has made notable progress in developing new generation diesel engines and alternative fuel applications, indicating a promising future in the context of the "dual carbon" era [11][12]

Group 1 - The core viewpoint of the article highlights the launch of the Wuling Hongguang EV 305km model, which is positioned as an affordable electric commercial vehicle, challenging the perception that electric commercial vehicles are excessively priced [2][4] - The new model features a range of 305km, LED headlights, a 7-inch LCD instrument panel, reverse imaging, and enhanced safety configurations, including airbags for both the driver and passenger, all at a price point just above 57,800 yuan [2][4] - Wuling aims to attract young entrepreneurs by offering a versatile design that caters to various needs, such as transporting goods and family, while also appealing to the lifestyle of weekend camping [2] Group 2 - The article notes a shift in the commercial vehicle market, where the focus is moving from mere functionality to incorporating brand value, reflecting the changing demographics of consumers [4] - Despite the competitive pricing achieved through Wuling's supply chain and scale effects, challenges remain in the industry, including battery costs, charging convenience, and residual value risks [4] - Wuling's strategy involves establishing dominance in niche markets such as small electric vehicles and micro-vans, gradually expanding into the electric commercial vehicle sector without chasing the smart technology trend [4]

Core Viewpoint - The release of China's first diesel engine oil D1 standard marks a significant step towards breaking foreign monopolies and establishing an independent standard in the industry, with Weichai Power playing a crucial role in its development [1][3][7]. Group 1: Industry Background - China is the world's largest producer and seller of engines, yet it has long relied on the American API system for diesel engine oil standards, which has hindered the industry's independent development [3]. - In 2016, the China Internal Combustion Engine Society, along with Weichai and 42 other organizations, formed the "Engine Lubricating Oil China Standard Development Innovation Alliance" to break foreign technological monopolies [3]. Group 2: Technical Contributions - Weichai invested nearly 100 technical experts over nearly ten years to develop the D1 standard, using its WP13 engine as a core testing platform [4][8]. - The testing data indicated that the new standard allows for an oil change interval of up to 120,000 kilometers, a 100% increase compared to previous standards, significantly reducing user costs [4]. Group 3: Collaborative Efforts - Weichai collaborated with the China Automotive Research and Testing Center to develop the WP13 evaluation method, leading to the implementation of four industry standards and participation in drafting eight supporting specifications [6]. Group 4: Future Implications - The D1 standard not only enhances the competitiveness of Weichai engines but also promotes upgrades across the entire industry chain, with potential benefits for future emissions standards (National VI and VII) [7]. - The promotion of the D1 standard is expected to accelerate the Chinese diesel engine oil industry's transition away from foreign dependency, moving towards high-quality development [7].

Group 1 - Morgan Stanley reports that the recently announced Yarlung Tsangpo River hydropower development plan in Tibet is directing funds towards engineering machinery stocks [1] - The complex terrain makes traditional machinery crucial in the early stages of the project, with Weichai Power (000338) identified as a leading enterprise in heavy-duty truck engines and construction machinery, placed on a positive catalyst watchlist with "overweight" rating and target prices of HKD 22 and RMB 24 for H-shares and A-shares respectively [1] - Sany Heavy Industry (600031) and XCMG (000425) are also recognized as leaders in large machinery, both receiving "overweight" ratings with target prices of RMB 25 and RMB 11.1 respectively [1] Group 2 - China Railway (601390) holds a 40% market share in tunnel machinery and is rated "overweight" with target prices of HKD 5 and RMB 8.2 for H-shares and A-shares respectively [1] - Traditional infrastructure stocks such as CRRC (601766) and Conch Cement (600585) have recently strengthened, indicating a market shift from risk control to support for new project launches, with CRRC receiving an "overweight" rating and target prices of HKD 6.8 and RMB 10.1 [1] - The Yarlung Tsangpo River hydropower development plan is expected to boost demand in upstream industries such as construction, machinery, cement, and steel, benefiting companies like XJ Electric (000400), Siyuan Electric (002028), and Huaming Equipment (002270) in the power equipment sector [2]

Core Viewpoint - The new energy light commercial vehicle (NE LCV) market in China has shown a fluctuating trend in sales, with a cumulative growth of 14% in the first five months of 2025, indicating a strong recovery and potential for continued growth in the sector [1][11]. Market Performance - In June 2025, the NE LCV market sold 24,300 units, representing a month-on-month increase of 1% and a year-on-year increase of 10% [4][6]. - The sales trend for NE LCVs in the first half of 2025 has been characterized by alternating months of growth and decline, culminating in a total of 120,700 units sold, which is a 14% increase compared to the same period last year [11][25]. Market Penetration - The NE LCV market has achieved a penetration rate exceeding 60% in three out of the first five months of 2025, highlighting its position as the segment with the highest penetration of new energy vehicles in the commercial vehicle market [1]. Regional Insights - In the first half of 2025, all 31 provincial-level administrative regions in mainland China recorded NE LCV registrations, with Guangdong province leading with over 22,500 units, accounting for 18.68% of the national total [13][15]. Company Performance - In June 2025, Wuling maintained its position as the monthly sales champion with over 5,000 units sold, followed by Yuancheng and Changan, which also showed significant growth [19][23]. - The market share of Wuling and Yuancheng exceeded 10% in June, with Wuling holding 21.98% and Yuancheng 17.33% [23][29]. Sales Rankings - The cumulative sales rankings for NE LCVs in the first half of 2025 show that Wuling, Yuancheng, and Changan are the top three brands, with respective sales of 27,900 units, 20,700 units, and 15,100 units [27][29]. - The overall market performance indicates that most companies experienced growth, with significant increases noted for Wuling (92%), Jiangling (83%), and Guizhou Changjiang (73%) [27][29]. Future Outlook - The NE LCV market is expected to continue its growth trajectory, with the potential for further increases in sales and market penetration as the year progresses [31].

Group 1 - The D1 standard for diesel engine oil, marking a significant breakthrough in China's industrial sector, has been officially released, representing a shift from "standard following" to "standard leading" in the lubricating oil industry [1][4] - The D1 standard addresses the long-standing dominance of the American API standards in China, which lacked standards tailored to the country's complex road conditions and fuel characteristics [2] - Weichai Power, as a core member of the Engine Lubricating Oil China Standard Development Innovation Alliance, played a crucial role in developing the D1 standard by assembling a cross-disciplinary expert team and leveraging resources [2][3] Group 2 - The WP13 engine was selected as the core verification vehicle for the D1 standard due to its ability to simulate extreme operating conditions, providing a solid foundation for the standard [3] - The D1 standard has resulted in significant economic benefits, such as extending the oil change interval from 60,000 kilometers to 120,000 kilometers, thereby reducing operational costs for users [4] - The establishment of the D1 standard has enhanced China's technical discourse power in the industry, allowing for the development of a "native compatible" lubricating oil system for engines in the National VI/VII stages [4]

Core Insights - The report highlights the acceleration of industrial upgrades and the expansion of the automotive industry into international markets, particularly focusing on smart and electric vehicles [1][3]. Smart Vehicles - Tesla's Full Self-Driving (FSD) feature is expected to enter the Chinese market, with the city Navigation on Autopilot (NOA) becoming a standard for advanced driving [4]. - The penetration rate of city NOA is projected to reach 12.2% by 2025, indicating rapid industry growth and benefiting related component manufacturers [4]. - The year 2025 is marked as the beginning of the Robotaxi era, with significant advancements from companies like Waymo and Tesla, creating vast market potential [4]. - New models and popular vehicles are expected to drive sales, with notable launches from brands like AITO and Xiaomi, indicating strong consumer interest [4]. New Energy Vehicles - The report forecasts that sales of new energy vehicles (NEVs) will reach 15.85 million units in 2025, with a penetration rate of 55% [4]. - In the first half of 2025, NEV sales reached 6.937 million units, a year-on-year increase of 40.3%, driven by supply chain improvements and favorable policies [4]. - The global expansion of Chinese automakers is anticipated to contribute significantly to industry growth, leveraging competitive advantages in cost and production capacity [4]. Commercial Vehicles - Heavy-duty truck sales are expected to reach 1.02 million units in 2025, supported by policies encouraging the replacement of older vehicles [4]. - The bus sector is also projected to grow, with sales of 526,000 units in 2024, reflecting a 6.9% increase year-on-year [4]. - The commercial vehicle market is benefiting from the renewal of old vehicles and the export of new energy buses [4]. Two-Wheelers - The electric two-wheeler segment is poised for growth due to favorable policies and the transition to new standards, with production expected to increase significantly [4]. - Motorcycle exports are also on the rise, with a 25% increase in the first half of 2025, driven by demand for larger displacement models [4]. Market Performance - The automotive sector has shown resilience, with a cumulative increase of 8.22% in the first half of 2025, outperforming other industries [7][22]. - The report notes a strong performance in commercial vehicles, with significant growth in both sales and exports [7][23]. Policy Support - The Chinese government continues to implement policies that support the automotive industry's transition to smart and electric vehicles, enhancing the overall market environment [57][59]. - Various initiatives are in place to promote the adoption of intelligent driving technologies and improve safety standards [58][60]. Investment Opportunities - The report identifies key investment targets across various segments, including smart vehicles, new energy vehicles, commercial vehicles, and two-wheelers, highlighting companies like BYD, Changan, and Aima Technology as potential beneficiaries of industry trends [6].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部或任何部份內容而產生或因依賴該等內容而引起的任何損失承擔任何責任。 濰柴動力股份有限公司 WEICHAI POWER CO., LTD. （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：2338） 海外監管公告 本公告乃根據香港聯合交易所有限公司（「聯交所」）證券上市規則第13.10B條 而 作 出。 茲載列濰柴動力股份有限公司（「本公司」）在深圳證券交易所網站刊登日期為 二 零 二 五 年 七 月 十 八 日 的 公 告，僅 供 參 閱。中 文 公 告 的 全 文 刊 登 於 聯 交 所 及 本 公 司 網 站。 承董事會命 董事長 馬常海 中國山東濰坊 二零二五年七月十八日 於本公告刊發之日，本公司執行董事為馬常海先生、王德成先生、黃維彪先生、 孫 少 軍 先 生、袁 宏 明 先 生 及 馬 旭 耀 先 生；本 公 司 非 執 行 董 事 為 張 良 富 先 生 ...