Core Viewpoint - Smart manufacturing is the core engine for high-quality development in the manufacturing industry, marking a critical leap from digitalization and networking to intelligence in China's manufacturing sector [1][5]. Group 1: Overview of Leading Smart Factories - The Ministry of Industry and Information Technology and five other departments announced the first batch of 15 leading smart factories, covering key industries such as equipment manufacturing, raw materials, and electronic information [1][4]. - These leading factories represent the highest level of smart manufacturing in China and showcase the breadth and depth of the country's intelligent manufacturing development [4][5]. Group 2: Classification and Development of Smart Factories - A four-tier system for smart factory cultivation has been established: foundational, advanced, excellent, and leading levels, with 35,000 foundational, over 7,300 advanced, 500 excellent, and 15 leading smart factories built to date [7]. - The leading level aims for global leadership and deep integration of AI, while the excellent level requires at least 20% AI application scenarios [7]. Group 3: Key Elements for Leading Smart Factories - Six key elements define a leading smart factory: industry leadership, AI technology application, innovative smart manufacturing models, performance leadership, replication leadership, and nurturing plans [10][12]. - Longfei Optical Fiber exemplifies these elements by integrating AI throughout its production process, achieving a global record in fiber drawing speed and precision [12][13]. Group 4: Case Studies of Leading Smart Factories - Weichai Power has implemented a digital twin technology that reduces R&D cycles by 20% and enhances production flexibility through AI-driven systems [20][21]. - Baosteel is innovating with AI-driven predictive manufacturing, aiming to establish 1,200 AI scenarios and 25 benchmark production lines by 2027, while also investing in talent development [25][27]. Group 5: Future Manufacturing Models - The exploration of future manufacturing models focuses on high customization, complex product production, and efficient supply chain organization, aiming to enhance China's position in the global supply chain [17][29]. - The emergence of these leading smart factories not only represents individual breakthroughs but also reflects a systemic transformation in China's manufacturing industry, providing replicable and scalable models for industry upgrades [29].

Summary of Weichai Power Conference Call Company Overview - **Company**: Weichai Power - **Industry**: Heavy-duty trucks, diesel and natural gas engines, SOFC (Solid Oxide Fuel Cell) technology Key Points SOFC Business Potential - Weichai Power's SOFC business has significant growth potential, benefiting from North America's electricity demand and collaboration with Bloom Energy. Current capacity is limited to approximately 10 MW, with plans to reach 1 GW by 2030, potentially contributing over 10 billion RMB in revenue and a net profit of 1-2 billion RMB, indicating substantial growth opportunities [2][5][12] ITC Financial Business Growth - The ITC financial business is expected to benefit from increased capital expenditures by internet companies, breakthroughs in domestic large models, and the recovery of IDC tenders. Projected data center shipments are 1,300 units in 2025 and 2,600 units in 2026, with overseas market growth through the Baudouin brand and domestic market growth expected to exceed forecasts due to AIDC tender recovery [2][6][7] Heavy-duty Truck Industry Outlook - The heavy-duty truck industry is projected to see wholesale sales of approximately 1.17 million units in 2026, a slight increase year-on-year. Domestic policy impacts are diminishing, and exports are expected to grow by 15%-20% to 400,000 units. The electric heavy-duty truck sector is trending positively, with an electrification rate potentially reaching 35%. The industry may be at an upward cycle turning point, driven by the replacement cycle of National V vehicles [2][8][9] Future Market Cycles - Weichai Power is anticipated to enter a new heavy-duty truck market cycle between 2028 and 2030, potentially benefiting from the transition from National VI to National VII policies. Historical cycles suggest that sales peaks could reach 1.1-1.2 million units or higher, with limited impact from electrification on Weichai's core business [2][9] Diesel and Natural Gas Engine Market Performance - Weichai Power maintains a stable market share of 10-15% in the diesel engine market and 50-55% in the natural gas engine market. The company aims to maintain its leading position through technological iterations and flexible policies [2][10] 2026 Performance Expectations - Weichai Power's performance is expected to reach 14-15 billion RMB in 2026, with a current market capitalization of 160 billion RMB, resulting in a PE ratio of 11 times. The dividend payout ratio is expected to remain at least 55%, providing a dividend yield of approximately 5% [3][11] Valuation Compared to Peers - Compared to North American leaders like Cummins and Caterpillar, Weichai Power's valuation is relatively low, with an EVA/EBITDA multiple significantly lower than its overseas peers. The overall reasonable valuation for Weichai Power could exceed 200 billion RMB, corresponding to a PE of about 14-15 times for 2026 [4][13][14] Long-term Growth Projections - By 2028, Weichai Power's performance is projected to reach 18-20 billion RMB, with an expected growth rate of 15%-20% in 2026 and around 10% in 2027-2028. The current PE of 11 times is considered inexpensive, indicating a favorable outlook for valuation recovery [2][14]

Core Viewpoint - The article highlights the top-performing stocks in the S&P China A-Share Dividend Opportunity Index as of January 12, 2026, showcasing significant daily and year-to-date gains along with their respective dividend yields. Group 1: Stock Performance - The top stock, Chongqing Department Store (600729.SH), experienced a daily increase of 10.01% and a year-to-date increase of 11.58%, with a dividend yield of 5.17% [1] - Jiufeng Energy (605090.SH) saw a daily rise of 9.22% and a year-to-date rise of 18.21%, with a dividend yield of 2.42% [1] - Aotewei (688516.SH) reported a daily increase of 8.81% and a year-to-date increase of 35.02%, with a dividend yield of 3.74% [1] - Other notable performers include China Merchants Energy (600026.SH) with a daily increase of 7.24% and year-to-date increase of 16.70%, and Xin'ao Co. (603888.SH) with a daily increase of 6.35% and year-to-date increase of 9.56% [1] Group 2: Dividend Yields and Valuation Metrics - The average dividend yield for the index is reported at 4.76%, with a historical price-to-earnings (P/E) ratio of 11.75 times [2] - The expected P/E ratio is noted to be 11.07 times, indicating a stable valuation outlook for the index constituents [2]

Core Viewpoint - Weichai Power Co., Ltd. has announced the election of Mr. Wang Yanlei as a non-executive director, following the resignation of Mr. Sun Shaojun due to age reasons, ensuring continuity in the board's operations [21][22]. Group 1: Board Meeting Resolutions - The first temporary board meeting of 2026 was held on January 12, 2026, with all 13 directors present, and the election of Mr. Wang Yanlei as a non-executive director was unanimously approved [1][2]. - The decision to elect Mr. Wang Yanlei will be submitted for approval at the first temporary shareholders' meeting of 2026 [2]. Group 2: Shareholders' Meeting Notification - The first temporary shareholders' meeting is scheduled for January 30, 2026, with a combination of on-site and online voting [6][7]. - The record date for shareholders to attend the meeting is January 23, 2026, and shareholders can appoint proxies to attend and vote on their behalf [8][9]. Group 3: Mr. Wang Yanlei's Profile - Mr. Wang Yanlei, born in July 1969, holds a bachelor's degree and currently serves as the deputy general manager of Weichai Holding Group Co., Ltd. and chairman of Yangzhou Yaxing Bus Co., Ltd. [4]. - He has held various significant positions within the company and has no conflicts of interest with major shareholders or other board members [4].

Meeting Announcement - The company will hold its first extraordinary general meeting of shareholders for 2026 on January 30, 2026 [1] - The meeting will be convened by the board of directors and is in compliance with relevant laws and regulations [1][3] Meeting Details - The meeting will take place at 14:50 on January 30, 2026, with network voting available from 9:15 to 15:00 on the same day [2][6] - Shareholders must register by January 23, 2026, to be eligible to attend [3] Voting Process - The meeting will combine on-site voting and network voting [5] - Shareholders can appoint proxies to attend and vote on their behalf, with each share granting one vote [3][4] Agenda Items - The meeting will include the election of a non-executive director and an independent non-executive director, with separate counting for votes from minority investors [7] - The relevant proposals have been approved by previous board meetings and will be submitted for shareholder approval [7][25] Registration and Contact Information - Shareholders must provide identification and, if applicable, a power of attorney to attend the meeting [8] - Contact persons for the meeting are Wang Li and Wu Di, with provided phone numbers for inquiries [9]

Core Viewpoint - Smart manufacturing is identified as the core engine for high-quality development in the manufacturing industry, marking a significant transition from digitalization and networking to intelligent manufacturing in China [1][15]. Group 1: Overview of Smart Factories - The Ministry of Industry and Information Technology, along with five other departments, announced the first batch of 15 leading smart factories, covering key industries such as equipment manufacturing, raw materials, and electronic information [1][3]. - These leading factories represent the highest level of intelligent manufacturing in China and showcase a broad and deep development of smart manufacturing across various regions [1][3]. - The four-tier system for smart factory cultivation includes foundational, advanced, excellent, and leading levels, with specific requirements for each tier [3]. Group 2: Key Elements of Leading Smart Factories - To qualify as a leading smart factory, six key elements are required: industry leadership, AI technology application, innovative smart manufacturing models, performance leadership, replication leadership, and nurturing plans [3][5]. - Longfei Optical Fiber exemplifies an industry leader by integrating AI throughout its production process, achieving a pulling speed of 3,500 meters per minute with no human intervention [5][6]. - Weichai Power demonstrates performance leadership by reducing maintenance costs by 30% through its engine health management system, showcasing the effectiveness of its smart manufacturing practices [10]. Group 3: Future Manufacturing Models - The exploration of leading smart factories aims to create a flexible and efficient supply network capable of high customization and rapid iteration in production [8][16]. - Baosteel is innovating with AI-driven predictive manufacturing, moving away from traditional order-based production to proactively managing supply chains and production resources [11][13]. - The establishment of at least 1,200 AI scenarios and 25 benchmark production lines by Baosteel by 2027 reflects a commitment to integrating AI into manufacturing processes [13]. Group 4: Systemic Transformation in Manufacturing - The emergence of the first batch of leading smart factories signifies a systemic transformation in China's manufacturing sector, with a focus on technological breakthroughs, efficiency improvements, and green transitions [16]. - The experiences and models developed by these leading factories are expected to be replicable and promote the digital transformation of more manufacturing enterprises [16].

Core Viewpoint - Weichai Power (000338) announced the election of Mr. Wang Yanlei as a non-executive director during its first extraordinary board meeting of 2026 [1] Group 1 - Weichai Power held its first extraordinary board meeting of 2026 on January 12 [1] - The board approved the proposal to elect Mr. Wang Yanlei as a non-executive director [1]

(a joint stock limited company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立之股份有限公司） (Stock Code 股份代號: 2338) 13 January 2026 Dear Registered Shareholder, Weichai Power Co., Ltd. (the "Company") – Notice of Publication of Circular and Proxy Form of Extraordinary General Meeting (the "Current Corporate Communications") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.weichaipower.com and the ...

(a joint stock limited company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立之股份有限公司） (Stock Code 股份代號: 2338) 13 January 2026 濰柴動力股份有限公司 WEICHAI POWER CO., LTD. Dear Non-Registered Holder(Note 1) , Weichai Power Co., Ltd. (the "Company") – Notice of Publication of Circular of Extraordinary General Meeting (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website at www ...

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