Weichai Power(HK:02338)2022-04-29 09:32Financial Performance - The total revenue for Weichai Power Co., Ltd. in 2021 was CNY 203.548 billion, representing an increase from CNY 197.288 billion in 2020, which is a growth of approximately 6.4%[10]. - The company reported a net profit of CNY 14.5 billion for 2021, up from CNY 13.2 billion in 2020, indicating a year-over-year increase of about 9.8%[10]. - The company's revenue for 2021 was approximately RMB203,548 million, representing a year-on-year increase of about 3.2% compared to 2020[13]. - Net profit attributable to shareholders of the listed company was approximately RMB9,254 million, reflecting a year-on-year increase of approximately 0.3%[13]. - The actual sales revenue amounted to approximately RMB203.5 billion, representing a year-on-year increase of approximately 3%[45]. - The Company expects that its sales revenue in 2022 would increase by approximately 5% to approximately RMB213.7 billion[46]. - Profit from principal operations for the year was approximately RMB 38.9 billion, an increase of about RMB 1.3 billion or 3.3% from RMB 37.7 billion in 2020[50]. - The EBIT for the year was approximately RMB 15.1 billion, representing an increase of about RMB 1.3 billion or 9.3% from RMB 13.8 billion in the previous year[51]. - The company reported a significant increase in revenue, achieving a total of 10 billion RMB, representing a year-over-year growth of 15%[96]. - The company has provided a positive outlook for the next quarter, projecting a revenue increase of 12% to 11.2 billion RMB[98]. Market Strategy and Expansion - The company plans to expand its market presence by investing in new technologies and enhancing its product offerings in the coming years[6]. - Weichai Power aims to increase its R&D expenditure by 15% in 2022 to support innovation and product development initiatives[6]. - The company has set a revenue target of CNY 220 billion for 2022, reflecting an expected growth rate of approximately 8%[6]. - Weichai Power is focusing on strategic acquisitions to enhance its competitive edge and market share in the automotive and power sectors[6]. - The company plans to speed up the sales of strategic products such as large-diameter engines, hydraulics, and new energy products[32]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of the fiscal year[100]. - Market expansion plans include entering three new international markets by the end of the year[90]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and is expected to close by Q3 2024[101]. Research and Development - The company launched the world's first diesel engine with a thermal efficiency of 51.09% in January 2022, setting a new world record[14]. - The company has developed a full series of 30-200kW fuel cell products and entered mass production, leading the industry in core technology[25]. - The company is investing $50 million in R&D for new technologies, focusing on electric and hybrid engines[90]. - Research and development investments have increased by 30%, focusing on innovative energy solutions and automation technologies[102]. Sustainability Initiatives - Weichai Power is committed to sustainability and aims to reduce its carbon footprint by 20% over the next five years through various initiatives[6]. - The management team emphasizes a commitment to sustainability, aiming for a 25% reduction in carbon emissions by 2025[90]. - The management team emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon emissions by 2025[97]. Shareholder Information - The company plans to distribute a cash dividend of RMB 1.85 per 10 shares based on a total of 8,726,556,821 shares available for distribution as of December 31, 2021[29]. - The Board proposed a cash dividend of RMB1.85 (including tax) for every 10 shares held, based on 8,726,556,821 shares eligible for distribution as of December 31, 2021[141]. - As of December 31, 2021, the total number of issued shares of the Company was 8,726,556,821, comprising 6,783,516,821 A shares and 1,943,040,000 H shares[153]. Operational Efficiency - The company has achieved a 30% reduction in production costs through improved manufacturing processes[90]. - The company aims to enhance profitability across different product series through cost reduction measures in design, processing, procurement, and manufacturing[36]. - The company is committed to improving the thermal efficiency of diesel engines and ensuring global leadership in product affordability, reliability, and power performance[35]. Employee and Training Initiatives - The Group had approximately 82,600 employees as of December 31, 2021, with a total remuneration of approximately RMB 28,927 million during the year[65]. - Training expenses incurred during the year amounted to approximately RMB 37 million, providing a total of 3,793,000 hours of training to 28,403 participants[65]. - The Group's training programs are designed to enhance leadership and political literacy among management[65]. Corporate Governance and Leadership - Ms. Jiang Yan was appointed as an Independent Non-executive Director on June 29, 2020, and is currently an internal audit consultant for various investment banks[104]. - Mr. Yu Zhuoping was appointed as an Independent Non-executive Director on June 29, 2020, and holds various academic and industry positions related to automotive engineering[105]. - The company emphasizes the importance of senior engineers in leadership positions, with several executives holding advanced degrees[115][117][118][119]. - Weichai has a strong focus on new technology and research, as evidenced by the roles of its executives in various research institutes[117]. Financial Management and Investments - The Group's total borrowings as of December 31, 2021, amounted to approximately RMB22,555 million, including bonds of approximately RMB6,600 million and bank borrowings of approximately RMB15,955 million[57]. - The Group's capital commitments amounted to approximately RMB6,018 million as of December 31, 2021, primarily for the purchase of property, plant, and equipment[62]. - The non-public issuance of A Shares raised a total of RMB12,999,999,986.40, with an issue price of RMB16.40 per share, representing a premium of approximately 9.26% over the benchmark price[82]. Connected Transactions - The Company had continuing connected transactions with Shaanxi Automotive Group, holding a 49% interest in a subsidiary, Shaanxi Heavy Duty Automotive Co., Ltd.[175]. - The Company has agreements in place for the supply of treated wastewater and waste water treatment services[177]. - The agreements with Weichai Holdings and Chongqing Weichai are subject to amendments and supplements as needed[180].