Summary of Conference Call on Gas Engines (Medium-Speed Engines) Industry Overview - The medium-speed gas engine generation is expected to become a trend due to power shortages in North America and long delivery cycles for gas turbines, making it difficult to alleviate the power shortage in the short term [1] - The U.S. plans to adopt natural gas engines to replace gas turbines starting in 2025, with a total procurement of 1,600 units at an approximate price of $9 million each, totaling around $15 billion [1] - Demand for natural gas engines is expected to double in 2026, with an estimated need for 3,000 to 4,000 units, corresponding to a market size of $30 billion to $40 billion [1] - Diesel generators are transitioning from backup power sources to primary power sources, further exacerbating the shortage of diesel generation [1] Competitive Landscape - Current market share for medium-speed gas engines is as follows: Caterpillar 48%, Cummins 19%, MTU 12%, and others 12% [2] - China currently does not supply medium-speed gas power generation units to North America, only providing related components; for instance, GKN, a subsidiary of Zhongyuan Neipei, holds a 70% share of the cylinder sleeve market for Caterpillar [2] Delivery Cycles - The delivery cycle for gas engine generator sets is approximately 12 months, significantly shorter than the 36 months required for gas turbine generator sets [3] - Weichai Power has not yet obtained certification but is expected to have a delivery cycle of 4 to 5 months [3] Case Study - Wärtsilä secured an order for a 507 MW gas generator set for a large-scale data center in North America, which will provide 27 Wärtsilä 50SG natural gas engines as the primary power source, with equipment planned for delivery in 2027 [3]

Core Viewpoint - Cummins announced leadership changes in its Power Systems Division to enhance business growth and organizational capabilities, effective February 1, 2026 [1][5]. Group 1: Leadership Changes - Xiang Yongdong, the current General Manager of Cummins Power Systems Division in China, will become the Global Supply Chain Executive Director, recognizing his contributions to nearly 10% annual compound sales growth during his tenure [3][5]. - Yuan Jun, the current General Manager of Chongqing Cummins Engine Co., will succeed Xiang as the General Manager of Cummins Power Systems Division in China, reporting directly to Nathan Stoner, Vice President of Cummins Global and Chairman of Cummins China [5]. Group 2: Responsibilities and Achievements - In his new role, Xiang will lead key supply chain initiatives and collaborate with local and global stakeholders to drive product localization, ensuring alignment with strategic directions set by business line and global supply chain leaders [3][5]. - Yuan Jun will oversee overall operations, strategic planning, business development, team management, and customer relationship building in the China Power Systems Division, leveraging his extensive operational and management experience [5]. - Yuan has a strong track record in revenue generation, production capacity, technological innovation, and team building, having held various significant positions since joining Cummins in 2009 [5].

近日，安徽全柴动力股份有限公司发布关于公司高级管理人员辞职的公告，公告显示，汪志义因已到法定退休年龄，申请辞去公司总工 程师职务，辞职后将不在公司担任其他职务。 根据《公司法》等有关法律法规及《公司章程》规定，高级管理人员的辞职报告自送达董事会之日起生效。上述变动不影响公司经营管 理工作的正常运营。截至本公告披露日，汪志义持有公司股份10,000 股，将继续遵守有关减持公司股份所做出的公开承诺（自购买之 日起，在其任期及离任后 6 个月内不减持其持有的公司股份），并严格遵守《上海证券交易所股票上市规则》、《上海证券交易所上市 公司自律监管指引第 15 号——股东及董事、高级管理人员减持股份》等法律法规的相关规定。 汪志义在公司任职期间恪尽职守、勤勉尽责，公司及公司董事会对汪志义为公司所作的贡献表示衷心感谢！ 一、高级管理人员离任情况 (一) 提前离任的基本情况 | 姓名 | 离任职务 | 离任时间 | 原定任期到期日 | 离任原因 | 是否继 及其控 | (如适用) | 是否 存在 未履 | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | ...

Group 1 - Citigroup's report indicates that heavy truck demand in China is expected to maintain stable growth this year, leading to an increase in the target price for Weichai Power (02338) from HKD 21.3 to HKD 34, with the rating upgraded from "Neutral" to "Buy" [1] - The report suggests that the impairment related to Kion last year will only have a one-time impact, while future benefits will arise from cost reduction measures [1] - Strong demand from AI data centers for solid oxide fuel cells and energy supply is anticipated, prompting Weichai Power to strategically shift more resources from the machinery sector to the energy supply sector, supporting long-term growth [1] Group 2 - Citigroup has revised its sales forecasts for Weichai's large engines and engines for data centers for the years 2025 to 2027 [1] - The net profit forecast for Weichai Power has been increased by 1% to 4% [1]

Core Viewpoint - Weichai Power (02338) has seen a significant stock price increase, attributed to positive forecasts from Citigroup regarding the demand for solid oxide fuel cells and energy supply in AI data centers [6]. Group 1: Stock Performance - Weichai Power's stock price rose over 7% during trading, with a current price of 26.68 HKD and a trading volume of 553 million HKD [6]. Group 2: Analyst Insights - Citigroup's report indicates strong demand for solid oxide fuel cells and energy supply, suggesting that Weichai Power may strategically shift resources from mechanical sectors to energy supply, supporting long-term growth [6]. - The firm has raised its sales forecasts for large engines and data center engines for the years 2025 to 2027, and increased net profit forecasts by 1% to 4% [6]. - Citigroup believes that the demand for heavy trucks in China will maintain stable growth this year, leading to an increase in Weichai Power's target price from 21.3 HKD to 34 HKD and upgrading the rating from "Neutral" to "Buy" [6].

Core Viewpoint - Citigroup's research report indicates that due to strong demand for solid oxide fuel cells and active and passive energy supply from AI data centers, Weichai Power is likely to strategically shift more resources from the machinery sector to the energy supply sector, supporting the group's long-term growth [1] Group 1: Sales and Profit Forecasts - Citigroup has raised its sales forecasts for Weichai Power's large engines and engines used in data centers for the years 2025 to 2027 [1] - The net profit forecast for Weichai Power has been increased by 1% to 4% [1] Group 2: Market Demand and Stock Rating - After reviewing recent dealer and industry data, Citigroup believes that the demand for heavy trucks in China is likely to maintain stable growth this year [1] - The target price for Weichai Power has been raised from HKD 21.3 to HKD 34, with the rating upgraded from "Neutral" to "Buy" [1] Group 3: Impact of Kion Impairment - Citigroup believes that the impairment related to Kion last year will only have a one-time impact, and the company will benefit from related cost reduction measures in the future [1]

Group 1 - Weichai Power (000338) shares increased over 7%, currently trading at 26.8 HKD with a transaction volume of 356 million HKD [1] - Citigroup's report indicates strong demand for solid oxide fuel cells and energy supply from AI data centers, suggesting Weichai Power may shift resources from mechanical to energy supply sectors for long-term growth support [1] - The bank raised its sales forecasts for Weichai's large engines and data center engines for 2025 to 2027, and adjusted net profit forecasts upward by 1% to 4% [1] Group 2 - Citigroup believes that the demand for heavy-duty trucks in China will maintain stable growth this year based on recent dealer and industry data [1] - The impact of last year's impairment related to Kion is expected to be one-time, with future benefits anticipated from related cost-cutting measures [1]

Core Viewpoint - Weichai Power (02338) has seen a significant increase in stock price, rising over 7% and currently trading at 26.8 HKD with a transaction volume of 356 million HKD, indicating strong market interest [1] Group 1: Company Performance - Citigroup has released a report indicating strong demand for solid oxide fuel cells and energy supply from AI data centers, suggesting that Weichai Power may strategically shift resources from mechanical sectors to energy supply, supporting long-term growth [1] - The bank has revised its sales forecasts for large engines and data center engines for Weichai Power for the years 2025 to 2027, and has increased its net profit forecast by 1% to 4% [1] Group 2: Industry Outlook - Citigroup believes that the demand for heavy-duty trucks in China is likely to maintain stable growth this year, based on recent dealer and industry data [1] - The report suggests that the impairment related to Kion from last year will only have a one-time impact, with future benefits expected from related cost-cutting measures [1]

Core Viewpoint - North American data centers are accelerating the adoption of self-supply power models to address challenges posed by aging power grids and high energy consumption from AI computing, with diesel generators becoming a critical backup power source [1] Group 1: Data Center Power Supply Trends - Data centers in North America are transitioning to self-supply power models, with diesel generators as essential backup power configurations due to the aging and fragmented U.S. power grid [1] - Major companies like xAI, OpenAI, and Meta have implemented self-supply power solutions to ensure stable operation of their computing clusters [1] Group 2: Demand for Diesel Generators - The construction of data centers is in a high-growth cycle, with significant capital expenditures from domestic and international internet companies driving demand for diesel generators [2] - Google has raised its total capital expenditure for 2025 Q3 to $91-93 billion, while Microsoft plans to double its global data center scale within two years, indicating robust demand for backup power solutions [2] - The global market for data center generators is projected to grow from $6 billion in 2023 to $12 billion by 2030, highlighting the increasing need for diesel generators [2] Group 3: Supply and Pricing Dynamics - Foreign orders for diesel generators are experiencing long-term saturation, leading to a continuous increase in prices due to a tight supply-demand balance [3] - Major foreign brands like Cummins and Caterpillar dominate the large diesel engine market, with some orders having delivery cycles of 12-18 months, contributing to supply constraints [3] - Domestic manufacturers are seizing the opportunity for domestic substitution but face capacity limitations, resulting in ongoing demand for high-power diesel generators [3] Group 4: Cost Pressures and Inflation Transmission - The costs of key components for large diesel engines, such as high-pressure fuel injection and electronic control systems, are rising, primarily driven by foreign suppliers [4] - The scarcity of supply allows manufacturers with core component production capacity to exert pricing power, leading to inflation being transmitted downstream, resulting in a new round of price increases for large diesel engines used in data centers [4] Investment Recommendations - Beneficiaries of this trend include companies such as Weichai Power, Weichai Heavy Machinery, Zhongyuan Inner配, Tianrun Industrial, Changyuan Donggu, and Weifu High-Tech [4]

Group 1 - The stock of Weichai Heavy Machinery Co., Ltd. experienced an abnormal trading fluctuation, with a cumulative closing price increase exceeding 20% over three consecutive trading days from January 21 to January 23, 2026 [2] - The company confirmed that there were no corrections or supplements needed for previously disclosed information and clarified that rumors regarding its gas medium-speed engine entering the North American power generation market were untrue [3][4] - The company's production and operational activities are normal, and there have been no significant changes in the internal and external operating environment [4] Group 2 - The company’s controlling shareholders and actual controllers did not trade the company's stock during the period of abnormal trading fluctuations [5] - The board of directors confirmed that there are no undisclosed significant matters that should have been disclosed according to the Shenzhen Stock Exchange's listing rules [6] - The company announced the election of Zhang Haibo as a representative director from the employees, with his term starting from the approval date of the employee representative assembly [9]