Core Viewpoint - Weichai Power has demonstrated strong financial performance and technological advancements, allowing the company to confidently distribute dividends to its investors Financial Performance - In 2024, Weichai Power achieved operating revenue of 215.69 billion yuan, a year-on-year increase of 0.81% [1][5] - The net profit reached 11.40 billion yuan, marking a year-on-year growth of 26.51% [1][5] - The net profit excluding non-recurring items was 10.53 billion yuan, up 30.29% year-on-year [1][5] - For the first time, both net profit and net profit excluding non-recurring items exceeded 10 billion yuan, setting a historical record [6] Profitability Metrics - The gross profit margin for 2024 was 22.43%, the highest since 2017 [2][8] - By the end of 2024, the asset-liability ratio was 64.53%, a decrease of 2.66 percentage points compared to the same period last year [7] Research and Development - From 2021 to 2024, Weichai Power's R&D expenses increased, totaling approximately 31.4 billion yuan over four years [3][9] - R&D personnel accounted for 18.08% of the workforce by the end of 2024, up from 16.81% the previous year [9] - The company has made significant advancements in diesel engine thermal efficiency, achieving a breakthrough of 53% in 2024 [3][10] Dividend Distribution - Weichai Power plans to distribute a total dividend of 6.27 billion yuan in 2024, with a cash dividend of 3.47 yuan per share [4][11] - The total cash dividend for 2024, including interim distributions, amounts to 6.27 billion yuan [11]

Core Viewpoint - Weichai Power plans to spin off its subsidiary Weichai Lovol for a listing on the Hong Kong Stock Exchange after previous attempts to list it on the ChiNext board were unsuccessful [1][4]. Group 1: Company Overview - Weichai Power is one of China's strongest automotive and equipment manufacturing groups, with products including a full range of engines, transmissions, axles, heavy trucks, forklifts, supply chain solutions, fuel cell systems, agricultural equipment, and automotive electronics [2]. - In 2024, Weichai Power achieved a revenue of 215.69 billion yuan, a year-on-year increase of 0.81%, and a net profit attributable to the parent company of 11.40 billion yuan, a year-on-year increase of 26.51% [2]. Group 2: Weichai Lovol's Business - Weichai Lovol focuses on the research, production, and sales of agricultural equipment, providing comprehensive mechanization and system service solutions for smart agriculture [3]. - As of the end of 2024, Weichai Lovol had total assets of 19.09 billion yuan and net assets of 3.79 billion yuan, with a revenue of 17.39 billion yuan and a net profit of 973 million yuan [3]. Group 3: Spin-off Details - The spin-off will not change the shareholding structure of Weichai Power, which will maintain control over Weichai Lovol [2]. - The spin-off aims to enhance business focus, create an independent platform for Weichai Lovol, and improve its competitiveness, brand recognition, and market influence [2]. - The spin-off process requires approval from the shareholders' meeting, registration with the China Securities Regulatory Commission, and approval from the Hong Kong Stock Exchange [3]. Group 4: Previous Spin-off Attempts - Weichai Power previously attempted to spin off Weichai Lovol for a listing on the ChiNext board in August 2022 but withdrew the application in April 2024 due to market conditions [4]. - The company also temporarily halted the spin-off of another subsidiary, Torch Technology, for a ChiNext listing in March 2025 [4]. - There has been a trend of A-share companies seeking listings or spin-offs in Hong Kong, with several companies announcing similar plans in 2024 [4].