20 years ago in the spring, Weichai Power went public on the Hong Kong Stock Exchange, ringing the bell, officially embarking on the journey of the capital market and also the starting point for entering the world stage.

　　In the blink of an eye, Weichai has been on the market for 20 years. On March 25th, Weichai Power released its latest financial report, with revenue exceeding 213.96 billion yuan, a year-on-year increase of 22.2%. Over the past 20 years, Weichai Power's revenue has increased 33 times from 6.2 billion yuan, and its net profit attributable to shareholders has increased from 540 million yuan to 9.01 billion yuan, fully demonstrating Weichai Power's development trend of "high quality, high growth, and high return".

　　On March 26th, the academic seminar on the reform, innovation and development achievements of Weichai Power's 20-year listing was grandly held in Weifang. Tan Xuguang, Chairman of Weichai Power, delivered a keynote speech on "Growth, Value, and Future", reviewing Weichai Power's successful transformation from a single engine enterprise to a multinational industrial equipment group over the past 20 years.

Weichai Model Leading Deepening Reform and Innovation

　　At the seminar, Shao Ning, former Deputy Secretary and Deputy Director of the State owned Assets Supervision and Administration Commission of the State Council, and Vice Chairman of the Finance and Economic Committee of the 12th National People's Congress, delivered a speech. He recalled the difficulties and challenges faced by Weichai in the past, believing that after decades of reform and development, Weichai Power has successfully overcome the drawbacks and burdens of traditional state-owned enterprises and become a model for state-owned enterprise reform. He particularly pointed out that the reform model of Weichai is a successful model proven by practice in the reform of Chinese state-owned enterprises, and has great reference value.

　　This reform model highly praised by Shao Ning is precisely the five "Weichai models" that Tan Xuguang is proud of, leading Weichai Power to continuously develop in the ups and downs of twenty years, and creating one industry after another remarkable achievements.

　　Seizing the Opportunity in Capital Operations

　　In 2004, Weichai Power became the first Chinese internal combustion engine industry company to go public in Hong Kong, breaking an IPO record and embarking on the path of capital internationalization. In 2007, the company innovatively proposed the "inverted triangle" merger and acquisition plan, achieving the dual listing of "H to A", which is known as the most innovative merger and acquisition case in the world. In 2023, Weichai Group will use this model to promote Faraday Luxury Yacht Group to achieve dual listing in Hong Kong and Milan, Italy.

　　Nowadays, the total market value of Weichai Power exceeds 140 billion yuan, with the highest market value increasing by more than 40 times compared to the initial listing.

　　Mastering the transformation of the core industry chain

　　Weichai Power uses systematic thinking and innovative spirit to leverage resources with capital. By integrating the engine, gearbox, and axle in parallel, the world's first integrated golden powertrain model is leading international brands. At the same time, Weichai Power has also reverse integrated industrial resources such as Shaanxi Automobile and Lovol, building a unique global concentric radiation industrial ecosystem.

　　Nowadays, Weichai's sales of heavy-duty engines and heavy-duty transmissions rank first in the world; Shaanxi Automobile Heavy Truck and China National Heavy Truck complement each other and develop together, with the world's largest sales volume of heavy trucks; The sales of agricultural equipment, axles, and other products ranked first in the country. Weichai Power has also successfully transformed from a single engine enterprise to an industrial equipment group with the whole vehicle as the leader and the power system as the core.

　　100% successful resource integration

　　Weichai seizes opportunities with a global perspective and strategic vision. By means of mergers and acquisitions, joint ventures, and other means, 11 global high-tech enterprises including France's Bourdouan, Italy's Faraday, Germany's Kaiao, and Linde Hydraulic have been incorporated into the company. Not only has it filled the technological gaps in the fields of engines, hydraulics, powertrain, fuel cells, etc. in China, but it has also fully achieved domestic industrialization. At the same time, Weichai Power has also established two golden industrial chains: smart logistics and marine transportation equipment.

　　Nowadays, the Weichai Power Cross border Index has reached 48.57%, successfully achieving diversified development of cross-border operations and becoming an important part of the global power equipment industry chain.

　　Chinese style enterprise management

　　In terms of state-owned enterprise governance, Weichai Power is guided by market-oriented reform, innovatively integrating state-owned enterprise platforms, market mechanisms, and international perspectives, and has built a Weichai characteristic operation and management model with WOS as the core. It has formed a group control system of "strategic unity, collaborative development, resource sharing, and independent operation", and accumulated the governance ideology of "transparent system, effective supervision, fair handling of affairs, leading by superiors and subordinates, and cultural leadership".

　　Nowadays, Weichai Power has successfully achieved a magnificent transformation from a traditional state-owned enterprise in a planned economy to a modern company in a market economy, and from a factory system to a global multinational group, demonstrating strong transformation and governance capabilities.

Value sharing with high growth and high returns

　　Over the past 20 years, Weichai Power has achieved a cumulative revenue of RMB 1.87 trillion and created a net profit attributable to shareholders of RMB 93.6 billion. Its comprehensive strength, investment value, and brand influence worldwide have been highly recognized by the capital market. Weichai Power coordinates the dynamic balance between the company's development, performance growth, shareholder returns, and employee achievements, with a cumulative dividend of over 28 billion yuan over the past 20 years. High quality development has brought huge returns on state-owned asset value, shareholder value, and employee value.

　　Weichai Power, relying on the five "Weichai models" mentioned above, focuses on new quality productivity, continuously strengthens political leadership, deepens reform and innovation, and continuously promotes high-quality development and steady progress of the enterprise.

　　Strengthening the Four Development Logics and Planning Layout

　　It is worth mentioning that Tan Xuguang also shared at the seminar the "four development logics" that have propelled Weichai Power from victory to victory over the past 20 years, namely:

　　1. The dual drive of "product management+capital operation" is the logic of Weichai Power's industrial takeoff for strengthening and expanding.

　　2. Planting one's own "field" honestly is the long-term strategic logic that Weichai Power has upheld

　　3. Possessing key core technologies that others cannot take away is the global competitive logic for Weichai Power to always strive for first place

　　4. Large group collaboration is the chain cooperation and win-win logic of Weichai Power's doubled value

　　Tan Xuguang said, "Product management and capital operation are the two wings of Weichai Power's rapid takeoff, and they complement each other and are indispensable." Product management, as the foundation of Weichai Power, has laid a solid foundation; Capital operation has become a powerful weapon for achieving rapid industrial expansion and amplifying competitive advantages. At a critical moment of transformation and upgrading, Weichai Power has made forward-looking arrangements, boldly took action, accurately utilized capital leverage, and built a brand new industrial ecosystem.

　　Through mergers and acquisitions, Weichai Power's products have been continuously upgraded, technology has continued to advance, and the industrial chain has been strengthened, achieving a fundamental transformation in industrial structure, growth engines, and development models, and reserving strong momentum for future development.

　　At the same time, Weichai Power is fully focused on its main business, possessing key core technologies that others cannot take away, and always regards technology as the "number one project". From the world's first powertrain to four breakthroughs in global diesel engine thermal efficiency, Weichai Power has demonstrated strong new quality productivity through first-class products, first-class technology, and first-class talents.

　　In addition, Weichai Power has also achieved a win-win situation of "large group collaboration", with an aircraft carrier battle group that is highly consistent in strategy, efficient in resource collaboration, and fully shared in value, building an industrial pattern of multi business collaborative development. The collaborative research and development of the industrial chain enables Weichai Power to extend its leading advantage in the power system into a core competitive advantage in the entire industry chain and field.

　　Looking back, the development process of Weichai is like a legend of being reborn from the ashes. As a state-owned enterprise leader who has been in office for 26 years, Tan Xuguang has enabled Weichai's passionate culture to take root, enabling Weichai to maintain consistency in product research and development, talent cultivation, market expansion, and corporate responsibility.

　　In the stock market, Weichai is known as a "healthy stock" by securities firms, and even during the epidemic and sluggish economic environment, it has still achieved good performance, bringing good returns to investors and shareholders. Nowadays, Weichai has grown into a multinational power group with strong capital, providing power solutions for global customers.

　　Tan Xuguang said forcefully at the end of his speech, "In the new era, new quality productivity! Tomorrow's Weichai will have unlimited vitality, potential, and surprises, always worth your expectation and following!"

　　Standing at the starting point of the new era, one cannot help but wonder at what height Weichai's future will reach. Let's use "soaring in the world" to wish Weichai to become a century old Chinese enterprise renowned worldwide.