On the evening of April 29, Weichai Power released its 2024 first quarterly report. The announcement shows that in the first quarter of 2024, Weichai Power realized operating income of 56.38 billion yuan, up 5.5% year-on-year; net profit of 2.6 billion yuan, up 40.1% year-on-year; net profit of 2.34 billion yuan after deduction, up 34.6% year-on-year; profit growth rate significantly outperformed the growth rate of income, and the quality of operation climbed to a new high.

Engine business: Continuous expansion of advantages and steady increase in market share

　　 In the first quarter of 2024, Weichai Power sold 207,000 units of various types of engines, a year-on-year growth of 7.3%, of which nearly 1,800 units of M series large-bore high-power density engines were sold. Heavy truck engine sales amounted to 84,000 units, a year-on-year increase of 14.2%, with the installed rate rising to 40.5%. Among them, natural gas heavy truck engine sales of 39,000 units, an increase of 153.7% year-on-year, market share increased to 67.6%; more than 500 horsepower 6x4 tractor engine sales of 14,000 units, an increase of 89.7% year-on-year, market share increased to 45%.

Heavy Trucks: Profitability increased significantly, turning a loss into a profit year-on-year

　　 Weichai Power's holding subsidiary, Shaanxi Heavy Duty Truck, sold 31,000 heavy trucks in the first quarter of 2024, an increase of 4.3% year-on-year, of which 16,000 heavy trucks were exported, an increase of 29.1% year-on-year, ranking second in the industry; sales of new energy heavy trucks exceeded 1,000 units, an increase of 56.4% year-on-year. Thanks to the product structure adjustment and quality improvement, the gross profit margin level of the heavy truck business has increased significantly, accelerating into the upward earnings channel.

Intelligent logistics: a solid start in the first quarter, accelerating the repair of profitability

　　 Weichai Power's subsidiary, KAO Group, continued to develop well in the first quarter of 2024, with both revenue and profit increasing, and adjusted EBITDA increasing to 230 million euros. The profitability of the two business segments improved significantly, with the adjusted EBITDA margin reaching 7.9%, a significant increase of 2.3 percentage points compared to the same period last year, laying a strong foundation for the realization of the full-year performance target.

Agricultural equipment: industry-leading product competitiveness, continue to maintain high-quality development

　　 Weichai Power's holding subsidiary Weichai Leivo 2024 Q1 product structure adjustment continued to promote the unit price and profitability level, sales of all types of agricultural machinery 40,000 units, an increase of 15.1% year-on-year, of which the export volume rose 60.8% year-on-year to nearly 4,800 units. Profit enhancement is significantly higher than income enhancement, income enhancement is significantly better than sales enhancement, realizing high-quality development.

　　 From a comprehensive viewpoint, Weichai Power's businesses are growing significantly, the competitive advantages of its traditional advantageous businesses are further expanding, and the profit contribution of its major subsidiaries at home and abroad is accelerating. The company will continue to actively seize industry opportunities under the diversified business layout, accelerate the market expansion of strategic businesses, and lead the high-quality development of the industry.