Trailer builder, CIMC Vehicles, has reported net profit of more than 244.6 per cent for the first three quarters of 2023 when compared to year-on-year results.
The implementation of core strategic measures while starting a business for a third venture contributed to the OEM’s success. Sustained growth was achieved via breakthroughs in CIMC Vehicles’ operations.
It sold 116,273 sets of vehicles of various types worldwide and continues to maintain its world-leading position in the manufacture of semi-trailers for 11 consecutive years.
In its latest financial report CIMC Vehicles achieved revenue of 19.568 billion CNY (approx. €2.5 billion) from January to September 2023, a year-on-year increase of 12.42 per cent.
Net profit attributable to shareholders of the company reached 2.777 billion CNY (approx. €358.4 million), a year-on-year increase of 244.64 per cent.
Six major businesses and groups demonstrated strength along with steady improvement in profitability.
CIMC Vehicles noted that European and US governments have continued to raise interest rates, inflation has continued, and the recovery of the global manufacturing industry has diverged since 2023.
“As China’s economy shifts to a new stage of high-quality development, the Chinese government’s implementation of a series of stabilising growth policies has effectively consolidated resilient economic growth,” CIMC Vehicles said in a statement.
China’s domestic heavy truck industry is poised for growth following economic recovery.
From January to September 2023, CIMC Vehicles seized growth opportunities in overseas markets, and its profitability in the global semi-trailers market improved as a result.
Supply and demand in the North American semi-trailer market is reported to be stabilising with the OEM seizing market opportunities in the region and achieving year-on-year growth in profitability.
The global enterprise has achieved strong business growth in the European and emerging markets, with a year-on-year improvement in profitability. The business in the Chinese market maintained a stable development trend and gained market share in market segments.
Meanwhile, the Light Tower Pioneer Business Group implemented the strategic initiative of structural reform of the domestic semi-trailer production organisation which optimised operations thereby increasing the gross profit margin of domestic semi-trailers year-on-year.
Moreover, Light Tower Pioneer Business Group seized the opportunity of strong demand in emerging markets. It developed and integrated channel resources, increasing the revenue and gross profit margin of the semi-trailer business in emerging markets year-on-year. North American Business continued its growth momentum and consolidated its intercontinental operation niche, improving both revenue and gross profit margin year-on-year.
European Business has achieved remarkable results in cost reduction and efficiency increase and made a profit breakthrough.
Champion Tanker Business Group has moved forward against the headwind and started exploring overseas markets, increasing its market share, sales, and revenue year-on-year.
TB Business Group – Dump Truck Business innovated and explored new energy development. TB Business Group – Urban Distribution Van Truck Bodies Business optimised organisational development and promoted business transformation.
In 2023, CIMC Vehicles launched the ‘Star-chained Manufacturing Network’, committed to promoting the structural reform of China’s semi-trailer production organisation, breaking through the bottleneck of the semi-trailer business, bringing about end-to-end business model changes, and promoting potential improvements in sales and profits. Eventually, the group will achieve the vision of high-quality industry integration, distribution model innovation, and continuous improvements in market share and profitability.
While starting the third venture, CIMC Vehicles actively integrated the production, circulation, distribution and consumption resources of seven domestic semi-trailer plants. Presently, the new organisation of ‘Star-chained Manufacturing Network’ has been well formed. The Star-chained LTP production line investment will be implemented. The group has also built an innovative and entrepreneurial platform that supports new energy tractors and trailers and provides integrated solutions for transforming traditional tractors and trailers, accelerating the commercialisation of new energy semi-trailers.
The next initiative for CIMC Vehicles is ‘National Unified Market for Commercial Vehicle and Specialty Vehicles’ which will rely on innovation to drive growth and improve the operational quality of six major business units. The OEM will also commit to a new development concept ‘innovation, coordination, green, openness, and sharing’ to maintain momentum with its third venture and contribute to the construction of Chinese modernisation.