CIMC Vehicles net profit soars

China-based OEM, CIMC Vehicles, has delivered outstanding performance in its domestic and international operations.

According to the latest annual results for the 12 months ended 31 December 2023, the semi-trailer and special vehicle manufacturer achieved a revenue of 25,087 million RMB (approx. 3.2 billion euros) which represented a year-on-year increase of 6.21 per cent; a net profit of 2,456 million RMB (approx. 312.9 thousand euros), a significant boost of 119.66 per cent; and an increase in its gross profit margin to 18.96 per cent which was an improvement of 5.68 per cent.

The net profit attributable to the company’s shareholders after deducting non-recurring profit or loss reached a historic high of 1,533 million RMB (approx. 195.3 thousand euros) which represents substantial growth of 69.68 per cent.

In 2023, the Star-Chained Light Tower Pioneer Group deployed the ‘Star-chained Manufacturing Network’ which, according to CIMC Vehicles, solidified the domestic market foundation and vigorously expanded into the ‘Belt and Road’ markets. Its revenue reached 4,522 million RMB (approx. 576.3 million euros), with a year-on-year increase of 1.34 per cent in gross profit margin, maintaining the top market share in the Chinese semi-trailer industry for five consecutive years.

Champion Tanker Business Group has capitalised on opportunities in segmented markets, broadened its international expansion path and initiated the research and development of integrated new energy tractors and trailers. It resulted in a strong performance, with revenue reaching 4,908 million RMB (approx. 625.4 million euros), representing a year-on-year increase of 35 per cent.

The sales volume of concrete mixer trucks, the OEM said, is ranked number one in China for seven consecutive years, maintaining a leading position in the global tanker market.

The North American business has actively implemented the ‘Deep Space Exploration Plan’, established a new development pattern of ‘Shared Narrowband Evolution’ and maintained a growth momentum in profitability, with revenue reaching 10,776 million RMB (approx. 1.4 billion euros), with year-on-year improvement in gross margin.

The European business has continued to optimise manufacturing and value streams, reduce costs and increase efficiency, and achieved growth against the trend, with revenue reaching 3,024 million RMB (approx. 385.4 million euros), a year-on-year increase of 15.39 per cent, and an increase of 5.48 per cent in gross profit margin.

The dump truck and heavy-duty truck businesses have reportedly undergone organisational restructuring, completed their establishment, actively promoted new energy products, and seized market share. Hence, revenue reached 707 million RMB (approx. 90.1 million euros). The market share of urban waste trucks in China has increased to 15.55 per cent. The ‘Sanhao development’, namely ‘excellent tractors with excellent trailers’, ‘excellent horses with excellent saddles’, and ‘excellent trucks with excellent tanks’, has become a valuable strategic exploration for the high-quality development of commercial vehicles in China.

In the meantime, CIMC Vehicles is focused on refining processes, specifically its ‘Star-Chained Manufacturing Network’ which integrates resources from seven semi-trailer factories and connects the links of procurement, production, distribution and consumption. These efforts should result in significant improvements in market share, sales and profits and establish what it aims will be a benchmark for supply-side reform.

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