Weichai Power Co., Ltd. ("Weichai Power" or "Company"; 2338. HK, 000338. SZ) announced that the company has prepared its reviewed semi annual performance in accordance with Chinese accounting standards as of June 30, 2023 ("Reporting Period").

Summary of Performance for the Half Year of 2023:

Overall improvement in performance and substantial shareholder returns

In the first half of 2023, the overall economic performance showed a rebound and positive trend, and market demand gradually recovered. The company seized the opportunity, with a year-on-year increase of 22% in operating revenue to RMB 106.14 billion, a year-on-year increase of 124% in net profit attributable to the parent company after deducting non income to RMB 3.61 billion, and a year-on-year increase of 1.7 percentage points in gross profit margin to 19.4%; The net cash flow generated from operating activities increased by 1235% year-on-year to RMB 12.89 billion, demonstrating strong cash flow and outstanding performance. In addition, the company adheres to the concept of shared development, distributing a cash dividend of 2.26 yuan per 10 shares in the mid-term, and further increasing the cash dividend ratio to 50%. While promoting high-quality development, the company rewards shareholders with practical actions and shares development achievements with investors.

Engine sales have skyrocketed, with natural gas and high horsepower leading the way

During the reporting period, the company's total engine sales reached 367000 units, a year-on-year increase of 29%, and engine exports reached 39000 units, a year-on-year increase of 52%; Among them, the sales of heavy-duty truck engines increased by 81% year-on-year to 142000 units, and the market share increased to 38.4%, continuously highlighting the leading position. High horsepower, natural gas engines and other segmented markets have full highlights, with high-end high horsepower products such as 14L and 15L quickly seizing the market. The market share of engines above 500 horsepower has increased to 31.7%, a year-on-year increase of 19.7 percentage points, and the growth momentum is strong; The natural gas heavy-duty truck market experienced a strong recovery in the first half of the year, and the company's natural gas engine market share continued to climb to 66.9%, providing strong support for the company's performance acceleration.

The excellent market performance is attributed to the continuous improvement of research and development capabilities, and the continuously launched innovative achievements continue to lead the industry's development. The world's largest natural gas commercial vehicle engine product, WP15NG, has officially been mass-produced, leading the industry in various technical and performance indicators, once again leading the transformation and upgrading towards high-end and high horsepower; The world's largest horsepower heavy-duty truck engine WP17H has been officially released, customized and developed for complex application scenarios such as mountain trunk lines and plateau trunk lines, once again breaking the power record of national brand heavy-duty trucks.

The company's product structure continues to optimize, with breakthroughs in segmented markets. High end products continue to lead, and the foundation for high-quality development continues to be consolidated. The ability to resist cycles and fluctuations has significantly improved, and the market share revenue has achieved a double increase.

The position of heavy truck vehicles is stable, and the competitive advantage continues to improve

In the first half of 2023, the company sold a total of 61000 heavy-duty trucks, with a market share increase of 2.3 percentage points year-on-year. The export of 26000 vehicles increased by 97% year-on-year. Strong Breakthrough in Segmented Markets, High end MarketEditor/XingWentao