Weichai Power Co. Ltd. – Investor‑Relations Highlights and Operational Outlook (as of 10 September 2025)

1. Corporate Event Overview

On 10 September 2025 Weichai Power Co. Ltd. (ticker: 000338) held a scheduled investor‑relations session that was attended by seven research institutions, including funds, overseas investors, and brokerage firms. The event was conducted in the company’s conference room and focused on recent financial performance, product strategy, and corporate governance matters.

2. 2025 H1 Financial Performance

  • Revenue: RMB 113.15 billion, essentially flat year‑on‑year.
  • Net Profit attributable to parent: RMB 5.64 billion, a 4.4 % decline versus the first half of 2024, attributable mainly to a one‑off cost increase linked to the German Kaier Group’s efficiency program.
  • Gross Margin: 22.2 %, up 0.4 percentage points year‑on‑year.
  • Profitability Trend: Margins improved while net profit dipped slightly, indicating stable operating performance amid external cost pressures.
  • Shareholder Returns: Cash‑dividend payout ratio increased to 57 % of net profit for the first half, surpassing the cumulative total of nearly RMB 38 billion since listing.

3. Natural‑Gas Heavy‑Truck Engine Segment

  • Market Conditions: Domestic sales of natural‑gas heavy trucks fell 16 % to 9.1 thousand units in H1, largely driven by a slowdown in the second quarter.
  • Company Position: Weichai’s natural‑gas engine sales were impacted proportionally.
  • Short‑Term Outlook: Government “old‑for‑new” policies are expected to include natural‑gas heavy trucks in subsidy programmes, which should lift sales momentum in the second half.
  • Long‑Term Positioning: The company is expanding its product portfolio for natural‑gas engines, emphasizing performance and quality. It continues to engage strategic partners to sustain its market‑leadership stance.

4. New‑Energy Power Business

  • H1 Revenue: RMB 1.21 billion, a 37 % year‑on‑year increase.
  • Strategic Expansion: The company plans to accelerate market penetration and product delivery in H2, targeting a 100 %+ annual growth in this segment.
  • Product Portfolio: Weichai has completed a full suite of battery, motor, and electronic‑control products, positioning itself ahead of competitors in performance metrics.
  • Customer Base: The company reports comprehensive engagement with both internal and external customers, with a rising service‑level agreement fulfilment rate.

5. Shareholder Return Strategy

  • Cash Dividends: Continued emphasis on higher payout ratios.
  • Share Buyback: A new A‑share repurchase program has been launched, with an expectation of further dividend increases in the middle of 2025.

6. Credit‑Impairment and Related‑Party Transactions

  • Credit‑Impairment Losses: In H1, the company recorded RMB 36.96 million in additional credit‑impairment provisions, mainly due to an increased balance of accounts receivable at the period end.
  • Related‑Party Exposure: The company clarified that no preferential treatment or transfer of benefits has occurred toward affiliated entities, including China Heavy Industry Group and its subsidiaries.
  • Accounting Basis: Impairment provisions are determined using ageing and credit‑risk profiles, with consistent policy application that is not adjusted solely based on the counterpart’s short‑term performance.

7. Technological Innovations – AI‑Powered Equipment

  • AI‑Equipped Bulldozer: On 10 September, Weichai delivered Guangdong Yunfu’s first AI‑powered, fully electric bulldozer, powered by its 452 kWh new‑energy battery.
  • Operational Benefits: The machine incorporates automatic control, environmental sensing, hazard detection, human‑machine dialogue, and voice commands.
  • Engine & Hydraulics: The WP7 engine and hydraulic system provide efficient, intelligent power, with real‑time monitoring and automatic power adjustment to support unmanned construction operations.

8. Market Context and Implications

Weichai’s performance and product roadmap reflect a dual strategy: sustaining core heavy‑vehicle engine operations while accelerating growth in the new‑energy power and intelligent equipment segments. The company’s focus on shareholder returns, coupled with disciplined risk management in related‑party transactions, positions it favorably amid a competitive industrial landscape.