Shenzhen 2020 August 28 / PRNewswire / – 8 28 morning, CIMC Vehicle (Group) Co., Ltd. ( “the CIMC Vehicle” or the “Group”, stock code: 01839. HK) held in 2020 interim results conference via live online, Group management representatives present to answer investor questions.
From left to right: Mao Yi CIMC Executive Director, Executive Director, CEO and President Li Guiping, executive vice president and chief financial officer, Ji Haifeng
yesterday Group disclosed 2020 interim results. During the reporting period, the Group’s operating income reached 11.16 billion yuan, profits of 700 million yuan during the period.
ended 30 June 2020, the Group’s sound financial position, total assets and net assets of 20.85 billion yuan and 10.01 billion yuan, net assets was 6.9 percentage. Group has long been committed to ensure good cash flow management, reporting period, the company’s net operating cash flow of 1.08 billion yuan, an increase of 25.7 percentage.
Set in the vehicle since 2014, began to explore the construction of “high-end manufacturing system”, currently in the domestic and overseas production has been completed and 12 semi-trailer “lighthouse” factory, six production car fitted with special “lighthouse” factory, 2 house refrigerated van body in the production of “lighthouse” factory, and built several series of semi-trailer of “product modules”, the company is committed to fully build and improve the “high-end manufacturing system” to maintain sustainable competitive advantage of the Group. During the reporting period, the Group continues to upgrade and improve the “lighthouse” factory, the Chinese market to enhance business productivity and gross margin.
China trailer significant business growth, huge market potential of the second-generation semi-trailer. During the reporting period, thanks to the Chinese government to speed up the “overloading overrun and” transport behavior management, and vigorously promote the illegal modification of remediation work truck, trailer and the second generation of the full implementation of national standards, the Group van semi-trailer and skeleton car + envelope the vehicle sales increased dramatically. At the same time, benefit from international oil prices, increased domestic demand for crude oil reserves, tank trailer sales increase. During the reporting period, the Group’s Chinese semi-trailer business income of 2.98 billion yuan, up 31.3 percentage gross margin percentage rose to 13.8, an increase of 2.8 percentage points.
China compartment refrigerated van body business performed strongly, orders and sales continued high growth. Under the new crown epidemic, network distribution usher in a new development opportunities, the mass distribution of fresh food, a substantial increase in demand for low-temperature medical drugs and biological products and other medical cold chain, stimulating domestic and foreign markets to accelerate the development of refrigerated trucks. During the reporting period, Chinese refrigerated van Body in business to achieve revenue 130 million yuan, an increase of 29.6 percentage over last year, gross margin percentage increased to 21.8, an increase of 3.9 percentage points.
China special car fitted with a solid performance overall business. Reported that the Company’s new smart concrete mixer, consolidate its leading position in the domestic market of the concrete mixer. With the heavy truck market in rapid recovery after the epidemic, the Group city car filled with muck business orders began to rebound in the second quarter. In addition, the Group Luoyang plant went into operation in the industry’s leading automated paint production line will significantly improve the coating quality of products to enhance the painting automation and intelligence level. During the reporting period, the Group dedicated car filled with business (including a truck chassis and tractors) income of 4.46 billion yuan.
During the reporting period, due to the epidemic in developed countries in Europe and America continue to simmer, plus customs duties affect Sino-US trade, the Group’s overseas business has slowed. During the reporting period, the Group’s overseas business revenue semitrailer total 2.58 billion yuan. Despite unfavorable factors, the first half, the Group’s largest overseas market – the North American market for production and delivery of various types of semi-trailer more than 10,000 units, the average gross margin reached 13.0 percentage.
Looking to the future, in a private car fitted business, the Group will continue to expand dominance in the muck of environmentally friendly city car, to deepen cooperation with OEMs to expand the scale of production and procurement. OEMs will also try and joint design, joint marketing lightweight durable concrete mixer, at the same time consolidate the industry leader, but also provides users with a better shopping experience. In the wagon body refrigerated van business, the Group will continue to expand the layout of the wagon body refrigerated van production plant, accelerate the development of next-generation products and module production technology to prepare for the upcoming large-scale development. In the trailer business, the Group will seize the opportunity to upgrade China-trailer, the active use of new marketing and new retail sales expanded second generation of semi-trailers, improve product gross margins.
in overseas markets, in addition to actively promote the North American refrigerated semi-trailer and skeleton carThe main means of local production, the Group will actively invest in US and European manufacturers in the digital-analog design, upgrade lighthouse factories, investment-based EPS (electronic purchasing system) global supply chain management system, as a victory over the epidemic, to maintain plant operation .
In addition, the Group will seize the opportunity of additional A-share market, improve corporate governance, the development of qualified long-term incentive mechanism, cultivate existing team on the basis of the continues to attract fresh talent to join together to build “upgrade module, perfect lighthouse factory, started marketing changes, and promote organizational development” as the cornerstone of CIMC vehicle high-end manufacturing system.