Weichai Power (2338) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB123.16 billion, up 8.8% year-over-year, with net profit attributable to shareholders at RMB7.70 billion, up 36.5%, and basic EPS at RMB0.89, up 36.9%.

• Growth was driven by strong domestic and overseas demand, especially in powertrains, commercial vehicles, intelligent logistics, and agricultural equipment.

• The group maintained robust operational momentum and leading market positions across core segments, with notable increases in engine, transmission, axle, and new energy product sales.

Financial highlights

• Gross margin was 21.5%, slightly down due to increased competition and higher raw material costs.

• EBIT rose 40.7% to RMB13.00 billion, driven by revenue growth and reduced administrative expenses.

• Net profit margin improved to 7.7% from 5.8% a year ago.

• Net cash from operating activities was RMB11.35 billion, up RMB4.51 billion year-over-year.

• Cash and cash equivalents at 30 June 2026 were RMB46.49 billion.

Outlook and guidance

• The company expects a volatile global macro environment in H2 2026 but sees opportunities in supply chain restructuring and new energy.

• Strategic focus will be on market expansion, innovation, cost control, and accelerating high-end and green transformation, with emphasis on power energy, new energy, and aftermarket services.

• Full-year targets are reaffirmed, with emphasis on high-quality growth, profitability, cost reduction, and efficiency.