CIMC Vehicles (Group) Co., Ltd.

Company Profile

(I) Major business models and analysis of operation 1. Business models and operational analysis of the global semi-trailer business During the Reporting Period, the Company achieved a total production output of over 110,000 units across multiple semi-trailer categories,.In 2025, the revenue from global semi-trailer business amounted to RMB14,372 million, contributing a gross profit of RMB2,440 million. (1) In the Chinese market, the “Star-Chained Plan” concluded successfully in 2025, driving high-quality development of the Company’s Chinese semi-trailer business. During the Reporting Period, amid an external environment defined by industry-wide overcapacity and homogeneous competition, the Company forged new competitive advantages and achieved a strategic breakthrough in countering involution-typed competition. Consequently, in the Chinese market, Star-Chained semi-trailers and liquid tankers achieved a 15.00% year-on-year increase in sales, a 14.65% year-on-year growth in revenue, and a 3.3% year-on-year improvement in gross margin ratio. With annual models as the core strategic focus, the Company has extended its footprint across the value chain – promoting innovation in upstream producer services and building barriers around core components on the downstream side. During the Reporting Period, Sales of annual models accounted for approximately 40% of the Company’s Star-Chained semi-trailer and liquid tanker sales across the Chinese and Global South markets. According to statistics from the Hanyang Specialty Vehicle Institute, the Company’s market share in semi-trailers exceeded 22.2%, securing its top national ranking for seven consecutive years. Concurrently, its market share in liquid tankers surpassed 26.5%, achieving a growth- against-the-trend to lead the industry. (2) In 2025, the Company’s Global South operations achieved high-quality growth. The Company capitalized on the rapid development dividends of emerging markets, achieving performance growth in Southeast Asia, the Middle East, Africa, and Australia. During the Reporting Period, revenue from the semi-trailer business in the Global South market reached RMB3.09 billion, representing a year-on-year increase of 17.7%; sales volume surged by 29.1% year-on-year. Alongside this scale expansion, profitability improved significantly, with gross margin ratio rising by 1.3 percentage points year-on-year. The Company’s operations in the Global South have achieved extensive coverage across 50 countries and regions. Performance in traditional stronghold markets across the Middle East, Africa, and Southeast Asia delivered standout growth, with key markets such as Vietnam and Thailand recording increases exceeding 70%. Furthermore, strategic breakthroughs were achieved in emerging regions, including Central Asia. In 2025, the Australian business was integrated into the Global South direct management structure and aligned closely with the Star-Chained Plan. Amidst a stable market, it strengthened collaboration with domestic LTP centers to optimize product quality and delivery lead-times, while expanding local sales networks and launching parts and components operations. Consequently, profitability was maintained at historically robust levels. According to vehicle registration data from the National Road Transport Association of Australia, the Company has consistently ranked among the top six in Australia for three consecutive years, further solidifying its market leadership. (3) In 2025, the European semi-trailer business followed a pattern of “stable volume, revenue growth, and margin compression.” Operations in the European market primarily focused on the synergistic coordination between SDC and LAG. During the Reporting Period, combined sales volume remained broadly stable year-on-year, while revenue grew by 5%. Overall, cost pressures and market weakness in Europe during 2025 resulted in profitability falling short of expectations. As the market is anticipated to remain subdued in the near term, the Company will focus on its regional core strategy and leverage its global supply chain resilience to ensure a stable supply. By driving the restoration of operational profitability, we aim to secure sustainable, long-term value creation for all stakeholders. (4) In 2025, the North American semi-trailer business confronted headwinds arising from a confluence of adverse factors, including a recession in the regional freight market, elevated industry-wide inventory, and subdued customer procurement. These external pressures placed significant strain on overall operating performance, resulting in simultaneous declines in sales volume, revenue, and profitability Despite facing supply-demand pressures and policy-related risks, the refrigerated trailer segment maintained orderly manufacturing and shipment schedules in North America. By leveraging pre-assembled inventory accumulated during the market trough, the Company ensured robust fulfillment for urgent orders, with profitability essentially meeting budgetary targets for 2025. Simultaneously, the van trailer segment demonstrated resilience in a subdued market, sustaining profitability and capturing modest market share gains through strong execution and deep customer stickiness. However, U.S. tariff policies and anti-dumping and countervailing (AD/CVD) investigations have led to an increase in overall supply chain costs. Demand for container chassis reached a historical trough during the year. Compounded by profit erosion from AD/ CVD-related legal expenses and foreign exchange fluctuations, the Company prioritized destocking accumulated inventory. Through stringent cost control and disciplined administrative expense management, the business achieved a phased reduction in operational losses. 2. Business models and operational analysis of the DTB truck body products During the Reporting Period, the Company achieved a total production output of 28,570 units across DTB truck body products In 2025, the DTB business of the Company achieved steady growth in both sales and revenue, while further strengthening its market share in core products,resulting in a significant year-on-year increase in operating profit. Simultaneously, the Company intensified its research and development and commercialization of new energy solutions, deepening collaboration with OEMs across the full value chain spanning product R&D, manufacturing, and sales. Consequently, sales of EV-DTB products – specifically designed for new energy heavy-duty truck chassis – witnessed exceptional growth. Notably, both EV-DTB • dump truck and EV-DTB • mixer truck segments recorded year-on-year increases exceeding 100%. During the Reporting Period, total sales of the Company’s new energy product series exceeded 11,000 units, representing year-on-year growth of over 100%. Through efficient delivery and exceptional product quality, the Company continued to create greater value for its customers. 3. Business models and operational analysis of the “EV-RT” Business As a cornerstone of the Company ’s future -oriented strategy , the EV-RT business achieved pivotal breakthroughs in 2025 . This progress marks a decisive step forward in the Company ’s mission to become a standard -setter for technical excellence in the new energy heavy-duty truck era: (1) Global Debut of the EV-RT Ecosystem, defining a New Industry Paradigm (2) The world’s first Engineering Electric Trailer Platform and Prototype Vehicles, achieving a 0-to-1 Technological Breakthrough (3) Innovative Business Concepts to Build Long-Term Competitive Advantages (4) Deep Participation in and Promotion of National and Industry Standard Upgrades During the Reporting Period, the Company firmly adhered to the strategic positioning as an “Explorer, Builder, and Entire Value Chain Promoter ” of the EV-RT business , laying a solid foundation for the subsequent development of the EV-RT bus