HONG KONG, April 28, 2011 /PRNewswire-Asia/ -- Weichai Power Co. Ltd. ("Weichai Power" or "The Company", HKSE: 2338, SZSE: 000338) announced that its majority shareholder Weichai Group Holdings Limited ("Weichai Group" or "The Group") was honored in the second "China Industry Award" ceremony this morning in recognition of the Group's outstanding achievements in innovation.
Sanctioned by the State Council, the China Industry Award is one of the most highly regarded awards or known as the "Oscars" in China's industrial sector. The two awards, "China Industrial Enterprise Award" and "China Industrial Enterprise Recommendation Award" are handed out to the most deserving companies every three years.
The organizing committee conferred the award to the Group for its unwavering commitment to innovation as well as its exceptional achievements in the field of automobile and component manufacturing. In particular, the Group's success in consolidating and transforming from the downstream to upstream operations of the value chain in the manufacturing sector in China has spurred the development of the industry.
Weichai Power, the core unit of Weichai Group, plays a major role in the development of the Group. In December 2002, Weichai Group set up Weichai Power via a unique shareholding structure. Since then, Weichai Power has been committed to the internationalization of the Group. Through innovation and transformation, Weichai Power has set off on a development path characterized by both capital utilization and industrialization, and has experienced extraordinary growth. In particular, Weichai Power has maintained its leadership position in various key industry performance indicators. The Company's turnover increased rapidly from just under RMB1.9 billion at inception to approximately RMB63 billion to date. Net profit rose from RMB130 million to approximately RMB6.8 billion over the same period while market capitalization jumped from RMB3.7 billion when the company listed its H shares to over RMB100 billion now.
On 8 August 2005, Weichai Power successfully acquired Torch Automobile Group Co. Ltd., including over 40 quality companies such as Shaanxi Automobile Group Co., Ltd., Shaanxi Fast Gear Co. and others. Through the acquisitions, the Company has developed three major segments: power assembly (engine, gear box and axle), car manufacturing, and car electronics and parts, which together form the most comprehensive and most competitive industry chain.
The business strategy, sharing of resources and independent operations among the subsidiaries enable Weichai Power to further strengthen its competitiveness and create synergies in the industry supply chain. Following the consolidation, the sales volume of the Company's engine products increased to over 700,000 units in 2010 from 114,000 units in 2005. The sales volume of heavy-duty trucks at its subsidiary Shaanxi Zhongqi surged to over 100,000 units in 2010 from 14,400 units in 2005. Furthermore, the sales volume of gear boxes at Shaanxi Fast Gear increased to 850,000 units from 14,600 units in 2005. The Company's revenue rose from RMB5.3 billion in 2005 to RMB63 billion while net profit increased from RMB300 million in 2005 to RMB6.8 billion. The outstanding performances are a testament to the success of its industry consolidation. .
Weichai Power has branches and subsidiaries across Europe, North America and Southeast Asia which covers 8 provinces and 17 cities in China. Together with more than 40 subsidiaries, the Company has developed five key regional industry hubs, located in Shandong, Chongqing, Shaanxi, Hunan and Jiangsu, setting a good example of corporate restructuring that covers provinces and regions in China.
About Weichai Power Co., Ltd. (HKSE: 2338, SZSE: 000338)
Founded in 2002, Weichai Power is the strongest car parts and power system conglomerate in China. Its subsidiaries include 40 quality companies. The Company's business covers three major segments: power assembly (engine, gear box and axle), whole car manufacturing, and car electronics and parts, formulating the most complete and the most competitive industry chain.
Weichai Power was listed on the Main Board of The Stock Exchange of Hong Kong on 11 March 2004 and on the Shenzhen Stock Exchange on 30 April 2007.
SOURCE Weichai Power Co., Ltd.