The year of 2024 is the opening year of comprehensively implementing the spirit of the Third Plenary Session of the 20th CPC Central Committee, and it is also an extraordinary year in the development history of Shandong Heavy Industry Group. This year, we bear in mind the general secretary Xi Jinping’s important instructions on the work of Shandong Heavy Industry, and always adhere to the main business without distraction, a blueprint to the end; this year, the provincial party committee, the provincial government and all levels of the relevant units of care and love for us, to help us cut through the winds and waves, and move forward; this year, the 160,000 Shandong Heavy Industry workers continue to struggle, unite and forge ahead, and actively cohesion of all sides, to promote the work of the group to new steps, new steps, and further progress. The work of the Group to take new steps, to a new level, to achieve new breakthroughs.
Looking back on this year, we know the difficulties and go forward against the trend, with the spirit of real work to hand over a bright report card. In the face of the domestic equipment manufacturing industry operating at a low level, the international market momentum of the double pressure of the weakening of the market, we do everything possible to grab the market, adjust the structure, grasp the innovation, quality and efficiency, the organization to carry out the “quality, innovation, cost reduction” management enhancement action, to promote the whole chain of cost reduction, quality and efficiency. 2024, the group is expected to achieve the aggregate revenue of 550 billion yuan, an increase of 9% year-on-year, to achieve a total profit of 1,000 billion yuan, an increase of 9% year-on-year, In 2024, the Group is expected to achieve an aggregate revenue of RMB 550 billion, a year-on-year growth of 9%, and a total profit of RMB 28.1 billion, a year-on-year growth of 29%, both of which are record highs, with profitability leading the industry and ranking first among provincial enterprises, and the “one profit and five rates” reflecting the quality of the operation, such as the asset-liability ratio, the return on net assets, the intensity of investment in R&D funding, and the productivity of full-time employees, continue to be optimized. The good development momentum of “steady progress, progress tends to be better” is more stable.
Looking back on this year, we seized the market, optimized the layout, and constructed new competitive advantages with the determination to be the first. Actively seeking the standard and competing with the fastest, the strongest and the best, under the situation of domestic industry downturn and intensified competition, the sales volume and market share of engines, heavy trucks, agricultural equipment, construction machinery, buses and other products have achieved a significant increase year-on-year, and the sales volume of Weichai Heavy Duty Engines, heavy trucks of China National Heavy Duty Truck Corporation (CNHDC), Weichai Leiwo Agricultural Equipment, and Shantui bulldozers remain the first in the domestic industry, and the sales volume of high-end, high value-added products accounted for the largest share of the domestic market. The proportion of high-end and high value-added products has increased significantly. Focusing on the future, we have identified three strategic transformations: new energy, digitalization and after-market, and pressed the accelerator button for green, smart and high development, with the sales of new energy heavy-duty trucks increasing by 230% year-on-year, ranking first in the industry.
Looking back on this year, we went to the sea as a group, set sail and sail away, and enhanced the influence of our brand with an attitude of openness and cooperation. We carried out the special action of “optimizing market layout and building brand matrix”, and held global partner conferences and new product exhibitions in Mexico, Germany, France, Indonesia, Singapore, etc., which won high recognition from global customers. 2024, the Group’s overseas enterprises are expected to achieve a turnover of 110 billion yuan, maintaining steady growth, and a total profit of 4.52 billion yuan, the largest in the industry, with a year-on-year increase of 4.5 billion yuan, the largest in the industry. Total profit will be RMB 4.52 billion, up 30% year-on-year, and the profitability of key enterprises such as KAO of Germany and Faraday of Italy will be greatly improved. The export of products maintains a high level of growth, and is expected to achieve revenue of 97.6 billion yuan, an increase of 14% year-on-year. The export of heavy trucks accounts for 64% of the total export of China’s heavy truck industry, while the export of buses, agricultural equipment, and excavators is expected to increase by 61%, 36%, and 35% year-on-year respectively, and the data center generator sets make a rapid breakthrough in the high-end market overseas.
Looking back on this year, we continue to innovate, climb the peak, and ignite the new engine of science and technology with the ambition of self-reliance and self-improvement. Based on actual practical effectiveness, we join hands with global industrial chain, supply chain and innovation chain partners to accelerate the construction of an integrated innovation system of industry, academia, research and utilization. 2024, the Group’s R&D investment is expected to reach 12.5 billion yuan, and R&D intensity is raised to 3.7%, maintaining the leading level in the industry. Weichai launched the world’s first diesel engine with 53.09% thermal efficiency, which set a new world record for the fourth time, and topped the list of the first batch of “Top Ten Scientific and Technological Innovation Achievements” of provincial enterprises; China National Heavy Duty Truck (Sinotruck) upgraded the Yellow River Hydrogen internal combustion engine traction train, and broke through the limit of low wind resistance of commercial heavy-duty trucks with 0.286 wind resistance coefficient again; Shaanqi Heavy Trucks X6000, Weichai Lovol high-horsepower CVT tractor, Shantui intelligent construction solutions, Zhongtong H series of high-end tour buses, Italy’s Faraday luxury yachts and other star products in the international arena debut, shine.
Looking back on this year, we deepen the reform, standardize the governance, and enhance the group’s management and control power with the vision of benchmarking the first-class. We resolutely broke the inertia thinking, jumped out of the stereotypes, and got rid of the path of dependence, and generated a new impetus for transformation and development by reform. Adhere to the principle of “strong headquarters, large industries, fewer levels, wider range”, optimize the organizational structure, compress the management level, improve the management efficiency, implement the management of important subsidiaries upgraded, construction of learning, innovation, control, leadership, service-oriented “five-type” headquarters We will comprehensively improve the level of large group control, specialized control and globalization control. Clarification
