Outstanding Third Quarterly Report of 2024 of CIMC Group: Net Profit Attributable to the Parent Company Soared by 268.87% Year-on-Year, Highlighting the Moment for High-Quality Development

On the evening of 29 October 2024, CIMC Group released its third quarterly results report of 2024. The report shows that from January to September 2024, CIMC achieved a revenue of RMB128.971 billion, representing a year-on-year increase of 35.58%; the net profit attributable to the parent company was RMB1.828 billion, representing a significant increase of 268.87% year-on-year. The operating performance during the period was outstanding, with a strong momentum of high-speed growth.

In the current era of global economic integration and fierce industry competition, accurately grasping the strategic development direction is crucial for the sustainable development of enterprises. In the first three quarters, CIMC has always focused on improving quality and efficiency, adhering to high-quality development, solidly promoting the qualitative growth of its core logistics and energy equipment manufacturing businesses, and actively accelerating the development of new momentum in emerging businesses, so that its overall performance has entered an “explosive” growth track.

01 Internal growth and external expansion in the logistics field, practicing high-quality business development

Currently, the global economy is gradually stabilizing, and the overall trade environment has improved. Despite facing risks and challenges, the expected trend of sustained growth in trade volume remains unchanged. At the same time, international inflation has cooled down, and the US Federal Reserve’s interest rate cut has driven central banks in many countries into a loose cycle, stimulating demand to rebound. As a global operating platform, CIMC actively responds to market changes, consolidates its global layout strategy, and adheres to a dual-pronged business strategy of internal and external demands to achieve long-term sustainable development.

Since this year, against the backdrop of sustained growth in international trade, CIMC Group has consolidated its core business, strengthened the driving force for container business development, and continuously improved its operational capabilities. During the Reporting Period, CIMC’s container business exceeded market expectations, with significant year-on-year growth in production and sales volume. In particular, the cumulative sales volume of dry containers reached 2.4863 million TEUs, representing a significant increase of approximately 421.78% year-on-year, maintaining its industry-leading position in both production and sales volume .

In the first three quarters, as the demand of global container trade picks up, according to the prediction made by an industry authoritative institution, the growth of global container trade will significantly increase from 0.7% in 2023 to 5.2% in 2024, and in 2025, the global container trade is expected to see a further growth of 2.8%. In the medium to long term, under the influence of various factors such as market environment, CIMC Container will continue to maintain its leading position in the industry. With substantial momentum building for business development, it is expected to achieve high-quality growth in its operations.

Entering 2024, facing the new demands and challenges in the road transportation vehicle industry under the new situation, CIMC Vehicles continued to deepen its “StarLink Project” and actively responded to market changes, surging forward against the tide. In the first three quarters, CIMC Vehicles achieved a revenue of RMB15.823 billion, with a slight increase in gross profit margin compared to the previous quarter, maintaining a good overall development trend. Amidst the sluggish market, CIMC Vehicles broke through with its product strength, selling a total of 94,749 vehicles of various types worldwide, while domestic vehicle sales increased against the trend. During the period, CIMC Vehicles contributed to the establishment of corporate standards for “Road Transportation of Edible Oil Tank Vehicles”, laying a solid foundation for healthy and sustainable development in the domestic tank transportation sector.

From January to September this year, as the domestic and international logistics service markets continued to rebound, and exports showed a positive trend, CIMC Wetrans steadily pursued progress, enhanced efficiency through advancement, and deeply practiced high-quality development, experiencing significant year-on-year growth in both revenue and profitability index, with core product lines achieving increases in both business volume and price. Meanwhile, CIMC Wetrans continued to optimize its organizational resilience, actively extended its service chain, continuously broadened its product boundaries, further enhanced its global market share, and achieved an “upgrading” of its business capabilities.

Since 2024, the global aviation industry has maintained a strong recovery momentum, and CIMC Tianda has continued to promote the synergy and mutual promotion of research, production and sales, achieving dual improvements in efficiency and profitability, and continuously seizing the market in the global airport equipment field, leading the industry comprehensively. During the period, the business performance steadily increased due to the increased number of projects which have passed inspection and acceptance and have been delivered as compared to the same period last year, with significant breakthroughs in new orders. At the same time, CIMC Tianda kept up with the development trends and demands of the airport and fire protection industries, focused on diversified business expansion, and flexibly responded to market changes. In addition, with changes in the macroeconomic environment, it is expected that the forthcoming counter-cyclical adjustment measures in areas such as supporting local finances will bring opportunities for growth in demand across the industry.

02 Accumulation of surging development potential, comprehensively improving the quality and efficiency of business operations in the energy field

In recent years, the continuous promotion of global energy green and low-carbon transformation has led to stable development of new energy technologies and their related industries. With the continuous changes in energy production and consumption patterns, the clean energy industry has become a new pillar of the modern industrial system, bringing new growth points to the global economy. In the wave of energy transformation, CIMC Group, led by energy technology innovation, actively seized development opportunities and contributed “CIMC Power” to global green development.

 During the Reporting Period, CIMC Enric, the main operating entity of the energy, chemical and liquid food business of CIMC, strengthened its business development foundation, achieved a revenue growth of 8.0% year-on-year to RMB17,969 million. Among them, the revenue of the clean energy segment soared by 26.2% year-on-year to RMB12,599 million. From January to September 2024, the new orders signed by CIMC Enric increased by 5.1% year-on-year to RMB20,760 million; as of the end of September 2024, CIMC Enric’s orders on hand increased by 25.2% year-on-year to RMB27,732 million, maintaining a steady growth trend. 

Since this year, CIMC Enric has focused on optimizing its principal businesses and accumulating strong development potential, significantly improving its operational quality and efficiency. During the period, CIMC Enric delivered a total of six liquefied gas carriers and achieved a breakthrough in the sales of LNG cylinders for vehicles; the hydrogen energy business has launched a multi-point layout, and the first domestic coke oven gas to hydrogen and LNG co-production project has been formally put into operation, further expanding the upstream industrial chain layout of clean energy. 

From January to September 2024, the global vessels and offshore engineering market continued its trend of stable and positive development, and CIMC Offshore Engineering’s business anchored its goals and advanced efficiently, with various core indicators continuing to rise. As of the end of September, CIMC Raffles, the main operating entity of the offshore engineering business, hit an all-time high in the values of newly signed orders. The accumulated value of orders on hand increased by 42% year-on-year to USD7,400 million, “locking in” high growth expectations ahead of schedule. 

In addition, CIMC adheres to the vitality of innovation and actively develops innovative businesses and emerging fields. In the first three quarters, CIMC continued to explore business model innovation in the cold chain logistics business, and proactively cultivated new drivers of growth in the incremental markets such as biomedicine and medical devices; in terms of the energy storage technology business, CIMC insisted on facing difficulties and taking a step forward, innovating internally, expanding the market externally, and striving to achieve high-quality development “from inside to outside”. In addition, in the field of modular construction business, CIMC strengthened its in-house research and development capabilities and promoted product innovation, pioneering a new development trend of the construction industry. 

With the continuation of international trade and the in-depth development of global energy transformation, the logistics and energy equipment industries still have a broad space for development. Looking ahead, CIMC will continue to keep abreast of the national strategic guidance and accurately grasp the direction of market development. Guided by the strategy of “accelerating the construction of new growth drivers and focusing on promoting high-quality development”, it will firmly grasp the comprehensive quality improvement of its core manufacturing business, accelerate breakthroughs in the exploration of emerging fields, and constantly consolidate its leading position in the industry to create more value for shareholders and society.