Guoxin: Weichai's performance will maintain steady growth

Performance is basically in line with expectations

In 2010, the company achieved a revenue of 63.28 billion and a net profit of 6.78 billion, a year-on-year increase of 78.1% and 99.0% respectively, equivalent to EPS 4.07 yuan, and the results were in line with expectations. Net operating cash flow per share increased by 257.5% year-on-year to RMB 5.22 per share, and a cash deposit of RMB 4.30 was proposed for every 10 shares.

The three major sectors are performing together with excellent sales performance

During the reporting period, the company sold 414,000 heavy-duty engine engines, 141,000 engineering-engine engines, 100,000 heavy-duty trucks, and 852,000 gearboxes, an increase of 83%, 72%, 71%, and 60.2% year-on-year, respectively. Sales performance significantly exceeded that of the industry. On average, the share of heavy trucks and construction machinery engines in the segmented market increased by 5.1 and 4.8 percentage points, respectively. Shaanxi Heavy Duty Truck overtook Foton Motor to become the fourth largest heavy truck industry, and the company’s overall sales performance was excellent.

Profitability steadily rises

New engine-wide net profit: In 2010, the company's engine business had a net profit of approximately 5.77 billion yuan, accounting for 85% of the company's net profit, and a single-unit net profit of approximately 10,400 yuan, which was higher than the level of 1H10 9300 yuan. In 2010, sales of the heavy truck industry were blowouts, resulting in the company's engine. A single net profit hit a record high.

Cost Savings Increased Profitability: The company's gross profit margin remained basically stable, and the three expense ratios totaled 1.2 percentage points, of which the administrative expense ratio decreased by 0.8 percentage points, reflecting the company’s excellent management and control capabilities.

In 2011, the company will continue to maintain steady growth

In 2011, the heavy truck industry was strong in construction vehicles and logistics vehicles were weak, while the prosperity of construction machinery remained high. It is expected that the company’s heavy truck and transmission business growth will slow down, while the proportion of the largest engine business will benefit from the demand for engineering machinery and engineering heavy trucks, and the company as a whole remains strong. It will maintain steady growth.

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