Kunming Yunnei Power Co., Ltd. Business Report FY ended Dec. 2023

Financial Overview

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	Rate of change	Factors
Sales	5,314.39	4,790.23	10.94%	-In 2023, facing the increasingly fierce commercial vehicle engine market, the company's R&D investment and sales expenses increased compared with the same period of the previous year, resulting in an overall increase in operating costs. The operating income generated by the company's daily operations was insufficient to cover operating costs and period expenses, and the net income was negative.
Operating income	(1,238.73)	(1,299.18)	-
Ordinary income	(1,238.21)	(1,297.97)	-
Net income	(1,258.57)	(1,308.56)	-

New companies

-The company established its Vietnamese service and accessory center. Located in Hoang Mai, Hanoi, Vietnam, the center comes with advanced service equipment and a professional service team. It opens up fast logistics channels for some urgently needed accessories, enabling same-day delivery in northern Vietnam and one-day delivery in central and southern Vietnam. Established on May 15 was the Yunnei Power Philippine service and accessory center. The company plans to establish 8 to 12 service and accessory centers outside China and staff the centers with professional service and technical support teams to serve the corresponding markets quickly and efficiently. (From a press release dated March 8, 2023)

Orders

-The company's G16 and G20 gasoline engines have been installed on commercial vehicles of mainstream brands such as JAC, Foton, SAIC, Shandong Kaima, Chengdu Dayun, Sichuan Nanjun, and Chongqing Qingling.

-The YN30NF natural gas engine developed by the company has been installed on vehicle manufacturers such as Foton, JAC, Dongfeng, and Nanjun.

R&D Expenditure

(CNY millions)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	FY ended Dec. 31, 2021
R&D expenditure	439.78	428.51	620.76
Ratio of R&D expenses to sales (%)	8.28	8.95	7.73

-As of Dec. 31, 2023, the Company has 326 R&D staff, accounting for 12.08% of the total staff.

R&D structure
-The Company has established a “one department and five center" framework, consisting of the Science and Technology Management Department, Kunming Technology Center, Information Center, Eastern Technology Center, Chengdu Gas Development Center and Shandong Technology Center. In addition, it has set up four R&D centers, one each in Kunming, Chengdu, Wuxi and Shandong.

Facility	Location	Services
Technology Management Department	Yunnan Kunming	R&D project management, technology management
Kunming Technical Center		Product engineering prototype development
Information Center		Information management
Chengdu Gas Development Center	Sichuan Chengdu	Natural-gas-engine development, off-road-vehicle development
Eastern Technical Center	Jiangsu Wuxi	Product design, aftertreatment assemblies, calibration of engines and complete vehicles, powertrain for New Energy Vehicles
Shandong Technical Center	Shandong Qingzhou	Development of engines for off-road vehicles

Patents

-As of December 31, 2023, the company held a total of 285 active patents in the engine field, including 193 utility model patents, 58 appearance patents, and 34 invention patents. (From the 2023 Annual Report)

CONTENTS

SERVICE

Saved List