Weichai Power Co., Ltd. Business Report FY ended Dec. 2013

Business Highlights

Performance for FY2012

(in million yuan)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of Change(%) Factors
Sales 58,311.71 48,165.39 21.07%


Operating profit 4,456.25 3,718.87 19.83%

 -The Company's profits increased driven by sales increased.

Ordinary profit 4,608.75 3,959.81 16.39%
Net profits 3,817.64 3,234.27 18.04%

-Weichai Power enjoyed strong sales of heavy-duty truck engines in January, with its market share reaching 29.99 percent, the highest in the market. The second place was taken by China National Heavy Duty Truck Group Hangzhou Engine Co., Ltd. with share of 14.28 percent, followed by DongFeng Cummins that held 14.18 percent. These top three companies seized a total of 58.45 percent of the market. Wuxi Diesel Engine Works (13.65 percent) was listed fourth, the Yuchai Group (13.3 percent) fifth, Donfeng Commercial Vehicle (7.47 percent) sixth, and Dalian Diesel Engine (4.47 percent) seventh. (From a press release, March 17, 2013)

New Order

-In March 2013, Zhuzhou Gear Co., Ltd., a subsidiary of Weichai Power, announced that it has reached an agreement with a construction vehicle manufacturer Sinoboom to collaborate on sales of reduction gears for ladder vehicles. On March 13, the company also concluded supply agreements with Zoomlion Heavy Industry and CAMC to deliver transfer cases for pumper trucks to these companies. (From a press release, March 16, 2013)

-In February 2013, Ricardo plc of the U.K. announced that it has reached an agreement with  the Company to collaborate on engine development. The two companies will carry out pre-concept studies on new engines ranging from in-line 6-cylinder engines to 16-cylinder engines. They aim to develop highly competitive products in terms of performance, fuel economy, durability and cost for the global market. (From press releases issued by multiple sources on March 4, 2013)

Off the Production Line

-In March 2013, Shaanxi Hande Axle Co., Ltd., a subsidiary of Weichai Power, held a ceremony to celebrate its 2 millionth axle assembly coming off its production line at the Xian Plant on March 22, 2013. Over the next five years, the subsidiary aims to increase its yearly revenue to 10 billion yuan by selling more than 800,000 axles. (From a press release, March 25, 2013)

Pass the Test

-In January 2013, Zhuzhou Torch Spark Plug Co., Ltd., which is a subsidiary of the Company, won the Ford Q1 Award for its advanced quality management capabilities. The company also passed the automaker's Manufacturing Site Assessment (MSA) and its Materials Management Operations Guideline (MMOG). Such achievements qualify Zhuzhou Torch Spark Plug to serve as a global supplier to Ford. (From a press release on January 22, 2014)

-In November 2013, Zhuzhou Torch Spark Plug Co., Ltd., a subsidiary of the Company, announced that Zhuzhou Torch Automobile Seals Co., Ltd. has passed testing by ASC Industries Inc. This qualifies Zhuzhou Torch Automobile Seals to serve as a global supplier to the U.S.-based manufacturer. Nineteen water seal products made by Zhuzhou Torch Automobile Seals have already been approved by ASC. (From a press release on January 22, 2014)

-In November 2013, Zhuzhou Gear Co., Ltd., a subsidiary of the Company, announced that it has passed a testing by Linde Hydraulics. The company has thereby obtained the qualification to supply its products to Linde Hydraulics. (From a press release on December 2, 2013)

Strategic Cooperation

-Weichai Power Co., Ltd. announced that it has formed a strategic partnership with Jianghuai Automobile. The two companies will closely collaborate on the development and production of automotive components. In addition, Weichai Power will develop engines for Jianghuai Automobile's heavy-duty trucks. (From news releases issued by multiple sources on January 15, 2014)

-In April, 2013 Weichai Power announced that it has signed a brand promotion agreement with Ferrari’s Formula 1 team. Prior to this, on February 1, the company had entered a four-year sponsorship agreement with the team. The two companies are going to expand the scope of collaboration further, intending to increase areas such as R&D and sales. (From a press release, April 16, 2013)

Business Plan for Next Year

-In 2014, the Company plans to reach CNY 64.1 billion sales, 10 percent increase than previous year. (From the Company's 2013 annual report)


R&D Expenditure

-The total R&D expenditure in 2013 was CNY 2,517.38 million, 26.10 percent increase over last year, accouting for 4.32% of the Company's sales

R&D structure

- The Company has R&D centers in China and Austria.

-In November 2013, Zhuzhou Torch Spark Plug Co., Ltd., announced that it started to construct a new testing laboratory. The laboratory will test new materials, check product designs, examine failure parts and ensure that new products satisfy various standards. (From a press release on January 22, 2014)

-In June  2013, Shaanxi Hande Axle Co., Ltd., which is a subsidiary of Weichai Power Co., Ltd., held a roof-sealing ceremony at its new technical center that is now under construction and scheduled to be completed by the end of 2013. The company is investing approximately 120 million yuan in this new facility built on 5,000 square meters of land. The total building area, including that of the office building and testing facility, will reach 11,000 square meters. (From a press release, June 8, 2013)

-In January 2012, Shaanxi Hande Axle Co., Ltd., which is the Company's subsidiary, announced that its three new axle products had passed the screening by the Economic Development Committee. The three technologies are the HDM7.5t steering shaft, the HDZ9.5t steering shaft and the HDZ10t hub reduction axle. These patented items received high evaluations from the specialists especially for their integrated architecture and weight-saving feature. (From a press release, January 16, 2013)

New Products

-Zhuzhou Torch Spark Plug Co., Ltd., a subsidiary of the Company, announced its new Flame series spark plugs. The Flame series is designed to help achieve quick engine start-up at low temperatures and to improve fuel economy. The Flame series product line consists of the Super Flame, the Rapid Flame, the Glaring Flame, and other types. The spark plugs can be used on 90 percent of all vehicles made in China. (From a press release on March 14, 2014)

-Shaanxi Hande Axle Co., Ltd., a subsidiary of the Company, announced that it has developed three types of new axles: a power axle; a steering axle for 35-ton machines; and an axle for low-floor buses. (From a press release on January 24, 2014)

-In January 2014, Weichai Power Co., Ltd. announced two new diesel truck engines: the WP10 4-valve diesel engine for trucks including dump trucks and trailer trucks; and the Landking WP12 4-valve natural gas engine. The WP12 engine uses new cylinder heads, pistons and valves developed exclusively for natural gas fuels. (From a press release on January 14, 2014)

-The Company exhibited nine engines of its WP series at the China Beijing International Exhibition on Buses, Trucks & Components which was held from May 22 to May 24, 2013 in Beijing. Weichai Power’s engines- WP5NG, WP6NG, WP7NG, WP10NG and WP12NG, are the natural gas engines which meet China IV and V emissions standard and suitable for various automobiles including urban public buses, heavy-duty trucks, and construction machineries. (From a press releases on June 5, 2013)

Investment Activities

Capital investment projects for FY2013

(in million yuan)

Project Amount invested in 2013
Revamping production lines making steering products at Shaanxi Fast Gear Co., Ltd. 495.11
Test Center construction of Weichai Power 138.19
Revamping casting production lines at Weichai Power 82.82
Technology transformation project of Shandong Huadong Casting Co.,Ltd 67.89
Pilot Plant Project at Weichai Power 55.12
New plant construction at Shaanxi Automobile Yulin East Special Automobile Co., Ltd. 50.77
Revamping production lines at Zhuzhou Gear 2.03
Phase II of Shaanxi heavy truck new base 81.89
Revamping production lines at Zhuzhou Plug 5.59
150,000 tons casting project of Jinding new plant 153.16
Joint three-workshop project of Fast Gear 9.52


Domestic Investment

-In September 2013, Zhuzhou Torch Spark Plug Co., Ltd., a subsidiary of the Company, began operation of its new ceramic insulator production line. The new production line was established in the first phase of the company’s CNY 43.46 million expansion project, which is being carried out in two phases. The ceramic insulators produced at the new facility will be used in high-performance spark plugs. The planned annual production capacity is 100 million units. (From a press release, September 29, 2013)

Overseas Investment

-The Company announced that Linde Hydraulics, its German subsidiary, held a ground-breaking ceremony for its new plant in Aschaffenburg, Germany. The plant will be built on 70,700 square meters of land. It will have a large-scale R&D center, which is three times larger than the existing development facility. The Aschaffenburg unit will also perform administrations and sales. The facility is expected to be completed and start production at the end of 2015. (From news releases issued by multiple sources on October 16, 2013)