Performance for FY2014

(in million yuan)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of Change (%)	Factors
Sales	79,637.16	58,311.71	36.57%	-Revenue growth is due to the new consolidation of KION Group AG in 2014.
Operating profit	6,590.05	4,456.25	47.88%	-The Company's profits increased driven by sales increased.
Ordinary profit	6,965.70	4,608.75	51.14%
Net profits	5,784.50	3,817.64	51.52%

-The Company announced its diesel engine production and sales results for 2014. The Company sold 452,329 units, taking a 14 percent of the automotive diesel engine market. Meanwhile, it produced 441,676 units, capturing a 13.8 percent share. The Company took second place in the Chinese market in both segments. (From news releases issued by multiple sources on January 16, 2015)

Recent Development of Subsidiary

-In November 2014, the Company announced that Linde Hydraulics, its Germany-based subsidiary, is constructing a new plant at the Weichai Industrial Park in Weifang, China. The new plant would produce high-end hydraulic components. (From a press release on November 19, 2014)

Contracts

-Shaanxi Hande Axle Co., Ltd., a subsidiary of the Company, announced that it has supplied its axles for new-energy city buses operating in a number of cities.
The following are delivery records during 2014:
-June: axles for 900 buses in Shijiazhuang City
-July: axles for 200 buses in Handan City
-August: axles for 45 buses in Wuhan City
-October: axles for 176 buses in Yangzhou City
-November: axles for 60 buses in Jiaozhou City
(From a press release on December 10, 2014)

-The Company announced that its WP12 diesel engines are used on 20 sightseeing buses built by Weichai Asiastar Bus, a subsidiary of Weichai Holding Group Co., Ltd. These 20 buses would be delivered to a tour bus company by the end of December 2014. (From a press release on November 21, 2014)

-In November 2014, the Company announced that it has signed a strategic partnership agreement with Shunde Transportation Co., Ltd. Shunde Transportation is a bus company. Weichai Power's 4.98-liter WP5 engines, 6.75-liter WP6 engines, and 7.14-liter WP7 engines would be used on Shunde Transportation's diesel buses. (From a press release on November 17, 2014)

-The Company announced that it supplied WP3 high-performance small engines for Jianghuai Automobile's Shuailing light trucks. (From a press release on September 24, 2014)

Acquisition

-The Company announced that Weichai Power (Luxembourg) Holding S.a.r.l., its wholly owned subsidiary, would acquire 4.95 percent of KION Holding 1 GmbH shares from Superlift Holding S.a r.l. for EUR 186.9 million. When the transaction is completed, Weichai Power will indirectly own 38.25 percent of KION shares. (From an announcement by the Company on March 30, 2015)

Strategic Cooperation

-The Company announced that Linde Hydraulics, its German subsidiary, has signed a strategic partnership agreement with PMP Industries of Italy. (From a press release on May 20, 2014)

-In May 2014, the Company announced that it signed an agreement with Beiqi Foton to collaborate on developing trucks at Beijing Foton Daimler's factory in Huarou, Beijing. The two companies would jointly develop heavy-duty trucks compliant with China V and China VI emissions standards. (From a press release on May 4, 2014)

-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)

Awards

-Zhuzhou Torch Spark Plug Co., Ltd., a subsidiary of the Company, announced that it has received the 2014 Excellent Supplier Award from both Haima Car Co., Ltd. and Dongfeng Nanchong Automobile Co., Ltd. (From press releases on March 18, 2015)

-Zhuzhou Torch Spark Plug Co., Ltd., a subsidiary of the Company, announced that it has received both the Ford Q1 Award and the third prize of the Changan Ford Quality Award.(From a press release on September 25, 2014)

Business Plan for Next Year

-In 2015, the Company plans to reach CNY 101.6 billion sales, 28 percent increase than previous year. (From the Company's 2014 annual report)

R&D Expenditure

	FY ended Dec. 31, 2014  (million yuan)	FY ended Dec. 31, 2013  (million yuan)	FY ended Dec. 31, 2012  (million yuan)
R&D Expenditure	3,355.73	2,517.38	1,996.30
Ratio of R&D expenses to operating income	4.21%	4.32%	4.14%

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)

New Products

-The Company has announced its WE61 hybrid powertrain system. The new powertrain, which uses a two-motor series-parallel hybrid system, is suitable for city buses. The system consists of a WP7 engine, a 90kW integrated starter generator, and 105kW drive motors. A 12-meter test bus powered by the WE61 system could speed up from 0 to 50 km/h in less than 22 seconds. It consumed less than 21 liters of fuel per 100 km. (From a press release on February 4, 2015)

-The Company announced three new engines, namely the WP2.1, WP3, and WP4.1 engines, for light-duty trucks on January 19, 2015. The WP2.1 engine for mini- and small-trucks features low speed, low-fuel consumption, low emissions, and low noise. The WP3 engine is designed to offer excellent driving performance and superior riding comfort for China-made high-end mini commercial trucks with a wheelbase of 3.3 meters. The WP4.1 engine is an advanced version of a 97kW China IV engine with a maximum torque of 400N.m. The new engine delivers 115kW and produces maximum torque of 520N.m. It is suitable for light- and medium-duty trucks and dump trucks. (From a press release on January 21, 2015)

-The Company announced the fourth generation of its Landking engines, including the WP12NG flagship engine and the WP10 4-valve diesel engine. The WP12NG engine, based on the Landking WP12 diesel engine, uses new cylinder heads, pistons, and valves that can support natural gas fuel. The engine's new electronic control system improves the vehicle's driving performances and fuel economy, while reducing failure rates and offering easy maintenance. The WP10 4-valve diesel engine is an upgraded version of the Landking WP10 diesel engine. It features 4-valve cylinder heads, newly developed intake and exhaust systems, and a newly designed front-end accessory drive. As it shares many components with the Landking WP10 diesel engine, it provides easy maintenance. (From a press release on January 20, 2015)

-The Company announced its WP13 engine, a new 13-liter engine for heavy-duty commercial vehicles. The WP13 was developed based on 12-liter WP12 diesel engines. The WP13 engine delivers 480hp-550hp and offers a maximum torque of 2,500N.m. Its performances compare with top-class internal combustion engines made by global manufacturers. The engine achieves rotational speed of up to 1,000 r.p.m. and offers powerful driving performances especially on uphill slopes. (From a press release on January 8, 2015)

-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)

Capital investment projects for FY2014

(in million yuan)

Project	Budget	Amount invested in 2014	Progress
Revamping production lines making steering products at Shaanxi Fast Gear Co., Ltd.	2,383.60	187.75	96.27%
Test Center construction of Weichai Power	942.31	1.01	98%
Revamping casting production lines at Weichai Power	2.97	68.52	98%