On October 24, 2025, Cimc Vehicles (301039.SZ) released its third-quarter report for 2025. In response to the complex and changing global economic environment, Cimc Vehicles is committed to high-quality development as a means of navigating uncertainties in external conditions. Through strategic focus and operational optimization, the company has maintained steady growth in its core business areas and continues to invest in the electric vehicle sector, showcasing its risk resistance capabilities and long-term growth potential. In the first three quarters of 2025, Cimc Vehicles sold a total of 101,583 various types of vehicles globally, achieving operating revenue of 15.012 billion yuan, with a gross profit margin of 15.2%. The net profit attributable to shareholders of the listed company reached 622 million yuan, and the net profit after excluding non-recurring gains and losses was 598 million yuan. Guided by the "Only Starlink" strategy, initial success has been seen in counteracting over-competition. From January to September 2025, the global semi-trailer business of Cimc Vehicles achieved sales of over 82,000 units, generating operating revenue of 10.692 billion yuan and contributing a gross profit of 1.797 billion yuan. Amidst a background of "involution" competition in the industry, Cimc Vehicles is making progress in counteracting these pressures with its "Only Starlink" strategy. In the first three quarters of 2025, revenue from Starlink semi-trailers and tank trailers in the Chinese market increased by 16.3% year-on-year, with a gross profit margin rising by 2.6 percentage points. The company has established a vision around the Starlink LTP Group, commencing the structural completion and acceptance of the Yangzhou Starlink LTP center. By focusing on production scheduling and the restructuring of internal delivery rules, it aims to improve the order delivery efficiency, achieving a 22% efficiency boost in the third quarter. At the same time, the company has further strengthened its capabilities in centralized procurement to ensure supply, streamlining collaboration across various LTP centers and enhancing the quality and efficiency of procurement work. The foundation for a unified national market has been further solidified with the establishment of the "Westward Campaign" integrated marketing service headquarters for semi-trailers and tank trailers targeting the Northwest to address over-competition. The LuZhou LoD has seen initial development, with the first batch of semi-trailers shipped from Yangzhou to LuZhou via the Yangtze River, marking a handshake in external and internal delivery, as construction of the Yangtze River freight platform enters a new phase. Steps are being taken to build multiple development centers and delivery service centers to achieve broader coverage, faster responses, and more precise services, promoting efficient resource collaboration and rapid customer demand response. Leveraging the successful experience from the "Starlink Plan," the company is deepening its strategic layout in global southern markets, continually investing in its semi-trailer business in southern regions. This includes greater resource allocation and the planning of LoM and LoD constructions in Vietnam, Indonesia, and Tanzania, enhancing joint marketing efforts and integrated operations in Africa, Southeast Asia, and Australia to boost operational efficiency. In the first three quarters of 2025, revenue from the global southern semi-trailer business grew by 15.79% year-on-year, with sales rising by 21.39% and gross profit margin increasing by 2.6 percentage points. In the European semi-trailer sector, Cimc Vehicles is actively taking measures to navigate challenges in the market. On the supply chain front, the company is establishing high-end chassis component factories (DS11) and high-end upper-structure component factories (DS10) in Europe to ensure stable supply of high-end components and the reliability of products and deliveries. In terms of sales, the company is focusing on resilient customer segments such as express delivery and retail, having secured key orders from several major clients. These strategic initiatives are helping to address current pressures while reshaping the company's core advantages in the shifting landscape. In the North American semi-trailer market, facing various complexities, Cimc Vehicles maintains strategic firmness, confidently enhancing the resilience of its global supply chain through the "Big White Bear Plan". The company aims to eliminate external disruptions by reinforcing its rapid-response mechanisms, deeply engaging in key regional market strategies, and fostering close value consensus with customers. The EV·DTB upper structure business continues to make strides in new energy, with group operations yielding results. In the first three quarters of 2025, Cimc Vehicles’ DTB business, through a group operational framework, achieved revenue of 2.333 billion yuan, expanding the sustained thrust of new energy products. Specifically, EV-DTB dust trucks sold 3,898 units, EV-DTB mixers sold 1,500 units, and EV-DTB refrigerated trucks sold 1,948 units, totaling 7,346 units. In each subsector, EV-DTB dust trucks are further deepening the "Starlink" business model, achieving integrated product development and high-quality delivery capabilities. The EV-DTB mixer business has established a three-tier closed loop of "steady start - rapid coordination - orderly integration" to ensure smooth transitions, rapid resource integration responses, and orderly restructuring of business processes. The EV-DTB refrigerated trucks are focusing on four strategic areas: improving production efficiency, innovating new energy products, building resilience in overseas markets, and coordinating internal resources to ensure steady progress toward high-quality annual development goals. Key breakthroughs are forming barriers, rapidly advancing the electric head trailer business. The electric head trailer business is evolving through a critical product development pathway from new energy heavy trucks to new energy traction heads and then to pure electric head trailers, achieving multiple critical breakthroughs along key operational milestones: The company completed the R&D and operational systems for the pure electric head trailer (EV-RT2.0), laying a solid foundation for product delivery and marketing; By focusing on heavy-load short-distance transport scenarios through forward-looking R&D, the technical platform for the short-wheelbase pure electric head trailer has been defined, resulting in validated prototype samples of the EV-RT2.0-7A dust truck and EV-RT2.0-MIX mixer; Simultaneously, four EV-T centers in the southwest region are piloting sales of new energy head trailers, with 321 orders already achieved. In November 2025, prototypes and operational support bases for the pure electric head trailer will have their global debut at the 2025 China International Commercial Vehicle Exhibition. Prepared to adapt and thrive in changing circumstances, the company is entering a new stage of high-quality development. The waves of uncertainty in the VUCA world are colliding with the tsunami of the BANI era, accelerating the great changes unseen in a century at an unprecedented pace. Old methods are failing, and new approaches are continually emerging. In this unfamiliar "adaptation zone," the company must adapt to new external environments and explore new development opportunities. Cimc Vehicles consistently employs a "defensive and offensive" strategic mindset to tackle challenges, continually building differentiated core competencies and deeply exploring value chains across all aspects of the Starlink semi-trailer business. Cimc Vehicles will continue optimizing its operational models and business transformation plans in North America, further solidifying the resilience of its global supply chain and strengthening its ability to withstand geopolitical risks. With a mindset of "traveling 20 miles a day," the company intends to forge ahead steadfastly in adversity. Cimc Vehicles will unwaveringly pursue the dream of "integrated pure electric head trailer products," addressing user demands across their entire lifecycle through "cross-lifecycle products." As it moves forward, the company will focus on three dimensions: "business model," "technology," and "application scenarios," collaborating with like-minded partners to jointly advance the construction and closure of the pure electric head trailer ecosystem.
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