Weichai Power Announces 2021 Interim Results

HONG KONG,Aug.30,2021 --Weichai Power Co.,Ltd. ("Weichai Power" or the "Company"; stock code: 2338.HK,000338.SZ) is pleased to announce the reviewed financial results of the Company for the six months ended 30 June 2021(the "reporting period") in accordance with Chinese Accounting Standards.

Highlights of 2021Interim Results:

(RMBmillion)

For the six monthsended 30 June

Change

2021

2020

（%）

Revenue

126,388

94,495

33.8%

Net Profit Attributable to Shareholders of the Parent

6,432

4,680

37.4%

Basicearningspershare (RMB)

0.80

0.59

35.2%

In the first half of 2021("1H2021"),Weichai Power seized the opportunities,improved quality and efficiency,and performed well with various great operating indicators. The leading role of several business in the industry has become more and more stable. The contribution of overseas operation has increased significantly. The new energy,new science and technology,and new business continuously makes breakthrough. The industrial structure,business cycle structure and regional structure are further optimized with continuously increasing anti-risk ability and comprehensive competitiveness.In the 1H2021,the Company's revenue amounted to approximately RMB126,388 million,representing a year-on-year growth of approximately 33.8%. Net profit attributable to the shareholders of the parent amounted to approximately RMB6,432 million,representing a year-on-year growth of approximately 37.4%. Basic earnings per share was approximately RMB0.80.

Marketshare increased steadily,Powertrain business maintained strong development momentum

The Company sped up the pace of key technological breakthroughs and led the industrial transformation and upgrade.During the reporting period,the Company's powertrain business hit another record high: sales volume of engines increased year-on-year by 42.8% to 671,000 units; sales volume of gear boxes increased year-on-year by 32.4% to 802,000 units;sales volume of axles increased year-on-year by 19.5% to 638,000 units.

The Companyfocused on segment markets to consolidate the competitive edges for full series of products. Sales volume of heavy-duty truck engines was 339,000 units,representing a signifcant growth in market share by 3.2 percentage points to 32.4%;China VI engines sales ranked top in the industry,with a year-on-yeargrowth of 108%;Sales volume of off-road enginies was 177,000 unitswith a year-on-yeargrowth of 43.1%,outpacing thegrowth of road erigines. At the same time,high-end strategic products continued to develop,with sales revenue of large-boreengines achieving RMB520 million,representing a year-on-year growth of 24.2%. High-end hydraulics has a comprehensive layout of medium and large tonnage excavators,with outstanding performance advantages and rapid market promotion. In the 1H2021,domestic revenue wasRMB290 million,representing a year-on-year growth of 27.3%.

Pursue develop with full force,new energy businessachieved successive breakthroughs

Master key technologies and takelead in industry development. The strategic cooperation with Switzerland-based FISCHER Spindle Group Ltdfurther extended the vertical layout of fuel cell industrial chain,strengtheningthe core competitiveness of fuel cell powertrain. The Company built an internationally advanced industrial park which integrates functions including R&D,testing,inspection and trial production,providing comprehensive industrial chain testing capability covering aspects including "basic materials - single cell - stack - key components - fuel cell engines -power system -complete vehicles" of hydrogen fuel cell. In March 2021,the National Fuel Cell Technology Innovation Center contracted by Weichai Power was approved.

By giving full play to advantages and steadily promotingcommercial application,Weichai Powerhas achievedsubstantialbreakthroughs in products of the three technological routes.During the reporting period,PHEV new products were launched and batch orders were obtained; HDT equipped with the Company's 160kW fuel cell system completed cold zone test; The power batteries have been applied in high-end market segments such as aerial work platform vehicle,airport tractor,forklift truck,and have achieved batch export; Weichai's new energy power system is equipped with the world's first pure electric bulldozer.

Seized the opportunity,HDT business continuedto optimize products and market structure

By upholding a strategy driven by complete vehicles,pursuing innovation-driven development and seizing the opportunity of China VI,Weichai Power consolidated its leading advantage. Focusing on customers' demand and keeping up with the upgrade of laws and regulations,Shaanxi Heavy-duty Motor Company Limited (陕西重型汽車有限公司),acontrolling subsidiary of the Company,promoted the adjustment and optimisation of its product structure. In the 1H2021,117,000 heavy trucks were sold,up 32.4% year on year,among which logistics vehicles accounted for 61%. The Company continued to maintain the industry's leading edge in the segment markets of tractor economic market,port tractor market,and sand and gravel transportation market.

Increased contribution,intelligent logistics raises the outlook for2021

Benefitting from the recovery of industrial trucks & services and the continuous growth of supply chain solutions,KION Group AG ("KION"),an overseas controlling subsidiary of the Company,has delivered an outstanding performance in various operating indicators,with a significant increase in its contribution to net profits attributable to the parent. KION achieved sales revenue of EUR4,968 million,representing a year-on-year growth of 26.5%. In particular,the revenue from the business of supply chain solutions (represented by Dematic Group) had a substantial year-on-year increase of 52.8%. A net profit of EUR290 million was realised,representing a year-on-year growth of 4.8 times. As global economy recovers,KION's upturn in revenue looks set to continue for the remainder of the year. The target figure for consolidated revenue is in the range of EUR9,700 million to EUR10,300 million,with an increase of 16%-23% year-on-year.

Leaping development enabled by technology independence

In the second half of 2021,Weichai Power will focus on its 2030 strategy,make good use of the new opportunity of China VI,accelerate technology upgrades and promote products to high-end,give full play to the advantages of vehicles and engines,and increase engine market shares. Weichai Power will also support the recovery of intelligent logistics and the implementation of its Asia-Pacific strategy,accelerate the promotion of new energy and intelligent networking,significantly improve the performance contribution of hydraulics,large-bore engines,etc.,and promote new breakthroughs in structural adjustment.

About WEICHAI POWER COMPANY LIMITED

Weichai Power (Stock code: 2338.HK,000338.SZ) was founded in 2002. It is one of the most comprehensive automobile and equipment manufacturing industry groups in China. It owns Shaanxi Heavy-duty Motor Co. Ltd.,Shaanxi Fast Gear Co. Ltd.,Zhuzhou Torch Sparkplugs Co.,Ltd,KION Group AG,Linde Hydraulics GmbH & Co. KG,Dematic,and other dozens of high-quality companies in a cluster,which building a new pattern of coordinated development by the three industrial sectors--complete vehicle,powertrain,intelligent logistics and forming the most complete and competitive industrial chain in the national automotive industry.The company was listed on the main board of the Hong Kong Stock Exchange on March 11,2004,and returned to the mainland A-share market on April 30,2007.

This press release is issued by Wonderful Sky Financial Group Ltd. on behalf of Weichai Power Company Limited