Weichai Power’s 2007 annual report has made a strong impression on the market, offering a glimpse into its impressive financial performance and strategic growth. The company reported a basic earnings per share (EPS) of 4.42 yuan, marking one of the highest per-share profits among listed companies in China. This figure highlights the company's robust profitability and solid market position.
In 2007, Weichai Power achieved significant revenue growth, with main business revenue reaching 29.3 billion yuan, up 313% year-on-year. Total profit reached 3.28 billion yuan, while net profit stood at 2 billion yuan, reflecting a 173% increase from the previous year. The EPS rose by 96% to 4.42 yuan, and the net assets per share reached 12.26 yuan. The return on net assets (after deduction) was an impressive 32.3%, placing the company at the top of its industry in terms of financial performance.
So, what drove such high-growth performance for Weichai Power, a traditional machinery company? A key factor lies in its comprehensive industrial integration. Following the acquisition of Weichai Power Co., Ltd. on April 30, 2006, the company built one of the most complete and integrated industrial chains in the automotive sector. It covers three major segments: powertrain, vehicle, and auto parts. This vertical integration allowed Weichai to leverage its core strengths, particularly in powertrain technology, which became even more prominent in 2007.
In that year, Weichai Power sold 244,886 engines, a 67.9% increase compared to 2006. Among these, 151,376 were heavy-duty engines, up 88.1%, and 85,073 were used in construction machinery, rising by 43.7%. Transmission sales also surged, with 430,183 units sold, a jump of 86.1%. Additionally, the company sold 60,020 heavy trucks in Shaanxi, showing a 96.5% year-on-year increase—marking two consecutive years of double-digit growth. This performance far exceeded the industry average, which saw 58.6% growth in heavy-duty vehicles and 31% in construction machinery.
As a leading automotive components group with a full range of powertrain resources, Weichai Power holds several top-tier brands, including China’s number one engine, transmission, and heavy-duty axle brands. These products enjoy strong market recognition and competitive advantages.
Beyond its industrial integration, Weichai Power has also benefited from a harmonious market structure. In recent years, the company has formed strategic alliances with R&D institutions, sales customers, and key component suppliers through its “chain innovation†strategy. This approach has enabled Weichai to focus on technological innovation, market expansion, and brand development.
In 2006, Weichai Power launched the Weichai Power Products R&D Community, bringing together 32 top component suppliers to collaborate on engine and component development. The company also partnered with Bosch of Germany to develop advanced fuel injection systems for high-power, high-speed diesel engines. This collaboration marked the beginning of Weichai’s engagement with global auto parts leaders, aiming to access cutting-edge technology and capture high-end engine markets like EU III and beyond.
On the customer side, Weichai Power has established strategic partnerships with major players in the domestic heavy truck and loader industries. Its broad and stable customer base has reinforced its leadership in both the heavy truck and large construction machinery markets.
In terms of R&D, Weichai has partnered with world-renowned engine research institutions to track and develop leading technologies and market products. The company also set up an R&D center in Europe and invested heavily in research and development. The successful launch of the Lanqingguo III and China IV engines further demonstrated its R&D capabilities and forward-thinking approach based on international technology standards.
With such a strong foundation in industrial integration, R&D, and strategic partnerships, Weichai Power is well-positioned to continue its rapid growth and maintain its leadership in the Chinese automotive industry.
Tung Oil
Tung oil is divided into raw tung oil and cooked tung oil. Raw tung oil is used in medicine and chemical industry; Cooked tung oil is processed from raw tung oil, which can replace varnish, paint and other coatings. It can be directly used for machine maintenance, indoor wooden floors, wooden ceilings, sauna boards, wooden balcony handrails, etc; Outdoor wooden floors, flower racks, wooden houses, pavilions, fences, wooden bridges, boats, chairs, wooden agricultural tools, etc. Tung oil is a mixture of fatty ACID triglycerides. Tung oil and wood oil have red color, golden yellow or yellow color, which are good dry oils.
Visually, cooked tung oil is thicker than raw tung oil, and the color is dark brown. There are two kinds of cooked tung oil, one is mature pure tung oil, the other is mixed mature tung oil.
Tung oil is the main raw material for making paints and inks. It is widely used as waterproof, anti-corrosion and antirust coatings for buildings, machinery, weapons, vehicles, boats, fishing gear and electrical appliances, and can be used to make oilcloth, oilpaper, soap, pesticides, medical vomitus, pesticides, etc.
Tung Oil,Tung Tree Seed Oil Press,Pure Tung Oil
HENAN JINHE INDUSTRY CO.,LTD , https://www.jinhetec.com