The production and sales step up to the level of 15,000 units per month of the group

Corporate news      Author:      Date:2008-04-02

Following the breakthrough of 10,000 units produced and sold in 2007, CNHTC keeps the trend of fast development.  According to the statistics of production bulletin, the group produced and sold 32,586 units in first three months this year, an increase of 41%, which indicates a new stage of increase of production and sales.  From January to March, CNHTC realized three “digital ONEs”, the sales of 10.6 billion yuan, 15,000 units produced and sold per month, which is the highest in domestic heavy truck industry, and 100 million USD collected from export in March.  Every target increased 40% from same period last year.

This year CNHTC aims at producing and selling 125,000 units, and striving for the number 135,000 units, with sales 45 billion yuan.  To assure the accomplishment of the target, in late half of last year, CNHTC started overall updating of products with emphasis on meeting requirements of energy saving and pollutant reduction and government regulations.  At the beginning of this year, the product “Variant 2008” was launched and soon accepted by the market.  In January and February, the volume of production and sales is 175,000 units.  For the production in March, the number of order received reached 31,249 units so that the situation is red-hot for the capacity is not able to meet the demand.  In January, the low temperature and icy snow storm in south China caused difficulties that made the delayed delivery of parts and components to CNHTC, and the finished product to the customer; with scientific organization, careful control, the group minimized the impact brought about by the icy snow storm.  In the mean time, facing the factor of price increase of raw materials like steel, the group took active measures to reduce the cost and keep the product price stable, which the market actively recognized.  The first quarter saw a good beginning that has laid good foundation for CNHTC to accomplish the whole year’s target.

In November 2007 Sinotruk was successfully listed as red-chip stock on Hong Kong market, and then CNHTC put forward: to convert the capital advantage into the scientific development advantage, the market competitiveness advantage and comprehensive strength advantage of the company.  With the emphasis on enhancing the production capacity and process level of component manufacturing, in the first quarter, CNHTC finished technical renovations equivalent to 500 million yuan.  The two lines have been finished in Hangzhou engine plant and Jinan engine plant of CNHTC Power Division with the annual capacity up to 200,000 units.  The No.3 assembly line of Jinan Truck Company has been successfully put into production with the capacity increase nearly 50%.  The capacity for transmission production has increased to 50,000 units per yea.  The project for new forging facility has been in test stage and it will increase the capacity is largely.  The production capacity and the level of manufacturing process enhanced have created good conditions for CNHTC to do better in production and sales in the second quarter.

Correspondent  Guo Huanan