Wuling Motors (00305.HK) Achieves a Surge of 115.6% in the Net Profit Attributable to Shareholders f

Wuling Motors (00305.HK), a leadingmanufacturer of automotive components and commercial vehiclesassembly in China, announced its full-year results for 2024 on March 25. Driven by the increased proportion of sales from high-margin products in the automotive components and other industrial services division, Wuling Motors recorded a net profit of approximately 111million yuan (RMB, same hereinafter) for 2024, representing a 60.2%year-on-year increase. The profit attributable to the owners of the company surged by 115.6%year-on-year to 50.62million yuan.

Core Business Growth Exceeds Expectations with Multiple Notable Breakthroughs in Incremental Markets

In 2024, Wuling Motors achieved revenue of 7.95billion yuan, with the automotive components and other industrial services division, the vehicles’ power supply systemsdivision, and the commercial vehiclesassemblydivisionaccounting for 69%, 22% and 9%, respectively.

Specifically, the automotive components and other industrial services divisionrecorded revenue of approximately 5.46billion yuan. The increase in the proportion of high-margin product sales, coupled with higher government subsidies, led to an operating profit of approximately154million yuan, representing a 68.3% year-on-year surge.

In 2024, Wuling Motors focused on deepening its existing business with its key customer-SAIC-GM-Wuling, while actively expanding externally. Itsuccessfully secured component supply transactionsfor multiple new vehicle models, serving as the exclusive supporting supplier for products such as electric seat switches and combination switches.

Meanwhile, Wuling Motors pursued multiple breakthroughs in external markets, actively expanding its power battery product offerings and securing incremental market opportunities with OEMs such as Dongfeng Mengshi, FAW Jiefang, Chery Automobile, and Geely Automobile.

A newly constructed and operational base in Jingmen, Hubei has seized the opportunity presented by Great Wall Motor’s production ramp-up to maintain rapid growth. In 2024, the base achieved revenue of approximately 729millionyuan, representing an exceeded 100% year-on-year increase; In terms of product development, the company completed the expansion of its second ultra-high-strength steeltube thermoforming production line within the year and successfully secured incremental customer orders from Great Wall Motor and BYD.

Furthermore, Wuling Motors has successively undertaken the production of SAIC Maxus rear axles, BYDFinDreams Powertrain spiral bevel gears, and Dola Vehicle subframes, among other components, with the cumulative production and sales volume of new energy vehicle rear axles exceeding 1.5 million units. At the same time, Wuling Motors has actively capitalized on emerging opportunities in the new energysupporting market, successfully developing and optimizing products such as the new generation of new energy electric rear axles, integrated three-in-one motors andelectric controlsystems, range extenders, power supply systems, and differential locks. Multiple new energy electric car axles have been successfully supplied for the electric drive axle and range extender projects of Great Wall Motor, JAC, and others. Notably, the first commercially deployed axial electric drive axle for theChangan Kaicenemarket has entered mass production.

For the automobile power supply systemsbusiness, the division’s revenue for 2024 was approximately 1.74billion yuan. Throughout the year, the power supply systemsdivisionmaintained proactive communication with customers and enhancedits ability to manage planned orders, taking measures to reduce inventory and improve efficiency while ensuring customer demand was met. The casting business broke through adversity, continuing to expand its growth points, and successfully securing new market supply orders from the customer Changyuan HeroCity, with the division’s total casting sales reaching 1.18million units for the year, representing a 25% year-on-year increase.

In addition, relying on the project platform management advantages, Wuling Motors’ power supply systemsbusiness focusedon core projects such as the H15TD+DHT hybrid assembly architecture platform, the integrated three-in-one electric drive system, and high-pressure casting, to promote the construction of new energy projects with customers such as Skyworth, DFLZ, Zoomlion, and Senptec Electronics. It actively developedthe new energy customer market with companies such as JAC, YC SIMLAN, Hebei Zhongxing, Geely Farizon, Chery Commercial Vehicles, Xpeng Motors, and Leapmotor. At the same time, it seizedopportunities in overseas markets, with a focus on advancing projects such as the LJ481Q6 matching JAC M4 export (to Gulf countries), the overseas CLT flexible fuel hybrid project, and the Wuling Technology MSR project, to lay a solid foundation for overseas development.

The commercial vehicles assemblybusiness recorded a revenue of approximately 718 million yuan in 2024. Benefiting from the implementation of cost control measures, the operating profit reached approximately 75.92million yuan. In line with the company’s strategy, the division continued to seek business breakthroughs in high-value-added niche markets.

The development of the new energy vehicles business from the joint venture Wuling New Energywas favorable in 2024, achieving sales of over 14,000 units, a year-on-year increase of over 41%,and generating revenue of 1.02 billion, a year-on-year increase of 29.5%. Within the year, Wuling New Energy launched multiple products, and the Golden Mini Truck, which was launched in November, ranked third in the market for micro-small trucks with single rear wheels, positioning it among the top in the commercial vehicle market. Overseas, more than 800units were exported to Japan and South Korea, representing a 58% year-on-year increase.

Fully Supporting the Group’s Automobile Industry Ecosystem through New Growth Engines Created by Transformation and Upgrading

While actively developing its core business, Wuling Motors is also undergoing continuous transformation and upgrading to expand into new businesses and foster new growth momentum. In 2024, Wuling Motors increased its investment in R&D to accelerate the development of its new energy business. The company also established an innovation center in Hong Kong and signed cooperation agreements with Hong Kong Polytechnic University, The Chinese University of Hong Kong, and the Hong Kong Applied Science and Technology Research Institute’s XR intelligent project to build an innovation ecosystem.

2025 marks the inaugural year of the “LINXYS Project”, formulatedby Guangxi Automobile Group Co., Ltd.,the parent company of Wuling Motors, for the entire group. Guangxi Automobile Group plans to increase investment between 2025 and 2027 to fully promote the development blueprint centered around the “LINXYS Project” and the “131Strategy”.

The “131 Strategy” refers to 1complete vehicle brand – the creation of the “Linxys” new energy vehicle brand; 3national-level manufacturingchampions: the national champion in small and medium displacement energy-efficient hybrid power systems, the national champion in lightweight drive axles, and the national champion in automotive frames; 1automotive industry ecosystem: anautomotive ecosystem led and operated by Guangxi Automobile Group.

Mr. Yuan Zhijun, Chairman of Wuling Motors’boardof directors, stated, “The company will actively cooperate with Guangxi Automobile Group to accelerate the implementation of the ‘Linxys Project’plan, speed up the conversion and application of scientific research results, improve the product portfolio, enhance product quality, actively expand domestic and overseas markets, and provideusers with more valuable and environmentally friendly products. Under the leadership of the ‘LinxysProject’, the company is confident in achieving stable and positive operating resultstoallow shareholders to share in the development achievements.”