With Innovation-driven Quality, Sustainable Development, Wuling Motors(00305.HK)Returns to Profitability in 2022
Amidst changes in its internal and external environments, Wuling Motors Holdings Limited (the “Company” or “Wuling Motors”,Stock Code:00305.HK) has shown remarkable innovation in leading the way toward high-quality development. Today, the Company delivered impressive results for 2022, with annual revenue hitting RMB 12.596 billion (UOM in RMB, same below), effectively transforming losses into profits.
Innovation-driven Wuling Motors charts a new growth curve for 2022
Technological innovation, industrial upgrading and the continued impact of the pandemic have brought profound and far-reaching systemic changes to the automotive industry. The implementation of the national “dual carbon” strategy has brought about widespread changes in production and consumption methods.
Faced with innovation and change in the global automotive industry, Wuling Motors actively seeks breakthroughs to achieve high-quality development. On one hand, it persevered in maintaining and advancing its conventional business, leveraging its strengths in existing parts and engines, while also fostering enduring relationships with customers such as GWM and Foton. Additionally, it proactively explored fresh markets, placing a special emphasis on seizing opportunities in promising large markets like BYD, Chery, and Hozon. Through these efforts, the Company was able to maintain consistent performance, culminating in an impressive annual sales revenue of RMB 12.596 billion. In terms of automotive power business, the coordination of whole vehicle project R&D upgrades has driven a significant increase in business volume. This is primarily due to the Atkinson engine with a high thermal efficiency and hybrid powertrain, which achieved mass production status in 2022 and surpassed sales expectations for the entire year. As a result, Wuling Motors has received valuable assistance in transition and upgrading efforts from conventional fuel-powered vehicles to new energy alternatives. The vehicles’ power supply system division achieved mild growth with a revenue of RMB 2.896 billion and successfully turned from loss to profit.
On the other hand, technological innovation is vital to sustainable development. Wuling Motors is creating a brand new growth curve and striving to capitalize on the golden age of development for China’s independent auto parts companies while also restructuring the industry’s new model. In 2022, the revenue of the automotive components division reached RMB 6.048 billion. In particular, Wuling Motors continues to upgrade its new energy electric rear axle, motor, electric control, range extender, hybrid power system and other products, increasing product innovation and research and development to create core competitiveness. Equipped with independently developed smart driving system, Wuling “Space Cabin” has been delivered to customers. The Cabin has reached the L4 level of autonomous driving in specific areas and is getting closer to unmanned driving. The “three-in-one” production line of hot-air expansion, liquid-filling forming, and thermoforming has been applied, and multiple innovative projects such as high-performance and low-noise integral insertion bridge have passed acceptance, maximize the use of production capacity and improve production efficiency..
In terms of intelligent products, Wuling New Energy, newly established after the merger and restructuring of various divisions, currently has the most advanced and large-scale production facilities in the industry, covering an area of 550,000 square meters and with an annual production capacity of 200,000 vehicles. Wuling Motors has further increased its transformation from traditional production to intelligent production by introducing new automation technologies. In 2022, Liuzhou Wuling Motors Industrial Company Ltd. carried out independent reconstruction and rebuilding of 4 automatic production lines, established 12 small robot workstations, achieved automated production of 44 products, and increased the utilization rate of approximately 50 robots from less than 30% to over 70%.
Overseas business is also an important area for Wuling Motors to accelerate its layout in 2022. Wuling Motors has extended its products to leading global automotive countries such as Japan and the United States, becoming the first domestic vehicle company to export new energy-type trucks to the United States. In addition, Wuling sightseeing buses rank among the top in market share in Vietnam, and products such as golf carts have also been exported to Southeast Asian countries.
Wuling Motors is quickening its step to become an “NEV manufacturer”, with a focus on green and low-carbon technology
With the acceleration of “electrification” in automobiles, Wuling Motors leverages new energy core components and new energy logistics vehicles to promote the entire group’s transformation towards a NEV manufacturer.
At the same time, the “green” concept has been deeply ingrained in the development marrow of Wuling Motors, implementing low-carbon production processes and promoting the progress of new energy products, all of which are active explorations in the context of green and low-carbon development.
Specifically, in addition to incorporating green elements in infrastructure construction, management system building and energy resource investment, Wuling Motors continues to practice automation production and intelligent manufacturing, actively developing clean production by using multiple robots on the production line and implementing automated painting; constructing a green supply chain from green production, supplier management, green logistics, green recycling to green packaging; in the product design process, considering the resource, energy consumption, and environmental impact throughout the entire production cycle from raw materials, components and vehicle production to the production waste recycling, to achieve green manufacturing.
The road to green development in the automotive industry, paved by conventional automobile manufacturers, relies mainly on two paths: replacing conventional fuel vehicles with new energy vehicles and utilizing low-carbon energy. These approaches are crucial in reducing carbon emissions in transportation. Wuling Motors’ launch of new energy logistics vehicles, pure electric patrol cars, pure electric sightseeing buses and 5G smart driving sightseeing buses exemplifies its commitment to green transportation.
Regarding carbon emission reduction, Wuling Motors achieved a significant reduction in 2022 by using 4,447.64 MWh of clean photovoltaic energy. This resulted in a decrease of 1,779 tons of standard coal consumption, 2,584 tons of carbon dioxide emissions, 133 tons of sulfur dioxide emissions, and 66 tons of nitrogen oxide emissions. As a result, Wuling Motors made history as the first certified enterprise in Guangxi for its carbon emission management system. Wuling Motors aims to jointly promote the construction of a community with a shared future for mankind, creating a new ecology of green, low-carbon development that prioritizes sustainability and environmental protection.
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