Weichai Power (SZ000338) Smart Driving Business Analysis: Narrowing Losses, 155% Year-over-Year Profit Growth

Based on the information I have collected, I will now provide a detailed analysis of the performance of Weichai Power’s smart driving business for you.

Weichai Power has formed a collaborative layout of

in the smart driving field [1]. Specifically, it includes:

• Smart driving system development
• Smart driving domain controller R&D

• Smart driving agricultural machinery products
• Autonomous heavy-duty truck complete vehicles, covering multiple low-speed park application scenarios such as ports, industrial parks, logistics parks, and mining areas
• With the “Vehicle-Road-Cloud” as the overall architecture, fully independently realizes the integrated solution of “vehicle + smart driving + cloud control platform” [1]

Weichai Power conducts its smart logistics business through its holding subsidiary

, which is an important carrier for the implementation of its smart driving technology. KION Group consists of two major business segments:

1. Industrial Trucks and Services
   (forklift business, representative brands: Linde, Still)
2. Supply Chain Solutions
   (automated logistics systems, representative brand: Dematic)

[2][3]:

Indicator	2023	2024	First Three Quarters of 2025
Revenue of Supply Chain Solutions	€2.997 billion	€2.943 billion	€2.154 billion
Adjusted EBIT	€44.3 million	€112.9 million	€126 million
Adjusted EBIT Margin	1.5%	3.8%	5.8%

From the data, we can see:

• Substantial profit growth
  : The adjusted EBIT of the supply chain solutions business increased by
  155% YoY
  (from €44.3 million to €112.9 million) in 2024
• Sustained margin improvement
  : Surge from 1.5% in 2023 to
  5.8%
  in the first three quarters of 2025
• Continued improvement in 2025
  : The profit in the first three quarters of 2025 reached €126 million, exceeding the full-year level of last year

Technological progress of KION Group in the smart driving field [2][3]:

1. Center of Excellence for Automated Solutions
   (located in Belgium): Promotes the development of autonomous forklift and interoperable robot technologies
2. Smart Warehouse System
   : Builds a smart warehouse system integrating automated forklifts, smart cameras, automation and robot technologies
3. Physical AI Technology Application
   : The supply chain solutions business takes the lead in adopting physical AI technology
4. Localized Products
   : Launched Dematic Silky Sorting System and Feilong System tailored for Chinese customers

Weichai Power achieved the following in 2024 [4]:

• Operating revenue: RMB215.7 billion, representing a 0.8% YoY growth
• Net profit attributable to shareholders of the parent company: RMB11.4 billion, representing a 26.5% YoY growth
• Net profit attributable to shareholders of the parent company excluding non-recurring gains and losses: RMB10.5 billion, representing a 30.3% YoY growth

The company expects its sales revenue in 2025 to be approximately RMB226.5-237.3 billion, representing a 5%-10% YoY growth.

, mainly reflected in:

1. Continuous improvement in profitability
   : The profit margin of KION Group’s supply chain solutions business (the carrier of smart driving technology) surged from 1.5% in 2023 to 5.8% in the first three quarters of 2025
2. Accelerated technology commercialization
   : Smart driving technology has moved from the R&D phase to practical application, covering multiple scenarios such as ports, industrial parks, logistics parks, and mining areas
3. Emerging strategic synergy effects
   : Weichai Power’s smart driving layout has achieved in-depth integration of the integrated solution of “vehicle + smart driving + cloud control platform”

With the acceleration of the commercialization process of smart driving technology and the implementation of efficiency plans, it is expected that this business segment will continue to maintain an improving trend.

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[1] Sina Finance - Weichai Power: In the smart driving field, the company has realized a collaborative layout of complete vehicles/machinery, core components and technologies (https://cj.sina.cn/articles/view/2311077472/89c03e6002002em7c)

[2] KION Group - KION Group Delivers Strong 2024 Financial Performance (https://www.kiongroup.com/KION-Website-Main/Landingpage-CN/Press-Releases/2025/凯傲集团2024财年业绩表现强劲，盈利能力大幅提升.pdf)

[3] KION Group - KION Group Posts Robust Third Quarter 2025 Results (https://www.kiongroup.com/KION-Website-Main/Landingpage-CN/Press-Releases/2025/凯傲集团2025年第三财季业绩稳健.pdf)

[4] Sina Finance - Weichai Power Sees Double Growth in Revenue and Net Profit in 2024, Will Promote Strategic Transformation of Five Major Business Segments in the Future (https://finance.sina.com.cn/stock/wbstock/2025-03-28/doc-ineresvt1348947.shtml)

[0] Jinling AI Data API - Real-time Market, Financial Data and Technical Indicator Analysis of Weichai Power