In 2025, Shandong Heavy Industry Group (SDHi) stayed true to the important directives of General Secretary Xi Jinping and diligently implemented the decisions and arrangements of the CPC Shandong Provincial Committee and the Shandong Provincial Government. Through unity, perseverance, and continuous effort, we achieved steady and sound growth in business performance, significantly strengthened our competitive advantages, and unleashed stronger innovation momentum. With strategic transformation gaining speed and our global footprint continuing to expand, Party leadership was further reinforced, ensuring a robust momentum of high-quality development. On this occasion, we extend our sincere greetings and heartfelt gratitude to all employees, global partners, and friends from all walks of life.

Seizing Momentum and Reaching New Heights

In 2025, SDHi effectively navigated the challenges of a complex global environment and intense market competition. By focusing on customer needs, we enhanced our competitiveness in technology, quality, cost, and service, promoted value enhancement across the entire industrial chain, delivering an impressive performance with growth in both quality and efficiency.

The Group’s estimated annual revenue reached RMB 600 billion, up 9.1% year-on-year. In the power systems segment, heavy-duty engine sales ranked No. 1 globally, while sales of power generation equipment for data centers are expected to grow by 245% year-on-year. In the commercial vehicle segment, heavy-duty truck sales are expected to rise by 22%, and light-duty truck sales by 30%. Sinotruk ranked No. 1 globally in heavy-duty truck sales volume for the first time. In the construction machinery segment, bulldozer sales ranked No. 1 in China. Excavator sales are expected to grow by 22%, and wheel loader sales by 15%. In agricultural equipment, tractors, wheat harvesters, and corn harvesters continued to rank No. 1 in China, while sales of PowerShift/CVT tractors are expected to surge by 200%. In the intelligent logistics segment, during the first three quarters, KION Group’s industrial truck and service orders increased by 7.3%, and supply chain solution orders grew by 50.5%. In the marine transportation equipment segment, Ferretti Group maintained an adjusted EBITDA margin of 16%, with orders increasing by 4.6% year-on-year in the first three quarters.

Green Transformation and Strategic Momentum

SDHi has designated new energy as our “No. 1 Strategic Project,” accelerating deployment across multiple technological pathways including power batteries, hydrogen fuel cells, solid oxide fuel cells (SOFC), and green engines, and building core competitiveness in new energy vehicles, equipment, and power systems.

In 2025, domestic new energy revenue is expected to grow by 143%. New energy heavy-duty truck sales are projected to rise by 231%, ranking first in the industry, while new energy light-duty truck sales are expected to increase by 203%, ranking third nationwide. Key milestones included the commencement of the Weichai (Yantai) New Energy Power Industrial Park and the successful delivery of 1,000 electric heavy-duty trucks by Sinotruk. Weichai’s methanol engine technology was selected among the “Top Ten Innovation Achievements” of Shandong Provincial Enterprises. Weichai also signed an SOFC stack technology licensing agreement with Ceres, expanding into the stationary power generation market. A series of major breakthroughs and landmark projects injected strong momentum into SDHi’s new energy development.

Global Expansion and Synergistic Growth

In 2025, SDHi’s export revenue surpassed RMB 100 billion for the first time, with an expected growth of 9% year-on-year. Regional performance remained strong, with growth of 53% in the Americas, 52% in Europe, 34% in the Middle East & Africa, and 39% in the Asia-Pacific region. Significant achievements included the successful hosting of the SDHi–Weichai Power Global Partners Conference in Qingdao, the official release of SDHi’s new global brand identity, and Linde Material Handling’s major appearance at CeMAT ASIA. The President of Chile attended the delivery ceremony of 895 Zhongtong electric buses, while Sinotruk signed a joint venture factory agreement with Saran Machinery in Kazakhstan. SDHi’s products also made a strong presence at Indonesia’s mining exhibition, and signing ceremonies with major overseas key accounts were successfully held. These accomplishments fully demonstrated the Group’s strong capabilities in brand upgrading and global market expansion.

Digital Intelligence and Future Development

Weichai’s high-end engine smart factory, based on a digital and lean production approach, was selected into China’s first batch of “Leading Intelligent Factory” cultivation program, and Weichai Lovol’s new high-horsepower intelligent tractor factory was completed and put into operation.

Focusing on intelligent driving, smart construction, and smart agriculture, the Group has introduced a range of industry-leading intelligent products and integrated solutions, driving the digital and intelligent transformation and upgrading of the equipment manufacturing sector. Sinotruk achieved the global premiere of the “Xiaozhong 1.0” advanced intelligent service system. Weichai Lovol released China’s first integrated smart agriculture solution supported by an AI foundation model, while Shantui introduced the industry’s first AI-powered intelligent bulldozer. These innovations further strengthened SDHi’s leadership in intelligent equipment.

Collaboration, Responsibility, and Shared Success

In 2025, SDHi continued to deepen mutually beneficial partnerships, actively built a diversified cooperation network, cultivated a foundation of trust and shared values, fulfilled our social responsibilities, and worked together with partners to create a mutually beneficial community of shared growth and prosperity. The Group successfully hosted the 2026 Weichai Business Conference and the 2026 Sinotruk Global Supply Chain Strategic Partner Conference, demonstrating an open approach in building a global value highland together with partners. SDHi also signed a strategic cooperation agreement with Huawei, opening a new chapter in technological innovation and industrial upgrading.

In fulfilling corporate social responsibility, SDHi’s products served the Yarlung Zangbo River mega hydropower project, supporting major national energy infrastructure development. Timely assistance was provided to earthquake-stricken areas, reflecting the mission and responsibility of a state-owned enterprise. Zhongtong Bus empowered female drivers in Chile, delivering the warmth of China’s smart manufacturing to global markets. Sinotruk successfully held training programs for foreign trainers from the African region, contributing solid support to the development of global automotive talent.

Governance and a People-Centered SDHi

In 2025, SDHi thoroughly implemented the spirit of the Fourth Plenary Session of the 20th CPC Central Committee. The Group also carried out dedicated initiatives to promote the implementation of the CPC Central Committee’s Eight-point Decision on improving conduct, advanced integrity and clean-governance efforts across the organization, and strengthened Party leadership to support high-quality development. We advanced corporate culture development by deepening the themed initiative “One Family, One Goal, Working Together for Shared Success,” effectively enhancing employee cohesion, sense of belonging, and overall satisfaction.

During the year, the Group recorded strong achievements in both Party building and corporate culture development. Chairman Wang Zhijian delivered keynote lectures on the spirit of the CPC Plenary Session, and the Group organized themed exhibitions showcasing its integrity and clean-governance achievements. SDHi successfully convened the First Session of the Employee Representative Congress and officially released the “113X” Corporate Culture System.

In talent development and employee care, Ding Weiyun and Jia Xiangbo were recognized as National Model Workers. Diao Tongwu, Tang Haiwei, Cai Rong, and Fan Fan were honored as Great Craftsman Talents of China. SDHi also hosted the inaugural International Language Championship under its global talent development program, along with employee health runs, sports events, and Family Open Day activities, enriching corporate life and strengthening cultural bonds.

2026 marks the start of China’s 15th Five-Year Plan. SDHi will continue to focus wholeheartedly on the core business and to build a world-class, technology-leading, and green-driven multinational high-end equipment group.

We will accelerate green transformation and lead low-carbon development for high-end equipment;

We will accelerate global expansion and enhance SDHi’s international influence;

We will accelerate digital and intelligent transformation to unlock new momentum across the value chain;

We will accelerate ecosystem empowerment to set new benchmarks for collaborative and integrated growth.

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will take the lead and shoulder greater responsibilities, never settle, always lead and forever dominate as we open new horizons and write a new chapter in the year ahead.

Wishing you all a Happy New Year, prosperity, and happiness!