Weichai Power revises transaction caps, extends agreements, declares dividend

Weichai Power Co., Ltd. is revising and extending several continuing connected transactions with Weichai Holdings, Weichai Freshen Air, Weichai New Energy, and Shaanxi Automotive. The company expects existing caps for transactions with Weichai Holdings and Weichai Freshen Air for the years ending December 31, 2025, and December 31, 2026, to be insufficient, leading to new framework agreements and increased caps through December 31, 2027, or December 31, 2028. For example, the proposed new cap for sales to Weichai Holdings (and its Associates) for the year ending December 31, 2025, will be RMB12,000,000,000, an increase of 44.2% from the existing RMB8,322,000,000. Many of these transactions exceed the 5% Threshold and require independent shareholders' approval.

The company also reported its interim results for the six months ended June 30, 2025. Revenue increased by approximately 0.6% to RMB113,151,788,107.77, while net profit attributable to shareholders of the parent decreased by approximately 4.4% to RMB5,643,452,988.90, resulting in basic earnings per share of RMB0.65. Net profit margin for the period was approximately 5.8%, a decrease of 0.8 percentage points from the corresponding period last year.

In addition, the board approved an interim dividend of RMB3.58 per 10 shares (including tax) for the six months ended June 30, 2025, to be distributed to shareholders holding 8,674,438,821 eligible shares. The dividend will be paid in HK$3.925 per 10 shares.