Weichai Power has evolved over two decades into a multinational equipment group with leading comprehensive strength. Established in 2002, the company began as a leader in heavy-duty truck engines and has successfully built a synergistic development structure encompassing power systems, commercial vehicles, agricultural equipment, smart logistics, and power energy. Through over twenty years of organic growth and acquisitions, it has grown into a global high-end equipment multinational corporation. In 2025, the company reported revenue of 231.8 billion yuan, a year-on-year increase of 7.5%, while its net profit attributable to shareholders was 10.9 billion yuan, a decrease of 4.1% compared to the previous year.
The company's development can be divided into three phases. The first phase, from 2002 to 2008, saw the engine leader progress towards integrated powertrains. Founded in 2002 and focusing on diesel engines, the company listed on the Hong Kong Stock Exchange in 2004. In 2005, it acquired Xianghuoju, gaining control of Fast Gear, Hande Axle, and Shaanxi Heavy-duty Automobile, thereby establishing a heavy-duty truck powertrain industry chain, and listed on the Shenzhen Stock Exchange in 2007. The second phase, spanning 2009 to 2015, involved overseas expansion through acquisitions. This included the purchase of French engine maker Baudouin in 2009 to enter the large-bore engine market, the acquisition of leading German forklift manufacturer KION Group in 2012, and the simultaneous acquisition of Linde Hydraulics to absorb world-leading high-end hydraulic technology. The third phase, from 2016 to the present, is characterized by diversification to navigate economic cycles. Key moves included acquiring Dematic to expand the smart logistics chain in 2016, strategically investing in UK-based solid oxide fuel cell technology leader Ceres Power in 2018 to become its largest shareholder, the strategic restructuring of Lovol Heavy Industry to enter agricultural machinery in 2021, and further strengthening cooperation with Ceres Power in November 2025 to achieve a full industry chain layout for SOFC cells, stacks, and systems.
The company has gradually expanded its new businesses, continuously broadening its product coverage. Its main operations include power systems, commercial vehicles, agricultural equipment, smart logistics, and power equipment. Power systems and commercial vehicles are its traditional strongholds, with main products including engines, transmissions, axles, and heavy-duty trucks. In 2025, engine sales reached 743,000 units, up 1.3% year-on-year, including 75,000 units exported, an 8% increase. Hande Axle sales were 1 million units, a 25% increase, and Fast Gear transmission sales were 911,000 units, up 7%. Revenue from the "three electric" business doubled to 3.04 billion yuan, with battery sales up 162%, in-house motor sales surging 219%, and in-house motor controller sales increasing 56%.
The power energy segment, including power generation equipment and SOFC systems for applications in data centers, oil fields, mines, and industrial parks, has been a rapidly growing business in recent years. In 2025, sales of backup power for data centers increased by 259%. Sales of the M-series large-bore engines exceeded 10,000 units for the first time, growing 32% with a 65% revenue increase. The company launched the world's first 5-megawatt high-speed diesel power generation product, the 20M61, which leads the industry in power density, with world-class core parameters like start-up speed and load capacity. The SOFC power generation system successfully obtained EU CE certification, achieving a maximum electrical efficiency exceeding 65%, with performance indicators reaching internationally leading levels. Subsidiary PSI in the US offers power generation products with gas and diesel engines ranging from 22L to 110L displacement. In 2025, PSI capitalized on opportunities in the North American power market, achieving significant revenue and profit growth, with power generation products contributing 81% of its revenue, enhancing the company's competitiveness in the overseas data center market and steadily advancing the power energy business towards high-end and international markets.
The State-owned Assets Supervision and Administration Commission of Shandong Province is the ultimate controller, ensuring stable and continuous operation. It exercises control by holding a 70% stake in Shandong Heavy Industry Group, which fully owns Weichai Holding Group Co., Ltd. Weichai Holding directly holds a 16.33% stake in Weichai Power, possessing the highest control rights. HKSCC Nominees Limited is the largest direct shareholder with a 22.25% holding, while Weifang Investment Group is among other major shareholders. The management team and core technical personnel possess extensive experience in relevant industries such as heavy-duty trucks, construction machinery, and agricultural equipment, providing deep understanding and expertise.
Long-term operating performance shows steady upward momentum, demonstrating growth resilience across cycles. Revenue grew at a compound annual growth rate of 10.2% from 2014 to 2025. The net profit attributable to shareholders achieved a CAGR of 7.3% over the same period. Complete vehicles & key components and smart logistics are the two core revenue segments, with gross profit margins significantly improving since 2023. In 2025, these segments accounted for 43% and 39% of total revenue, respectively, combining for 83% of revenue; their gross profit contributions were 36% and 49%, respectively, totaling 85% of gross profit. Profitability gradually improved after a significant downturn in the heavy-duty truck industry in 2022. In 2025, the gross profit margin and net profit margin were 21.5% and 5.9%, down 1.6 and 0.4 percentage points year-on-year, mainly due to changes in the heavy-duty truck engine sales mix and expenses related to the KION efficiency plan. The company's expense ratio remained stable in recent years, at 14.4% in 2025.
AIDC power generation equipment is positioned to benefit from surging demand for data center power. Synergistic demand for primary and backup power equipment in North America, coupled with three key advantages, is unlocking market opportunities there.