On August 10, 2020, Changyuan Donggu announced the 2020 semi-annual report. According to the report, the company’s operating income was 753 million yuan, an increase of 32.56% over the same period last year, the net profit attributable to shareholders of listed companies was 154 million yuan, an increase of 70.49% over the same period last year, and the net cash flow from operating activities was 193 million yuan. , An increase of 72.06% over the same period last year. The company's performance achieved all-round growth, and passed the profit distribution plan for all shareholders to distribute 12 yuan in cash for every 10 shares.

　　Changyuan Donggu was listed on the A-share market on May 26 this year. It is a high-tech enterprise integrating R&D, production and sales of automotive engine core components. According to Shenwan's secondary industry classification, it belongs to the auto parts industry. At present, among the companies in the same industry that have disclosed semi-annual reports, whether it is in terms of revenue, net profit attributable to the parent company or operating cash flow, Changyuan Donggu’s performance growth is at At the forefront of the industry.

　　The substantial increase in performance this time is due to the overall improvement of the commercial vehicle market under the influence of national policies and demand; on the other hand, the company’s strategic layout is appropriate, relying on the advantages accumulated over the years in technology and product quality and the industry’s Word of mouth and status have further opened up downstream customers' demand for the company. According to the semi-annual report, the company’s major customers such as Foton Cummins, Dongfeng Cummins, and Dongfeng Commercial Vehicles have strong orders for Changyuan Donggu. At the same time, new customers such as Guangxi Yuchai, Shanghai Philippine Red, and China National Heavy Duty Truck Co. Product demand planning has also seen rapid improvement. The company's overall sales in the first half of the year increased significantly, and sales hit a record high.

　　Statistics show that as of August 10, 2020, 13 listed companies have launched mid-term distribution plans. In terms of cash distribution, Changyuan Donggu has the most generous dividend.

　　According to the performance report, the company’s net profit attributable to shareholders of the listed company in the first half of the year was 154 million yuan, and the total dividend of this time was 278 million yuan, which far exceeded the company’s net profit in the first half of the year. So where does the excess come from? If you study the company's data carefully, you will find that as of December 31, 2019, the company's consolidated undistributed profit was as high as 580 million yuan! Compared with other companies' operations that almost completely cut dividends before listing, Changyuan Donggu's sudden dividends after choosing to go public are "really alternative." The original shareholders of Changyuan Donggu brought 580 million undistributed profits to share with the new shareholders after the listing, which shows sincerity and grandeur.

　　In a trillion-level market, the industry is improving to support the company's development, and the rapid growth of commercial vehicles brings broad space

　　In the past ten years or so, my country’s automobile industry has occupied a pivotal position in the entire economy through rapid development. From 2005 to 2016, the proportion of the added value of my country's automobile industry in the national GDP rose from 1.18% in 2005 to 1.53% in 2016, and it has become one of the leading industries supporting and driving the sustained and rapid growth of the Chinese economy. As the automobile industry has a long industrial chain, wide coverage, and numerous upstream and downstream related industries, the vigorous development of my country's automobile industry has also significantly promoted the development of upstream and downstream related industries. According to statistics from the China Automobile Manufacturers Association, as of 2018, the market size of my country's auto parts industry has exceeded 4 trillion yuan, and the industry has huge room for development.

　　Although the automobile market was hit by the epidemic in the first half of 2020, the production and sales volume of the commercial vehicle market in the first half of the year was driven by major benefits such as various macroeconomic policies, infrastructure investment policies, emission standard switching, over-regulation, and high-speed per-axle charging. Both are growth year-on-year. The overall improvement of the commercial vehicle industry provides important support for the growth of Changyuan Donggu's performance.

　　In fact, in recent years, under the influence of the high growth of infrastructure investment and the growth of industrial, wholesale, and retail industries that have driven the growth of trade scale and the demand for logistics of related enterprises, and the implementation of the new national standard GB1589-2016, the implementation of new regulations has driven the Ministry of Transport, etc. Under the stimulus of the policy of strict inspection of overloading nationwide by relevant ministries and commissions, my country's commercial vehicle market has always maintained a certain rate of growth. According to industry forecasts, the commercial vehicle market still has room for substantial growth in the future, and its growth rate may far exceed the overall growth rate of the automotive industry. Therefore, Changyuan Donggu, as a supplier of large-scale engine manufacturers such as Foton Cummins and Dongfeng Cummins, and large-scale vehicle manufacturers such as Dongfeng Commercial Vehicles, as the commercial vehicle market scale in the future grows rapidly, as Guangxi Yuchai, The steady progress of new projects such as Shanghai Philippine Red and China National Heavy Duty Truck will certainly benefit further from its own development.

　　The strategic layout is appropriate, and the reputation of the product drives the rapid growth of performance

Regarding the company’s development strategy, Changyuan Donggu clearly stated that the company insists on establishing a brand image and gradually highlights the brand characteristics and advantages, and focuses on the development of engine blocks, cylinder heads, connecting rods and other product businesses to manufacture high-quality products and build corporate brands. Image, while taking quality as the cornerstone, scientific innovation, scientific management, to provide customers with industry-competitive products.

　　It is understood that the company has many years of experience in the field of engine parts and has a good reputation in the industry. Technically, after long-term technological innovation and accumulation, Changyuan Donggu has independently developed a number of complete core technology systems and successfully applied them in large-scale production. At present, it has formed a set of flexible engines with independent intellectual property rights. Parts production technology. In terms of products, the company has a number of professional processing production lines for main products such as cylinder blocks, cylinder heads, connecting rods, flywheel housings, and exhaust pipes. It efficiently provides customers with mass production operations and maintains a high supply capacity. Strictly control product quality. Relying on the good reputation built through products and technology, the company has been fully recognized by mainstream vehicle manufacturers and engine manufacturers, established long-term and stable cooperative relations with high-quality customers, and has steadily increased its market share. This has led to a rapid increase in the company's performance, while also laying a solid foundation for the company's long-term development in the future.

　　The new coronavirus raged across the country in early 2020, and Hubei Province became the most severely affected area. During the epidemic, under the guidance of the local government, the company comprehensively carried out the prevention and control of regular elimination, and there was no infection throughout the company. Through the joint efforts of upstream and downstream partners and the hard work of all colleagues, the company quickly resumed production operations, completed various orders on schedule, and submitted the first answer to the market since its listing. In the next step, the company will continue to consolidate and deepen cooperation with existing customers, and at the same time continue to actively expand new customers and new projects, continue to increase the company's market share, increase scale production advantages, and create better performance to return investors and the society .