Recently，Shaanxi Tongli Heavy Industry Co., Ltd., the leading domestic wide body dump truck（Hereinafter referred to as：“Tongli shares”、“Company”）The annual report for 2023 was disclosed.。

2023，The company achieved operating income of 58..6 billion yuan，Year-on-year growth of 12.67%；Net profit attributable to shareholders of the listed company 6.1.5 billion yuan，Year-on-year growth of 31.87%。Weighted average of companies in 2023ROEUp to 27.82%，Up 3% from 2022.22pct。

01

Wide-body dump truck、Overall growth in parts and maintenance businessSmooth expansion of overseas markets

The company was founded in 2005，It is a product research and development set.、Design、Production、Sales and after-sales guarantee services、Construction machinery manufacturer with turnkey services，The main products are off-highway wide-body dump trucks for various types of mining and large-scale engineering material transportation.、Non-road mining dump trucks and tunnel trucks required for shaft mining, etc.。

After nearly 20 years of continuous research and development、In-depth investigation of working conditions on the front line，The adaptability of the company's products、Good market reputation in terms of reliability and cost performance，Received unanimous praise from users。The company's product market share has maintained a leading position in the industry.，The market share of wide-body dump trucks is 40%Left and right。

Chart：Tongli Co., Ltd. mainly produces off-highway wide-body dump trucks.

Source of information：Prospectus for Public Offering of the Company

At present，The company's main products are TL87、TL88、TL89 and other series of off-highway wide-body dump trucks，It also producesTLD Ries off-highway mining dump truck、TLK Series of tunnel vehicles、TLS Ries of off-highway sprinklers、TLQ Series of bridge transport vehicles and other construction machinery products。The company's products are widely used in open-pit coal mines.、Iron ore、Nonferrous metal mine、Cement, building materials and other mines and water conservancy and hydropower and other large engineering sites.。

2023，The company is insisting“Large-scale、Intelligent、New Energy”Directional guidance， The first double-axle drive in China“Rigid truck”（Off-highway Mining Dump Truck）TLD125 R & D success，At present, it has begun to sell in batches.，The market response is good。And，In addition to conventional fuel vehicles，The company also introduced pure electric drive.、Hybrid drive、Hydrogen fuel、New energy vehicles such as methanol fuel and wire-controlled chassis for intelligent driving。In the field of off-highway wide-body vehicles，Leading the direction of industry development。

2023，Off-highway dump truck segment industry fluctuated slightly compared with 2022，The domestic market is relatively stable.，The overseas market is still in the early stage of development，It is expected to continue to maintain steady and high growth in the next few years.。Under this industry trend，In 2023, the company's off-highway wide-body dump truck realized revenue of 54.4.7 billion yuan，10% YoY growth from 2022.91%，Income accounted for 92 percent.95%。

Other than that，In 2023, the company's spare parts sales and maintenance services increased significantly compared with 2022.，Of which, the sales revenue of accessories is 2.3.6 billion yuan，Year-on-year growth of 56.88%。The main reason is that with the growth of sales in recent years.，The service provider is responsible for the three guarantees within and outside the three guarantees.、Customers' demand for repair and maintenance parts outside the three-guarantee period has increased accordingly.。Maintenance service income of the Company in 2023 5,301.280000 yuan，Year-on-year growth of 141.42%。The main reason is that sales have steadily increased in recent years.，The company has increased the construction of service capacity outside the three-package period for vehicles.，Provide users with a more comprehensive overall service plan。

Chart：Income structure of Tongli shares in recent three years

The company's internationalization strategy is advancing rapidly.，Overseas markets continue to usher in explosive growth。2023，Overseas revenue of the Company's products 9.8.1 billion yuan，16%.74%，An increase of 68% over 2022.52%，Three-year compound growth rate as high as 139.35%。

At present，The company's product sales cover all provinces in China.，At the same time, the overseas market has been expanded to Pakistan.、Indonesia、Malaysia、 Mongolia 、Tajikistan、India、Congo（ Gold ）And many other countries and regions，With the rapid development of internationalization strategy,，In the future, there will be more countries and regions to lay out sales and service guarantee systems.。In October 2023, the company successfully held an international agent conference in Xipo production base.，Many foreign agents gathered in the company，Discussed the development strategy of overseas sales in the next few years.，The rapid development of the company's overseas market has accelerated the pace.。To lay out the global market，The company established a subsidiary in Singapore in 2023.，It provides strong support for further development of overseas markets.。

To sum up，Under the simultaneous development of domestic and overseas markets，Total operating income of the Company in 2023:58.6 billion yuan，Year-on-year growth of 12.67%，The company's operating income from 2018 20.0.4 billion yuan to 2023 58.60 Billion yuan，Five-year compound growth rate as high as 24%。

02

Steady improvement in product profitabilityThe 5-year compound growth rate of net profit is as high as 32%

The company has always been around“Large-scale、Intelligent、New Energy”Strategic layout in the direction，Continuously introduce large-scale、New energy and other new products，The profitability of the company's business has been improved year by year.。

2023，The comprehensive gross profit rate of the Company is 22.74%，Up 3% from 2022.5pct，Up 4% from 2021.5pct。Specific to the product，Core business Wide body dump truck Gross profit margin 22.07%，Up 3% from 2022.47%；The gross profit margin of the accessories sales and maintenance services businesses increased as compared to 2022.。By region，The gross profit margin of the company's overseas business is obviously better.，Gross profit margin of overseas business in 2023 was 32..99%，Gross profit margin as compared to the domestic business was 20..68%12 higher.31pct。As the company continues to expand overseas markets in the future,，It is expected to further increase the gross profit margin of the company.。

Chart：Tongli shares by product、Gross margin performance by region（%）

Source of information：Annual report of the company

Cost control，The expense ratio of the company in 2023 is higher than that in 2022.，Especially the sales expense ratio、R & D cost rate increased significantly。

Company sales expenses in 2023 3.3.5 billion yuan，Year-on-year growth of 41.50%，The main reason lies in the substantial increase in sales expenses such as three-package fees.，As well as the new sales staff equity incentive costs in 2023.。The company spent more than 100 million yuan on R & D in 2023.，Year-on-year growth of 54.20%，The main reason is that the company will be large-scale in 2023.、Research and development of new energyTLD125 models andTLD135 models andTL89 series products，So as to develop materials.、R & D labor and other aspects have a larger investment and grant some R & D personnel equity incentives, resulting in an increase in R & D personnel salaries.。In recent years, the company's R & D expenditure has continued to grow.，Keep hitting new highs，It provides a strong guarantee for the company to maintain its sustainable competitiveness.。

Chart：Expense rate of Tongli Co., Ltd. in recent three yearsSource of information：Annual report of the company

In revenue growth，Gross profit margin、During the period, the cost rate increased，Increase in impairment loss of assets（Provision for decline in value of inventories），Increase in other income（Tax incentives）And other important indicators.，The net profit attributable to shareholders of the listed company in 2023 was 6..1.5 billion yuan，An increase of 31% over 2022.82%；Net profit margin level 10.59%，Up 1% from 2022.58pct。

Look at the long cycle.，The company's long-term profit performance is also excellent.，The annual compound growth rate of the company's net profit in the past five years is as high as 32%。And，Thanks to the company's excellent profit performance、Operational efficiency and reasonable control of financial leverage，Weighted average of the company in recent yearsROEIt has been maintained at a high level.。Weighted average of companies in 2023ROELevels up to 27.82%，Up 3% from 2022.22pct。

03

Outstanding R & D and innovation capabilities，The research and development results are remarkableCapacity climbing gradually brings scale effect

Off-road wide-body dump truck is a new product in construction machinery industry.，It combines the technical basis of heavy truck and construction machinery.，Create a new technical route，There is a high technical threshold for design.，And relate to requirements for specific work conditions.、Accurately grasp the corresponding product performance and technical solution。

The company acts as the drafter of the main standards in the industry.，It has formed a unique core technology system.，And the research and development results are relatively rich.，R & D products have created the first in many industries.。

In 2004, the company originally developed the first off-highway wide-body dump truck in the industry.TL3400，In 2014, the first pure electric off-highway wide-body dump truck was developed in the industry.；In 2017, the first wire-controlled wide-body dump truck in the industry was developed.，It opens up the research and development and manufacture of driverless technology in the wide-body vehicle industry.；In 2021, the first hydrogen fuel extended-range off-highway wide-body dump truck was launched in the industry.，It provides scientific and technological support for the green, low-carbon and high-quality development of the industry.；The first methanol hybrid off-highway wide-body dump truck in the industry rolled off the production line in 2022，Expanding the spectrum of new energy products。Patent achievements，By the end of 2023，The company has 122 patents.，Among them, there are 17 invention patents.，Its technological advantages are outstanding。

Production capacity，In 2021, the company publicly raised funds for the construction of off-highway dump truck and all-road mining vehicle manufacturing base.，After the completion of the project, the company's annual output of off-highway dump trucks can reach 6000 units.，500 mining vehicles。Starting in May 2022，6000 off-highway dump truck production lines put into trial production，The company's production capacity is expected to be 2023.-Climbing in 2024，Scale effect is gradually emerging.。

The company's technological advantages and the gradual improvement of capacity advantages，It is a powerful guarantee for the company's steady development in the future.。

04

Domestic Open-pit Coal Mine Mining Volume Increases to Enhance Transport Capacity DemandThe overseas Belt and Road has a vast market space.

 

Look to the future，The company will continue to focus on the R & D and production of new products of off-highway wide-body dump trucks.，Comprehensively promote the research and development of off-highway mining dump trucks，Improve customer satisfaction，Actively expand overseas markets，Improve brand national influence，Increase the international market share，Continue to lead the development of this industry segment，To provide more professional and high-quality overall engineering transportation solutions for global users。

From the perspective of industry development trend，The company's future development will benefit from the increase in capacity demand brought about by the increase in domestic open-pit coal mining.，And the company's development of overseas markets.。

Domestic market，Issued by China Coal Industry Association in October 2023《Guiding Opinions on High-quality Development of Open-pit Coal Mines》，Want“Actively promote the construction of open-pit coal mines，To“Fourteen five”The final output accounts for 25% of the country's total coal output%Above，To“Fifteen five”The final output accounts for 30% of the country's total coal output%Above”。For now，The permeability of domestic open-pit coal mines is 23.%Left and right，There is still much room for improvement from the policy objectives.。

With the increase in the amount of surface coal mining,，The total demand for transport capacity will continue to increase.，According to the calculation of securities dealers，If the penetration rate of open-pit coal mines is increased to 31% in 2030.5%、Domestic raw coal production increased by an average of 1% per year%，Then it is estimated that the domestic 2023-In 2028, the annual compound growth rate of the actual demand for transport capacity will reach 6.2%。Increase in demand for transport capacity，The pulling effect on the market space of wide-body dump trucks is obvious.，The company is the industry leader.，Will fully enjoy the dividends of industry growth。

Overseas markets，According to《BP World Energy Statistics Yearbook》Wait for data calculation，Russia、 Mongolia 、Kazakhstan、Indonesia and other countries along the Belt and Road will produce more than 1.1 billion tons of open-pit coal mines in the target market in 2022.，The permeability of opencast coal mines in these areas has reached a high level and tends to be stable.，In the future, the output of open-pit coal mines will increase steadily.。

Under the vigorous advocacy of the state，China has reached an agreement with its neighbors and many countries in the world.“The Belt and Road”Consensus on cooperation，This has driven related industries.“Walk out”Change of development thinking，It is also a great opportunity for the development of enterprises.。In recent years，The performance of the company's overseas sales department has been improved year by year.，It also proves that the demand of overseas markets is constantly releasing.，The future overseas market space is still very broad.。