The victory of patent dispute highlights the advantages of Weichai Power Industry Chain

The National Patent Reexamination Board determined that Weichai Power had legally owned a number of engine technology patents previously disputed with China National Heavy Duty Truck. The company’s control over the core technology and industrial chain of heavy trucks is still strong, but as the heavy truck industry continues to decline in the future, It is expected that the company's short-term performance will continue to be under pressure.

Weichai Power issued an announcement on December 1 st that the company received the Notice of Closing of Invalid Declaration issued by the National Patent Reexamination Board, which stated that: November 13th, 2008 Sinotruk submitted to the National Patent Reexamination Board The company withdrew ZL200320121039.6 (diesel engine oil and gas separator), ZL200320121422.1 (engine crankshaft front oil seal device), ZL200520124550.0 (screw groove structure of crankshaft flange) and ZL200520125023.1 (for diesel engine) that were declared by the company. A written statement of a patent invalidation request for a camshaft bush). According to the provisions of Article 71 of the "Implementation Rules of the Patent Law of the People's Republic of China", China National Heavy Duty Truck applied to the Patent Reexamination Board of the People's Republic of China on November 6, 2007 for the termination of the case of the invalidation of the said patent rights. Weichai Power has thus effectively and effectively Have the above patent rights.

Since the dispute began in November 2007 when CNHTC Group went to Hong Kong to go public, Weichai Power sued three companies including China National Heavy Duty Truck for the above four patents. The success of Weichai Power once again reflected its Heavy truck industry chain control.

As a former subsidiary of China National Heavy Duty Truck, Weichai Power has acquired the Torch Torch in August 2005 and indirectly controlled Shaanxi Heavy Gas, officially starting its positive competition with China National Heavy Duty Truck. At present, the heavy truck production and sales scale of CNHTC ranks first in the industry. However, the SAIC Group's Shaanxi Automobile Group has developed rapidly in the past two years. The production and sales scale has closely followed the heavy truck, FAW, and Dongfeng, and has firmly occupied the fourth position in the industry. .

The advantage of Weichai Power lies in controlling the "golden industrial chain" of domestic high-end heavy trucks. Its engines, gears, transmissions and other products account for most of the domestic market share. The powerful premium capability enables it to increase its own product prices by increasing the price of its products. The costs of competitors and their own performance. It is precisely because of this that China National Heavy Duty Truck has been infringement disputes in order to get rid of Weichai's clamp and build its own engine production line and other supporting industries.

However, despite the overall competitiveness of Weichai Power is stronger than the overall level of the industry, but with the rapid decline in the prosperity of the heavy truck industry, the company is expected to face greater pressure on earnings in the short term. In October, the sales of heavy-duty trucks (including chassis) totaled 16,200, a decrease of 24.02% month-on-month and a decrease of 32.96% year-on-year. The year-on-year negative growth of heavy trucks in the third quarter was mainly due to the advance consumption effect of heavy trucks caused by the implementation of the National III standard, while in October, the month in which heavy truck sales declined the most in a single month since 2008 has reflected its sensitivity to the macro economy. Specifically, as the demand for logistic vehicles used in mines was substantially reduced in October, and the coal demand for energy also fell sharply, while the construction vehicles related to real estate continued to slump, the combined effect led to a significant reduction in demand for heavy trucks. Fundamental factors are unlikely to change in the short-term, so it is expected that sales will continue to decline in November and December.

In the third quarter, Weifang Diesel's comprehensive gross profit margin dropped sharply, which was mainly due to the declining demand in the heavy truck industry and the high prices of raw materials such as steel. In view of the unsustainable understanding of the high growth of heavy trucks, the company is more cautious about further investment in heavy-duty truck engines, and is currently lagging behind Sinotruk on the development of the “electronically controlled in-line pump + EGR technology” engine, and will also be on the fourth quarter of the company’s The stabilization of the engine gross profit margin has somewhat suppressed.

The third quarterly report shows that the company achieved total revenue of 28.432 billion yuan from January to September 2008, an increase of 30.91% year-on-year; net profit was 2.018 billion yuan, an increase of 53.13% year-on-year; earnings per share for the first three quarters were 3.88 yuan, and net assets per share were 15.50 yuan.