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"Full Throttle!" CIMC Enric's January Orders for LNG On-Vehicle Cylinders Increased by 27 Times YoY to RMB165 million


(28 February 2024, Hong Kong) – CIMC Enric Holdings Limited and its subsidiaries (collectively, "CIMC Enric" or "Company") (stock code: 3899.HK) are pleased to announce that in January, the Company's orders for LNG on-vehicle cylinders skyrocketed to RMB165 million, representing a YoY growth of 27 times. The LNG heavy-duty truck market remained hot at the beginning of the new year. To meet the strong market demand, the Company is actively accelerating the debugging progress of the new intelligent production line for LNG on-vehicle cylinders. The new production line is expected to be fully operational around March this year. Under a double-shift working system, the maximum production capacity of LNG on-vehicle cylinders can reach 200,000 units per year, providing strong assurance for continuous market supply.

Since the beginning of the year, the continuous widening of the oil-gas price differential has been a key factor in the market's explosive growth. According to the National Bureau of Statistics, LNG prices stood at RMB4,722 per ton in early February 2024, a further decrease of 15.6% compared to early January and a 44% decline from the peak in 2022 (RMB8,437 per ton). Meanwhile, diesel prices remained high and volatile, reaching RMB7,658.4 per ton in early February. Currently, the oil-gas price differential is expanding with the price ratio of LNG to diesel as low as approximately 0.6, highlighting the economic advantages of LNG heavy-duty trucks over diesel heavy-duty trucks and driving rapid growth in sales.

Benefiting from the booming LNG heavy-duty truck market, the LNG on-vehicle cylinder market remains hot, leading to a substantial increase in the Company's LNG on-vehicle cylinder orders. Data shows that since December 2022, domestic LNG heavy-duty truck sales have achieved YoY growth for 13 consecutive months, with a cumulative sales volume of 152,000 units in 2023, a remarkable increase of 307.37% compared to the previous year, and a penetration rate of 16.69%. Currently, the oil-gas price differential is expected to be maintained or even widened. In addition, LNG heavy-duty trucks are more energy-efficient and emission-reducing compared to diesel heavy-duty trucks, which can play a role in the "dual-carbon" process. Along with the rapid expansion of domestic LNG refuelling stations, it is expected to further promote the substitution of LNG heavy-duty trucks for diesel heavy-duty trucks.

Against this backdrop, CIMC Enric is actively expanding its production capacity, accelerating the commissioning of new production lines, and creating an industry-leading digital workshop. It aims to realise comprehensive digital management in planning, logistics, quality, equipment, and energy consumption, upgrading the level of automation and intelligent production. This ensures that the Company can promptly provide high-quality LNG on-vehicle cylinder products to the market.

Mr. Ju Xiaofeng, Vice President of CIMC Enric and Head of Energy Equipment and Engineering Business Center, stated, "Under the 'dual-carbon' goal, the green transformation of the heavy-duty truck industry is urgent. The continuous widening of the oil-gas price differential injects strong growth momentum into the LNG heavy-duty truck market. Currently, CIMC Enric's affiliated production companies have optimised their production lines and increased production capacity to meet the strong market demand, seize opportunities for high market growth, and contribute to the greening process of the heavy-duty truck industry."