Weichai Power Transfers 40% of Westport New Energy Engine Company

On January 7, 2013, Weichai Power announced that the company transferred the 40% equity of Xikang New Energy Engine Co., Ltd. (hereinafter referred to as “Xihang New Energy”) to Weichai Holding Group, and has completed the registration of industrial and commercial change. The target equity transfer price is 94,468,880 yuan.

Weichai Power announced on December 26, 2012 that the company plans to transfer 40% equity of Westport New Energy to Weichai Holding Group, the largest shareholder. After this transfer, it is expected to obtain a profit of approximately RMB24,894,900.

According to the announcement, the price of the equity transfer was finally determined according to the net asset value of the Westport New Energy Assessment after filing with the Shandong State Assets Supervision and Administration Commission (ie, the net asset value of the Westport New Energy Assessment × 40%). Weichai Power holds the Westport New Energy 40 % of the book value of the original stock of 73.105 million yuan. After the transfer is completed, Weichai Power will no longer hold any equity in Westport New Energy.

Weichai Power stated that through this transaction, the company can concentrate its efforts on the development of its main business, and at the same time make Westport New Energy bigger and stronger, thus stimulating the company's related products to support and sell.

Westport New Energy was established in 2008 by Weichai Power, Westport Innovation Corporation, and Hong Kong Peixin Natural Gas Equipment Co., Ltd., each holding 40%, 35% and 25% shares. It is China's first production of high-power cylinder direct injection pressure. A joint venture of gas engines. With a registered capital of US$ 8,889,800, Westport New Energy engages in the research, development and production of motor vehicles, power generation and marine gas engines, gas engine regulators and other internal combustion engines (and related components and kits) and related products. Sales.

It is understood that under the current global economic downturn and the deteriorating domestic engine market demand, Xikang New Energy adheres to the principle of “endogenous growth and innovation drive” and uses new products and technologies to develop new markets. In March of last year, China's first direct-injection natural gas engine (HPDI) was launched and launched a new era of natural gas vehicles in China.

At present, Westport New Energy has a market share of approximately 35% in domestic passenger car LNG/CNG engine market, and approximately 85% of heavy truck LNG/CNG engine share. Last year, it is expected to produce and sell 18,300 gas engines annually, an increase of 117% over 2011; as of last year In November, it realized operating income of 1.43 billion yuan, an increase of 102% over 2011, and a net profit of 0.38 billion yuan, an increase of 13.8% over 2011. The 2011 ROE was about 31%.

People in the industry believe that due to the operating cost advantage of diesel heavy trucks, domestic LNG heavy trucks will continue to grow at a much higher rate than ordinary heavy trucks in the coming years, which will drive the continued growth of new energy at Westport. Therefore, Westport New Energy is a very promising new growth point.

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