The output data provides a more accurate reflection of the company's operational status. In January and February, the company produced 10,137 units and sold 5,226 units, while the Group produced 10,346 units and sold 9,793 units. The Group’s production and sales figures include heavy trucks (as reported by the company) and medium- to heavy-duty trucks. Due to the limited output of heavy-duty trucks within the group, the two sets of production numbers are largely comparable. However, the sales data differs because of variations in reporting standards: the Group uses outbound shipment data, while the company relies on billing records. Since heavy trucks often go through a conversion process before reaching customers—ranging from one week to a month—this leads to significant discrepancies between the two data sets. As the company produces strictly based on orders, its output data offers a more timely and accurate view of its operational performance. Engineering orders have been driving the company’s recent production and sales growth. Following the Spring Festival this year, there has been a surge in orders for dump trucks, with approximately 80% coming from construction projects. Only about 20% of the orders come from the logistics sector. Historically, engineering orders accounted for around 40%, while logistics orders made up the remaining 60%. According to industry regulations, construction projects typically begin within 3 to 6 months after planning. As these projects progress, demand for commercial vehicles will increase, and the heavy truck industry is expected to maintain strong performance in the second half of the year. The company's financial performance remains stable. After the implementation of three national standards on July 1, 2008, the industry experienced a sharp decline. However, thanks to the cost advantages of EGR products, the Group saw a significant increase in market share. From January to February 2009, the market share rose from 21% in 2008 to 34%. The Group’s production capacity is designed conservatively, with an annual capacity of 100,000 units under normal conditions. During periods of high demand, when the company cannot fulfill all orders, its market share tends to drop. For example, in the first half of 2008, the market share was only 18%. However, during market downturns, the Group’s production and sales fluctuations are much smaller compared to the industry average. Based on the current size of the heavy truck market, the Group’s capacity utilization rate is estimated to be at least 90%. View related topics: China National Heavy Duty Truck Breaks Monthly Sales Record for National Heavy Truck Industry

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