According to the announcement, in 2016, the company's overseas business realized operating revenue of 44.379 billion yuan, accounting for 47% of total operating revenue. Among them, KION achieved operating income of 5.587 billion euros, which accounted for nearly 27% of Weichai Power's contribution to net profit. Based on Weichai Power's support for KION and the high growth of KION's own business, KION's share price rose from the initial 24 euros to the current 65 euros. Weichai Power introduced that since the acquisition of Baudouin in France in 2010 and the acquisition of Dematic and PSI in 2016, Weichai Power has formed a complete international layout. In the European market, there are Baudol, Kion, Linde; in the North American market, PSI, the world's leading supplier of alternative fuel power systems, and Dematic, an expert in automation logistics, can power Weichai engines and Kiao forklifts. Entering the international market; in the Asia-Pacific market, Weichai Power has had a long-term layout, and this layout is in line with the country’s “Belt and Road†policy. 20% of the engines used by Iran’s largest passenger car plant are Weichai engines; Southeast Asia, Russia, and the Middle East. Africa is the traditional supporting market for Weichai Power. Currently, with its rich global strategic resources, Weichai Power has opened up a new industrial chain—a smart logistics industry chain. The company expects that, with the "One Belt and One Road" strategy promoting Weichai Chai to create a sea, the synergy effect between Weichai Power's domestic business and its overseas business will gradually be released. Overseas acquisition of corporate profits It is said that cross-border mergers and acquisitions are easy and integration is difficult, and companies that acquire Weichai Power overseas have all realized profits, and will have greater synergies with domestic businesses, which is rare in the domestic cross-border M&A market. How does Weichai Power do it? "For the integration of overseas targets, we should start with the design of mergers and acquisitions." Dai Lixin believes that the control and influence of overseas M&A targets should first be achieved through equity design. Take the acquisition of KION as an example. "We were preparing for the acquisition of KION and then conducted an in-depth study of its business structure and management." Dai Lixin said that one of KEr's major shareholders was KKR, one was Goldman Sachs, and KION The reason for the loss is that the entire capital chain has been controlled by large shareholders. It does not allow the company to finance itself or make loans to itself. The money is used by large shareholders to put in high interest loans, and the company earns money by paying interest to large shareholders. Faced with this situation, Weichai Power has designed a scheme that the funds of Weichai Power do not directly acquire the shares of KKR and KION held by Goldman Sachs, but instead enter KION with incremental amounts, and then get a 25% stake. Together with KKR and Goldman Sachs, KION went public. Weichai Power, together with other major shareholders, is concerned about the growth of the company and supports the smooth transition of Kai-Ou. It also paves the way for the subsequent integration of Weichai Power and at the same time solved the exit issues of KKR and Goldman Sachs. Afterwards, as KKR and Goldman Sachs continued to reduce their holdings in the secondary market, Weichai Power continued to increase its holdings and became the single largest shareholder of KION. According to the German practice, the company's annual business management objectives must be approved by the company's board of supervisors. In a company with more than 2,000 employees, half of the members of the company's board of supervisors must be shareholder representatives and half are union representatives. However, the chairman of the board of supervisors may be recommended by shareholders. Weichai Power follows the German rules and controls the KION Group in accordance with the rules of the shareholders' influence audit committee. In terms of business synergy and integration, Weichai Power adopted the "Hong Kong people ruling Hong Kong" strategy in accordance with the established overseas company management model of "strategic unification, resource sharing, and independent operation", and was less involved in the actual operation and management of overseas companies. More emphasis will be placed on controlling the strategic direction of overseas companies, establishing annual operating targets, and strengthening management assessment and incentive mechanisms. Open up the smart logistics industry chain Weichai Power introduced that after the completion of the international deployment, Weichai Power is no longer only a company related to heavy trucks, but a platform-based company with rich international strategic resources and diversified businesses, and is a solution service provider. It is reported that the company's original domestic business and overseas business synergy is gradually released. Weichai Power currently has three major business segments: powertrain, complete vehicle, and smart logistics. At present, the company is using the international layout to open up the smart logistics industry chain. This industry chain includes KION's storage equipment, Weichai Power's heavy truck, and Dematic's warehouse and distribution center. And the actual controller of Weichai Power, a subsidiary of Shandong Heavy Industry Group, has light truck products and can provide point-to-point distribution and transportation. It is reported that in 2016, the heavy-duty truck industry recovered strongly, but 70% of the vehicles were used for e-commerce express delivery, daily-use department stores, and container transportation, and the correlation with infrastructure investment was significantly reduced. Weichai Power expects that in 2017, the domestic heavy truck market may exceed 800,000 units, of which the growth of logistics vehicles will continue. Weichai Power's market share in the domestic heavy-duty truck industry has exceeded 30%, and as a result, in 2017, the heavy-duty truck industry will bring 250,000 heavy-duty engine sales to the company. With the completion of the internationalized layout, in the future, Weichai Power's overseas operations will gradually release profits, and the proportion of the heavy truck business in Weichai Power's revenue will gradually decrease. It is reported that KION’s contribution to the net profit of Weichai Power's return to the mother is continuously increasing; with the gradual landing of localized products, and the amortization of PPA (intangible assets and depreciation or amortization of fixed asset appreciation), Linde Hydraulics expects this year There will be good performance. Based on this, the company expects that in 2017, the profits contributed by the company's overseas business will further increase. Silicone Baking Sheet Chuangxin Rubber, Plastic & Metal Co., Ltd. , https://www.chuangxinsilicone.com
Weichai Strategic Cooperation with KION 
Shaanxi Automobile Delong
The internationalized layout gradually became a profit for overseas acquisitions by Weichai Power.
"Our internationalized layout has been basically completed." Dai Lixin, the director of Weichai Power, stated that at the time of the 10th anniversary of the company's H-share transfer to A shares, all of the company's overseas M&A targets were profitable. Weichai Power has become a global leader in equipment manufacturing with balanced development both domestically and overseas.