FAW Jiefang Plans $14B Wealth Management Amid Pressure Despite Selling 280,000 Trucks Annually

On February 3, FAW Jiefang (000800.SZ), a leading commercial vehicle manufacturer, announced plans to allocate up to RMB 10 billion of its own funds for entrusted wealth management, emphasizing that this move aims to enhance capital efficiency and boost earnings while ensuring the stability of its core business. In 2024, the company reported revenue of RMB 58.581 billion and net profit of RMB 622 million, down 18.43% year-over-year. However, in the third quarter of 2025 alone, its net profit surged to RMB 3.52 billion, a remarkable 525.14% increase year-over-year, driven by industry recovery, effective cost control, and strong sales of high-margin products. For the full year, FAW Jiefang delivered over 280,000 vehicles, maintaining its leading position in the medium- and heavy-duty truck segment with a market share of 22.6%. Its overseas exports have grown tenfold over the past six years, exceeding 60,000 units in 2025. Amid ongoing profitability pressures and industry transformation, the company’s strategy of optimizing cash flow through low-risk wealth management is widely regarded within the industry as prudent and稳健.