Lusheng Stock Watch | Tianrun Industrial's dividend exceeds 300 million, achieving double growth in performance by 2025

On March 30, 2025, Tianrun Industrial Technology Co., Ltd. (abbreviated as “Tianrun Industrial”; stock code: 002283) released its 2025 annual report.

According to the annual report, in 2025, Tianrun Industrial achieved operating revenue of RMB 4.071 billion, up 12.55% year over year; net profit attributable to shareholders of the listed company was RMB 368 million, up 10.62% year over year; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 348 million, up 12.08% year over year; and net cash flow from operating activities reached RMB 906 million, up significantly by 70.75% year over year.

Image source: Screenshot from the website of the Shenzhen Stock Exchange

Traditional core business: Crankshafts and connecting rods forming a solid “foundation”

According to publicly available information, Tianrun Industrial was established in December 1995, with its registered address in Wendeng District, Weihai, and was listed on the Shenzhen Stock Exchange’s A-share market on August 21, 2009. It is an individual-champion enterprise in China’s manufacturing sector and an individual-champion enterprise in China’s foundry industry.

Tianrun Industrial’s products include crankshafts, connecting rods, cast forgings (including raw blanks and finished products), air suspension systems, commercial-vehicle electric power steering systems, and more, with a broad product coverage.

As the largest specialized producer of crankshafts in China and the largest producer of heavy- and medium-duty commercial-vehicle broken connecting rods in China, Tianrun Industrial’s traditional core business still remains the “stabilizing ballast” for performance. The annual report shows that the operating revenue of the crankshaft and connecting rod businesses accounts for 82.26% of the company’s operating revenue, indicating a relatively high degree of business concentration.

According to the annual report, Tianrun Industrial’s market share in the heavy-duty engine crankshaft market reached 60%, and its market share in the diesel light engine crankshaft market was 42%. Its main competitors include ThyssenKrupp, Guilin Fuda, and other domestic and international companies. In terms of the supplier matching rate for domestic mainstream commercial vehicle engine customers, Tianrun Industrial is as high as over 95%. Its products are shipped along with engine/vehicle OEMs to more than 20 countries and regions.

In particular, Tianrun Industrial’s “Tian” brand crankshafts are recognized as a “China-Recognized Famous Brand Product,” and its core customers include Weichai Power, Sinotruk, FAW, Dongfeng Commercial Vehicles, SAIC, Guangxi Yuchai, Daimler, Caterpillar, Cummins, Volvo, and other domestic and international OEMs.

Image source: Screenshot from the website of the Shenzhen Stock Exchange

Expected dividends of more than RMB 300 million: Development challenges still need careful consideration

In its annual report, Tianrun Industrial disclosed its 2025 profit distribution proposal. Tianrun Industrial plans to distribute total cash dividends of approximately RMB 246 million to all shareholders. Using 1.12 billion shares as the base—calculated by taking the total share capital of 1.14 billion shares and subtracting shares already repurchased from the repurchase escrow account—cash dividends of RMB 2.20 per 10 shares (including tax) will be paid.

The cash dividends for the year account for 66.98% of Tianrun Industrial’s 2025 net profit attributable to shareholders of the listed company of RMB 368 million. In addition, adding the cash dividend of RMB 56,064,531.40 already implemented in the first half of 2025, its total cumulative cash dividends for 2025 will reach approximately RMB 302 million, with cumulative cash dividends accounting for 82.26% of attributable net profit.

The annual report cites relevant data from the China Automobile Industry Association. In 2025, the cumulative sales of China’s truck market were 3.723 million units, up 10.7% year over year. Among them, the heavy-truck market leads the whole industry, with full-year sales of 1.145 million units, up significantly by 27% year over year.

Tianrun Industrial believes that with the heavy-truck fleet now approaching 10 million units, and considering the standard replacement and upgrade cycle of 7–8 years, the industry is currently in a key window period for large-scale replacement of existing fleet capacity. The demand for replacement of existing fleet has become the core engine driving growth in the heavy-truck industry. Meanwhile, with the “14th Five-Year Plan and 15th Five-Year Plan” (“14th and 15th Five-Year Plans”) deployment launched, appropriately forward-looking infrastructure investment will continue to lay a solid foundation for the commercial vehicle market. Projects in key areas such as transportation, energy, and water conservancy will continue to be advanced, directly boosting the release of rigid demand in the commercial vehicle sector.

However, Tianrun Industrial still faces multiple challenges.

In its annual report, Tianrun Industrial said that in recent years the company has optimized and adjusted its product structure, but the proportion of operating revenue contributed by heavy-duty engine crankshafts and connecting rods remains relatively high in total operating revenue. China’s economy’s normal fluctuations and the cyclical volatility in the heavy-truck industry will bring certain risks to the company’s business development.

“New energy commercial vehicles are growing rapidly, and market share continues to increase. If, in the future, there are breakthrough advances in the R&D and production of new energy commercial vehicles, it will greatly change the current industrial pattern driven by traditional internal combustion engines.” Tianrun Industrial believes that the company’s products are mainly heavy- and medium-duty engine crankshafts and connecting rods, as well as light engine crankshafts and connecting rods. The annual report mentions that in 2025, sales of new energy heavy trucks were 231,000 units, up 182%; sales of new energy light trucks were 177,000 units, up 70%, and penetration continues to increase further. The penetration rate of new energy commercial vehicles continues to rise, continuously squeezing the market space for traditional fuel and gas commercial vehicles.

“Considering the impact of new energy vehicles, to achieve the company’s strategic objectives and sustainable development, we have made a medium- and long-term development plan and are accelerating the development of new businesses, so as to avoid and reduce the impact that future new energy vehicle development may have on the company.”

In addition, Tianrun Industrial stated in its annual report that its main raw materials are steel, pig iron, and others. Fluctuations in the prices of steel and pig iron will affect production and operations. “Due to uncertainties brought about by the current global political and economic situation, if in the future the price fluctuation ranges of raw materials such as steel and pig iron further expand, it will create uncertainty in operating results.”

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