Deutsche Bank's global performance bottoms out, releasing long-term value; over 100% dividend payout and intelligent overseas expansion demonstrate resilience

In the near term, Hong Kong stocks have entered a period of concentrated annual report releases. The 2025 performance of commercial vehicle full-industry-chain services leader Desin Tianxia (02418.HK) provides an excellent example for the market to observe industry cycles and the company’s strategic transformation. Affected by factors such as the macro environment and industry competition, the company recorded revenue of approximately RMB 2.762 billion (the same applies below) during the period, up 5.1% year over year. Although net profit attributable to shareholders of the listed company fell to approximately RMB 68.29 million due to factors including the company’s proactive optimization of its business structure, by taking a deeper look at its high dividend payout ratio of over 100% and the operating data across its various business segments, as well as its overseas expansion plan, it is not hard to see that the company is at a crucial inflection point where it is proactively optimizing asset quality and building strength for long-term development.

High Dividend Payouts Highlight Resilient Cash Flow; Prudent Provisioning Optimizes Asset Quality

In capital markets, assessing a company’s ability to withstand pressure during a transition period often hinges on cash flow and dividend policy. When profits faced pressure, Desin Tianxia still announced a final dividend of RMB 0.3147 per 10 shares (including tax), with a dividend payout ratio as high as 100%. This not only fulfills the commitment to return value to shareholders, but also indirectly confirms that the company’s business foundation is solid and its operating cash flow is healthy.

This calm response to the cycle is also reflected in the management’s prudent financial strategy. During the period, the company proactively increased loss allowance provisions for impairment of finance lease receivables, factoring, and accounts receivable. While this led to short-term downward pressure on reported profits, in substance it means potential cyclical risks are recognized and digested in advance. By proactively optimizing its balance sheet, the company has removed risks ahead of a rebound in performance for 2026 and beyond, demonstrating strategic resolve that can carry across cycles.

Telematics Network Reaches 1.26 Million Vehicles; Digital Platform Fully Empowers

The company is accelerating its move toward an intelligent and data-driven services platform. According to its annual report, its telematics platform maintained steady growth. By the end of 2025, the total networked scale of heavy-duty commercial vehicles reached 1.26 million.

At present, its telematics platform has the capability to collect more than 1,400 types of data and processes more than 2.2 million data records per second, with a technical specification of [dydb1]. Leveraging the platform’s scale, its data collection advantages, and a broad range of application scenarios, the company is accelerating the systematic reconstruction and upgrade of its product and service system. During the period, the company launched an upgraded “Smart Logistics” platform for logistics customers, enabling end-to-end digital control from transportation management to safe custody and operations; for dealers, it innovated with a “Digital & Intelligent Marketing” platform, offering tools such as standardized vehicle selection and operational tracking. This means the company’s business model is gradually deepening into digital services and intelligent operations across the full lifecycle.

Overseas Strategy Delivers a “From 0 to 1” Breakthrough; Broadens Global Growth Space

Currently, commercial vehicle exports have become a key driver of industry growth (in 2025, China’s commercial vehicle exports rose 17.2% year over year). As a leading player in Chinese heavy truck going-global, the majority shareholder Shaanxi Automobile Group (陕汽集团) enjoys clear advantages in overseas markets. As the strategic vehicle for Shaanxi Automobile’s overseas expansion, Desin Tianxia has fully taken on the mission of moving from overseas expansion of a single product to an ecosystem expansion across the full industrial chain.

Facing challenges in the domestic market, the company has firmly anchored itself to an overall overseas expansion strategy. During the period, the company formally signed a strategic cooperation agreement with Yongqing Group, under which it will carry out comprehensive logistics cooperation in Indonesia’s Morowali IMIP industrial park. This marks a new stage for Desin Tianxia’s overseas business in terms of localized operations, achieving a historic breakthrough for its overseas strategy of “from 0 to 1.”

Long-Term Allocation Value Worth Further Evaluation

Taking an overall view, Desin Tianxia’s 2025 performance is not only a financial report that reflects operating conditions, but also a clear roadmap for strategic upgrading. Steady revenue growth and solid operating data lay a firm foundation for the company’s long-term development; while the strategic decline on the profit side is an adjustment of the structure to support long-term, high-quality development. With the acceleration of the overseas expansion strategy taking hold, Desin Tianxia’s strategic value as a core services enabler for commercial vehicle going-global will become increasingly prominent. For investors with a forward-looking perspective, Desin Tianxia, currently in a strategic adjustment period, has long-term allocation value that deserves to be re-evaluated by the market.