XCMG Machinery Reports H1 2023 Results: Prominent Advantage of Integrated Industrial Layout and High-Quality Development Continues to Break New Grounds

XUZHOU, China, Sept. 12, 2023 /PRNewswire/ -- XCMG Machinery ("XCMG", SHE:000425) has reported the operational and financial metrics of the first half of 2023, the key indicators including the sales revenue of 51.28 billion yuan (US$ 6.98 billion), net profit attributable to owners of the parent of 3.59 billion yuan (US$ 488.81 million), and weighted average return on net assets of 6.7 percent ranks first among major listed companies of China's construction machinery. 

In H1 2023, XCMG's overseas revenue is up 33.5 percent year-on-year to reach 20.9 billion yuan (US$ 2.85 billion); the sales of new energy products amounted 5.27 billion yuan (US$ 717.56 million), a 174.9 percent growth year-on-year. The market share of major products has increased 1.93 percent year-on-year. With milling machine and asphalt mixing station products taking first positions in domestic market, XCMG now has 15 equipment products holding the highest market share in China. 

XCMG's net profit attributable to owners of the parent in Q2 was up 31 percent year-on-year. And in H1 2023, it has achieved 1.39 billion yuan (US$ 189.26 million) of net cost reduction in procurement and net cost reduction rate of 4.53 percent. The company's gross profit margin of 22.86 percent has increased by 2.44 percent year-on-year; the net profit margin on sales reached 7 percent, which is up 0.19 percent year-on-year, with the Q2 performance reaching 7.54 percent, 1.77 percent increase year-on-year. 

"XCMG has been advancing steadily to achieve a resilient, high-quality development. In the context of complex and fast-changing market environment, the new XCMG – with new ideas, new concepts, and new mechanisms – is pushing forward the intelligent and digital transformation following the five strategies of 'high-end, intelligent, green, service-oriented, and globalization,'" said Yang Dongsheng, CEO of XCMG. 

A "Four-in-One" roadmap for international development
XCMG has established a "four-in-one" international development model of product export, overseas factories, cross-border mergers and acquisitions, and globally collaborative R&D. XCMG now exports to more than 190 countries and regions worldwide, providing not only "Advanced and Endurable" products, but also integrated services and spare parts support. 

XCMG's overseas revenue of US$ 2.85 billion in H1 2023 accounted for 40.75 percent of total revenue, a 11.08 percent increase year-on-year, with multiple regions and products achieving rapid growth: 

• The revenue in West Asia, North Africa, and Central America has grew by over 200 percent, the sales in Europe has increased by 150 percent, and approximately 100 percent growth in Central Asia and North America; 
• The sales of aerial work platforms, milling machines, and firetrucks have increased by over 300 percent; the sales of all-terrain crane, truck-mounted crane, port crane, and skid steer loader are up by over 100 percent; 

In addition, XCMG has opened sales companies in Great Britain, Singapore, Saudi Arabia, United Arab Emirates, and Vietnam, with more production bases, R&D facilities, and spare parts centers under construction and planning. 

Anchoring resilient industrial cluster development with strong R&D and synergistic growth 

Digitalization and sustainability are key of XCMG's path of transformation and innovation to achieve high-quality development. XCMG has vigorously advanced new energy product development, seizing the market opportunities to build industry layout.  

During the reporting period, XCMG's sales revenue of new energy products has increased by 174.9 percent year-on-year, and the mining machinery sector which has the complete set, unmanned, electric, and networked product advantages has increased the revenue by 40.86 percent, emerging as a new pillar industry of XCMG. 

The sales from the new business sectors are growing rapidly. in H1 2023, XCMG's aerial work, mining, sanitation, harbor, and agriculture machineries achieved a revenue of 12.3 billion yuan (US$ 1.67 billion), an impressive year-on-year growth of 44.5 percent which accounted for 23.99 percent of total revenue, an 8.18 percent increase year-on-year. The sales revenue of aerial work and mining machineries are up 56.43 percent and 40.86 percent respectively. 

In July, XCMG officially launched the "Pilot, Ascend" project that defines one goal and seven actions to lead the deeply converged and upgraded development of industrial clusters through the integration of innovation, industry, capital, and talent chains. 

"XCMG is navigating through the industry cycles with innovation and internationalization as the core focuses, it's our goal to build a world-class enterprise with leading advantages in products, scale, services, digital and intelligent technologies to achieve strategic transformation and continuous breakthroughs," said Yang. 

SOURCE XCMG Machinery