XCMG Construction Machinery Co., Ltd. (SHE:000425) reported 38.204 billion yuan (US$ 5.52 billion) in first-half revenue of as of June 30, a 28.23 percent decrease year-on-year on a smaller drop compared to the industry average. XCMG’s revenue from export amounted to 12.488 billion yuan (US$ 1.8 billion), a 157.28 percent increase year-on-year.
Per the simulated financial statements after the completion of material assets reorganization, “New XCMG” ranks No.1 in China’s construction machinery industry in terms of total revenue and net profit. In addition, XCMG’s interim dividend plan has a proposed dividend of 2.3 yuan per 10 shares (tax included).
After five years of rapid growth, the construction machinery industry has shown a downward trend starting from Q2 of 2021 that continued to this day, and China’s domestic market is going through a cyclical adjustment. Facing the challenges, XCMG has mapped a new industry layout of “5 pillars and 10 emerging strategic industries” with a continuous focus on primary businesses:
-The hoisting machinery BU continues to lead in the highly competitive market with 3.1 percent increase in market share and sales breakthroughs of all-terrain cranes in the high-end European/American markets;
-The market share of crawler cranes has increased by 8.1 percent. XCMG has expanded the business scope of truck cranes and explored new opportunities for profitable growth;
-XCMG Fire-fighting Safety Equipment maintained the No.1 position in lifting fire trucks and boom-type aerial work platforms and launched construction for the second phase of its new base;
-XCMG Environment Technology has increased market share and gross profit margin;
-The revenues from small construction machinery, maintenance machinery, forklift and information industry have increased by 100.3, 18.3, 89.5 and 23.4 percent year-on-year.
“New XCMG” consolidates its leading position in the overseas market
In the first half of 2022, XCMG’s overseas entities delivered outstanding performance, with revenues increasing by 71.8 percent. XCMG Brazil’s first-half revenue has exceeded that of the annual total of 2021 and achieved a significant increase in profit and overall indicators. Company registration and site selection for XCMG’s North American projects have been completed, and German Schwing’s revenue has turned the tide, while India Schwing has become a benchmark of collaborative development with a 68.5 percent increase in revenue. XCMG India is officially in operation, and the group’s subsidiary in Uzbekistan has reported revenue growth of 69.1 percent year-on-year.
“The ‘New XCMG’ will adhere to achieving transformation, upgrade, and high-quality development; continue to advance digital technologies supported by world-class software platforms; and strengthen the R&D of information technologies such as big data, AI, 5G, industrial IoT, and digital twin; while further expanding and stabilizing the innovation chain, industry, and supply chain to build core competitive advantages for growth and profit,” said Lu Chuan, President of XCMG.