On August 30, XCMG Construction Machinery Co., Ltd. (XCMG Machinery, 000425) announced that in the first half of this year, the company achieved revenue of 51.278 billion yuan, a year-on-year decrease of 4.78%; net profit of 3.589 billion yuan, a year-on-year decrease of 2.1%.
During the reporting period, XCMG Machinery achieved domestic revenue of 30.3 billion yuan, a year-on-year decrease of 20.46%; overseas revenue of 20.9 billion yuan, a year-on-year increase of 33.49%, accounting for 40.75% of the total revenue, up from 29.07% in the same period last year, setting a new record.
The Paper learned that in the first half of this year, domestic construction machinery was still in a downward cycle, domestic demand continued to decline year-on-year, and industry demand mainly relied on overseas markets.
According to statistics from the China Construction Machinery Industry Association on major excavator manufacturers, in the first half of this year, a total of 108,818 excavators were sold, a year-on-year decrease of 24%. Of these, 51,031 were domestic, a year-on-year decrease of 44%; and 57,787 were exported, a year-on-year increase of 11.2%.
By product, during the reporting period, XCMG Machinery’s crane machinery business revenue was 11.909 billion yuan, a year-on-year decrease of 13.78%; earthmoving machinery business revenue was 13 billion yuan, a year-on-year decrease of 6.43%%; concrete machinery business revenue was 5.34 billion yuan, a year-on-year decrease of 7.69%; aerial work machinery business revenue was 5.115 billion yuan, a year-on-year increase of 56.43%; mining machinery business revenue was 4.236 billion yuan, a year-on-year increase of 40.86%; road machinery business revenue was 2.698 billion yuan, a year-on-year increase of 66.45%; other engineering machinery and spare parts business revenue was 8.978 billion yuan, a year-on-year decrease of 27.94.
In addition, XCMG Machinery’s gross profit margin in the first half of the year was 22.86%, a year-on-year increase of 2.44 percentage points.
XCMG Machinery is mainly engaged in the research and development, manufacturing, sales and service of crane machinery, shovel transport machinery, compaction machinery, road machinery, pile work machinery, fire fighting machinery, environmental sanitation machinery and other engineering machinery and spare parts. The company’s products are mainly used in infrastructure construction, real estate development, large-scale projects, emergency rescue and disaster relief, transportation, natural resource mining and other fields, and the overall demand is highly correlated with fixed asset investment.
In the first half of 2023, XCMG Machinery established sales companies in the UK, Singapore, Saudi Arabia, UAE and Vietnam respectively, and several production bases, research and development institutions and spare parts centers are being planned and promoted. As of now, XCMG Machinery has 39 overseas subsidiaries and covers marketing in 193 countries and regions worldwide.
The announcement showed that in the first half of the year, XCMG Machinery’s overseas performance grew rapidly in multiple regions: West Asia and North Africa and Central America grew by more than 200%, Europe grew by more than 150%, Central Asia and North America grew by nearly 100%.
According to the 2023 Top 50 Global Construction Machinery Manufacturers List (Yellow Table 2023) released by the British KHL Group, XCMG ranked third with a sales volume of US$13.407 billion, and it is also the only Chinese construction machinery company that has ranked among the top three in the world for three consecutive years.
As of August 30 closing price, XCMG Machinery reported at RMB5.98 per share with a total market value of RMB70.661 billion.
