XCMG Machinery (“XCMG”, SHE:000425), a global leader in construction machinery, recently published its 2022 Annual Report, showing strong performance with total revenue of 93.817 billion yuan and net profit attributable to shareholders of 4.307 billion yuan. The company’s growth is the highest amongst Chinese construction manufacturers, demonstrating resilience in a period of post-pandemic adjustment.
XCMG, known for high-quality excavation and mining machinery assets, achieved the greatest domestic return on equity at 8.13 percent in 2022. “As a globally leading provider of construction machinery and sustainable development solutions, XCMG is able to consolidate our strategic advantages through the economic slowdown that is affecting the industry, prioritizing technological innovation and internationalization in our strategic roadmap to grow with resiliency,” said Yang Dongsheng, Chairman of XCMG.
The first quarter of 2023 saw continued success, with revenue of 23.9 billion yuan, among which internationalization revenue exceeded 10.6 billion yuan, setting a record in the history of a single quarter and accounting for 45% of operating revenue.
Technological Innovation Driving Growth
XCMG invested 5.75 billion yuan in R&D in 2022, a 6.13 percent increase from the previous year. The company has a dedicated R&D workforce of 5,767 employees, accounting for 21 percent of its total staff.
By the end of 2022, XCMG held 9,742 legally licensed patents, including 2,458 innovation patents and 183 overseas patents. The company has received over 20 China patent awards. Several major equipment products developed independently by XCMG have filled gaps in the Chinese market, positioning the company as a leader in high-end manufacturing.
Strong Growth in Overseas Markets
In 2022, XCMG’s overseas revenue reached 27.838 billion yuan, while export income totalled 21.63 billion yuan, marking a 70.5 percent increase. The company’s international gross profit margin stood at 22.33 percent, surpassing the 19.32 percent margin in the domestic market.
XCMG exports to 191 countries and regions, with a market share increase of 2.42 percent. All eight regions of Asia-Pacific, Middle Asia, Africa, North America, Europe, West Asia and North Africa, Oceania, and South America, in which the company operates experienced significant growth in 2022. International subsidiaries also performed well, with significant revenue increases in Brazil (86.35 percent) and XCMG Schwing (30.33 percent) and the improvement of production capacity in India in its first year of operation.
To support its technology development and international strategies, XCMG established global R&D hubs.