#China #Innovation #Global Expansion #XCMG Machinery #Xuzhou

XCMG Achieves Record Half-Year Results

XCMG Machinery, a leader in the construction machinery sector, has recently unveiled its financial performance for the first half of 2025, revealing record-breaking revenue figures. The company reported an impressive revenue of 54.81 billion RMB (approximately 7.69 billion USD), marking an 8.04% increase compared to the previous year. This financial achievement is complemented by a double-digit growth in net profit, demonstrating XCMG's strength in the market and its innovative approach to business.

Global Expansion and Revenue Growth

In the first half of 2025, XCMG made significant strides in international markets, generating an overseas revenue of 25.55 billion RMB (around 3.58 billion USD), which reflects a remarkable 16.64% growth year-on-year. This increase has boosted the share of international sales to 46.61% of total revenue, showcasing the effectiveness of the company's ongoing internationalization efforts.

The proportion of global revenue has come a long way, rising from 29.07% in 2022 to nearly 50% in the current period, emphasizing XCMG's status as a formidable global player in the industry.

The company credited several key drivers for this growth:

• - A substantial 33.23% increase in aftermarket services.
• - A 13.25% surge in revenues from strategic emerging markets.
• - A staggering 41.44% increase in revenue from high-end product offerings.

Moreover, XCMG's net profit attributable to shareholders reached 4.36 billion RMB (approximately 611.43 million USD), reflecting a 16.63% increase, with the core net profit soaring by an impressive 35.57%. Both metrics set all-time highs for the company, demonstrating robust business fundamentals.

The company's profitability ratios have also witnessed significant improvements, with gross margins climbing by 0.7% to stand at 22.03%. The net profit margin also saw increases, reaching 8.06%. Notably, operating cash flow more than doubled to 3.73 billion RMB (around 523.08 million USD), reinforcing XCMG’s strong operational quality and financial discipline.

Investment in Innovation

In line with its growth strategy, XCMG has committed to reinvesting profits to secure future development, with expenditures on research and development rising over 5% to 2.64 billion RMB (approximately 370.22 million USD). The company is advancing new energy technologies and is investing in advanced test platforms to attract top talent globally in electrification and intelligent systems.

The “1+6+N” innovation framework has yielded significant results—from the mass production of self-developed CTV battery systems to advancements in ultra-high voltage power supply systems, integrated thermal management solutions, and high-efficiency silicon carbide technologies.

Additionally, XCMG is embracing AI-driven transformation by identifying high-quality application scenarios, conducting eight AI pilot projects, and establishing a scalable framework for intelligent manufacturing and operations. The company secured 218 new invention patents in the first half of the year along with 45 international patents, increasing its total patent portfolio to over 12,000.

Focus on Mining Equipment

The mining equipment sector has emerged as a critical second growth curve for XCMG, with exciting developments, including the deployment of 100 autonomous electric trucks in the Huaneng Yimin open-pit mine and the organization of a global summit on carbon-free mining with participants from over 30 countries. Partnerships with industry leaders such as BHP and Rio Tinto further cement XCMG's expanding global influence.

In summary, XCMG's remarkable half-year performance not only highlights its leadership in the Chinese construction machinery industry but also emphasizes its commitment to innovation and global expansion. The company's ongoing efforts position it favorably in a competitive landscape, ensuring sustained growth and a robust market presence. For more details, please visit www.xcmgglobal.com.