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XCMG Machinery's 2024 Annual Report: A Testament to High-Quality Development

In a remarkable update from the world of construction machinery, XCMG Machinery, a prominent leader in the industry, has unveiled its 2024 Annual Report. This report is not just a routine disclosure; it emphasizes the company's exceptional performance and outlines its strategic direction in industrialization.

Financial Highlights

According to the report, XCMG Machinery saw its net profit attributable to shareholders soar to CNY 5.976 billion (approximately USD 821.866 million), marking a 12.2% increase compared to the previous year. The overall revenue has remained stable at CNY 91.66 billion (around USD 12.61 billion), demonstrating the firm’s resilience and commitment to sustainable growth.

Impressively, the non-deductible net profit reached CNY 5.762 billion (USD 792.435 million), a substantial 28.14% rise year-on-year. The reported figures reflect a continuous improvement in both gross profit margins and net profit margins, coupled with a remarkable 60.18% increase in operating cash flow, which was reported at CNY 5.720 billion (USD 786.660 million). The company's net sales margin also showed healthy growth, increasing by 0.89% to 6.53% in 2024.

Expanding International Reach

In line with its ambitious growth strategy, XCMG's revenue from international markets flourished, climbing to CNY 41.687 billion (USD 5.73 billion) in 2024, reflecting a 12% increase and accounting for 45.48% of total revenue. This upward trajectory underlines XCMG's successful efforts to expand its global presence, tapping into new markets and solidifying its standing as a formidable competitor on the world stage.

Investment in Innovation

XCMG has significantly ramped up its investment in Research and Development (R&D), with an 11.1% increase that saw the company allocate approximately CNY 5.6 billion (USD 772.8 million) towards R&D. This investment represents 6.11% of the company's total revenue, demonstrating its commitment to innovation as a key driver of long-term success. By the end of 2024, XCMG boasted 7,619 R&D staff, a 12.13% increase from the previous year, signaling a robust push towards technological advancement.

Throughout the year, XCMG added more than 1,600 new authorized patents, including over 750 invention patents, reinforcing its competitive edge through intellectual property development.

Focus on High-Quality Development

The company is steadfast in its pursuit of high-quality development, leveraging intelligent transformations and digitalization. XCMG has taken proactive steps to embrace the path of new industrialization, driven by artificial intelligence (AI) and digital technologies. Notably, XCMG HANYUN is at the forefront of these efforts, concentrating on three critical areas: intelligent manufacturing, vehicle internet technology, and unmanned application scenarios, all centered around HANYUN OS and AI technologies.

Commitment to Stakeholders

In a show of confidence and commitment to its stakeholders, XCMG has pledged to distribute CNY 2.127 billion (USD 292.521 million) in cash dividends for 2024. Furthermore, the company is set to advance its share repurchase program, committing at least CNY 1.8 billion (USD 247.550 million) for employee equity incentives, along with an allocation of CNY 300 million (USD 41.258 million) for share repurchases.

Positive Outlook for 2025

As XCMG moves into 2025, the company has reported a promising start with an operating income of CNY 26.815 billion (USD 3.69 billion), marking a 10.92% increase year-over-year for the first quarter. The net profit also showed substantial growth, reaching CNY 2.022 billion (USD 278.081 million), reflecting a 26.37% increase, alongside a remarkable 36.88% rise in non-net profit. The operating cash flow saw nearly a 2.6 times increase, indicating efficient operations and financial health.

Conclusion

The 2024 Annual Report from XCMG Machinery not only highlights the company's robust financial performance but also its strategic direction towards innovative and sustainable growth. By embracing technological advancements and prioritizing high-quality development, XCMG is clearly positioned to continue its leadership in the global construction machinery industry, paving the way for a new era of industrialization.