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XCMG Machinery's 2024 Annual Report: A Benchmark in High-Quality Development

XCMG Machinery, a global leader in the construction machinery sector, has released its 2024 Annual Report, reflecting significant growth and resilience in its operations. The report showcases a remarkable net profit attributable to shareholders of 5.976 billion CNY (approximately 821.87 million USD), marking an increase of 12.2% year-on-year. Furthermore, total revenue has remained stable at 91.66 billion CNY (around 12.61 billion USD), illustrating the company's consistent performance amidst challenging market conditions.

XCMG stands firm at the forefront of China's machinery industry, where the net profit not accounted for reached 5.762 billion CNY (about 792.44 million USD), indicating a robust year-over-year growth of 28.14%. The gross profit margin and net profit margin of the group continue to show steady improvement, with operating cash flow experiencing a significant annual increase of 60.18%, now reaching 5.720 billion CNY (approximately 786.66 million USD). In 2024, the net profit margin also saw a rise of 0.89% year-on-year, achieving 6.53%.

An intriguing aspect of the report is the growth in overseas revenue, which rose to 41.687 billion CNY (approximately 5.730 billion USD), a 12% increase compared to the previous year. This figure now constitutes 45.48% of the total revenue, indicating XCMG's expanding global footprint and international business strategy.

Investment in Research and Development (R&D) has seen a commendable boost of 11.1%, totaling around 5.6 billion CNY (approximately 772.80 million USD), which is equivalent to 6.11% of total revenue. By the end of 2024, the company employed 7,619 staff in R&D, reflecting a 12.13% increase. Throughout the year, XCMG was awarded more than 1,600 new patents, including over 750 invention patents, which showcases its commitment to innovation and technological advancement.

In 2024, XCMG not only focused on maintaining high profitability and sustainable development but also emphasized significant advancements in intelligent transformation, digitalization, and networking within the industry. By adopting AI-driven approaches, XCMG is paving a new pathway for industrialization, thereby driving innovative and high-quality development that exhibits distinct characteristics of its brand.

The HANYUN initiative has concentrated on three principal sectors: intelligent manufacturing, vehicle internet services, and unmanned applications, leveraging technologies like HANYUN OS and AI for enhanced operational capabilities.

XCMG’s commitment to high-quality development and long-term profitability also extends to its shareholders. The company consistently shares its success through cash dividends, stock repurchases, and various incentive measures, thereby bolstering confidence among investors. In 2024, XCMG maintained cash dividends at 2.127 billion CNY (approximately 292.52 million USD) and will continue its stock repurchase program, allocating at least 1.8 billion CNY (around 247.55 million USD) for capital incentives and employee stock participation plans, alongside committing no less than 300 million CNY (approximately 41.26 million USD) for share cancellations through buybacks.

As the first quarter of 2025 unfolds, XCMG reported strong momentum, documenting an operating income of 26.815 billion CNY (approximately 3.69 billion USD), which represents a 10.92% year-on-year increase. The net profit stood at 2.022 billion CNY (about 278.08 million USD), reflecting a year-on-year growth of 26.37%. In contrast, the net profit excluding certain items amounted to 2.007 billion CNY (approximately 276.02 million USD), an impressive year-on-year rise of 36.88%. Furthermore, the operating cash flow surged nearly 2.6 times, indicating robust financial health and operational efficiency.

In summary, XCMG Machinery's 2024 Annual Report underlines its resilient growth trajectory and commitment to high-quality development, positioning itself as a leader in the global construction machinery industry. With its continued investment in innovation, international expansion, and stakeholder engagement, XCMG is not just ready for the challenges ahead but is also poised to set new benchmarks in the industry.