#Global Expansion #Construction Equipment #XCMG Machinery

XCMG Achieves Record Financial Results for the First Half of 2025

XCMG Machinery (SHE:000425) has recently announced impressive financial results for the first half of 2025, revealing record-breaking revenue reaching RMB 54.81 billion (approximately US$7.69 billion), marking an 8.04% year-over-year increase. This strong performance is attributed to the company's advanced technological breakthroughs and relentless global expansion efforts.

In the analysis of this half-year report, XCMG noted its overseas revenue at RMB 25.55 billion (US$3.58 billion), signifying a remarkable growth of 16.64% compared to the previous year. This increase raised the percentage of overseas income to 46.61% of total revenues, further confirming the company's successful internationalization strategy. The growth trajectory has seen XCMG's global revenue share rise from 29.07% in 2022 to nearly 50% in 2025.

Key contributors to the company's success include significant advancements in after-sales services, which saw a 33.23% increase. Moreover, emerging strategic sectors contributed to a growth of 13.25%, and income from high-quality product sales surged by 41.44%. The net profit attributable to shareholders climbed to RMB 4.36 billion (US$611.43 million), reflecting a 16.63% year-over-year increase, while core net profit surged by an impressive 35.57%.

Notably, profitability metrics improved substantially, with the gross margin rising by 0.7 percentage points to 22.03% and the net profit margin standing at 8.06%. Additionally, operating cash flow more than doubled to RMB 3.73 billion (US$523.08 million), showcasing the company's robust operational integrity and financial prudence.

XCMG continues to re-invest its profits for future growth, with R&D expenditures increasing more than 5% year-over-year to RMB 2.64 billion (US$370.22 million). The focus on innovation within new energy technologies, advanced testing platforms, and the recruitment of top global talent in electrification and intelligent systems underscores the company’s commitment to sustainable development.

The innovative framework known as “1+6+N” has yielded tangible results. It has facilitated the mass production of self-developed CTV battery systems and significant advancements in ultra-high voltage power supply systems, high-integration thermal management, and highly efficient silicon carbide technologies. In addition, XCMG is proactively pursuing AI-driven transformation, identifying high-quality application scenarios, and initiating eight AI-centered projects to develop a scalable framework for intelligent production and operations.

In the first half of 2025, the company secured 218 new invention patents and 45 overseas patents, raising its global patent portfolio to over 12,000 comprehensive intellectual properties.

A key area of expansion for XCMG is its mining equipment sector, seen as a