#China #Global Expansion #Construction Equipment #XCMG Machinery #Xuzhou

XCMG Breaks Records in Half-Year Earnings

Introduction

In a remarkable report, XCMG Machinery (SHE:000425) announced its unprecedented growth in the first half of 2025, showcasing impressive earnings and a robust international expansion strategy. The earnings report revealed a historic revenue of RMB 54.81 billion (approximately US$7.69 billion), marking an 8.04% increase compared to the previous year. With a growing focus on technological innovation and sustainable practices, XCMG aims to solidify its position as China's construction machinery leader and enhance its global market footprint.

Financial Highlights

The company's financial performance was bolstered by notable achievements:

• - Record Overseas Revenue: XCMG's overseas revenue grew by 16.64% year-on-year to reach RMB 25.55 billion (US$3.58 billion), which now constitutes 46.61% of its total revenue.
• - Profit Surge: The net profit attributable to shareholders soared to RMB 4.36 billion (US$611.43 million), reflecting a substantial increase of 16.63%. Core net profit saw an impressive rise of 35.57%, both of which set new highs in the company's history.
• - Profitability Metrics: Improvements in profitability were evident with the gross margin increasing by 0.7 percentage points to 22.03%, while the net profit margin reached 8.06%. Furthermore, operating cash flow dramatically more than doubled to RMB 3.73 billion (US$523.08 million).

These strong figures underscore XCMG's operational quality and adherence to financial discipline, setting a strong foundation for future growth.

Investing in Innovation

XCMG is committed to reinvesting its profits for sustainable growth. Research and development (R&D) spending increased over 5% year-on-year to RMB 2.64 billion (US$370.22 million). The company is accelerating its efforts in new energy technologies, deploying sophisticated testing platforms, and attracting top global talent to lead its initiatives in electrification and intelligent systems.

One significant achievement during this period is the advancement of its "1+6+N" innovation framework. This strategy has produced tangible outcomes, including:

• - Mass production of in-house developed CTV battery systems.
• - Innovations in ultra-high-voltage power systems and high-efficiency silicon carbide technologies.
• - Developing thermal management solutions that enhance product efficiency.

XCMG is not just focusing on conventional machinery; it is embracing an AI-driven transformation, with eight AI projects in the pilot phase, showcasing its commitment to intelligent manufacturing and operations.

Intellectual Property Growth

In a bid to secure its position as an industry innovator, XCMG obtained 218 new invention patents and 45 overseas patents during the first half of 2025, bringing its total patent portfolio to over 12,000. This showcases the company’s relentless pursuit of technological advancement and its dedication to pushing the boundaries of construction machinery.

Strong Performance in Mining Equipment

The mining equipment sector, regarded as a crucial "second growth curve," has shown remarkable potential for expansion. XCMG's initiatives include deploying 100 electric autonomous trucks at Huaneng Yimin Open-pit Mine, which highlights their commitment to sustainable solutions in the mining industry. Additionally, the company hosted a global zero-carbon mining summit, welcoming participants from over 30 countries, reinforcing its role as a leader in this sector.

Partnerships with industry leaders such as BHP and Rio Tinto further solidify XCMG's expanding presence on the global stage.

Conclusion

As XCMG Machinery continues to drive its innovation agenda while achieving unprecedented financial results, the company sets a benchmark for growth in the construction machinery industry. With plans for ongoing global expansion and a commitment to sustainability, XCMG is poised to maintain its competitive edge. As it looks to the future, XCMG is not just a leader in machinery but a pioneer in adopting futuristic technologies that will shape the industry for years to come. For more information about XCMG's latest advancements and offerings, visit XCMG Global.