XCMG Machinery's Annual Report 2024: Pioneering High-Quality Development in New Industrialization

XCMG Machinery's Annual Report 2024: A Step Towards New Industrialization

XCMG Machinery, a prominent global manufacturer of construction machinery, has unveiled its Annual Report for 2024, underscoring its commitment to high-quality development amid the transformative shift toward new industrialization. The report highlights a strong financial performance, including a net profit allocated to shareholders amounting to 5.976 billion CNY (approximately 821.87 million USD), reflecting an impressive 12.2% increase from the previous year. Additionally, the company's total revenue stood stable at 91.66 billion CNY (around 12.61 billion USD).

The document reassures stakeholders of XCMG's steadfast position in the construction machinery market, especially as it witnesses a remarkable 28.14% year-on-year growth in non-deductible net profits, reaching 5.762 billion CNY (approximately 792.44 million USD). Improvements in both gross profit margin and net profit margin signal the group's ongoing success, alongside a significant rise in operating cash flow, which jumped by 60.18% to 5.720 billion CNY (approximately 786.66 million USD). The net revenue margin also reported an increase of 0.89%, reaching 6.53% in 2024.

Growth and Global Expansion

An essential focus of XCMG's growth strategy lies in its international operations. The overseas revenue for 2024 reached 41.687 billion CNY (5.73 billion USD), marking a 12% rise compared to the previous year. This international revenue made up 45.48% of the company’s total sales, indicating a significant shift towards global markets. XCMG has sustained its Foreign Exchange investments, which increased by 11.1% to about 5.6 billion CNY (772.8 million USD), representing 6.11% of its sales.

By the end of 2024, the company employed 7,619 staff dedicated to research and development, reflecting a 12.13% growth. In a testament to this innovative spirit, XCMG granted over 1,600 new patents throughout the year, including more than 750 invention patents, reinforcing its dedication to technological advancement.

Leading the Way in Intelligent Transformation

With the successful culmination of 2024, XCMG has showcased a remarkable expansion in areas such as intelligent transformation and digitalization. The company is committed to steering industrial change, leveraging AI to navigate the evolving landscape of industrialization. The HANYUN platform, a focal point of XCMG’s strategy, emphasizes intelligent manufacturing, vehicle Internet connectivity, and various unmanned application scenarios, utilizing pioneering technologies at its core.

The firm maintains its dedication to delivering value to its stakeholders, engaging in capital returns through cash dividends, share buybacks, and incentive programs for employees and significant shareholders. XCMG's commitment to returning profits to investors is demonstrated by maintaining a cash dividend amounting to 2.127 billion CNY (292.52 million USD) for 2024.

An ongoing share buyback program aims to allocate at least 1.8 billion CNY (247.55 million USD) for share incentives and employee ownership plans, while a minimum of 300 million CNY (41.26 million USD) is reserved for stock destruction through buybacks.

Continued Growth into 2025

As XCMG transitions into 2025, the company exhibits a positive trajectory with an operating income of 26.815 billion CNY (3.69 billion USD), reflecting a 10.92% increase compared to the previous year. The net profit for the first quarter of 2025 reached 2.022 billion CNY (278.08 million USD), marking a robust 26.37% growth, while deducting non-net profit resulted in 2.007 billion CNY (276.02 million USD), escalating by 36.88%. Furthermore, the operating cash flow has notably surged nearly 2.6 times, showcasing XCMG's resilient performance as it continues to adapt and thrive in a rapidly evolving industrial landscape.

In summary, XCMG Machinery's 2024 Annual Report does more than spotlight financial achievements; it illustrates the company's unwavering commitment to innovation and excellence in the construction machinery arena. As XCMG embarks on this path of new industrialization, it stands ready to embrace the future and meet the challenges and opportunities ahead.