2023 Sees 92.848 Billion Yuan Revenue, 40.09% Courtesy of International Business
XUZHOU, China, May 9, 2024 /CNW/ -- In a remarkable display of resilience and growth, XCMG Machinery (SHE:000425, "XCMG") has announced a proposed 20% increase in its annual dividend, following an impressive year that saw the company achieve a historic high in international revenue and maintain its position as the industry leader in China. The company's business income reached 92.848 billion yuan, with international revenue soaring to 37.220 billion yuan, accounting for 40.09% of total income.
The proposed dividend for the fiscal year 2023 stands at 1.80 yuan per ten shares (tax included), amounting to approximately 2.127 billion yuan in cash dividends—a significant increase from the previous year and representing 40% of the company's net profit attributable to the parent. Additionally, XCMG is actively implementing a stock buyback plan valued between 300 million and 600 million yuan.
Despite facing profound changes in both domestic and international competence environments throughout the year, XCMG achieved double-digit net profit growth while enhancing gross margin and sales net profit margin. The company also successfully reduced accounts receivable and inventory levels; continued to increase market share across most product lines; witnessed rapid revenue growth from strategic emerging industries exceeding 20%; and saw revenues from new energy-related equipment and businesses double for two consecutive years, nearing ten percent of total revenue.
A key indicator of profitability—the overall gross margin—reached an impressive figure of 22.38%, marking an improvement of 2.17% points compared to previous years across various product categories combined, including cranes, earth-moving machinery, and concrete machinery, among others, regardless of domestic or overseas markets.
By the end of December 2023, XCMG had effectively reduced both accounts receivable by 1.13% and inventory amounts by 7.75% compared to 2022—demonstrating strong financial management, which resulted in a net cash flow from operating activities amounting to approximately 3.57 billion yuan—an increase exceeding 125.59% over last year.
Underpinning these achievements is XCMG's unwavering commitment to its internationalization strategy, which has seen it deepen its global development layout through export trade, overseas greenfield manufacturing investment, multinational acquisitions, as well as global R&D efforts, providing comprehensive marketing services, full value chain services, and complete solutions to worldwide clients, leading significant growth in the international business segment during this period.
XCMG's thriving business is attributed to its strategy, led by technological innovation. In 2023, XCMG's digital supply chain initiative was recognized as a key industrial internet project in Jiangsu Province, China, adding five provincial industrial internet benchmark factories. The company achieved level three maturity in intelligent manufacturing capabilities with three enterprises, and both the XCMG Hoisting business unit and XCMG Transmission were newly included in the Ministry of Industry and Information Technology's "5G Factory Directory". Additionally, the Intelligent Manufacturing Factory of XCMG Loaders was selected for the national intelligent manufacturing demonstration factory, and XCMG Machinery ranked first nationwide in the Ministry of Industry and Information Technology's "2023 New Generation Information Technology and Manufacturing Integration Development Demonstration List".
Continuing its industry-leading streak from 2023, XCMG Machinery has reported a first-quarter operating revenue of 24.041 billion yuan this year, up by 0.96% year-on-year, with a net profit attributable to the parent of 1.6 billion yuan, a 5.06% increase from the previous year. The net profit, adjusted for non-recurring items, was 1.466 billion yuan, marking a 12.48% increase from last year, thereby maintaining its lead in the domestic sector. The company's ongoing growth is attributed to the dynamic shift towards new energy products, witnessing a surge of over 40%, and a notable increase in revenue from spare parts and high-end products, by nearly 15% and 5% respectively.
In addition, the Company, in 2023, is set to vigorously pursue its social responsibilities, steer its ESG business towards sustainable operations, and is expected to introduce its first-ever ESG report shortly.
For more information about XCMG Machinery, please visit: https://www.xcmgglobal.com/.
SOURCE XCMG Machinery
Wang Lin, [email protected]
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