XCMG Machinery has announced a proposed 20% increase in its annual dividend. This follows a year that saw the company achieve a record high in international revenue and maintain its position as an 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.
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.
The overall gross margin reached 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 reduced both accounts receivable by 1.13% and inventory amounts by 7.75% compared to 2022. This resulted in a net cash flow from operating activities amounting to approximately 3.57 billion yuan, an increase exceeding 125.59% over last year.
XCMG’s internationalisation strategy has seen it deepen its global development layout through export trade, overseas greenfield manufacturing investment, multinational acquisitions, as well as global R&D efforts.
Continuing its performance 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.
