XCMG Reports Strong Growth Unveils Development Strategy

If the construction machinery industry were an epic saga, XCMG Machinery would undoubtedly be one of its most compelling chapters. During a challenging first half of the year, the company delivered outstanding financial results, achieving record highs in both revenue and net profit. This performance reflects XCMG's steadfast commitment to technological innovation, its pursuit of high-quality development, and its growing competitiveness in global markets.

Record Revenue and Profit Demonstrate Resilient Growth

XCMG's semi-annual report reveals the company achieved operating revenue of 54.81 billion yuan (approximately $7.55 billion), an 8.04% year-over-year increase, maintaining its position as China's industry leader. More notably, net profit attributable to shareholders reached 4.36 billion yuan ($600 million), up 16.63% year-over-year, while adjusted net profit surged 35.57% to 4.47 billion yuan ($615 million) — both setting new historical records. These achievements highlight the company's remarkable resilience and market competitiveness amid broader industry headwinds.

The company's overseas business performed particularly well, with international revenue growing 16.64% to 25.55 billion yuan ($3.52 billion), now representing 46.61% of total revenue compared to 29.07% in mid-2022. This growth reflects both XCMG's aggressive global expansion and the increasing competitiveness of its products in international markets. Additionally, aftermarket services and strategic emerging industries saw revenue growth of 33.23% and 13.25% respectively, providing strong support for overall performance.

XCMG's product portfolio showed significant progress in both new energy and premium products, with revenue growth of 9.43% and 41.44% respectively. This demonstrates the company's successful adaptation to the new energy transition while simultaneously enhancing product technology and value-added features.

The company also improved profitability metrics, with gross margin rising 0.7 percentage points to 22.03%, net profit margin increasing 0.6 points to 8.06%, and return on equity climbing 0.72 points to 7.15%. Operational quality improved significantly, with operating cash flow surging 107.56% to 3.73 billion yuan ($514 million), providing a solid foundation for future development.

Technological Innovation Drives Sustainable Growth

While celebrating strong financial results, XCMG continues to invest heavily in technological innovation to secure future competitive advantages. The company has made significant breakthroughs in several key areas:

In new energy technologies, XCMG has achieved mass production of its self-developed CTV battery system and deployed 100 sets of centralized BMS units to market. The company has also made progress in ultra-high voltage power systems, highly integrated thermal management, 3MW ultra-fast charging, and efficient silicon carbide technologies, while implementing new energy technology architectures for large-tonnage products.

The company is actively embracing artificial intelligence, identifying eight pilot AI applications in high-labor, high-time, and high-cost scenarios. These initiatives lay the groundwork for intelligent transformation across operations.

XCMG's R&D investments yielded 218 new domestic patents and 45 international patents in the first half, bringing its total to 12,163 authorized domestic patents (including 4,262 invention patents) and 381 authorized foreign patents. The company also secured one new national key R&D program and one MIIT special project.

Strategic Emerging Industries Fuel Future Growth

Beyond its traditional construction machinery business, XCMG is actively developing strategic emerging industries to create new growth engines. Mining machinery represents a particularly promising area:

In May, XCMG deployed 100 pure electric autonomous mining trucks at Huaneng Yimin Mine, achieving China's first fully unmanned open-pit mining operation covering loading, transportation, and unloading processes. The company has established partnerships with several state-owned enterprises in this sector.

During its "Zero-Carbon Smart Mining Technology Global Summit" in August, XCMG presented the world's first complete zero-carbon smart mining solution, positioning itself as a leader in sustainable mining technologies. The company has also established partnerships with global mining giants including BHP and Rio Tinto.

Looking Ahead: Scaling New Heights in Global Industry

As 2025 approaches — marking both the conclusion of China's 14th Five-Year Plan and preparation for the 15th Five-Year Plan — XCMG remains committed to its strategic objectives. The company will maintain focus on high-quality development, industrial transformation and upgrading, and intelligent digital transformation to develop new productive forces and scale new heights in global industry.

XCMG's semi-annual report serves not just as a financial statement but as a declaration of confidence — demonstrating the company's resilience in challenging markets and its determination to shape the future through innovation and strategic vision.