XCMG has also shown strong performance in the first quarter of 2023, reporting revenue of $3.46 billion and net profit attributable to shareholders of $216.9 million, projecting growth.
“As a globally leading provider of construction machinery and sustainable development solutions, XCMG can consolidate our strategic advantages through the economic slowdown affecting the industry, prioritising technological innovation and internationalisation in our strategic roadmap to grow with resiliency,” said Yang Dongsheng, chairman of XCMG.
In 2022, XCMG invested $831.453 million into R&D overall, a 6.13% increase year-on-year, and it accounted for 6.13% of the total revenue of the year, which was a significant increase compared to 4.64% in 2021.
XCMG had 5,767 R&D personnel as of the end of 2022, a 14.97% increase year-on-year, making up 21% of the total number of employees. Most of the new talents who joined XCMG in 2022 are experienced researchers committed to tackling the most challenging bottlenecks.
The firm benefited from sales development in overseas markets with significant export growth. The firm responded to a peak in China’s construction machinery industry during 2021, focussing on developing its exports instead.
In 2022, XCMG achieved US$4.03 billion of international revenue, a 50.5% growth year-on-year, and an export income of $ 3.13 billion saw a 70.5% growth year-on-year. It also saw a higher gross profit margin in international markets of 22.33%, compared to 19.32% in the domestic market.
XCMG now exports to 191 countries and regions worldwide, and its export market share has increased by 2.42%. In 2022, all eight regions of Asia-Pacific, Middle Asia, Africa, North America, Europe, West Asia and North Africa, Oceania, and South America have shown robust growth of 60.2%, 68.82%, 35.97%, 217.94%, 195.11%, 27.19%, 19.10%, and 99.29% respectively.
As XCMG accelerates localised production and operation in overseas markets, its international subsidiaries also showed strong performance in 2022. XCMG Brazil’s revenue grew by 86.35%, the XCMG Schwing grew by 30.33%, and the India company has improved local production capacity in its first year of operation.
XCMG has strategically set up global R&D bases to support its innovative technology development and international strategies. It is projecting a 10% revenue growth in 2023 based on industry, domestic, and international trends.