XCMG sees big rise in overseas sales revenue in H1 2023

Chinese off-highway machinery major XCMG saw a 33.5% year-on-year increase in overseas sales revenue in the first half of 2023 to 20.9 billion yuan (US$2.85bn). Total sales revenue for the half-year was worth 51.28bn yuan (US$6.98bn).
Loading, Hauling & Excavation / September 13, 2023
By Guy Woodford
XCMG XDA40 aritcualted haulers at work alongside an XCMG crawler excavator. Pic: XCMG

Sales of energy products in H1 2023 were worth 5.27bn yuan (US$717.56mn), a 174.9% growth year-on-year. Meanwhile, the market share of XCMG's major products has increased by 1.93% year-on-year, says the company. Domestically, XCMG claims it now sells more milling machines and asphalt mixing stations than its Chinese peers.

XCMG's first-half-year gross profit margin of 22.86% has increased by 2.44% year-on-year; the net profit margin on sales reached 7%, up 0.19% year-on-year, with the Q2 2023 performance reaching 7.54%, a 1.77% increase year-on-year. 

"XCMG has been advancing steadily to achieve a resilient, high-quality development. In the context of a complex and fast-changing market environment, the new XCMG – with new ideas, new concepts, and new mechanisms – is pushing forward the intelligent and digital transformation following the five strategies of 'high-end, intelligent, green, service-oriented, and globalisation,'" said Yang Dongsheng, CEO of XCMG. 

XCMG has established a 'four-in-one' international development model of product export, overseas factories, cross-border mergers and acquisitions, and globally collaborative R&D. XCMG now exports to more than 190 countries and regions worldwide, providing not only "advanced and endurable" products, but also integrated services and spare parts support.

XCMG's overseas revenue of US$2.85bn in H1 2023 accounted for 40.75% of total company revenue, an 11.08% increase year-on-year, with multiple regions and products achieving rapid growth. 

Company revenue in West Asia, North Africa, and Central America has risen by over 200%, sales in Europe are up 150%, and around 100% revenue growth was achieved in Central Asia and North America. 

XCMG has opened sales companies in Great Britain, Singapore, Saudi Arabia, the United Arab Emirates, and Vietnam, with more production bases, R&D facilities, and spare parts centres under construction and planning. 

"XCMG is navigating through the industry cycles with innovation and internationalisation as the core focuses; it's our goal to build a world-class enterprise with leading advantages in products, scale, services, digital and intelligent technologies to achieve strategic transformation and continuous breakthroughs," said Yang.

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