On the evening of August 29, XCMG Machinery (000425) released its semi-annual report. The company achieved operating revenue of 54.808 billion yuan, up 8.04% year on year, setting a record high and maintaining its position as No. 1 in the domestic industry. Not only did revenue hit a new high, but net profit attributable to shareholders also reached a record high with double-digit growth. Building on solid operating results, XCMG has continued to increase investment in the future, accelerating the development of new quality productive forces amid the integration of technological and industrial innovation.

Revenue scale steady with progress, operating quality steady with improvement

In the first half of this year, of XCMG Machinery's 54.808 billion yuan in revenue, overseas revenue reached 25.546 billion yuan, up 16.64% year on year. The share of overseas revenue rose from 29.07% in the 2022 semi-annual report to 43.17% in the same period last year, and further to 46.61%, rising steadily over three years. 

From the perspective of business structure, aftermarket revenue grew 33.23%, and strategic emerging industries grew 13.25% year on year. From the perspective of product structure, revenue from new energy products rose 9.43% year on year, and revenue from high-end products rose 41.44% year on year.

Revenue growth also drove net profit higher. In the first half, the company achieved net profit attributable to shareholders of 4.358 billion yuan, up 16.63% year on year, and net profit attributable to shareholders after deducting non-recurring gains and losses of 4.467 billion yuan, up 35.57% year on year. Both indicators hit record highs.

XCMG's net profit attributable to shareholders grew faster than revenue, further strengthening profitability and quality. In the first half, the company's gross profit margin was 22.03%, up 0.7 percentage points year on year; its net sales margin was 8.06%, up 0.6 percentage points year on year; and its return on net assets in the first half was 7.15%, up 0.72 percentage points from the same period last year.

The company's operating quality is also high. In the first half, XCMG Machinery continued to optimize fund management, strengthened receivables collection on the sales side, and paid suppliers in good faith on the procurement side, achieving operating cash flow of 3.725 billion yuan, up 107.56% year on year.

Therefore, in the first half of this year, XCMG Machinery generally showed a structurally improving development trend of "dual growth in revenue and net profit, substantial growth in cash flow, and growth in the 'three major increments' of internationalization, new energy, and aftermarket exceeding overall revenue growth."

Continued increase in future investment, outstanding scientific and technological innovation achievements

While maintaining steady and improving operations, XCMG takes a long-term view and injects strong momentum into long-term sustainable development. In the first half, on the basis of favorable current operating results, XCMG Machinery continued to allocate profits to long-term investment, using incremental benefits to support future strategic directions.

In the first half, the company deepened its "1+6+N" technological innovation system, focusing on breakthroughs in core technologies to produce more results and produce them faster. For example, the company continues to lead in new energy and green development. The newly self-developed CTV battery system achieved mass production, and 100 centralized BMS units were put on the market. Initial breakthroughs were made in technologies such as ultra-high-voltage power systems, highly integrated thermal management, 3MW ultra-fast charging, and high-efficiency silicon carbide, and multiple host units introduced the technical architecture for large-tonnage new energy products.

Today's world is in a period of profound transformation driven by artificial intelligence (AI), whose speed of development and breadth of impact far exceed those of any previous technology wave. XCMG Machinery anchors itself to the AI frontier to build a strong position, deeply explores AI technology, works with external technical experts to introduce an AI application training system, accurately identifies the AI application potential of scenarios that are "highly labor-intensive, time-consuming, and costly," and pilots 8 AI application scenarios, laying a scenario foundation for intelligent transformation.

According to the semi-annual report, in the first half the company added 218 invention patents and 45 foreign authorized patents. The company cumulatively owns 12,163 authorized domestic patents, including 4,262 invention patents, and 381 valid authorized foreign patents. It newly obtained approval for 1 National Key R&D Program project and 1 MIIT special project.

The "second growth curve" continues to gain momentum, industrial competitiveness effectively rises

With outstanding achievements in scientific and technological innovation, XCMG continues to strengthen its market competitiveness, becoming a key booster for winning the favor of domestic and international customers. Among these, the mining industry, the "second growth curve," continues to gain momentum. XCMG has effectively built strategic new industries such as mining machinery to create a tiered development pattern, and industrial competitive strength continues to rise.

In May, 100 XCMG pure electric autonomous mining trucks were put into operation at Huaneng Yimin Coal Mine, achieving the domestic debut demonstration application of unmanned full-process loading, hauling, and unloading in open-pit mines, and winning cooperation from multiple central state-owned enterprises. In August, XCMG held the "XCMG Global Summit on Zero-Carbon Intelligent Mining Technology" at venues in Xuzhou and Hulunbuir, gathering customers from more than 30 countries around the world. XCMG systematically built the world's first complete "zero-carbon intelligent mining complete solution" for customers and joined hands with global partners to build green intelligent mines.

It is reported that XCMG's development of major overseas mining machinery customers has yielded fruitful results, with large projects and large orders continuously expanded, and cooperation with major customers such as BHP and Rio Tinto continuously deepened.

2025 is the year for concluding the 14th Five-Year Plan and laying out the 15th Five-Year Plan. In the face of a complex and ever-changing external environment, the company has always maintained strategic focus and firm confidence in development, adhered to the overall business principle of "promoting stability through progress and improving quality while maintaining stability," focused on the primary task of high-quality development, centered on annual business priorities and company-level major projects such as the "five transformations" industrial upgrading and the intelligent, digital, and networked transformation, and used new development concepts to continuously shape new development momentum and new advantages, accelerate the formation of new quality productive forces, and climb to the summit of the global industry!