While the global construction machinery industry continues to face headwinds amid cyclical fluctuations and market competition has descended into a white-hot "red ocean," LiuGong Machinery bucked the trend in the first half of 2025 with a standout report card: total operating revenue of RMB 18.181 billion, up 13.21% year on year, and net profit attributable to shareholders of RMB 1.230 billion, up 25.05% year on year, demonstrating profitability vitality that exceeds the industry average and outlining the growth resilience of Chinese equipment manufacturing enterprises.

This excellent report card is no accident, but the inevitable result of LiuGong's "two-wheel drive" of domestic business and overseas layout, and of core products and emerging segments "blooming at multiple points."

Reasons behind LiuGong's strong performance growth

LiuGong's rapid performance growth is grounded in its main products, which have not only maintained stable competitiveness but also entered an exciting new stage in 2025.

Earthmoving machinery has long been LiuGong's core business. In the first half of 2025, revenue from LiuGong's earthmoving machinery products reached RMB 11.651 billion, up 17.26% year on year, accounting for 64.09% of operating revenue and becoming the main driver of LiuGong's overall revenue growth.

Behind this growth, the strong performance of the two flagship products—excavators and wheel loaders—played a core supporting role. In the first half of 2025, LiuGong's excavator business sales revenue grew 25.1% year on year, and net profit surged by more than 90%; in particular, its overseas share rose rapidly, with monthly shipments of large excavators hitting a record high.

In June, LiuGong shipped more than 200 large excavators in a concentrated delivery to a country in Africa, setting a new record for single-month export volume in the region and fully demonstrating the strong demand for LiuGong products and the brand's influence in the local market 

Meanwhile, LiuGong's wheel loader business continued to make the largest contribution to performance scale, with domestic and overseas sales revenue both achieving year-on-year growth of more than 20%; global sales of electric wheel loaders surged 193% year on year, domestic market penetration was higher than the industry level, export volume accounted for more than 50% of the industry's total electric loader exports, and market share increased.

In addition to the two flagship products of excavators and wheel loaders, products in niche markets and emerging segments also performed impressively, as fully reflected in the data:

 ● The wheeled excavator product portfolio continued to improve, with sales doubling year on year;

 ● The aerial work machinery business achieved significant increases in sales volume, revenue and net profit, with net profit growth exceeding 100%;

 ● Crane domestic and export sales both grew 30% against the trend;

 ● The mining machinery business rapidly advanced comprehensive solutions for electric, intelligent and large-scale equipment for open-pit mining industry customers, achieving overseas sales growth of 42.0% year on year in the first half of the year.

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On this path of innovation-driven growth across the entire industrial chain, LiuGong has moved forward both with solid footing and with its eyes on the future.

LiuGong on the global stage

LiuGong's performance growth in the first half of the year also benefited from the forward-looking acumen and vitality it demonstrated in exploring and implementing overseas markets.

In the first half of 2025, amid the severe situation of continued pressure and white-hot competition in the global construction machinery industry, LiuGong's overseas business achieved counter-cyclical growth, with overseas revenue of RMB 8.523 billion, up 10.52% year on year, and its share of total revenue climbing to 46.88%. Sales growth far exceeded the industry average, and overseas performance comprehensively broke through historical peaks, with whole-machine sales volume, operating revenue, gross profit margin and net profit all reaching new highs for the same period; the gross profit margin level rose by nearly 2 percentage points further, and operating cash flow from overseas business was robust and ample.

In the first half of this year, good news poured in from LiuGong's international markets, reflecting its global market competitiveness. In recent months, LiuGong has carried out multiple product delivery actions in international markets, from which vigorous growth vitality can be seen:

 ● LiuGong successfully delivered 8128H large wheel loaders in batches to a leading customer in an industry in North Africa. This customer has worked with LiuGong for more than two decades, owns multiple LiuGong products, and has long spoken highly of the excellent quality and professional service of LiuGong equipment.

 ● LiuGong motor graders set off for South Korea for the first time and will be used in multiple key infrastructure construction projects in South Korea, covering areas such as road maintenance and urban snow removal. The motor graders exported to South Korea this time were specially built to cope with South Korea's complex working conditions and stringent construction standards, contributing to local infrastructure construction.

 ● Four LiuGong 965F ultra-long-reach excavators were officially delivered to Vietnam and put into national-level key projects undertaken by a large local construction group. The 509E paver made its debut in a Vietnamese infrastructure project, marking a major leap for LiuGong in the Vietnamese market from a single roller offering to comprehensive solutions.

 ● LiuGong delivered 37 agricultural machinery units to a well-known Thai sugar group, covering products such as sugarcane harvesters and tractors. These machines were independently developed by LiuGong and specially designed for tropical working environments, combining high efficiency, stability and intelligence, and have won high recognition from the customer.

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Equipment exports across multiple fields and in multiple batches not only demonstrate LiuGong's strong development capability in different markets, but also highlight the hard strength of "Intelligent Manufacturing of China" on the global stage.

On March 10, the Nairobi River ecological restoration and affordable housing project officially broke ground in Nairobi, the capital of Kenya. At the groundbreaking ceremony, Kenyan President William Ruto personally operated a LiuGong excavator to break ground for the project and spoke highly of the performance of LiuGong equipment.

In fact, as early as 2003, LiuGong set the strategic goal of "building an open, international LiuGong." After more than two decades of overseas development and operation, the company has formed a sales network covering more than 180 countries and regions.

The global layout has directly brought revenue growth to LiuGong. From 2020 to 2024, LiuGong's overseas revenue was RMB 3.379 billion, RMB 5.984 billion, RMB 8.119 billion, RMB 11.462 billion and RMB 13.760 billion respectively, achieving leapfrog growth of more than 300% over four years; the proportions of such revenue in operating revenue for the respective periods were 14.69%, 20.85%, 30.66%, 41.65% and 45.77%. In the first half of 2025, this proportion hit a new high of 46.88%. The rapid growth of overseas revenue effectively offset the downward pressure in the domestic market in recent years.

Through forward-looking layout, sustained development and in-depth implementation in the global market, LiuGong has advanced with great strides from a state-owned enterprise tucked away in a corner of southern China toward an internationalized "World LiuGong," and its pace in 2025 appears particularly clear and firm.

LiuGong's new blueprint: targeting RMB 60 billion by 2030

Recently, the Proposal on the Company's 15th Five-Year Strategic Plan, deliberated and approved at the third meeting of LiuGong's tenth board of directors, defined the core goal of "achieving operating revenue of RMB 60 billion by 2030, of which international revenue will account for more than 60% and net profit margin will be no less than 8%." Calculated on the 2024 base, the compound annual growth rates of operating revenue and net profit attributable to shareholders from 2024 to 2030 are 12% and 24% respectively.

This goal is not a castle in the air, but is built on LiuGong's solid accumulation over the years in products, markets, technology and other aspects, and is also its profound insight into and strategic response to the development trends of the global construction machinery industry.

1 Two-wheel drive, with the internationalization strategy continuously deepened

LiuGong has long regarded internationalization as the core engine of corporate development. Looking toward 2030, LiuGong has explicitly stated that international revenue should account for more than 60%, meaning overseas markets will become the absolute main force.

To achieve this goal, LiuGong will continue to advance its "deep localization" strategy, not only focusing on the sales side but also strengthening global coordination and regional operating capabilities in R&D, manufacturing, supply chains and services. For example, it announced that its wholly owned subsidiary LiuGong Machinery Indonesia Manufacturing Co., Ltd. will invest RMB 500 million to build a manufacturing plant in Indonesia, and approved the establishment of a Brazilian financial leasing company, investing BRL 150 million (approximately RMB 194 million) through its wholly owned subsidiary LiuGong Brazil Holding Company to promote the local financial services layout.

2 Innovation-led, with product and industrial upgrading advancing together

LiuGong's goal of a net profit margin of no less than 8% places higher demands on the company's product structure, operational efficiency and profit quality.

In the first half of 2025, LiuGong's R&D investment was RMB 641 million, up 24% year on year, with an expense ratio of 3.34%, an increase of 0.33 percentage points over the same period last year. During the reporting period, it applied for 271 patents, including 98 invention patents. Particularly in electrification, LiuGong has formed the most complete electric product portfolio in the construction machinery industry, launching more than 100 electrified products cumulatively and building a product matrix covering multiple technical routes such as pure electric, battery swapping, hybrid, cable-powered, dual-power and dual-electric. Leveraging its first-mover advantage, LiuGong will open up growth space in the electrification process. 

Recently, LiuGong, together with a leading enterprise under the Anhui provincial government, actively responded to the national intelligent manufacturing and dual carbon strategies and has successfully implemented Anhui's first unmanned electric wheel loader demonstration project.

In the future, LiuGong will continue to increase R&D investment. "Only by mastering core technologies in our own hands can we truly seize the initiative in competition and development," said a relevant person in charge at LiuGong. In response to the high-end, diversified and personalized characteristics of demand in the construction machinery market, LiuGong focuses on the "five transformations" applications of mechanical equipment—"electrification, digitalization, connectivity, unmanned operation and sharing"—and maintains annual double-digit growth in R&D investment, leading the industry's technological development direction.

3 Industrial coordination, with emerging segments becoming new growth poles

In addition to traditional earthmoving machinery, LiuGong's strategic emerging businesses achieved high-quality growth in the first half of 2025 and created a second growth curve with cross-cycle resilience and collaborative advantages. For example, the mining machinery business rapidly advanced comprehensive solutions for electric, intelligent and large-scale equipment for open-pit mining industry customers, achieving overseas sales growth of 42.0% year on year in the first half of the year.

The layout in emerging segments such as aerial work platforms, mining machinery, cranes and agricultural machinery has begun to show results. These segments have not only achieved rapid growth domestically but also demonstrated huge development potential overseas. In the future, through technical coordination, channel sharing and resource integration, LiuGong will promote the coordinated development of multiple segments and build more "billion-level" and even "ten-billion-level" business clusters, providing multi-polar support for the RMB 60 billion goal.

From a state-owned enterprise tucked away in a corner of Guangxi to an internationalized enterprise whose products now reach the world and whose brand is respected, LiuGong is steadily advancing toward the grand vision of "World LiuGong" with a clear blueprint and solid steps. Its growth path also provides yet another vivid model for the internationalization and high-end transformation of Chinese manufacturing enterprises.