XCMG Machinery Announces 20% Dividend Increase Following Record Performance

2023 sees 92.848 billion yuan Turnover, 40.09%, courtesy of international trade

XUZHOU, China, May 9, 2024 /CNW/ — In a remarkable display of resilience and growth, XCMG Machinery (SHE: 000425, “XCMG”) announced a proposed 20% increase in its annual dividend, following an impressive year that saw the company reach an all-time high in international revenue and maintain its position as an industry leader in China. The company’s commercial result reached 92.848 billion yuanwith international revenues climbing to 37.220 billion yuanrepresenting 40.09% of total income.

The proposed dividend for the 2023 financial year amounts to 1.80 yuan for ten shares (taxes included), i.e. approximately 2.127 billion yuan in cash dividends, a significant increase from the previous year and representing 40% of the company’s net profit attributable to the parent company. In addition, XCMG is actively implementing a share repurchase plan valued at between 300 million and 600 million yuan.

Despite profound changes in domestic and international skill environments throughout the year, XCMG achieved double-digit net profit growth while improving its gross margin and net sales profit margin. The company also managed to reduce its accounts receivable and inventory levels; continued to increase its market share in most product lines; we have seen rapid growth in revenues from strategic emerging industries, exceeding 20%; and saw revenue from new energy-related equipment and activities double for two consecutive years, approaching ten percent of total revenue.

A key profitability metric, overall gross margin, reached an impressive 22.38%, marking an improvement of 2.17% over previous years in various product categories combined, including cranes, earth movers and concrete machines, among others. , regardless of domestic or foreign markets.

At the end of December 2023XCMG effectively reduced accounts receivable by 1.13% and inventory amounts by 7.75% compared to 2022, demonstrating strong financial management, which translated into net cash flow from operating activities amounting to approximately 3.57 billion yuan, an increase of more than 125.59% over last year. year.

These achievements are underpinned by XCMG’s unwavering commitment to its internationalization strategy, which has enabled it to deepen its global development pattern through export trade, overseas manufacturing investments, acquisitions multinational companies, as well as global R&D efforts, providing comprehensive marketing services, full value chain services, and complete solutions to clients around the world, leading significant growth in the international business segment over this period.

The story continues

XCMG’s thriving business is attributed to its strategy, led by technological innovation. In 2023, XCMG’s digital supply chain initiative was recognized as a key industrial Internet project Jiangsu Province, China, adding five provincial industrial Internet reference factories. The company has reached maturity level three in intelligent manufacturing capabilities with three companies, and the XCMG Hoisting business unit and XCMG Transmission have been newly included in the “5G Factory Directory” of the Ministry of Industry and Commerce. of Information Technologies. In addition, XCMG Loader Intelligent Manufacturing Factory was selected for the National Intelligent Manufacturing Demonstration Factory, and Information and Manufacturing Integration of Next Generation 2023” of the Ministry of Industry and Information Technology.

Continuing its streak of leading the industry from 2023, XCMG Machinery reported first quarter operating revenue of 24.041 billion yuan this year, up 0.96% year-on-year, with net profit attributable to the parent company of 1.6 billion yuan, an increase of 5.06% compared to the previous year. Net income, restated for non-recurring items, amounts to 1.466 billion yuan, marking an increase of 12.48% compared to last year, thus maintaining its lead in the national sector. The company’s continued growth is attributed to the dynamic shift towards new energy products, with an increase of more than 40%, and a notable increase in revenues from aftermarket parts and premium products, by almost 15% and 5% respectively.

Furthermore, in 2023, the Company is expected to vigorously pursue its social responsibilities, direct its ESG activities towards sustainable operations and is expected to present its first-ever ESG report soon.

For more information about XCMG Machinery, please visit: https://www.xcmgglobal.com/.

View original content to download multimedia: https://www.prnewswire.com/news-releases/xcmg-machinery-announces-20-dividend-increase-following-record-breaking-performance-302140951.html

SOURCE XCMG Machines

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2024/09/c0340.html