XCMG’s Semiannual Report Shows 17 Percent Main Business Revenue Growth

XCMG (SZ:000425) has achieved a sales revenue growth rate of 17 percent year-on-year, according to its semiannual report to release on late Aug. The report covers XCMG’s overall performance in both domestic and international markets from January to June, 2020.

Domestically, the company’s operating revenue and main business revenue have shown more than 16 percent growth year-on-year, and product sales have increased by 27.3 percent, which is more than doubled of the industry average. XCMG’s loader and paver categories have shown growth against the trend, while the sales growth of road roller and excavator products was nearly 20 percent higher than that of the industry average.

Meanwhile in the international market, the overall export value of the construction machinery industry fell 9.3 percent year-on-year from January to May, according to the data from China Customs, with the June data still unavailable. XCMG’s export has remained fairly flat compare to 2019, its self-run export volume showed a 14.3 percent year-on-year increase. XCMG topped China’s export chart of all brands in January and remained No.1 among Chinese construction brands from February to May.

XCMG’s success in the first half of 2020 was the result of the company’s quick response and operation adjustment in response to the COVID-19 outbreak that led to fast and stable work resumption since February. XCMG has coordinated medical supplies across the industry and supply chains, adopted accurate and highly efficient resource allocation in intelligent and digital manufacturing, increased financial support to help upper and lower stream enterprises to recover, as well as further improved the service experience with customer-centric strategies, which includes completing three international livestreams as of the end of July.

In July, XCMG’s first wholly-owned overseas bank Banco XCMG S.A. was officially opened in Pouso Alegre, Brazil, which is the first China-invested enterprise bank in the country. In the past six months, XCMG has delivered 180-million-yuan (US$26 million) worth of equipment products to Central Asia via 14 China-Europe(Nyheter) freight trains. The company also delivered nearly 1-billion-yuan (US$144 million) worth of mining equipment to overseas customers.

“XCMG has aligned with our industry chain and supply chain partners to ensure rapid recovery in light of the COVID-19, we are committed to serve the community and society, and will continue to support and assist our global employees, customers and partners to achieve success with more practical and effective strategic measures,” said Wang Min, Chairman of XCMG.

Source: XCMG