XCMG reports record-breaking international sales
By Andy Brown15 May 2023
China-based XCMG has released its financial results for 2022 and for the first quarter of the year, with the OEM also revealing that ‘Internationalization’ is the company’s strategic focus as it looks to grow sales in markets outside of China.
XGM reported that its total revenue for 2022 was 93.817 billion yuan (US$13.57 billion) and, for the first quarter of 2023, 23.9 billion yuan (US$3.46 billion). For the first quarter ‘internationalization revenue’, sales from markets outside China, exceeded 10.6 billion yuan – a record amount in a single quarter and 45% of operating revenue.
In a press release the OEM said that “Internationalization is XCMG’s firm strategic focus, focusing on its core competitive advantages to promote robust development.” In 2022, XCMG achieved 27.838 billion yuan (US$4.03 billion) of international revenue, a 50% growth year-on-year, and an export income of 21.63 billion yuan (US$3.13 billion) – 70% percent growth year-on-year.
It also saw a higher gross profit margin in international markets of 22% compared to 19% in the domestic market.
XCMG says that it now exports to 191 countries and regions worldwide. In 2022, the eight regions of Asia-Pacific, Middle Asia, Africa, North America, Europe, West Asia and North Africa, Oceania, and South America had growth of 60.2%, 68.82%, 35.97%, 217.94%, 195.11%, 27.19%, 19.10%, and 99.29% respectively.
Investment in construction technology
The OEM revealed that in 2022 it invested 5.75 billion yuan (US$831.453 million) into R&D, a 6% increase year-on-year, and it accounted for 6% of total revenue for the year, compared to 4% in 2021.
XCMG had 5,767 R&D personnel as of the end of 2022, a 15% increase year-on-year, making up 21% of the total number of employees.
“As a globally leading provider of construction machinery and sustainable development solutions, XCMG is able to consolidate our strategic advantages through the economic slowdown that is affecting the industry, prioritizing technological innovation and internationalization in our strategic roadmap to grow with resiliency,” said Yang Dongsheng, Chairman of XCMG.
The company added that it has set up global R&D bases to further support its technology development and international strategies. It is projecting a 10% revenue growth in 2023 based on overall industry, domestic, and international trends.