The Xuzhou-headquartered company also posted a net profit of 3.803 billion yuan (US$588.62mn) in H1 2021, up 84.46% year-on-year and 3.751 billion yuan (USD 580.57 million) of net cash flow from operating activities, a rise of 648.58% compared to H1 2020.
XCMG’s operating income was 53.234 billion yuan (US$8.24bn), a year-on-year increase of 51.8%, of which overseas revenue accounted for 4.854 billion yuan (USD 751.29 million), year-on-year growth of 68.5%.
An XCMG press statement said that the firm has focused on the weak links of profitability, optimising its product lineup and management processes to improve performance and profitability.
XCMG’s eye-catching growth has been achieved despite a tough trading climate in much of the world’s off-highway machine sales market and a sharp increase in raw material costs.
In China, XCMG says it has the highest national market share of multiple core products, including truck-mounted cranes, crawler cranes, road rollers, graders, pavers, horizontal directional drilling rigs, rotary drilling rigs, bridge inspection vehicles, and aerial work platforms.
The company’s 70% increase in overseas sales during H1 2021 reflects the comprehensive improvement of its international operation capabilities.
XCMG Brazil says it has won the largest orders in South America for the past decade, and Germany’s Schwing is playing a key role as an overseas platform to coordinate XCMG’s international businesses in Germany, United States, and India.
In the first half of the year, XCMG has accelerated building overseas market channels, service outlets, and spare parts guarantee systems, consolidating its international marketing and service architecture. The company has promoted a Global Business Partnership Programme and signed 25 new overseas distributors. Its cross-border e-commerce platform continues to focus on supporting international online business channels with core strength.
XCMG’s 64.43% year-on-year increase in R&D in H1 2021 to 2.218 billion yuan (US$343.3mn) is said to be driving the company’s digital transformation and embrace of Intelligent Manufacturing 4.0.
As of the end of June in 2021, XCMG held 6,075 valid patents, including 1,569 patents for invention and 99 international patents. In the first half of 2021, XCMG formulated eight national and industry standards. Accumulatively, XCMG has five global patents and developed 180 national and industry standards.
