XCMG Machinery operating income down by 4.96% YOY in Q3 2022

Date:2022-11-04 Author:Mark Source:www.chinaspv.com

November 4, 2022, Xuzhou, China, XCMG Machinery announced on October 25 that the company achieved operating income of 21.205 billion yuan in the third quarter, a decrease of 4.96% compared with the same period of the previous year; the net profit attributable to shareholders of the listed company was 1.009 billion yuan, a year-on-year decrease of 2.621%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 1.100 billion yuan, a year-on-year decrease of 4.98%.

In the first three quarters, the company achieved operating income of 75.054 billion yuan, down 19.86% from the same period last year; realized net profit attributable to shareholders of listed companies of 4.676 billion yuan, down 31.33% year-on-year; realized non-net profit of 4.720 billion yuan, a year-on-year decrease of 24.02%.

Following the 2011-2012 period, the construction machinery industry again encountered a cyclical top in 2021. In the context of the pressure on industry demand, XCMG has continuously improved its corporate vitality and gradually released its performance flexibility. Analysts pointed out that in the first half of this year, XCMG's main operating indicators were better than the industry and other domestic construction machinery giants. Since the decline in revenue and net profit in the third quarter of this year has narrowed significantly, it means that XCMG's operating performance may still be relatively the best.

It is worth mentioning that the industry-leading technological innovation capability is regarded by XCMG as one of the most important core competitiveness. In the first three quarters of this year, the company's R&D expenses were as high as 2.861 billion yuan, which was basically the same as the 2.928 billion yuan in the same period of the previous year, but the proportion of R&D expenses in operating income increased from 3.13% in 2021 to 3.81%.

Industry insiders said that the construction machinery industry has ushered in positive changes. According to the September excavator sales data released by the China Construction Machinery Industry Association, the 26 mainframe manufacturers sold a total of 21,187 units excavators, a year-on-year increase of 5.49%; of which 10,520 units were sold in the domestic market, a year-on-year decrease of 24.5%; the export sales volume was 10,667 units, increased by 73.3% YOY. In September, the sales of excavators maintained positive growth, and export sales exceeded domestic sales for the first time. The internationalization strategy will become an important part of the performance growth of construction machinery enterprises in the future.