XCMG Machinery announces 20% dividend increase following record-breaking performance

In a remarkable display of resilience and growth, XCMG Machinery has announced a proposed 20% increase in its annual dividend, following an impressive year that saw the company achieve a historic high in international revenue and maintain its position as the industry leader in China.

The proposed dividend for the fiscal year 2023 stands at 1.80 yuan per ten shares (tax included), amounting to 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. Additionally, XCMG is actively implementing a stock buyback plan valued between 300 million and 600 million yuan.

Despite facing profound changes in both domestic and international competence environments throughout the year, XCMG achieved double-digit net profit growth while enhancing gross margin and sales net profit margin. The company also successfully reduced accounts receivable and inventory levels; continued to increase market share across most product lines; witnessed rapid revenue growth from strategic emerging industries exceeding 20%; and saw revenues from new energy-related equipment and businesses double for two consecutive years, nearing ten percent of total revenue.

A key indicator of profitability—the overall gross margin—reached an impressive figure of 22.38%, marking an improvement of 2.17% points compared to previous years across various product categories combined, including cranes, earth-moving machinery, and concrete machinery, among others, regardless of domestic or overseas markets.

Underpinning these achievements is XCMG's unwavering commitment to its internationalization strategy, which has seen it deepen its global development layout through export trade, overseas greenfield manufacturing investment, multinational acquisitions, as well as global R&D efforts, providing comprehensive marketing services, full value chain services, and complete solutions to worldwide clients, leading significant growth in the international business segment during this period.