XCMG Construction Machinery (000425) Q4 2024 earnings summary

Executive summary

• Achieved net profit attributable to shareholders of ¥5.98 billion, up 12.2% year-over-year; revenue was ¥91.66 billion, down 1.28% year-over-year.

• Operating cash flow increased 60.18% year-over-year to ¥5.72 billion.

• Gross margin improved to 22.55%, and net margin increased, reflecting enhanced profitability.

• Maintained domestic market leadership in 16 product categories and global leadership in several segments.

• Continued strong R&D investment, with over 6% of revenue allocated to innovation.

Financial highlights

• Revenue: ¥91.66 billion, down 1.28% year-over-year.

• Net profit attributable to shareholders: ¥5.98 billion, up 12.2% year-over-year.

• Operating cash flow: ¥5.72 billion, up 60.18% year-over-year.

• Gross margin: 22.55%, up 1.75 percentage points year-over-year.

• Basic and diluted EPS: ¥0.51.

• R&D expenses: ¥5.60 billion, 6.11% of revenue.

Outlook and guidance

• 2025 revenue expected to grow over 10% year-over-year, with net profit and cash flow growth outpacing revenue.

• Focus on high-end, intelligent, green, service-oriented, and globalized transformation.

• Continued investment in digitalization, innovation, and global expansion.