In 2023, in the face of profound changes in the internal and external development environment, XCMG Machinery (000425) still handed over an excellent answer sheet leading the industry. In this year, the company achieved double-digit growth in net profit, gross profit margin and sales net profit margin both increased, accounts receivable and inventory both decreased, the market share of most products continued to increase, the revenue of strategic emerging industries grew high and contributed more than 20%, the new energy revenue doubled for two consecutive years, the contribution rate was nearly 10%, and the international revenue increased by nearly 10 billion yuan to 37.22 billion yuan, accounting for 40.09% of the revenue, creating a new historical high.
Based on good performance, XCMG will continue to actively repay investors, and the profit distribution plan for 2023 is a cash dividend of 1.80 yuan (tax included) for every 10 shares, with a cash dividend of about 2.127 billion yuan, a year-on-year increase of 20%, accounting for 40% of the company's net profit attributable to the parent company, and at the same time, it actively implements a share repurchase and cancellation plan, with an amount of 300 million yuan to 600 million yuan.
Major indicators such as operating income and net profit continued to lead
On the evening of April 29, XCMG, a leading construction machinery company, disclosed its 2023 annual report, the company achieved operating income of 92.848 billion yuan, a year-on-year decrease of 1.03%, net profit attributable to the parent company of 5.326 billion yuan, a year-on-year increase of 23.51%, and a net profit of 4.497 billion yuan after deducting non-profits, a year-on-year increase of 29.47%, and revenue and profit continued to rank first in the domestic industry.
In the face of multiple difficulties and challenges in the market environment such as the continuous contraction of domestic sales and the slowdown in the year-on-year growth rate of exports, the company stabilized the overall situation, responded to the situation, and strengthened the "three special projects" of gross profit margin improvement, accounts receivable and inventory pressure reduction, and achieved obvious results.
Gross profit margin is one of the key indicators to measure the profitability of enterprises, and the company's overall gross profit margin will reach 22.38% in 2023, an increase of 2.17 percentage points. In terms of products, the gross profit margin of lifting machinery, earthmoving machinery and concrete machinery increased by 2.73, 0.37 and 1.72 percentage points respectively, and the gross profit margin of "other construction machinery, spare parts and others" products increased by 5.42 percentage points. In terms of regions, gross profit margins have increased both domestically and overseas.
By the end of 2023, XCMG Machinery's accounts receivable and inventory amount have decreased compared with the beginning of 2023, of which the amount of accounts receivable decreased by 1.13% and the inventory amount decreased by 7.75%.
In 2023, the company vigorously promoted two capital reductions and achieved phased results, with net cash flow from operating activities of 3.57 billion yuan, a year-on-year increase of 125.59%.
In recent years, XCMG Machinery has unswervingly promoted the "main strategy of internationalization" and deeply cultivated the layout of international development, XCMG has entered the "going out" stage of deep cultivation and localization from the initial trade and export, and is accelerating to the stage of "going up" for high-quality development, forming a "four-in-one" international development model of export trade, overseas greenfield factory construction, cross-border mergers and acquisitions and global R&D, which can provide global customers with a full range of product marketing services, full value chain services and overall solutions. Under the traction of the main strategy of internationalization, the company's internationalization business has grown rapidly.
In 2023, XCMG's revenue from overseas will be 37.220 billion yuan, a year-on-year increase of 33.70%, and the proportion of operating income will increase from 29.67% in the previous year to 40.09%. In 2021, it was 15.84%.
It is worth mentioning that in 2023, XCMG's digital supply chain project will be included in the key industrial Internet project in Jiangsu Province, 5 new provincial industrial Internet benchmark factories will be added, and 3 new third-level enterprises with intelligent manufacturing capability maturity will be added.
Following the delivery of a report card leading the industry in 2023, in the first quarter of this year, XCMG Machinery's operating income was 24.041 billion yuan, a year-on-year increase of 0.96%, the net profit attributable to the parent company was 1.6 billion yuan, a year-on-year increase of 5.06%, and the net profit after deducting non-profits was 1.466 billion yuan, a year-on-year increase of 12.48%, and the revenue and profit continued to maintain the leading position in the domestic industry. The development momentum continued to transform, with new energy products increasing by more than 40% year-on-year, spare parts revenue increasing by nearly 15% year-on-year, and high-end product revenue increasing by nearly 5% year-on-year.
Actively repaid investors, with an annual dividend of about 2.127 billion yuan
Excellent business performance allows XCMG Machinery to continue to repay investors with real money.
The company has always adhered to the core values of "taking great responsibility, walking the road, and becoming a great tool", practiced the action creed of honesty and integrity, customer orientation, pursuit of excellence, and teamwork, shared the development results with investors through cash dividends, share repurchases, etc., and demonstrated development confidence through the increase of major shareholders, employee stock ownership and equity incentives.
On the evening of February 6 this year, XCMG announced that it would promote the implementation of the action plan of "double improvement of quality and return", continue to improve the quality of operation, continuously improve the management ability, core competitiveness, profitability and risk management and control ability, and return the majority of investors with high-quality development performance.
In fact, "investor-oriented" and actively rewarding investors have long been XCMG's practical actions. For example, from February 22, 2023 to March 13, 2023, the company repurchased a total of 118 million shares of the company through a special securities account for share repurchase through centralized bidding transactions, accounting for 1.00% of the company's total share capital, with a total transaction amount of 852 million yuan, and the repurchased shares were used to implement the equity incentive plan.
For another example, based on its firm confidence in the company's future development prospects and high recognition of the company's long-term value, XCMG Group increased its holdings of XCMG Machinery shares by 84.4774 million shares through centralized bidding from March 29 to September 28, 2023, accounting for 0.7149% of the company's total share capital, with an increase of 540 million yuan.
In addition, XCMG has always attached importance to rewarding investors in the form of cash dividends. In 2021, due to the major asset restructuring being carried out at that time, in order to maintain the stability of the equity structure, accelerate the restructuring process, and better safeguard the long-term interests of all shareholders, the company did not distribute profits that year, but chose the opportunity to propose a profit distribution plan after the restructuring was completed. After the completion of the restructuring, XCMG distributed profits in mid-2022, with a dividend of 0.23 yuan per share (including tax) and a cash dividend of 2.718 billion yuan.
According to the profit distribution plan disclosed in XCMG's 2022 annual report, the company paid a dividend of 0.15 (tax included) per share, and the cash dividend amount (tax included) was 1.772 billion yuan, accounting for 41.15% of the net profit attributable to the parent company of 4.307 billion yuan that year. In June last year, the implementation of profit distribution was completed.
In 2023, XCMG Machinery will once again pay a high proportion of dividends, and the company plans to pay a dividend of 0.18 (tax included) per share, with a cash dividend of about 2.127 billion yuan.
It is foreseeable that with the implementation of the action plan to promote large-scale equipment renewal, the domestic construction machinery industry is expected to bottom out. In the future, XCMG is expected to give investors more sense of gain.
Source | China News Network
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