XCMG Invest CNY 400 Mn in Its Subsidiary to Promote Intelligent Transformation

Industrials Author: Fuller Wang Jun 06, 2021 07:17 PM (GMT+8)

The leading construction machinery is embracing the high-end lifting equipment and intelligent transformation through increasing investment.

excavating machinery

XCMG announced on June 6 2021 that it plans to increase the capital of CNY 400 million to its wholly-owned subsidiary XCMG Construction Machinery. The fund is planned to use for the construction project of the intelligent factory of high-end lifting equipment and intelligent transformation.

China's construction machinery industry has been recovering in recent years. According to the first quarter report of XCMG in 2021, its net profit reached a historical high. In the first quarter, the company realized operating revenue of CNY 24.98 billion, up 80.4% year on year, and a net profit of CNY 1.73 billion yuan, up 182.4% year over year. From the beginning of this year, the share price of XCMG has risen by more than 22%, and its market value has exceeded CNY 50 billion again. 

In 2021, we expected the boom of the construction machinery industry will continue, and the annual sales volume of the industry is expected to maintain positive growth. The construction machinery industry has characteristics of diversified products, discrete production processes and complex supply chains. In the future, intelligent manufacturing, industrial Internet and big data may reshape the industry ecology.