In 2021, the prosperity of construction machinery will decline, but Xugong Machinery (000425.SZ) has handed over a high-quality development answer sheet that is higher than the industry average growth rate, further highlighting the true character of construction machinery leader.
XCMG's 2021 annual report highlights frequently, especially in terms of revenue and net profit, cash flow, internationalization, and R&D investment.
Highlight 1: Operating income and net profit hit record highs again, and emerging industries are rapidly increasing
XCMG's operating income in 2021 will be 84.328 billion yuan, a year-on-year increase of 14.01%.
With XCMG machinery as the main body, XCMG has maintained the first place in the domestic industry for 32 consecutive years, and historically ranked among the top three in the world.
Operating income not only hit another record high, but the structure became more balanced.
From the perspective of the composition of operating income, major products including hoisting machinery have achieved positive growth. Scraper machinery, aerial work machinery, piling machinery, and other construction machinery have grown rapidly, and their proportions have increased.
In addition, the proportion of overseas revenue of XCMG Machinery has further increased.
It is understood that on the other side of the ocean, the XCMG Brazil manufacturing base has achieved a breakthrough under the epidemic. In 2021, XCMG Brazil's production and sales will increase by over 200% year-on-year, and the operating scale will increase by 198% year-on-year.
In 2021, XCMG's machinery pillar sector will be stronger, for example, hoisting machinery ranks first in the world for the first time.
XCMG Machinery's "14th Five-Year" strategic planning outline put forward that vigorously developing "ten strategic new industries" as an important strategic direction, including aerial work platforms, environmental industries, rescue and support equipment, industrial vehicles - forklifts, small construction machinery , maintenance machinery, information industry, etc.
How are these strategic new industries progressing?
The answer is exciting, emerging industries are rapidly increasing.
The No. 1 position in the industry of lifting fire trucks and boom-type aerial work platforms has become more stable, and the profitability has been greatly improved; the sanitation segment has made efforts in three places under the two-wheel drive; the revenue of small construction machinery has increased by 50% year-on-year; the revenue of forklift trucks has increased by 258% year-on-year %; The new maintenance base was officially put into operation, and the asphalt station and chassis maintenance products entered the top two in the industry.
Not long ago, the Ministry of Industry and Information Technology announced the "List of Cross-industry and Cross-domain Industrial Internet Platforms in 2021". The XCMG Hanyun Industrial Internet Platform, which is highly concerned and widely recognized by the industry, is on the list. It has been successfully selected for three consecutive years, and its ranking has been promoted again, ranking TOP3. .
Not only the revenue is dazzling, but the net profit of XCMG Machinery is also outstanding.
The company further promotes the "No. 1 project" to strengthen risk control and reduce costs and increase efficiency, continue to promote cost reduction in the entire value chain, and build a supply chain of "allied forces, advancing and retreating together". Under the high price of raw materials, the annual procurement has achieved a net cost reduction; Due to the strict control of four expenses in business activities, the proportion of four expenses dropped from 9.97% to 9.32%.
In 2021, the company's net profit attributable to the parent company will be 5.615 billion yuan, a year-on-year increase of 50.57%.
Highlight 2: Operating cash flow increased by 189.43% year-on-year
Operating cash flow reflects the "gold content" of performance.
In 2021, the net cash flow generated by XCMG's operating activities will be as high as 8.073 billion yuan, an increase of 189.43% over the previous year, a record high.
The net cash flow generated by XCMG's operating activities increased compared with the same period of last year, mainly due to strong market demand, revenue growth, the company's increased efforts to recover payment for goods, and a better recovery of sales.
In terms of quarters, the net cash flows generated by XCMG's operating activities were 1.946 billion yuan, 1.805 billion yuan, 503 million yuan, and 3.819 billion yuan, especially in the fourth quarter.
The announcement shows that the sector under the controlling shareholder XCMG Co., Ltd. shines brightly.
Excavators have grown to become the second in China and the sixth in the world; tower cranes have jumped to the second place in the world; mine surface excavation equipment ranks among the top five in the world, breaking the monopoly of the top international giants; concrete machinery ranks first in the world; newly deployed ports Machinery quickly broke through in the competition with strong players, and its income tripled.
Highlight 3: Overseas revenue increased by 111.81%, unswervingly "going out"
Internationalization is the main strategy and the key to the summit of XCMG Everest. In 2021, XCMG Machinery has achieved remarkable results in internationalization.
After more than 20 years of exploration and practice, XCMG Machinery has embarked on a unique path of internationalization, 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 provide a full range of product marketing services, full value chain services and overall solutions.
In 2021, XCMG's overseas operating income will reach 12.940 billion yuan, a record high, an increase of 111.81% over the previous year, and its proportion in operating income will increase from 8.26% in the previous year to 15.35%.
In 2021, the export of key products of the company will grow rapidly, the export of medium and large equipment will increase by 110.4% year-on-year, the export of road machinery will increase by 92.1% year-on-year, and the export of truck cranes will increase by 59.1% year-on-year. The region increased by 129.8% year-on-year, the African region increased by 93.1% year-on-year, and major breakthroughs were made in the high-end market in Europe and the United States.
In addition to the explosive growth of exports, XCMG Machinery has also taken root overseas, with a solid foundation, and unswervingly "going out".
In 2021, the company will invest US$99 million to establish XCMG America and its subsidiaries to undertake the implementation and implementation of XCMG's main internationalization strategy in North America.
"Focusing on the forefront of the world, there is a lot of room for expansion in the European and American markets," said Wang Min, chairman of XCMG Machinery.
Highlight 4: The growth rate of R&D investment is higher than that of revenue
Improving technology and creating value for customers is the key to maintaining a competitive advantage and a necessary condition for entering the lucrative international high-end market.
In 2021, XCMG Machinery's R&D investment will reach 4.452 billion yuan, a year-on-year increase of 18.67%; R&D investment will account for 5.28% of operating income, continuing to increase from 5.07% in the previous year.
The number of R&D personnel in the enterprise is as high as 2,923, and the number of R&D personnel accounts for 18.88%. Both the number and the proportion have increased compared with the previous year.
In recent years, XCMG Machinery has continued to increase investment in research and development, and more than half of it has been used for key core technology research and construction of major test equipment and facilities.
Relying on the overall advantages of the parent company, the company currently has 8 provincial-level enterprise technology centers, 6 provincial-level engineering technology research centers, 2 provincial-level engineering research centers, 1 provincial-level manufacturing innovation center, and 1 provincial-level industrial design center. , and built XCMG's national-level design center, national key laboratory and nationally recognized testing and testing institution, as well as XCMG's national-level post-doctoral research workstation, academician workstation and other platforms.
At present, under the background of the "double carbon" goal, the electrification of construction machinery has become a trend.
In 2021, XCMG XZ4055, the world's first lithium-electric power directional drilling rig, won the 2021 German IF Design Award and the Red Dot Award (Oscar Gold Award in the industrial design field). XZ4055 takes lithium-electric drive technology and intelligent human-computer interaction technology as the core to achieve zero pollution. Low noise emission and unmanned construction work, the noise is as low as 76dB, which is only equivalent to the sound of people drinking coffee, and it is a model of low noise for large equipment.
By the end of 2021, XCMG Machinery has obtained a total of 6,337 authorized patents, including 1,670 invention patents.
In the "Notice on the Evaluation Results of National Enterprise Technology Centers in 2021" issued by the General Office of the National Development and Reform Commission, XCMG National Technology Center ranked 36th among the 1,728 enterprise technology centers participating in the national evaluation with a comprehensive score of 92.4, and continued to win the title of construction machinery. First in the industry.
After going through the cycle of the industry, XCMG Machinery and its employees have not forgotten their original aspirations, practiced their internal skills hard, and forged ahead hand in hand. The company has achieved high-quality development that is higher than the industry average growth rate.
The key to the achievement of XCMG's high-quality development lies in XCMG's unique "spirit of climbing to the top": perseverance, passion for creation, sober struggle, loyalty to the party, glory for the country, and climb to the top of Mount Everest in the global construction machinery industry.
"Regardless of prosperity or adversity, XCMG will unswervingly achieve the high-quality development goals of 'high quality, high efficiency, high efficiency, and sustainability'. XCMG always adheres to the original intention of the industry, and represents China's construction machinery to continuously attack the global industry Mount Everest. , to compete in the 'world final track' with high quality," said Wang Min, chairman of XCMG Machinery.