Machinery / Industrial Parts & Tools

On April 27th, Zoomlion Heavy Industries released its performance report for the first quarter of 2023. The report shows that during the period, the company achieved a revenue of 10.426 billion yuan, a year-on-year increase of 4.13%, and the performance growth rate turned positive; The net profit attributable to the company's shareholders was 810 million yuan, a year-on-year decrease of 10.63%; The gross profit margin increased by 6.32 percentage points year-on-year to 26.39%, indicating a continuous improvement in business quality. Huacheng Import and Export Data Observation Report.

Revenue growth rate has become positive, and overseas revenue has increased significantly

According to import and export data, in the first quarter of 2023, the competitiveness of Zoomlion Construction Machinery's leading products, concrete machinery, engineering lifting machinery, and construction lifting machinery, continued to increase. The market advantage was obvious, and emerging sectors such as earthwork machinery and high-altitude operation machinery competed to break through, achieving rapid growth. At the same time, Zoomlion Heavy Industries continues to accelerate the transformation of its overseas business model with the concept of "global village" and "localization". It deeply cultivates the global market end-to-end, empowers its business model with digitization, and continuously improves its strategic layout. The market continues to achieve breakthroughs, and overseas revenue continues to increase significantly. In the first quarter, the company achieved a revenue of 10.426 billion yuan, a year-on-year increase of 4%. The year-on-year growth rate of revenue turned positive, with overseas revenue increasing by 123%, marking a new chapter in international development.

Since the beginning of 2023, Zoomlion Heavy Industries has received large orders for various series of products, with continuous product delivery, driving the company's rapid revenue growth. In the domestic market, 60 R-generation tower cranes equipped with new technology stand tall in Xiong'an, the "City of the Future", creating a demonstration site for tower crane intelligent control; Shaan Automobile's integrated mixing truck for filling and replacing is neatly lining up and shining in the Ice City, becoming the first batch of new energy mixing trucks put into operation in Heilongjiang Province; The first 5-bridge 55-ton longest boom pump truck equipped with lightweight high-tech materials in China, the "Lingyun C" series 5-bridge 72-meter pump truck, has been delivered to Xinjiang and other regions. The "Aurora Green" has continuously sparked a delivery boom throughout the country.

In the overseas market, Zoomlion Heavy Industries' products have also become numerous fans: dozens of large excavators have been delivered to Saudi Dammam, and the subsequent signing of large orders for earthwork machinery has made the Aurora Green shine on the Middle East; Zhonglian Agricultural Machinery has become the single supplier with the largest procurement share in batch procurement projects of agricultural machinery and equipment in Dominica; 22 products in 7 major categories under its umbrella have ignited popularity in the United States and won 600 million yuan in orders; The 800 ton crane, which has been localized, upgraded and improved, has been exported to Argentina, setting a record for the largest tonnage crane exported from China to the South American market; Multiple pump trucks of different meter lengths have been sent to sea, with a 70 meter pump truck setting a record for the longest boom pump truck exported to Singapore in China.

Significant increase in gross profit margin and continuous strengthening of product profitability

Import and export data shows that during the reporting period, the gross profit margin of Zoomlion Heavy Industries was 26.39%, an increase of 6.32 percentage points year-on-year and 2.2 percentage points month on month, continuing the upward trend since the first quarter of 2022, and further improving the company's profitability.

Zoomlion Heavy Industries stated that the increase in gross profit margin is due to the company's strong promotion of intelligent manufacturing, improving resource utilization efficiency, and reducing production costs in all aspects. Through the implementation of intelligent manufacturing, the average production efficiency of the intelligent factories put into operation by Zoomlion Heavy Industries has increased by 34.1%, the research and development cycle has been shortened by 31.1%, operating costs have decreased by 20.3%, and the order completion cycle has been shortened by 35%. At the same time, the company continues to deepen the work of cost reduction and efficiency improvement, by continuously promoting the application of new materials, new processes, and new technologies, the localization of imported components, the improvement of key component self-made rate, and end-to-end market transformation, strictly controlling various costs and expenses, improving business efficiency, and achieving continuous improvement of business management quality.

While the gross profit margin has significantly increased, Zoomlion Heavy Industries has also achieved an increase in cash flow. In the first quarter, the company's sales to cash ratio reached 113%, achieving efficient cash withdrawal. The net cash flow generated by the company's operating activities was 286 million yuan, further highlighting the high-quality operating results.

According to import and export data, in the first quarter of 2023, the average operating rate of construction machinery in China was 53.14%, showing an overall trend of economic recovery and monthly improvement. Zoomlion Heavy Industry Co., Ltd. will seize new opportunities for market recovery, persist in producing high-quality products and services, continue to explore domestic and international markets, and promote high-quality development of enterprises to achieve new results. Huacheng Import and Export Data Observation Report.