Xugong Machinery was established on December 15, 1993 and listed on the Shenzhen Stock Exchange on August 28, 1996. Its registered address and office address are both in Xuzhou City, Jiangsu Province.
It is a world-renowned construction machinery manufacturer. Its core business covers a variety of construction machinery and spare parts such as lifting and shoveling. It has advantages in the entire industry chain and has significant investment value.
Xugong Machinery is engaged in the research and development, manufacturing, sales and service of construction machinery and spare parts such as lifting machinery and scraper machinery. The Shenwan industry it belongs to is mechanical equipment – construction machinery – complete construction machinery, involving concepts such as Yaxia power station concept, emergency industry, and Double Hundred Enterprises.
Operating performance: first in the industry in revenue and second in the net profit industry
In 2025, XCMG Machinery’s operating income reached 100.823 billion yuan, ranking first among 23 companies in the industry, higher than the industry average of 16.765 billion yuan and the median of 6.689 billion yuan. The second-placed Sany Heavy Industry in the industry had revenue of 89.231 billion yuan.
Among the main businesses, the construction machinery industry’s revenue was 100.823 billion yuan, accounting for 100.00%.
Net profit was 6.686 billion yuan, ranking second in the industry. Sany Heavy Industry, which ranked first in the industry, had a net profit of 8.488 billion yuan. The industry average was 1.362 billion yuan and the median was 530 million yuan.
The asset-liability ratio is higher than the industry average, and the gross profit margin is lower than the industry average.
In terms of solvency, XCMG Machinery’s asset-liability ratio in 2025 is 64.01%, higher than 62.44% in the same period last year, and higher than the industry average of 45.29%.
In terms of profitability, the gross profit margin in 2025 will be 22.61%, slightly higher than the 22.55% in the same period last year, but lower than the industry average of 25.52%.
President Lu Chuan’s salary is 3.2992 million yuan, a decrease of 52,800 yuan year-on-year.
The controlling shareholder and actual controller of Xugong Machinery are both Xuzhou Engineering Machinery Group Co., Ltd.
Chairman Yang Dongsheng, born in March 1968, is currently the Party Secretary and Chairman of XCMG Group and XCMG Machinery, with a rich resume.
President Lu Chuan, born in April 1966, is currently a director, president and deputy party secretary of XCMG Machinery. His salary in 2025 is 3.2992 million yuan, a decrease of 52,800 yuan from 3.352 million yuan in 2024.
The number of A-share shareholders decreased by 5.35% compared with the previous period
As of December 31, 2025, the number of A-share shareholders of XCMG Machinery was 100,400, a decrease of 5.35% from the previous period; the average number of circulating A shares held by each household was 92,500, an increase of 5.68% from the previous period.
As of March 31, 2026, Hong Kong Securities Clearing Company Limited ranked as the second largest circulating shareholder, holding 695 million shares, an increase of 185 million shares compared with the previous period; Huatai-Berry CSI 300 ETF (510300) ranked No.
The top ten tradable shareholders hold 75.6976 million shares, a decrease of 78.9724 million shares compared with the previous period; China Securities Finance Co., Ltd. and E Fund CSI 300 ETF (510310) have withdrawn from the top ten tradable shareholders.
Huatai Securities pointed out that Xugong Machinery’s performance in 2025 was lower than expected, mainly due to the increase in exchange losses and credit impairment provisions in 25Q4.
The first quarter report for 2026 shows that the revenue is +9% year-on-year, and the net profit attributable to the parent company is +1% year-on-year. After deducting related effects, the profit is still growing rapidly.
Business highlights are as follows:
1. Over the past 25 years, earthmoving and mining machinery exports have contributed the main revenue increase. Domestic sales share of earthmoving machinery has steadily increased, and export and after-market revenue has increased significantly; domestic sales of the scraper division ranked first in the industry in both large-scale equipment and exports; mining machinery open-pit excavation equipment moved to fourth place in the world.
2. Profitability has been stable in 25 years, profit quality has been significantly improved, gross profit margin and net profit margin have increased slightly throughout the year, financial expense ratio has decreased, operating cash flow has reached a record high, and risk exposure has dropped by more than 30 billion throughout the year.
3. The main increase in export contribution in 26Q1 was about 60% in foreign exchange profit growth.
Taking into account relevant factors, the company’s net profit attributable to the parent company in 2026-27 has been lowered to 8.7 and 10.7 billion yuan. The net profit attributable to the parent company in 2028 is expected to be 12.5 billion yuan. The company has been given a PE valuation of 16 times in 26 years and a target price of 11.84 yuan. Maintain a “buy” rating.
At the same time, it also prompted risks such as geopolitical and exchange rate fluctuations.
