Revenue of RMB23.53 Billion in 1st Quarter Fulfilled and Grand Opening Achieved by XCMG

April 20, 2011

Beginning from this year, XCMG has tried its best to seize market, and its business achievement has maintained a high-speed growth. A business return of RMB23.53 Billion has been fulfilled in the first quarter, with a year-on-year increase by 76.2%, including a business income of RMB10.27 Billion accomplished alone in March, both having set the new records in the history of XCMG and maintained its flagship position in the industry.

In the first quarter of this year, the rise of interest rate for bank reserves and the interest rate for deposit and loan has obviously represented a government monetary policy contraction. However, the state macroscopic economy has constantly achieved growth in regulation and control, and the market demand for main products of construction machinery industry has continued showing a rapid growth. XCMG has tried its best to seize the market and to seek for breakthrough based on reformation and innovation, and to adjust business structure, as well as to upgrade quality, upgrade market share, and upgrade product gross profit rate, according to the “3-Release, 2-Control and 1-Restriction” and “1-Seize, 2-Regulation, and 3-Upgrade” guidelines brought forward at the company’s economic work meeting, and a rapid growth on economic performance and operation scale has been achieved, through capture of market opportunities, and promotion of monthly assurance with days, quarterly assurance with months, and yearly assurance with quarters.

In the first quarter, the sales volumes of XCMG for over 100t Truck_crane/ 'target='_blank' style='color:blue;'>Truck Cranes, Excavators, Spreaders, Rotary Drilling Rigs, Milling Machines, Horizontal Directional Drilling Rigs, Backhoe Loaders, sanitary products, and fire Trucks have all maintained doubled or above growth, of which the sales volume of Excavators has increased up to by 437.7%, and the market shares have all achieved new increase. At the same time, the sales volumes of XCMG for Truck Cranes, loaders, Excavators, Crawler Cranes, Concrete Pump trucks, Graders, Horizontal Directional Drilling Rigs, truck-mounted cranes, Backhoe Loaders, and heavy trucks have all reached their historical new heights.
Especially XCMG’s “3-High and 1-Large” (High End, High Technology, High Extra Value, and Large Tonnage”) products have formed important support. In the first quarter, the year-on-year increase in sales volume of XCMG’s Truck Cranes more than 100 tonnage exceeded 100%, the sales of large-scale loaders of the models above 60 increased by 1.5 times, the sales of large-scale Spreaders increased by more than 200%, having presented a good growth tendency and strong market competitiveness. At the same time, XCMG’s complete concrete equipment, Road Machinery complete equipment, railway equipment, cab supporting components, and others have all revealed comparatively good performance.

Rapid growth on export market has become another beautiful landscape. By giving priority to breakthrough of key foreign markets, doubled export volume of XCMG products has been achieved in Quarter One, and especially the one-time export of 110 sets of equipment (including truck cranes, loaders, excavators, and Crawler Cranes, etc) has moreover expanded the influence of XCMG products in South America and even the entire world.