XCMG Construction Machinery (000425) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥61.25 billion, up 11.75% year-over-year, with international revenue surpassing 50% of total sales.

• Net profit attributable to shareholders was ¥3.96 billion, down 9.09% year-over-year, with adjusted net profit (excluding non-recurring items) down 14.28%.

• Cash flow from operating activities increased 11.63% year-over-year to ¥4.16 billion.

• Gross margin remained stable at 22.12%, and the company maintained a strong position in core product segments domestically and globally.

• The company continued to invest in R&D, digital transformation, and global expansion, with significant progress in high-end, intelligent, and green product lines.

Financial highlights

• Total assets at June 30, 2026, were ¥179.0 billion, up 4.02% from year-end 2025.

• Net assets attributable to shareholders rose 6.78% to ¥64.56 billion.

• Basic and diluted EPS were both ¥0.35, down from ¥0.37 in H1 2025.

• Operating cash flow improved to ¥4.16 billion, and the company maintained a healthy liquidity position.

• R&D expenses increased to ¥2.25 billion, reflecting a focus on innovation and new product development.

Outlook and guidance

• The company expects continued growth in international markets and further optimization of product and customer structure.

• Focus remains on high-quality development, digital transformation, and strengthening global competitiveness.

• Management highlights ongoing risks from macroeconomic fluctuations, market competition, supply chain disruptions, and exchange rate volatility.