XCMG Construction Machinery Co., Ltd.
徐工机械
000425
Shenzhen Stock Exchange
Company Profile
(I) Management On average, each member of the management has more than 30-year experience in the industry. They have deep insight and far reaching vision of the industry, as well as excellent management and execution abilities.After several rounds of industry cycles, management layer has a deep understanding of the requirements of China and global construction machinery market and customer. (II) Brand XCMG is one of the most influential construction machinery brands in China, featuring time honored credibility. XCMG enjoys extensive brand recognition in domestic and overseas markets. XCMG’s brand value ranks No.1 in the industry for years. (III) Products XCMG owns more than 1,000 products and provides complete set of solutions for clients, which makes us less vulnerable to the fluctuations in the industry. The company has professional machine manufacturing systems and is able to develop and manufacture core parts and components. The product portfolio covers more than 80 types of products in eight categories. Besides, XCMG’s products have high technological contents, high entry barriers and high market share. Most of our products include multiple series to meet the demands of diverse clients. (IV) R&D XCMG’s technological competency leads the industry. XCMG relies on 2 state-level research and development platforms, 4 provincial engineering and technology research centers, 5 provincial enterprise technology centers, 1 provincial manufacturing innovation centers, National enterprise postdoctoral program and academician workstation and so on. We insist on innovation driven development and create world-class innovation system. Since 2010, XCMG has obtained three second prizes of National Award for Progress in Science and Technology. Moreover, we has authorized 4493 patents, including 1046 invention patents.
Full description
(I) Characteristics of the industry We are a leading Chinese construction machinery manufacturer. Construction machinery industry is one of the pillar sectors of machinery industry in China, and its development is closely related to macro economy and fixed asset investment, with downstream demands concentrating on infrastructure, mining and real estate industry. Market demands for products are strongly influenced by the government’s fixed asset investment, especially in the infrastructure sector. The prosperity of construction machinery industry is highly associated with the changes of macro economy and relevant industry policies. The industry cycle of construction machinery roots in the cycle of macro economy. (II) Major business and products We are engaged in the design, research and development, manufacturing and sale of crane machinery, earth moving machinery, compacting machinery, road machinery, piling machinery, fire-fighting machinery, sanitation machinery, other construction machinery and their parts and components. We are a leader in research and development and product innovation among Chinese construction machinery manufacturers and a leading developer of industry standards for China’s construction machinery. Our extensive product lines, comprehensive product offerings and strong research and development capabilities allow us to provide our customers with comprehensive solutions to satisfy their individual needs. Many of our core products have the largest market share in China. Being one of China’s largest exporters of construction machinery, we have a global sales network. (III) Operation and sales models The major operation models: For regular products, we make annual sales plan according to the annual budget. Based on our prediction on market demand， we work out the monthly sales and purchase plan. At the end of each month, we make proper adjustment and formulate the sales and purchase plan for next month based on the changes of market and the updated data of production, sales and inventory. For some large-tonnage products, we basically arrange the purchase and production according to client orders. We adopt either direct sales or dealer sales model, based on the characteristic of each product segment. The major payment models include full payment, mortgage loans, installment and financial leasing.