Zoomlion Heavy Industry Science & Technology, a leading Chinese construction machinery and equipment manufacturer, recently released a performance forecast, predicting net profit attributable to shareholders of listed companies in 2023 to be 3.38 billion to 3.62 billion yuan, a year-on-year increase of 46.57 per cent to 56.98 per cent. The results are due to remarkable results in its international market penetration and rapid growth in the emerging business segments, coupled with reduced internal costs and enhanced efficiency.
The continued growth of international business is a key reason behind Zoomlion's Q4 and full-year net profit growth exceeding expectations. Based on the company's third quarter report, international business income was 13.03 billion yuan from January to September last year, a year-on-year increase of 100.5 per cent, with international business income accounting for 36.7 per cent. In Q3, international revenue amounted to 4.66 billion yuan, boosting its proportion of total income to 40 per cent, a 5 per cent increase from H1 2023.
The company operates in over 138 countries, boasting 350+ outlets and 3,000 international employees, constituting over 90 per cent of its workforce. Future plans aim to have international business account for more than 50 per cent. Key exports, such as construction cranes and earthmoving machinery, are prominent in Belt and Road Initiative countries. Utilizing an end-to-end direct business system, the company foresees enhanced market coverage and product penetration. The upcoming Zoomlion Smart Industrial City is expected to boost manufacturing efficiency and product quality through advanced technologies and digital applications. The company's performance forecast emphasises operational improvements through comprehensive transformations, digital applications, and cost reduction measures.
In recent years, Zoomlion has accelerated its international business model transformation through the global village and localisation concepts, achieving notable progress in key products and markets. By 2023, it claimed the highest market share in the engineering crane sector in the Middle East and Russian-speaking areas. Zoomlion also set export records for the largest tonnage crane from China to South America and the Philippines.
