2023

The river of history surges forward, and generation after generation of continuous struggle has created today's China.

Looking back on the stirring year of 2022, countless fragments of history have coalesced into a mighty force for forging ahead, inspiring us to hoist our sails and ride the waves with courage and perseverance on the new great journey.

In 2022, the 20th National Congress of the Communist Party of China was successfully convened, drawing up a grand blueprint for comprehensively building a modern socialist country and advancing the great rejuvenation of the Chinese nation through a Chinese path to modernization, and sounding the clarion call of the era to forge ahead on a new journey.

This year, global economic changes accelerated, infrastructure construction across regions proceeded without pause, and the "progress bar" was constantly refreshed—high-rises rose, bridges were joined, wind turbines stood in clusters... The pace of high-quality development became ever faster and more solid.

This year, bearing in mind the entrustment and shouldering the mission, XCMG under the new mechanism radiated new vitality, with all business indicators making steady progress, and with the practical action of building a world-class modern enterprise, it was engraved in the long river of history of implementing the spirit of the 20th National Congress and forging ahead on the new journey.

Full of Pride, Racing Ahead

—This year, XCMG's business indicators took on new connotations

"Keep an eye on the world frontier and strive to explore good models and good experience for innovative development." 2022 marked the fifth anniversary of General Secretary Xi Jinping's inspection visit to XCMG. This year, bearing in mind the entrustment, XCMG, as the industry leader, maintained its pace of high-quality development, advanced all work in parallel, and repeatedly set new highs in business indicators.

—Industrial scale remained leading, and market position rose steadily. In 2022, amid a sluggish market across the industry, the comprehensive market share of 13 product categories ranked first in China. Sales of new energy heavy trucks increased by 316% year on year, ranking second in the industry. XCMG's operating revenue exceeded 100 billion yuan for three consecutive years, maintaining first place in the industry.

—Overseas markets grew substantially, and the globalization blueprint expanded rapidly. This year, XCMG remained unwavering in its main internationalization strategy, and its "global circle of friends" continued to expand.

XCMG won the "first Chinese export order" under RCEP, XCMG loaders surpassed 100,000 units in exports, 300 excavators sold well in North America, XCMG appeared for the 11th time at bauma Germany, and China's largest-tonnage telescopic crawler crane for export—XCMG XCC2000—completed its first successful lift in Europe... Behind these milestone events is a reflection of the rapid advance of XCMG's overseas business in 2022. From January to November, XCMG's international revenue increased by more than 70% year on year, with products sold to more than 190 countries and regions.

In the great voyage of China's high-end equipment manufacturing industry breaking through the waves to go global, XCMG has always stood at the forefront.

Riding the Momentum, a Thousand Sails Race

—This year, XCMG's industrial development reached a new level

High-quality development of manufacturing has become the top priority of high-quality economic development. The report of the 20th National Congress of the Communist Party of China proposed building a modern industrial system. In 2022, XCMG implemented the new development philosophy, promoted the construction of a new development pattern, increased investment, strengthened R&D, and made every effort to push all aspects of development to a higher level, accelerating the realization of a "manufacturing powerhouse."

—Construction machinery firmly ranked third globally, with growing international influence. The authoritative Yellow Table list released by KHL of the UK showed that Chinese manufacturer XCMG delivered outstanding results in construction machinery, continuing to rank first in China and firmly third globally.

This year, the five pillar industries of lifting machinery, concrete machinery, road machinery, earthmoving machinery, and piling machinery strongly stabilized the foundation, while ten strategic emerging industries such as mining machinery and aerial work platforms were rapidly cultivated and expanded, with revenue increasing by more than 30% year on year. Commercial vehicles accelerated industrial breakthroughs, and revenue from new energy vehicles from January to November increased by 308% year on year, accounting for more than 30% of revenue. With strong figures, XCMG left an indelible mark on the extraordinary year of 2022 and made a good start for 2023, which is now unfolding.

—Core components achieved new breakthroughs, firmly grasping the initiative in science and technology. On November 14, XCMG's independently developed XCA2600, the world's largest-tonnage all-terrain crane, successfully lifted the largest onshore wind turbine in Weifang, Shandong. This scene instantly swept across the internet and became a beautiful sight in 2022 as XCMG implemented the spirit of the 20th National Congress. It was also a profound interpretation of General Secretary Xi Jinping's statement to "firmly grasp the lifeline of science and technology in our own hands."

Only by vigorously promoting innovation can we forge a new path. During his inspection visit to XCMG, General Secretary Xi Jinping emphasized that innovation is the source of an enterprise's core competitiveness, and that we must pursue independent innovation with confidence, endurance, and determination. Over the past year, XCMG has consistently treated innovation as the "lifeline" of the enterprise, adhered to the "three highs and one large" product innovation strategy, and vigorously promoted technological iteration, transformation and upgrading, and the digital and green development of industry. The "world's largest mining truck," "world's largest tower crane," "world's No. 1 drilling rig," and "world's No. 1 crane" rolled off the line one after another. XCMG continued to set new heights in industrial innovation and development, turning many impossibilities into possibilities and into reality.

Focusing on independent controllability, safety, and reliability. This year, XCMG took multiple measures to vigorously develop the core components industry and achieved a series of remarkable results: the battery cell joint venture project was quickly implemented; the supporting scale of core components exceeded 9 billion, basically achieving full coverage of all main machine product lines.

—Modern industrial development blossomed in multiple areas, and industrial base construction accelerated.

International development entered a new stage. XCMG moved from single international trade toward the goal of integrating the global industrial value chain, enabling personnel, capital, and technology to take root, blossom, and bear fruit abroad.

2022 marked the 10th anniversary of the laying of the foundation stone of the Brazil company and the 8th anniversary of its production. The Brazil company's operating revenue grew 3.6 times, Germany's Schwing remained the No. 1 brand in Europe, and localized operations in Uzbekistan, India, the United States, Mexico, and other places advanced steadily. After establishing a bank in Brazil, XCMG also carried out financial business in the United States, Thailand, Malaysia, and other places.

The "intelligent transformation and digital transformation" process accelerated. This year, XCMG invested in and built 21 industrial projects, including the foundation engineering machinery intelligent manufacturing base, high-end intelligent port machinery industrialization development, and the high-end lifting equipment intelligent factory, accelerating the transformation of the grand blueprint into a "real-life picture" and polishing Xuzhou's reputation as the "Capital of Construction Machinery" even brighter.

Determined Reform, Surging Vitality

—This year, XCMG's institutional renewal unleashed new vitality

Solving difficult points, reform improved development efficiency; tackling pain points, reform activated institutional momentum. 2022 was a key year for implementing the 14th Five-Year Plan, the year of the convening of the 20th National Congress of the Communist Party of China, and an important year for China to embark on the new journey of comprehensively building a modern socialist country and march toward the Second Centenary Goal. Facing new opportunities, new challenges, and new difficulties in the new era and new journey, XCMG Machinery, under the new system, burst forth with new vitality and steered the ship of reform into a vast ocean.

—The construction machinery segment was reorganized and listed, and the new system drove new development. Accumulating the XCMG momentum of deepening reform and stimulating the XCMG speed to win at the summit. In 2022, the construction machinery segment successfully completed its reorganization and overall listing, established a more market-oriented and law-based modern enterprise system, and continued to lead industry development with scientific corporate operational capabilities. XCMG Machinery ranked first in China's construction machinery industry in operating revenue, net profit, and return on net assets.

—Model workers and craftsmen all shine, and I contribute to building a skilled powerhouse through innovation. Success depends on talent, and the growth of undertakings depends on talent. In 2022, under the new mechanism, XCMG accelerated the implementation of its talent strategy, supporting high-quality enterprise development with first-class talent. Up to now, XCMG has cultivated outstanding talent groups including high-end R&D personnel, highly skilled craftsmen, Party member role models, and outstanding entrepreneurs. It has an R&D team of more than 4,500 people with doctoral and master's degree holders as the backbone, two national skilled master studios, 20 national technical experts, and more than 60% of skilled personnel at the senior technician level or above, leading the industry.

—Cultural development released vitality, and crossing oceans demonstrated responsibility. The employee art festival was grandly held, carrying the responsibility and mission of the new XCMG to "hold high the banner, unify thinking, gather strength, and march toward world-class," and presenting a cultural answer sheet to the world; expanding the "circle of friends," global followers exceeded 5 million, and international influence and trust steadily improved; the "African Water Cellar" project, with its "blood-making" poverty alleviation approach, demonstrated the social responsibility of a Chinese brand.

XCMG fully fulfills its social responsibilities and commitments. In countries along the Belt and Road, through localized manufacturing, it has helped host countries train a large number of technical personnel and industrial skilled workers of various types; through public welfare brand activities such as African clean water and household water cellars, the "X Creator" challenge, and Global Good Craftsmen, it tells the story of Chinese manufacturing and spreads the good voice of China.

Looking back, every minute and every second is engraved with the passion of struggle in 2022;

Looking ahead, every moment is inscribed with the enthusiasm of perseverance in 2023.

There is no end to doing solid work, and a new chapter opens by walking ahead. Through 79 years of spring blossoms and autumn fruits, 2023 marks the 80th anniversary of XCMG's founding. In the new era, on the new journey, and in the new great cause, all XCMG employees will be guided by the strategic blueprint of "building a century-old store and becoming a world-class modern enterprise," allowing beautiful dreams to continuously become reality.

· Accelerate technological innovation and lead innovation-driven development with high-end orientation;

· Accelerate intelligent and digital transformation and promote industrial transformation and upgrading with intelligence;

· Accelerate the dual carbon action and lead the industry's low-carbon development with green orientation;

· Accelerate marketing transformation and extend the value chain of the main business with service orientation;

· Accelerate global layout and transcend industry fluctuation cycles with internationalization.

Struggle creates miracles. Looking ahead, we will hold fast to our goals like a green mountain and carry one blueprint through to the end. All XCMG employees will firmly focus on "high-end, intelligent, green, service-oriented, and international" development, and with firm, solid, and resilient steps, take practical action to forge a new XCMG-style development path, winning even greater victories and glory on the journey to accelerate the building of a world-class modern enterprise!