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XUZHOU, China, Dec. 20, 2024 /PRNewswire/ -- XCMG Machinery ("XCMG", SHE:000425) has officially launched its Global Investor Return Plan for 2025-2027, a comprehensive initiative to enhance investment value and protect shareholder rights. The plan, marking the industry's first global investor retune program, reaffirms XCMG's commitment to sharing the rewards of high-quality development with its investors and driving long-term sustainable growth.
XCMG Machinery Unveils Global Investor Return Plan for 2025-2027.
The new initiative builds on the foundation of XCMG's announcement on February 6, 2024, when the company pledged to implement a Dual Enhancement of Quality and Returns action plan. Over the past months, XCMG has consistently optimized operational quality, maintaining leadership in both revenue and net profit within the construction machinery industry. These achievements have contributed to a remarkable 50% increase in stock price over the past nine months, outpacing peers from China and reinforcing investor confidence.
The plan outlines seven actionable measures to ensure robust investor returns:
- Stable Cash Dividends: XCMG aims to distribute cumulative annual cash dividends (including share buybacks) amounting to no less than 40% of distributable profits for the year from 2025 to 2027, provided no major investments or significant cash expenditures arise. The company will explore multiple dividend distributions within a fiscal year to enhance shareholder benefits.
- Normalized Shareholding Increases by Major Shareholders: Over the next three years, XCMG's controlling shareholder commits to utilizing no less than 20% of its annual cash dividends from the company to purchase XCMG stock, subject to necessary approvals.
- Enhanced Investor Relations Management: XCMG will expand global investor communication through diverse channels. Following the release of its first bilingual ESG report in April 2024, the company plans to consistently publish ESG reports in Chinese and English while striving to improve its ESG ratings. Annual financial reports will also include English disclosures to align with international standards.
- Market Value Management Mechanisms: XCMG will establish a scientific market value management framework to enhance value creation, drive sustainable growth, strengthen engagement with capital markets, and protect investor interests.
- Strengthened Corporate Governance: The company will maintain high standards of governance, expand investor participation in decision-making, and ensure shareholders have access to accurate information and transparent decision-making processes.
- Improved Information Disclosure: Recognized for achieving top-tier information disclosure ratings for seven consecutive years, XCMG delivered over 150 announcements annually, ensuring transparency and accuracy without corrections or supplementary announcements.
- Additional Investor Benefits: Long-term shareholders holding XCMG stock for more than three months will enjoy exclusive opportunities to purchase XCMG cultural products at discounted rates twice a year. Eligible investors and their families can also participate in free tours at XCMG's Experience Hall and Smart Factory during summer or winter holidays.
XCMG has consistently prioritized shareholder returns through cash dividends, share buybacks, and other initiatives. In 2023, XCMG distributed RMB 1.80 per 10 shares (tax-inclusive) to shareholders, amounting to RMB 2.127 billion, or approximately 40% of the year's net profit attributable to shareholders. Furthermore, in April 2023, XCMG announced a share buyback plan valued between RMB 300 million and RMB 600 million, with RMB 373 million repurchased as of October 31, 2023.
By implementing the Global Investor Return Plan for 2025-2027, XCMG aims to strengthen its leadership position in the construction machinery sector while fostering sustainable growth and maximizing investor value.