Zoomlion's 2023 Performance Soars Due to Rapid Global Expansion with Net Profit Increasing Over 40% Year-on-Year

January 29, 2024 08:23 PM AEDT | By Cision

Zoomlion's 2023 Performance Soars Due to Rapid Global Expansion with Net Profit Increasing Over 40% Year-on-Year — Image source: Kalkine Media

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CHANGSHA, China, Jan. 29, 2024 /PRNewswire/ -- Zoomlion Heavy Industry Science & Technology Co., Ltd. ("Zoomlion", 1157.HK), 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% to 56.98%. 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%, with international business income accounting for 36.7%. In Q3, international revenue amounted to 4.66 billion yuan, boosting its proportion of total income to 40%, a 5% increase from H1 2023.

The company operates in over 138 countries, boasting 350+ outlets and 3,000 international employees, constituting over 90% of its workforce. Future plans aim to have international business account for more than 50%. 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 emphasizes 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 localization 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.

A significant achievement was the bulk export launch of earth-moving machinery to Australia and Europe on January 8, signaling a robust start to its 2024 international development. The subsequent Zoomlion Engineering Crane Company annual meeting on January 15-16 attracted 150+ international customers, yielding orders surpassing 1 billion yuan. Furthermore, on January 18, Zoomlion secured a 165-million-yuan annual intention order for tower cranes at a Moscow promotion event.

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