Zoomlion Announces 2022 Annual Results: overseas Market account for 24% of Total Revenue

On March 30, Zoomlion released its 2022 annual performance report. During the report period, Zoomlion has achieved operating revenue of $US6.06 billion and net profit attributable to shareholders of the listed company of $US335.7 million. Based on the high-quality development goal, Zoomlion accelerates the transformation and upgrading of digital, intelligent and green technologies, focuses on three major sectors: engineering machinery, agricultural machinery+intelligent agriculture and new construction materials, accelerates the layout of emerging sectors, deepens the cultivation of overseas markets, and achieves the better business quality than the industry. The proportions of emerging sectors and overseas businesses in Zoomlion’s overall revenue have significantly increased, and Zoomlion has strong momentum for subsequent growth.

Market position of leading products is stable, and emerging sectors make strong breakthrough

The leading products of engineering machinery, such as concrete machinery, engineering hoisting machinery and construction hoisting machinery, continuously enhance competitiveness, which further stabilize Zoomlion’s leading market position. The market share of concrete machinery, such as long boom pump truck, vehicle-mounted pump and mixing plant, has ranked first in the industry, and the market share of mixer truck has risen to the second place in the industry. The market share of engineering hoisting machinery remains industry-leading. The sales volume of all-terrain cranes (200 tons and above) ranks first in the industry. The sales scale of construction hoisting machinery has ranked first in the world. With the acceleration of the product iteration and upgrading, the extreme R-generation tower crane has achieved the breakthroughs of three core technologies: “all-terrain safety, 30-year service life, remote management”, thereby establishing a global benchmark of tower crane technology.

Breakthrough in the emerging sectors is another highlight. Zoomlion’s intelligent earth-moving machinery manufacturing demonstration factory has been put into production. The profitable medium- and large-sized excavators have been upgraded in reliability and intelligent technology comprehensively. The overall market share has continued to increase. During the report period, its operating income has reached $US511.3 million, with a year-on-year growth. The domestic sales volume of large-sized excavator has ranked in the industry. The sales revenue of aerial work platform increased by 37.15% year-on-year, leading the industry in domestic sales.

The agricultural machinery industry has accelerated its transformation and achieved quality upgrading. In addition to maintaining a leading position in the domestic market shares of wheat machinery, dryers, rotary tillers and seedling throwers, intelligent agriculture has focused on product systems and technical core, and Zoomlion has expanded to 100 intelligent Wuhu rice demonstration bases, with a total area of 10,000 hectares.

The business layout of new construction materials accelerates continuously: the market share of dry-mixed mortar production equipment steadily ranks first in the domestic market; the benchmarking factories for new construction materials have been built in Xiangyin, Ji’an, Bozhou, Maanshan, etc., and the industrial parks are constructed in full swing.

During the report period, with synchronous development of relevant diversified layouts, rise of emerging sectors and competitive development of industrial gradients, Zoomlion’s development resilience and endogenous power enhance continuously.

In 2022, the overseas market demand was booming, and the export of engineering machinery increased significantly. During the report period, Zoomlion's overseas revenue was $US1.44 billion, a year-on-year increase of 72.6%.The report shows that Zoomlion’s overseas revenue accounted for 24% of its total revenue, up 15.38% on year-on-year basis.

Intelligent manufacturing industry cluster accelerates the formation, new energy products achieve industry technology leadership.

During the report period, Zoomlion continuously strengthened scientific and technological innovation, led the transformation and upgrading of digital, intelligent and green technologies, and laid a solid foundation for Zoomlion’s high-quality development.

In 2022, Zoomlion developed and produced 127 major new products, conducted 330 key core technology research projects, and developed the world’s largest 2400-ton all-terrain crane, the world’s longest 70m 55-ton 5-axle pump truck, China’s first 4LZ-15F self-propelled grain combine harvester and other blockbuster products. Moreover, based on the technological accumulation and realization of single machine intelligence, human-machine collaboration and cluster collaboration, Zoomlion took the lead in creating a new full-process digital closed-loop construction model, and created the industry's first green and intelligent construction site.

In terms of digital transformation, Zoomlion has now achieved digital control of the entire process of research and development, supply chain, manufacturing, sales, and service enterprises, improved enterprise efficiency. Moreover, Zoomlion has innovated industry-leading key technologies for full-process intelligent manufacturing, and comprehensively upgraded the intelligent manufacturing of everything from hosts to parts. During the report period, Zoomlion’s advanced intelligent manufacturing technology application research has been rapidly transformed, and intelligent parks such as the Zoomlion Intelligent Industrial City Earthmoving Machinery Park, the only production base in the world that has achieved full-process intelligent manufacturing of excavators. The construction of engineering hoisting machinery, pumping machinery, aerial work machinery and other intelligent parks has been orderly promoted, and an intelligent manufacturing industry cluster is accelerating the formation.

Zoomlion has innovated in multiple dimensions in the fields of lithium battery, electric drive, hydrogen energy and complete machine, comprehensively connected the three technological chains of new energy. Up to now, Zoomlion has produced more than 100 new energy products.

During the report period, Zoomlion has applied for a total of 1017 patents in “digital, intelligent and green” technologies, including 465 green technology patents, 115 digital technology patents and 437 intelligent technology patents; the number of national green product evaluation standards formulated by Zoomlion ranked first in the industry.

In addition, Zoomlion continued to deepen cost reduction and efficiency increase, and to improve quality and efficiency of operation and management. During the report period, Zoomlion has carried out cost reduction and efficiency increase through continuous promotion of supplier integration, application and replacement of new materials, new processes and new technologies, localization of imported parts, and improvement of ratio of self-made key parts. The gross profit margin on product sales has been improved quarter-on-quarter since the first quarter of 2022, and increased to over 24% in the fourth quarter of 2022. Through strict control of various costs, the overall amount of expenses during the period decreased by 28.65% year-on-year. In terms of cash flow, Zoomlion’s ratio of cash to income has improved over the past three years, with a ratio of cash to income exceeding 111% in 2022. The net cash flow generated by Zoomlion’s operating activities was $US353 million.

Zoomlion will continue to anchor the high-quality development goal, adhere to the business policy of “active business strategies and robust financial plans”, accelerate transformation and upgrading of digital, intelligent and green technologies, firmly grasp the opportunities for market recovery, and fully promote international development. Due to contributions of product and capital markets and breakthroughs of industrial echelons, Zoomlion has achieved stable and high-quality development.