At the end of August, XCMG Machinery, the listed company of the XCMG group whose shares trade on the Shenzhen Stock Exchange under the code 000425, published its report for the first half of 2026. Revenue for January–June came to 61.25 billion yuan, 11.75% more than a year earlier. The biggest change is in the sales mix: for the first time, overseas markets brought the company more than half of its revenue. Net profit, however, fell, and one of the reasons was exchange-rate losses, the same currency risk that buyers of imported machinery have to deal with.
Key figures for the half-year
- Revenue: 61.25 billion yuan, up 11.75%. Converted in the company's press release, that is about 9.03 billion US dollars.
- Sales outside China: 30.92 billion yuan, up 21.03%. Their share of revenue rose to 50.48%, from 46.61% a year earlier.
- Sales in China: 30.33 billion yuan, up 3.65%.
- Net profit attributable to shareholders: 3.96 billion yuan, down 9.09%. Excluding non-recurring items, 3.83 billion yuan, down 14.28%.
- Operating cash flow: 4.16 billion yuan, up 11.63%.
- Gross margin: 22.12%, 0.09 percentage points higher than a year earlier.
Research and development spending rose 25.07% to 3.30 billion yuan, according to the press release. The main areas are new-energy machinery, intelligent systems and in-house core components.
Which machinery grew fastest
The fastest growth came in the segments that construction and road-building contractors rely on. Revenue from earthmoving machinery rose 27.80% to 21.75 billion yuan, and revenue from lifting equipment rose 20.37% to 12.61 billion yuan. According to the report, XCMG's excavator sales to end customers abroad exceeded 10,000 units in the half-year, while bulldozer revenue almost doubled. XCMG puts its share of the new-energy loader market at 30% and describes itself as the world's sales leader for such machines.
The mining business looks more modest. By the estimates of Changjiang Securities analysts, revenue from mining machinery grew by only 2.07% to 4.83 billion yuan; they expect noticeable growth in the second half on the back of concentrated overseas deliveries. Within the segment, intelligent machinery is growing fastest: according to the report, the mining division's revenue from it rose 406.49%, and from new-energy machinery 42.78%.
Why profit fell while sales grew
Changjiang Securities analysts point to financial expenses as one of the main reasons. For the half-year these amounted to 1.6 billion yuan, compared with minus 105 million yuan a year earlier, and most of the total came from exchange losses of 1.14 billion yuan. In the first half of 2025, by contrast, exchange-rate differences brought the company 760 million yuan in income.
In the risk section of its report, XCMG itself notes that settlements for its overseas plants and sales are made mainly in local currencies or in US dollars, and that diverging monetary policies across countries and tariff negotiations are amplifying exchange-rate swings. In response, the company is building a currency risk management system, regularly locking in exchange rates and reducing its open currency position.
Service and spare parts outside China
According to the report, XCMG has more than 60 overseas subsidiaries, over 300 dealers abroad, more than 2,000 service and spare-parts outlets and more than 10,000 local service engineers. Its products are sold in more than 190 countries and regions. During the half-year the company opened sales companies in France and Nigeria and signed full-service maintenance agreements in seven overseas regions, while construction of its major overhaul centres in Indonesia and Simandou (Africa) is on schedule.
The company also writes separately about bringing order to its spare-parts sales channels and fighting counterfeit parts.
What this means for buyers in Kazakhstan
The report contains no separate figures for Kazakhstan or Central Asia, so it cannot be used to judge the local market. Still, anyone planning to buy XCMG machinery for next season can draw four conclusions from it.
- Confirm delivery times early. XCMG's overseas sales are growing much faster than its domestic sales. At the start of the year the company had 30 large overseas orders worth almost 10 billion yuan, and the volume of potential overseas deals in the pipeline had grown by 91.7% compared with the end of 2025. It is better to check that the model and configuration you need are available before the budget is approved, not just before the machine is due on site.
- Fix the currency and exchange rate in the contract. If the price is tied to the yuan or the dollar, state the date on which the rate is fixed and who bears the risk of it changing before payment.
- Insist on genuine spare parts. The manufacturer itself says it is fighting counterfeits, so ask your supplier for proof of where the parts come from and check how fitting non-genuine parts affects the warranty.
- Discuss service before you buy. XCMG is expanding its full-service contracts abroad. Before signing, find out what work, mechanic call-out times and spare-parts stock are provided in your particular region.
Sources
- XCMG Machinery (Шэньчжэньская фондовая биржа), "徐工集团工程机械股份有限公司 2026 年半年度报告", 2026-08-29: https://disc.static.szse.cn/disc/disk03/finalpage/2026-08-29/babcda20-4d63-4302-960b-0af56b4d766a.PDF
- Gelonghui (Changjiang Securities), "徐工机械(000425)26H1业绩点评：内外收入双增 电动化、智能化产品快速放量", 2026-09-03: https://m.gelonghui.com/news/5305843
- China Daily Hong Kong (PR Newswire), "XCMG Machinery Reports 11.75% Revenue Growth in H1 2026, Reinforcing Innovation and Operational Resilience", 2026-09-11: https://www.chinadailyhk.com/article/639569
