Zoomlion Heavy Industry Science And Technology Co.,Ltd. stated that its strong performance and profitability are primarily driven by three factors: maintaining a high and stable gross margin, continuous optimization and reduction of the expense ratio, and the efficiency contributions from the full operation of its smart industrial park.
Regarding gross margin, the company's level remains industry-leading and stable. In terms of regional layout, its network in core markets such as Europe, Africa, Latin America, and Southeast Asia continues to be optimized. Overseas R&D and manufacturing bases are expanding and upgrading, significantly enhancing local market development and operational capabilities. The proportion of overseas revenue continues to rise, contributing increasingly to profits. In product structure, high-margin products like concrete machinery, lifting equipment, earthmoving machinery, and mining machinery achieved high year-on-year growth domestically. Through continuous optimization of its product portfolio, the company maintains a relatively high and stable gross margin despite intense market competition.
In expense control, leveraging efficient digital operations and refined management, the company's sales, management, and specific R&D expense ratios have been declining since 2023. Digital transformation has laid a solid foundation for the company's scale expansion and rapid profit growth. Simultaneously, the full completion and operation of the smart industrial park have effectively enhanced manufacturing efficiency and cost control capabilities.
Overall, the core drivers of the company's profit growth stem from the implementation of its globalization, related diversification, and digitalization strategies, the continuous improvement of its end-to-end digital and localized operational systems, and the upgrading of its products towards higher-end, smarter, and greener solutions. The company's profit foundation is solid, with strong sustainability.
Looking ahead, several positive factors are expected: first, the overseas end-to-end, digital, and localized business system will continue to deepen, with significant room for growth in overseas market scale and profitability; second, the domestic construction machinery industry is bottoming out and recovering, coupled with accelerated breakthroughs in the company's emerging businesses, creating multiple favorable resonances; third, the product structure will continue to optimize, with the proportion of high-value-added products like earthmoving and mining machinery increasing; fourth, the smart industrial park will continue to provide empowerment, gradually releasing operational leverage effects, further enhancing manufacturing efficiency and cost control capabilities, while the deep application of digital tools will continue to optimize overall expenses and drive a steady decline in the expense ratio.