Recently, LiuGong released its performance forecast for the first half of 2024, expecting to achieve a net profit of 890 million to 104 million yuan, a year-on-year increase of 45% to 70%. The overall operational efficiency of the company has significantly improved, and the sales growth rate in domestic and international markets continues to outperform the industry. The market share continues to increase, and the improvement in gross profit margin and net profit margin exceeds expectations, delivering a brilliant answer to the "half year exam"!
As a leading enterprise in China's construction machinery industry, in the first half of this year, facing increased uncertainty in the international market, ongoing geopolitical risks, and intensified economic and trade frictions in the international economy, Liugong has steadily operated, made efforts in multiple areas, and demonstrated resilience. While maintaining a steady pace, we must continuously strive for quality excellence: accelerate the development of new quality productivity, continuously create a new growth pole for performance, lead the industry trend with high-end, green, and intelligent development, and condense into a brilliant "gold medal new brand".
Moving towards innovation and accelerating the realization of technological self-reliance and self-improvement
Developing new quality productive forces is an inherent requirement and important focus for promoting high-quality development. We must continue to focus on innovation and accelerate the development of new quality productivity. Liugong adheres to technological innovation as the driving force, and leads the development of the industry by exploring new technologies in the fields of electrification, intelligence, and unmanned construction machinery.
In May of this year, a grand event with "new" as the highlight was held, allowing global customers to enjoy the latest products and technologies of LiuGong. At the 4th 5.28 Customer Festival, Liugong exhibited complete sets of electrification and intelligent solutions; Comprehensive solutions covering multiple industries; The "Thoughtful Loader" - LiuGong T series loader leads the industry to fully upgrade its intelligent applications; the F series excavator is refreshed and upgraded, taking the lead in realizing the application of full electronic control technology in the entire series. Liugong has received praise from global customers for its advanced, low-carbon, and intelligent equipment and technology.
Liugong led the development of industry standards for the electrification of construction machinery in China, filling the industry gap. The Secretariat of the Electric Earthmoving Machinery Sub Technical Committee of the National Earthmoving Machinery Standardization Technical Committee is located in Liugong. 2024 marks the tenth anniversary of LiuGong's electrification. Liugong has formed the most comprehensive electric product spectrum in the construction machinery industry, covering multiple technical routes such as pure electric, hybrid, towing, battery swapping, and power transmission. Its sales are leading globally, with a total of over 5000 units sold in more than 30 countries overseas. In the first half of this year, there was a continuous wave of bulk delivery of LiuGong electric loaders, with electric mining wide body vehicles being delivered in bulk. The application effect of electric excavators in railway, mining, port and other scenarios was significant. The largest electric excavator 995FE was put into efficient mining operations. LiuGong electric loaders produced and sold over 600 units in June, setting a new historical high. Among them, more than 100 units were exported in a single month
In addition, significant breakthroughs have been made in the field of intelligent construction of engineering machinery, with the first release of multiple unmanned construction machinery in the industry. The fleet of electric unmanned loaders and unmanned rollers has shown excellent performance in commercial applications such as commercial concrete stations and the Baotou Yinchuan high-speed railway. We have achieved multiple technological breakthroughs and successful applications in the development of smart solutions, intelligent driving, and control products. LiuGong's smart mining system, smart commercial concrete system, unmanned loading cloud control system for mixing plants, unmanned mining truck cloud control platform, and unmanned roller group collaborative operation system have improved engineering efficiency and received unanimous praise from customers.
From a full range of electric devices to 5G remote control and unmanned driving technology, innovative products are constantly being launched and applied to specific working conditions. This not only meets the market's demand for efficient, intelligent, and environmentally friendly products, but also demonstrates LiuGong's innovative spirit and strong technological strength as an industry leader.
Innovation seeks change, intelligent manufacturing accelerates development
Entering the Liugong Excavator Smart Factory, the excavator is equipped with an intelligent "material preparation cart" that loads various production materials and shuttles back and forth on the ground, delivering materials to various production lines. A excavator is produced here in 13 minutes, achieving an annual production capacity of 20000 units. The production and operation of smart factories have shortened the manufacturing cycle by 35%, making it easier and more efficient for workshops to complete order tasks, and better able to adapt to market competition.
At the Liugong Loader Intelligent Factory, the first thing that catches the eye is the highly efficient unmanned device. It only takes 5 minutes to complete the production of a loader and ensure orderly production of various orders. In addition, in the northern ecological new area of Liuzhou, transportation vehicles shuttle back and forth, project managers and frontline workers are busy with production in high temperatures, and the construction of the LiuGong New Energy Intelligent Global Innovation Center is in full swing.
In recent years, under the guidance of the "comprehensive intelligence" strategy, LiuGong has deeply integrated into the "smart manufacturing" ecosystem through equipment updates, process upgrades, product upgrades, and other means, actively practicing new quality productivity, achieving the "breakthrough" of old brands and the transformation and upgrading of enterprise intelligence, and revitalizing new vitality.
Blooming at multiple points, accumulating fruitful results in global operations
Thousands of devices delivered to West African customers, resulting in the largest single transaction volume since the establishment of LiuGong; Haorui Group, a giant in the building materials industry, has purchased 600 Liugong electric equipment and is accelerating towards its carbon reduction goals; LiuGong Mining Machinery has won billions of yuan in overseas orders, and LiuGong's maximum horsepower bulldozers have been exported in batches... In the first half of this year, LiuGong has achieved frequent good news and made significant breakthroughs in overseas markets, which is a microcosm of LiuGong's further implementation of the "comprehensive internationalization" strategy and expansion of international layout.
At the same time, LiuGong uses industry exhibitions as a medium to introduce electrified and intelligent products in countries and regions such as France, Japan, and Poland; With a forward-looking strategy as the starting point, multiple products have performed strongly, continuously winning bulk orders and writing new impressive results.
The international market has yielded fruitful results, while the domestic market is advancing simultaneously. This year, LiuGong has achieved outstanding results in the development of major industry clients, product innovation and upgrading, and channel ecology optimization. With comprehensive solutions, it empowers business and cooperation model innovation, continuously explores new scenarios, channels, and opportunities, and helps customers reap greater benefits.
Deepening reform to increase vitality and continuously improving profitability
This year is a crucial year for deepening the implementation of state-owned enterprise reform and upgrading actions. Liugong focuses on enhancing core functions and improving core competitiveness, sending a strong signal of full reform efforts, building a new model for state-owned enterprise development, and continuously improving profitability. The signing of Liuzhou Minsheng Tengzhi Sci Tech Innovation Equity Investment Fund, the first industrial fund of LiuGong, will have a positive promoting effect on industrial innovation and capital integration; Liugong Ouweim Company, Agricultural Machinery Company, and Zhituo Technology's scientific and technological transformation work are progressing smoothly, constantly moving towards the goal of building independent innovation pioneers.
Product innovation, technological innovation, manufacturing iteration, and strategic renewal constitute the "new" of LiuGong's "gold medal new brand". Looking ahead to the future, LiuGong will continue to hold high the banner of innovation, forge ahead with determination, and continue to write a brilliant chapter of Chinese brand development on the global stage!
