On December 6th, the 2024 Jinniu Enterprise Sustainable Development Forum and the 2nd Guoxin Cup ESG Jinniu Award Ceremony, hosted by China Securities Journal, were held in Shanghai. At the meeting, the list of the top 100 most valuable and valuable ESG Golden Bull Awards was announced, and XCMG Machinery won the ESG Golden Bull Award. This is also the fourth time in 2024 that XCMG Machinery has been recognized by the Golden Bull Award after the Most Valuable Investment Award, Golden Bull Secretary Award, and Golden Trust Award.
It is understood that the ESG Golden Bull Award is one of the Golden Bull series awards hosted by China Securities Journal, which is an evaluation and award brand established for the ESG performance of listed companies. China Securities Journal leverages its long-term accumulated advantages in the field of capital market evaluation, fully measures the ESG performance of the evaluated objects based on quantitative and qualitative analysis, static and dynamic analysis, and ultimately determines the list of winners. This award aims to motivate listed companies to actively practice ESG construction, strengthen corporate management, market value management, and risk management, and achieve long-term sustainable development.
In April of this year, XCMG Machinery released its first Chinese and English version of the "2023 Environmental, Social and Corporate Governance (ESG) Report", which disclosed the company's practices and achievements in green development, social responsibility, and strengthening corporate governance, and was recognized by the ESG Golden Bull Award.
Based on governance, XCMG regards ESG as an important component of its corporate strategy. XCMG integrates ESG concepts throughout the entire process of business development, actively implements efficient governance and compliant operations, standardizes information disclosure, and has achieved the highest level of A in information disclosure assessment for seven consecutive years. It facilitates investor communication and continuously and stably distributes dividends. Recently, it released the "Global Investor Return Plan for the Next Three Years (2025-2027)".
After a series of scientific and effective operational management systems, XCMG's overall business performance has improved. XCMG Machinery's revenue structure continues to optimize, its profitability continues to strengthen, and its operating quality accelerates improvement. In the first three quarters of 2024, XCMG Machinery achieved a revenue of 68.726 billion yuan, with a net profit attributable to the parent company of 5.309 billion yuan, a year-on-year increase of 9.71%, and a net profit after deducting non recurring expenses of 4.889 billion yuan. Key indicators such as revenue and profit continue to maintain the first place in the domestic industry.
Taking the environment as the priority and society as the consideration, XCMG's ESG practices are deeply rooted in green development, social responsibility, and global coverage. In terms of green development, XCMG has vigorously laid out new energy products. The entire series of "Green Mountains and Green" new energy products and components made their debut at the 2024 Shanghai BMW Exhibition. XCMG has also implemented the concept of sustainable development in production and daily operations, promoting the green and low-carbon transformation and upgrading of the industrial chain. According to the ESG report, as of the end of 2023, four subsidiaries of XCMG Machinery have obtained national certified green factories, eight subsidiaries have obtained provincial certified green factories, and 24 subsidiaries have obtained ISO14001:2015 environmental management system certification.
In terms of social responsibility, XCMG's Global Micro Wish Campaign has been carried out continuously for 10 years, reaching more than 100 impoverished primary schools at home and abroad, bringing warmth to nearly 10000 students; In order to solve the problem of water use in Ethiopia, XCMG Africa Water Cellar Project has been implemented in five phases, with a total of 201 water cellars built, benefiting 12000 people. Three public welfare projects of XCMG have been selected into the "the Belt and Road" project, with a subsidy of 200000 yuan.
In the future, XCMG will continue to uphold the spirit of innovation, deeply integrate ESG management into development strategies and daily operations, strive to create new quality productivity with distinctive industry characteristics and XCMG personality, and contribute more to promoting sustainable development.