China Dragon Gong (03339) announced its annual results for the year ended December 31, 2023. The group will take...
According to the Zhitong Finance App, China Longgong (03339) announced its annual results for the year ended December 31, 2023. The group achieved revenue of 10.523 billion yuan (RMB, same below) during the period, a year-on-year decrease of 5.63%; profit attributable to shareholders of 645 million yuan, an increase of 61.18% over the previous year; basic profit per share of 0.15 yuan; and proposed to pay a final dividend of HK$0.08 per share.
According to the announcement, the decline in earnings is due to a decrease in investment expenditure in the domestic downstream infrastructure and real estate industry. China's construction machinery industry is still sluggish, and domestic sales have declined. At the same time, the company actively explores the international market. Since its core products have a competitive advantage in terms of cost performance, sales have grown steadily, relieving the pressure brought about by the domestic economic downturn to a certain extent.
Sales revenue from the mainland China market declined markedly during the year. Among them, sales revenue in the northern, northeastern, northwest and southwestern regions decreased by 14.6%, 24.9%, 27.5% and 26.9%, respectively, to approximately $2,221 million, $323 million, $791 million and $531 million respectively. Sales in the Eastern and Southern regions also decreased by 3.9% and 2.1% respectively to approximately $1,546 million and $976 million. Sales in the central region decreased by 6.6% to approximately $1,060 million.
However, the Group's export business grew strongly, and sales revenue in overseas regions increased by 20.1% compared to last year to about 3,074 billion yuan, compared to about 2,560 billion yuan last year. The increase in export sales partially offset the impact of the decline in sales revenue in the domestic market. The increase in overseas sales reflects the high demand brought about by limited production capacity in foreign markets, as well as the Group's increased international competitiveness in recent years. The share of overseas sales revenue in the Group's total sales increased from 23.0% last year to 29.2% this year, indicating the company's success in expanding international market share and enhancing product competitiveness.
The sales revenue of wheel loaders this year accounted for about 38.56% of total revenue, down 22.18% from last year to about 4,058 billion yuan. Among them, the revenue of the ZL50 series and mini wheel loaders declined sharply, by 22.72% and 39.15%, respectively, to about 2,918 million yuan and 149 million yuan. Revenue from the ZL60 series also decreased by 13.48% to approximately $374 million. In addition, revenue from the ZL40 series and the ZL30 series decreased by 14.3% and 19.10% respectively to approximately $21 million and $596 million.