XUZHOU, China, December 20, 2024 (PRNewswire)—XCMG Machinery (“XCMG,” SHE: 000425) has formally announced its Global Investor Return Plan for 2025-2027, a comprehensive program aimed at increasing investment value and safeguarding shareholder rights. The plan, representing the industry’s inaugural global investor return program, reaffirms XCMG’s dedication to sharing the benefits of high-quality development with its investors and promoting long-term sustainable growth.
XCMG Machinery Announces Worldwide Investor Return Strategy for 2025-2027.
XCMG Machinery Announces Worldwide Investor Return Strategy for 2025-2027.
The new initiative is based on XCMG’s announcement dated February 6, 2024, in which the company committed to executing a Dual Enhancement of Quality and Returns action plan. Over the recent months, XCMG has persistently enhanced operational excellence, sustaining its leadership in both revenue and net profit within the construction machinery sector. These accomplishments have driven a notable 50% rise in stock price over the past nine months, surpassing competitors from China and strengthening investor confidence.
Investors’ returns
Stable Cash Dividends: XCMG intends to distribute cumulative annual cash dividends, including share buybacks, amounting to no less than 40% of distributable profits for each year from 2025 to 2027, contingent upon the absence of major investments or substantial cash outflows. The company intends to implement multiple dividend distributions throughout the fiscal year to improve shareholder value.
Normalised Shareholding Increase by Major Shareholders: Over the next three years, XCMG’s controlling shareholder pledges to allocate no less than 20% of its annual cash dividends received from the company toward the purchase of XCMG shares, subject to requisite approvals.
Enhanced Investor Relations Management: XCMG will broaden its international investor engagement via various communication channels.
Following the publication of its inaugural bilingual ESG REPORT in April 2024, the company intends to issue ESG reports regularly in both Chinese and English, with a continuous effort to enhance its ESG ratings. Annual financial reports will also incorporate English disclosures to ensure compliance with international standards.
Market Value Management Mechanisms: XCMG will develop a comprehensive and scientific market value management framework to optimise value creation, promote sustainable development, reinforce engagement with capital markets, and safeguard investor interests.
Enhanced Corporate Governance: The company will uphold rigorous governance standards, broaden investor engagement in decision-making, and guarantee shareholders access to precise information and transparent processes.
Enhanced Information Transparency: Awarded for maintaining premier information disclosure ratings for seven consecutive years, XCMG issued more than 150 announcements annually, ensuring clarity and precision without the need for corrections or additional disclosures.
Additional Investor Benefits: Long-term shareholders who hold XCMG stock for over three months will be entitled to exclusive opportunities to acquire XCMG cultural products at preferential rates twice annually. Eligible investors and their families may also take part in complimentary excursions of XCMG’s Experience Hall and Smart Factory during summer or winter holidays.
XCMG has continually emphasised the enhancement of shareholder value through dividends in cash, share repurchases, and additional strategies. In 2023, XCMG distributed RMB 1.80 per 10 shares (tax-inclusive) to shareholders, totalling RMB 2.127 billion, which represents approximately 40% of the net profit attributable to shareholders for the year. Furthermore, in April 2023, XCMG disclosed a share repurchase program valued between RMB 300 million and RMB 600 million, with RMB 373 million worth of shares repurchased as of October 31, 2023.
By executing the Global Investor Return Plan for 2025-2027, XCMG endeavours to reinforce its leadership standing in the construction machinery industry while promoting sustainable development and optimizing value for investors.
Key Takeaways
- XCMG Machinery announces its Global Investor Return Initiative for 2025-2027 to enhance investment value and protect shareholder rights.
- The company plans to distribute at least 40% of distributable profits as cash dividends and conduct share buybacks annually.
- XCMG commits to improving investor relations and transparency through regular ESG reports and enhanced governance standards.
- Long-term shareholders will receive exclusive benefits, including discounted cultural products and complimentary factory tours.
- The initiative aims to strengthen XCMG’s leadership in the construction machinery sector while promoting sustainable growth.
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