Toughening conditions weigh on XCMG

XCMG Construction Machinery Co Ltd, one of the top domestic producers of heavy equipment, has reported declines in revenue and net profit for 2013.

According to its annual report released on Tuesday, net profit sank 38 percent to 1.51 billion yuan ($242 million), following a 27 percent slump in 2012.

Total revenue declined 16.1 percent to 27 billion yuan, the report said. As a result of weakening fixed-asset investment, shrinking downstream demand and a glut of products, "the whole industry faces fierce competition and narrower margins," the company said in its results.