Chinanews.com: Sany Heavy Industry's 2014 mid-term revenue and net profit won the industry's double first*

Source: China News Network

On August 30, Sany Heavy Industry (600031.SH), a leading domestic construction machinery company, released its 2014 interim performance report, in the first half of the year, the company achieved a total operating income of 19.721 billion yuan, and the net profit attributable to shareholders of listed companies was 1.37 billion yuan, down 10.7% and 48.34% year-on-year respectively; The net cash flow from operating activities was 1.002 billion yuan, a year-on-year increase of 171.74%.
In the same period, Zoomlion (000157) and XCMG Machinery (000425) achieved revenue of 13.989 billion yuan and 13.404 billion yuan respectively; The net profit attributable to shareholders of listed companies was 900 million yuan and 769 million yuan, both lower than Sany Heavy Industry.
According to the data, in addition to the total amount of domestic construction machinery enterprises *5656, Sany Heavy Industry has performed well in cost control and R&D innovation, as well as international equity and financing layout.

A number of fees have decreased

In the first half of 2014, the growth rate of domestic fixed asset investment continued to fall, the construction machinery industry was still at a low level of adjustment, and the revenue and net profit of industry enterprises declined.
Taking the market adjustment as an opportunity, Sany Heavy Industry strictly controls costs and operating risks, and actively expands new products and new growth points.
According to the financial report, Sany Heavy Industry's sales expenses in the first half of the year decreased by 15.39% year-on-year, and management expenses decreased by 6.96% year-on-year.
At the same time, through a series of measures such as strengthening customer credit management, improving sales transaction conditions, speeding up payment collection and capital withdrawal, etc., the overdue risk is controlled; By strengthening the control of material procurement, optimizing the management of production and marketing plans, and implementing balanced production, the ending inventory decreased by 12.85% compared with the same period last year.
In terms of product innovation, Sany Heavy Industry also performed well. During the period, the company successively launched LNG (liquefied natural gas) mixer trucks, a new generation of E series crawler cranes, and international fist productsWheel loaders, Sany PALFINGER * aerial work platform, etc., enrich the product portfolio and provide the company with new profit growth points.

Internationalization of the shareholding structure

In the first half of this year, Sany Heavy Industry's overseas revenue reached 5.437 billion yuan, accounting for nearly one-third of the total, of which the Middle East, North Africa, India, Latin America and other regional markets achieved rapid growth.
While accelerating the market promotion of overseas products, Sany Heavy Industry's overseas equity and financing layout has been promoted in an orderly manner.
In May this year, Sany Heavy Industry Co., Ltd. and PALFINGER Group of Austria completed a mutual capital increase, consolidating the strategic partnership between the two sides, effectively improving the company's technological innovation capabilities and international operation and management level, and achieving new breakthroughs in international cooperation.
On August 6, Sany Heavy Industry announced that it intends to arrange its wholly-owned subsidiary, Sany Heavy Machinery (China) Co., Ltd., which is mainly engaged in excavator business, to be listed on the Hong Kong Stock Exchange alone, so as to obtain an independent financing platform and alleviate the financial bottleneck constraints of multi-sector development.