The first financial daily: Sany Heavy Industry survived the winter of construction machinery

 "After a period of adjustment, we have survived, profitability is gradually recovering, and the level is improving in all aspects."Sany Heavy IndustryXiang Wenbo, vice chairman and president, told the reporter of *5656 Financial Daily.

In the first half of this year, Sany Heavy Industry achieved an operating income of 11.22 billion yuan and a profit of 156 million yuan, a year-on-year decline. However, compared to mid-2015, the decline has decreased.

Orders are shrinking

The time when the industry entered the recession was about 2011~2012, and global machinery companies were facing a decline in orders and revenues. A large amount of investment during the boom became a burden during the recession, Xiang Wenbo gave an example: in the past, thousands of pump trucks could be sold a month, but after the end of 2011, the construction machinery market began to fall, and now Sany Heavy Industry still has hundreds of inventory to be disposed of.

However, the recession period will eventually pass, and the construction machinery industry is no exception. No matter how the Internet develops in the future, highways and infrastructure are necessary, and the Internet also needs to be built, maintained and maintained on top of the infrastructure. South America, Africa, Southeast Asia and the "Belt and Road" countries, infrastructure is still very backward, the future of these countries, regions to urbanization, industrialization, modernization, will need a large number of construction machinery, market potential is still not small.

Despite the overcapacity of the industry, construction machinery is not a backward industry. Xiang Wenbo said that the Qinghai-Tibet Railway, the Three Gorges Dam, the high-speed rail system and other technically difficult, large-scale projects are in China, and China's construction machinery has fully replaced imports, China's construction machinery industry has passed the most severe market test.

The recession of the industry is both a challenge and an opportunity.

Sany Heavy Industry took advantage of this period to quickly occupy the international market and greatly increased its market share. Last year, Sany Heavy Industry's overseas revenue accounted for 44% of total revenue, and before the economic crisis, 90% of Sany Heavy Industry's sales were domestic. Taking excavators as an example, before 2008, the market share of excavators of Sany Heavy Industry was only between 12% ~ 13%, and now it has reached 22% ~ 24%.

Behind the rapid penetration of internationalization, technological innovation, talent training and strategic choice are inseparable.

Innovation is of great significance to the manufacturing industry, and the innovation direction of future engineering equipment is mainly product quality, efficacy, stability, environmental protection, etc. For example, Xiang Wenbo said that a mine owner in Yunnan compared Caterpillar with Sany excavators, and in three years, Sany's excavators saved 750,000 yuan in fuel costs, which can be used to buy a new excavator.

In terms of basic parts, in the past, domestic enterprises were heavily dependent on imports, in order to solve this problem, Sany Heavy Industry has made a lot of investment in this area, and now the hydraulic parts, pumps, valves, motors, etc. on the excavator can be self-developed and self-produced, which greatly reduces the cost.

Today's machinery companies are doing the Internet of Things and Industry 4.0, which is also the embodiment of technological innovation. Xiang Wenbo said, "Automation + informatization + big data is our understanding of Industry 4.0. ”

At present, Sany Heavy Industry has built an intelligent warehouse of China Machinery. It covers an area of 9,000 square meters and has thousands of production lines, of which the on-time delivery rate of materials exceeds 95%, the electronic rate of quality inspection reaches 100%, and the operating cost is reduced by 20%.

Since 2006, Sany has launched a big data solution when it started the construction of the Shanghai Lingang factory. All end customers can be connected, so as to open up the relationship between customers and enterprises, and support the management of enterprises with big data. Over the years, Sany Heavy Industry has realized the connection of hundreds of thousands of large equipment, and has continuously provided support for technological transformation, R&D and innovation.

Xiang Wenbo said that according to the layout, the operation status of each Sany heavy industry equipment in each province can be analyzed through data, and it is natural to know part of the economic situation in various places. In the past, data was reported once a month, but now it has to be reported to the relevant departments once every half a month.

Talent is key

To do research and development, it is naturally inseparable from talents. Sany Heavy Industry's annual R&D expenses account for 5%~7% of annual sales revenue.

Over the years, Sany Heavy Industry has been attaching importance to overseas investment and acquired Putzmeister in Cologne, Germany. Xiang Wenbo told the reporter of *5656 Financial Daily: "Prometheus made a profit of more than 30 million euros last year, a new high. In addition, Sany also has some overseas cooperation, such as a joint venture with PALFINGER, through which we also carry out sales in Europe and Russia. ”

Under the influence of the "Belt and Road", the pace of Sany Heavy Industry to overseas is accelerating. The company's "One Belt, One Road" initiative is led by one director and three vice presidents. There are many projects involved, such as the Algerian government is currently building a large port, which requires a large number of themPort machinery, which involved $3.3 billion; Pakistan's local highways are also cooperating with domestic central enterprises, which have also brought hundreds of millions of yuan in sales to Sany Heavy Industry.

The risks of overseas investment should not be underestimated, and exchange rate, legal, political and other issues occur from time to time.

For high-risk countries, Sany Heavy Industry will not invest a lot of money, but look at it while walking, "Although we have acquired more than 800 acres of land in Brazil, our construction investment has been very cautious and has not invested too much." The specific approach is to do the market first, and then build the factory when the market sales have a certain scale. Xiang Wenbo said.

In addition to the main machinery business, Sany Heavy Industry has also made attempts to diversify. In terms of new energy, the trend of wind power generation is good; In the financial sector, the state has approved the businesses of Sanxiang Bank and Kowloon Insurance under Sany Group, and the financial sector is taking shape. "At present, the utilization rate of many industrial parks is insufficient, we are promoting industrial real estate, and Sany also shares this part of the business as a platform with the society, and one of our roles is an industrial incubator." Xiang Wenbo said.