Sales of 43.4 billion RMB, doubled the net profit to 6.7 billion RMB – SANY Heavy Industry creates the best first half year in history
CHANGSHA, China, Sept. 9, 2019 /PRNewswire/ — On August 29, SANY Heavy Industry released the semi-annual report for 2019. According to the report, SANY achieved operation income of 43.386 billion RMB in the first half of 2019, a year-on-year increase of 54.27%; net profit attributable to shareholders was 6.748 billion RMB, a year-on-year increase of 99.14%. It marked the best performance since the establishment of SANY.
Core competitiveness continues to increase and sales grow strongly
According to the semi-annual report, the sales revenue of excavators is 15.91 billion RMB in the first half of 2019, a year-on-year increase of 42.56%. It is the ninth consecutive year that SANY excavator sales revenue ranks No.1 in the Chinese market.
Concrete machinery realized sales revenue of 12.923 billion RMB, a year-on-year growth of 51.17%, ranking first place in the world and still expanding its advantages. The market share of crane machines increased significantly with sales revenue reaching 8.5 billion RMB, a year-on-year increase of 107.24%.
The sales revenue of pile machinery is 2.964 billion RMB, a year-on-year growth of 36.87%, ranking first in China. Road machinery sales revenue is 1.250 billion RMB, a year-on-year growth of 43.87%. Among road machinery, the market share of pavers ranks first in China.
The best performance in history
Benefiting from the high level of operation, SANY’s profitability has increased significantly. The overall gross profit margin is 32.36%, an increase of 0.72% over the same period of 2018; the net sales margin is 15.99%, 3.49% higher than that of the same period of 2018. The net income attributable to shareholders is 6.748 billion RMB, a year-on-year increase of 99.14%, the highest level in the same period of history.
The cost is effectively controlled, and the period expense rate is 11.8%, a significant drop of 2.63% from the same period in 2018, the lowest level in history.
During the reporting period, SANY’s net cash flow from operation activities is 7.595 billion RMB, a year-on-year increase of 22.1%, and hit the record of history.
Actively promote digital and intelligent transformation
SANY actively devotes to digital and intelligent transformation, especially focus on online management including sales, R&D design, supply chain, manufacturing, and operation. In the first half year, SANY achieved a significant increase in production capacity without adding new equipment. And the per capita output value is at the leading level in the global construction machinery industry.
In addition, SANY tries to create value for customers by linking their equipment on Internet to help them collect data of fuel consumption, operating rate, location and service path in real time. SANY also explores online sales and services to enhance the marketing capabilities and after-sales service efficiency.
Advancing internationalization strategy, overseas market is growing steadily
The international sales revenue reached 7.026 billion RMB in the first half year of 2019, a year-on-year increase of 15.34% with the gross profit margin increasing by 1.2%. The export of SANY machines maintains a relatively fast growth rate, much higher than the global heavy machine industry, and the global market share continues to increase. Sales in most overseas regions such as Indonesia, India, Europe, and United States all achieves rapid growth.
SANY takes the advantage of overseas business layout and seizes the opportunity of “Belt and Road Initiative” to firmly promote its internationalization strategy.
Furthermore, SANY makes positive progress in not only service and market channels, but also the construction of dealership systems and service parts systems in overseas markets.
Significant research and development innovations
By the end of June in 2019, a total of 8,923 patents had been applied for and 7,289 patents have been authorized. Both the number of applications and authorizations for patents rank first in the Chinese industry.
SANY is also dedicated to open R&D such as simulation technology, and has launched a variety of highly competitive and innovative products. Representative new products mainly include:
- SY415 Remote Control Excavator: It is the first time in the heavy machine industry that 5G technology is introduced into remote-control excavator. It realized a real-time remote-control of an excavator far away in Luoyang when participating in the “World Mobile Communication Conference” held in Shanghai.
- SY155U short-tail hydraulic excavator: It adopts environmentally-friendly engine that meets EPA Tier 4 Final/EU Stage IV emission standard. Besides, it has ultra-small radius of gyration and multi-functional auxiliary pipeline system which is suitable for urban municipal engineering, road maintenance, hillside forest road, etc. Flexible, convenient and multifunctional, it can meet the demands of customers in Europe, United States and other foreign markets.
- SAC1300T all-terrain crane: With 7 sections of 73m U-shaped telescopic main arm, it can achieve full coverage of 100 tons. It also has 5 bridge full ground chassis and H-shaped legs to meet the needs of customers for various construction sites.
- Unmanned road construction machine group: Independently developed online control system for unmanned tire roller, unmanned double drum roller and unmanned paver. Equipped with mobile unmanned control center, it can realize intelligent construction linkage in different types of equipment and multiple equipment. It’s also the first innovation in the industry.