SANY Gets through Chilly Seasons of the Industry

For the first six months of 2016, Sany Heavy Industry Co., Ltd. announced its total revenue of US$1.679 billion (RMB11.22 billion), and Net Profit amounted to US$23.389 million (RMB156 million).Although revenue and net profit dropped compared with results for the same period in 2015, the decline in revenue has been at a better rate than seen in previous years across the industry.

“After a period of adjustment, we have pulled through with gradually recovering profitability.” President of Sany Heavy Industry Xiang Wenbo said to China Business News.

“China’s construction machinery industry has weathered the ordeal test of the market and its products have completely replaced the export, widely taking part in major projects in China such as Qinghai-Tibet Railway, Three Gorges Dam and many high-speed railways that require cutting edge technology,” Xiang said.

At the same time, SANY rapidly expands the international market and the total overseas revenue for 2015 stood at US$1.49 billion, which was 44.2% of the year's total revenue.

Working in line with China's far-reaching Belt and Road Initiative, SANY sees a rapid growth in its international-market expansion. For example, it supports the construction of Algeria’s large scale port and Pakistan’s infrastructure, all of which will create hundreds of millions sales volume to SANY.

SANY’s impressive growth at the global market is inseparable from its technology innovation, talent cultivation and business strategy. It directs 5-7% of its sales revenue to R&D every year to improve product quality, efficiency, stability and reduce environmental impact.

The sustained investment into R&D has produced impressive results. SANY has achieved in-house development and production of basic parts, such as hydraulic parts, pump, valve and motor of excavators that reduces the reliance on foreign companies, dramatically lowering the cost.

SANY is also dedicated to intelligent manufacturing revolution through automation, informatization and big data. The numerable production lines in its 9000 ㎡ intelligent  workshop can ensure 95% of the materials delivered on time and 100% inspection carried out automatically, reducing 20% of the operation cost.

In addition to construction machinery, SANY expands its business in new energy, finance and entrepreneurial incubators. Its subsidiary company, Sany Heavy Energy is gaining momentum, powering the world with clean and renewable energy. San Xiang Bank and Jiu Long Property Insurance, the two new established companies by SANY were approved by government, marking SANY’s entrance into financial sector.

“Right now, many industrial parks are facing the problem of inefficient utilization. So we are willing to act as industrial incubator to share our industrial parks with society.” said President Xiang Wenbo.