Machinery industry model: SANY will insist on establishing overseas factories to expand overseas markets

On September 10, “At this stage, we still believe that the cost of companies located in the middle of the industrial chain to build factories overseas is lower than the costs of mergers and acquisitions and integration. Therefore, we will continue to expand our overseas business by establishing overseas development models. He Zhenlin, vice president of Sany Group, made this statement at the Global Outreach of Chinese Enterprises held at the Global Times.

As one of the largest construction machinery manufacturers in China, Sany Group has so far built production bases in four overseas countries. "The most recent overseas factory is in Brazil. At present, the project is still in the stage of land acquisition."

In an exclusive interview with reporters, he further stated: “Because of the uncertainties in the recovery of the world economy and the current sales situation, it is expected that we will have difficulty planning to achieve an overseas business income ratio of 50% by 2012. We expect that When sales revenue reaches 200 billion yuan, the proportion of overseas income can reach this level."

Sany Heavy Industry (600031.SH) is a listed company of Sany Group. According to the company's semi-annual report, the company achieved overseas income of 858 million yuan from January to June 2010, accounting for approximately 5% of sales revenue.

For the second half of the construction machinery sales are affected by real estate regulation, he said: "The purpose of government real estate regulation is to suppress housing prices, rather than reducing the housing supply, China's urbanization will continue for at least 10 years, so we do not worry about The impact of policy controls. In fact, we exceeded our sales target for the first half of this year."

Sany Heavy Industry’s mid-year report showed that operating income for the first half of the year was 16.946 billion yuan, an increase of 98.43% year-on-year; total profit was 3.618 billion yuan, an increase of 159.33% year-on-year; and net profit was 2.875 billion yuan, an increase of 162.39% year-on-year.