Sany Group reports a 38.6% increase in revenue for the six month period ending 31 June.
Sany Group has just come out with a particularly strong H1 2019 financial report, with its revenue rising 38.6% to approximately RMB3,043.7 million over the period.
Sany management attributed the increase to four main trends:
Sany’s Port Machinery division is now grouped under its “Logistics equipment business sector” and includes container cranes, FLTs and reachstackers, bulk material equipment and general equipment (FLTs, telehandlers etc.)
The product range continues to expand, with recent additions including an unmanned electric truck, which has now completed on-site testing, and an Automatic Stacking Crane. Sany says the new ASC has “overcome many obstacles in key automation technologies and achieved the targets of remote control, intelligent identification, precise alignment, automatic loading and unloading, which greatly improved port operation efficiency and reduced operating costs.”
Sany is also targeting STS cranes, where is has a large 65m outreach cranes (Sany STS656501 operating at Zhuhai port. Growing its business in the North American market remains a key target, where Sany says the debut of its SCP130A series forklifts has been successful. “We have maintained our leading position in the small port machinery sector in the Asia-Pacific region and actively explored the North American market with new products. We have enhanced our market share in overseas markets through allocating more resources in international markets, providing more support to overseas agents and cultivating more agents,” Sany said in its management report.
Sany has also improved its bottom line, with profit margin before tax in the six months to 30 June 2019 improving to 21%, an increase of 0.7% year-on-year. Sany attributed the performance to its efforts to “actively control” costs, and in particular to reduce management expenses.
The company has, however, drastically increased its R&D spending, which was up 145.5% over the period to RMB209.2 million. This represents 6.9% of total revenue, up from 3.0% year-on-year. “Such change was mainly due to the increase in the investment in R&D on new products, including Smart Mine, Intelligent Terminal, tunnel roadheader, integrated excavation, bolting and self-protection machine, unmanned electric truck, telehandler, automatic bridge and wide-bodied vehicles by the Group,” Sany said.