Sany among the Most Profitable Engineering Machinery Manufacturers in 2020
A construction machinery equipment maker, Sany is pretty popular among Chinese consumers, thanks to its massive R&D expenses and wide service scope.
When looking at the engineering machinery industry’s first three quarters in 2020, we see an upward trend in its operating incomes. Although affected negatively by COVID-19, which led to an 11% decrease in operating income and a 26% drop in net profits in the first quarter, the subsequent work resumption gradually triggered more sales volumes. According to the third quarter’s report, the whole engineering machinery industry obtained operating incomes of about CNY 193.5 billion, an increase of 26.1%.
When it comes to some specific firms, around ten firms’ net profits surpassed last year’s 90%. To be more precise, Sany, XCMG and ZOOMLION had the strongest effects during these periods, with a sum of operating income for CNY 133.69 billion, occupying 78.97% of the overall industry. Benefitting from operation in new construction projects and increasing equipment replacement demands, the engineering machinery industry is expected to keep climbing.
Regarding Sany, it achieved the highest operating incomes among XCMG and ZOOMLION, or about CNY 58.69 for the first three quarters. Moreover, according to Sany’s financial report, it was the firm’s best performance since setting up, due to its having managed costs in a prudent manner. Sany’s success is a result of its massive investment in machinery products and accessories, something which might still frame its competitiveness in the future.