Sany International 2019 interim profit surged 54.1% to RMB551.7 million on robust revenue growth, better cost control and successful market expansion

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Thursday, 22 August 2019, 15:00 HKT/SGT

HONG KONG, Aug 22, 2019 - (ACN Newswire) - Sany International Holdings Company Limited ("Sany" or the "Company", together with subsidiaries, the "Group"; HKSE stock code: 631) announced today its unaudited interim results for the six months ended 30 June 2019 ("1H2019").

FINANCIAL HIGHLIGHTS

- For 1H2019, the Group recorded revenue of approximately RMB3,043.7 million, up 38.6% from approximately RMB2,196.0 million for 1H2018. Such increase was mainly due to (1) higher demand for improvement and replacement of coal machinery equipment and the coal industry's accelerated development towards intelligent, unmanned, green and high-efficiency mining, higher revenue from the mining equipment segment; (2) the launch of large-scale port machinery into domestic mainstream ports and multiple river terminals due to improvements in brand influence; (3) the focus on R&D and innovation strategy that optimized product performance and quality and accordingly enhance market competitiveness; and (4) remarkable results from expansion to international markets.
- For 1H2019, the Group's profit margin before tax was approximately 21.0%, up 0.7 percentage points from the 20.3% for 1H2018, mainly due (1) actively controlled costs and increased product gross profit margin, especially the margins of integrated mining products, roadheaders and stacking machines; and (2) management expenses ratio (excluding R&D expenses) against revenue and lower selling expenses ratio against revenue due to digital transformation and improvement on internal operation efficiency.
- For 1H2019, the research and development expenses were approximately RMB209.2 million, up approximately 145.5% from approximately RMB85.2 million for 1H2018. For 1H2019, research and development expenses accounted for approximately 6.9% of revenue, up 3.0 percentage points from approximately 3.9% for 1H2018, mainly due to higher investments 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.
- For 1H2019, the Group's profit attributable to owners of the parent was approximately RMB551.7 million, up 54.1% from approximately RMB358.0 million for 1H2018. Basic earnings per share for 1H2019 were RMB0.18, up from RMB0.12 for 1H2018.
- The Board resolved not to declare any interim dividend for 1H2019 (1H2018: Nil).

For 1H2019, the Group recorded revenue of approximately RMB3,043.7 million, representing an increase of approximately RMB847.7 million, or 38.6%, from approximately RMB2,196.0 million for the six months ended 30 June 2018 ("1H2018"), mainly due to (1) the continuous increase in the demand for improvement and replacement of coal machinery equipment, and the coal industry's accelerated development towards intelligent, unmanned, green and high-efficiency mining; (2) the launch of large-scale port machinery into domestic mainstream ports and multiple river terminals, leveraging improvements in brand influence; (3) the focus on R&D and innovation strategy that optimized product performance and quality; and (4) the remarkable results from expansion to the international markets.

For 1H2019, the Group's profit attributable to owners of the parent was approximately RMB551.7 million, up 54.1% from approximately RMB358.0 million for 1H2018. Basic earnings per share for 1H2019 were RMB0.18, up from RMB0.12 for 1H2017. The Board resolved not to declare any interim dividend for 1H2019 (six months ended 30 June 2018: Nil).

For 1H2019, the Group's profit margin before tax was approximately 21.0%, up 0.7 percentage points from the 20.3% for 1H2018, mainly due (1) actively controlled costs and increased product gross profit margin, especially the margins of integrated mining products, roadheaders and stacking machines; and (2) management expenses ratio (excluding R&D expenses) against revenue and lower selling expenses ratio against revenue due to digital transformation and improvement on internal operation efficiency.

For 1H2019, the research and development expenses were approximately RMB209.2 million, up approximately 145.5% from approximately RMB85.2 million for 1H2018. For 1H2019, research and development expenses accounted for 6.9% of total revenue, up approximately 3.0 percentage points from approximately 3.9% for 1H2018, mainly due to higher investments 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 depot container crane and widebody vehicles. For 1H2019 the Group obtained 14 authorized patents, including 5 invention patents, 7 utility model patents, 1 design patent and 1 software copyright. The Group has maintained its leading position in the small port machinery sector in the Asia-Pacific region and actively explored the North American market with new products.

The average turnover days of inventory were approximately 136.8 days as at 30 June 2019, down approximately 57.4 days from approximately 194.2 days as at 30 June 2018, mainly due to higher sales and strengthened control over inventories. The turnover days of trade and bills receivables as at 30 June 2019 were approximately 216.7 days, down approximately 17.4 days from approximately 234.1 days as at 30 June 2018, mainly due to greater efforts in the collection of trade receivables. The turnover days of trade and bills payables as at 30 June 2019 were 155.0 days, down approximately 9.0 days from approximately 164.0 days as at 30 June 2018, mainly due to the shortened payment cycle to the suppliers in return for the best delivery time to meet the high demand for the Group's production.

For full announcement of the interim results, please refer to the link below:
https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0821/ltn20190821473.pdf

About Sany Heavy Equipment International Holdings Limited

Sany Heavy Equipment International Holdings Company Limited is principally engaged in coal mining equipment and port machinery businesses. The Company operates through two sectors. (1) the energy equipment business sector, which includes coal machinery business products, such as roadheaders (all types of soft rock, hard rock roadheader and integrated excavation, bolting and self-protection machine) and CCMU; the non-coal business products, such as mining transport equipment (mechanical drive off-highway dump truck, electric drive off-highway dump truck, articulated truck), underground coal mining vehicle and excavation equipment (tunnel and excavation series) and other products; and (2) the marine engineering business sector, which includes large port machinery products including reach stacker, container stacking machine and quayside container crane, small port machineries such as front loader and heavy forklift.

Topic: Press release summary Sectors: Daily Finance, Daily News
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