Dirty Clash of China's Heavy Equipment Heavies

Discussion in 'China' started by t_co, Nov 7, 2013.

  1. t_co

    t_co Senior Member Senior Member

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    Dirty Clash of China's Heavy Equipment Heavies -

     
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  3. bennedose

    bennedose Senior Member Senior Member

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    Pindliyon ka gooda
    What do Sany and Zoomlion produce?
     
  4. Ray

    Ray The Chairman Defence Professionals Moderator

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    Zoomilion is in Sanitary and construction machinery and Sany is in heavy machinery.
     
  5. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    No one had to lie about Sany to ruin their IPO. Sales have crashed due to the recession in China.
     
  6. amoy

    amoy Senior Member Senior Member

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    Zoomlion's dealers in the Gulf happen to b Indian mostly.

    Sany once made the headline for strongly opposing to approval of Caterpillar's acquisition of its Chinese competitor Xugong.

    lately Sany sued President Obama for blocking its wind farm project in the US despite a slim chance of winning.

    Sent from my 5910 using Tapatalk 2
     
  7. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Chinese engineering machinery firms suffer mounting bad debt
    2013-11-09

    As a harbinger of the economic climate, leading engineering machinery firms in China, including Sany, Zoomlion, XCMG, are feeling the pinch of a possible economic downturn.

    In order to boost its sales, Sany Heavy Industry is now accepting a range of orders, instead of only processing orders from major clients. The company is now expecting a marked increase in bad debt.

    According to their financial statements, in the first nine months this year the revenue of Sany, Zoomlion and XCMG tumbled 26.5%, 26.1% and 25% year-on-year, respectively, with their net profits scoring even sharper declines of 49.3%, 45.48% and 46.3%. Meanwhile, as of the end of September, their accounts receivable totaled 68 billion yuan (US$11.5 billion): 22.55 billion yuan (US$3.7 billion) for Sany, 25.6 billion yuan (US$4.2 billion) for Zoomlion and 19.8 billion yuan (US$3.2 billion) for XCMG, up 50.6%, 35.6% and 11.5% respectively over the amounts at the beginning of the year.

    Revenue decline, mounting accounts receivable and prolonged repayment period are proof of the industry's downturn, remarked an analyst at a securities firm. The average debt repayment period at Sany has been extended to 7.52 months now, compared with 4.7 months in the third quarter last year.

    Industry insiders have predicted that the engineering machinery business will remain in the doldrums for quite a while, citing a murky economic outlook, the absence of stimulus policy and a slowdown in the implementation of infrastructural projects, according to the Guangzhou-based 21st Century Business Herald.

    Accounts receivables are increasing at unbridled pace, despite strenuous efforts of leading enterprises in the line to check the increase of bad debts and cut credit risk, said Duan Jiaxuan, machinery-industry analyst at China Investment Consulting.

    The huge levels of bad debt are attributed partially to the reliance of leading engineering machinery firms on credit extension to stimulate sales. Another major culprit is the macro-control policy of the Chinese government, including the control and adjustment of the realty market, suspension of mining operations, and slowdown in high-speed rail construction. Insiders remarked that the overall situation remains grave,

    Chinese engineering machinery firms suffer mounting bad debt|Markets|Business|WantChinaTimes.com
     

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