august 2012 0down.sanygroup.com/files/20130802100203823.pdf · model of thin seam shearer which was...
TRANSCRIPT
August 2012 0
Part One: Major Achievements
1
Product Quality:u The exhibition project of Sany
International , “Mining Machinery” was awarded the Gold prize of Geneva International Exhibition of Invention Award.
u Successfully launched the latest model of thin seam shearer which was jointly designed by China and Germany research and development teams.
u Successfully launched the Group’s self-developed automated plough coal unit with the highest power and productivity in the world.
u Successfully released the Group’s self-developed series 3000 coal mining machinery.
u Successfully released its self-developed new generation of ML360 continuous miner.
Overseas Market:u Overseas sales recorded
remarkable increase in the first half of 2012 compared with the corresponding period last year. Overseas sales for the whole year is expected to reach a record high.
u Entered into Strategic Framework Agreement with DTEK, Ukraine’s largest coal enterprise.
Customer Service:u The service database system
of Enterprise Controlling Center (ECC) has been established in April 2012, implemented 24-hour service process monitoring.
u Service response speed further increased by 30%.
Domestic Market:u A CCMU promotion national
tour namely the “Witness the NO.1 Power Tour” has been held by the Group. The exhibitions were held in various places including Erdos, Chengdu, Nanchang, Huaibei, Xuzhou, Zhengzhou ,and so on. The Group has met with more than 3,000 major mining enterprises customers during the exhibitions, and orders of CCMU have reached record high. While the sales of roadheaders was also enhanced through the exhibitions.
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Financial Highlight *Note 1: Excluding the effect of tax on dividends*Note 2: Average of net profit for the half year of 2011
Result Highlight - (RMB Million) 1H2012 % 1H2011 % Change
Revenue 2,345.1 1,781.8 31.6%
Gross Profit& GP Margin 951.8 40.6% 809.8 45.4% 17.5%
Net Profit (Adjusted)& NP Margin 493.7 21.1% 415.6/387.2 23.3% 18.8%/27.5%
Selling and Distribution Costs 307.5 13.1% 215.1 12.1% 43.0%
Administrative Expense 91.9 5.2% 115.0 4.9% 25.1%
ROE 8.7% 8.3% 0.4pp
EPS RMB0.16 RMB0.13 23.1%
Balance Sheet- (RMB Million) 1H2012 1H2011 Change%
Current asset 4,821.0 4,685.1 2.9%
Non- current asset 3,098.3 1,908.8 62.3%
Total asset 7,919.3 6,593.9 20.1%
Current liabilities 1,829.9 1,293.4 41.5%
Non- current liabilities 430.1 275.9 55.9%
Total liabilities 2,260.0 1,569.3 44.0%
Net asset 5,659.3 5,024.6 12.6%
Cash Flow- (RMB Million) 1H2012 1H2011 Change
Cash flow from operating activities -147.0 -364.4 217.4
Cash flow from investment activities 228.2 498.9 -270.7
Cash flow from financing activities -139.7 -126.9 -12.8
Net cash flow -58.6 7.6 -66.2
Cash and cash equivalents at the beginning of the period 477.5 762.5 -285
The effect of foreign exchange rate on cash flow 0.9 -10.0 10.9
Cash and cash equivalents at the end of the period 419.8 760.2 -340.4
1 2
Part Two: Business Review
4
Roadheader
929.6
1,338.0 1,476.6
1H2010 1H2011 1H2012
Revenue
290
382 425
1H2010 1H2011 1H2012
Units Ø Product sales and structureü Stable growth in revenueü Maintained strong profitability with edges in
technologies
Ø Technologyü Successfully launched the third-generation digital
roadheaders
Ø Direction for developmentü Maintain stable growth in revenueü Enhance and maintain product profitability
through technology upgradesü Further enhance contributions from high-end
equipmentü Increase proportion of components
manufactured in house
RMB million
5
CCMUs
225.0 225.0
401.9
1H2010 1H2011 1H2012
RevenueRMB million
6 8
12
1H2010 1H2011 1H2012
Units
0
Ø Product Salesü Significant increase in revenue, reflecting customers’
endorsement on products qualityü Gross profit margin increased due to production capacity
expansion and application of new manufacturing technologies
Ø Technologyü Successfully developed automated plough coal units that boast
the highest power and productivity in the worldü Successfully launched new thin seam shearers which are the
smallest in the worldü Successfully launched a new generation of hydraulic shanks
Ø Strategyü Maintain high-speed growth in revenueü Reduce production costü Increase proportion of sales derived from high-end products
6
RMB million
0
113.2
1H2011 1H2012
Revenue
0
30
1H2011 1H2012
Units
Coal Mining Vehicles
Ø Existing Core Products & Newly Developed Productsü Existing core product: off- highway mining truckü Launched in April large scale electric off highway mining
trucks with a loading capacity of 230 tonnes
Ø Market Shareü The Group’s share of machinery mining trucks in the
domestic market rose to 10% from less than 4% in 2011
Ø Directions for Developmentü Enhance product quality to meet world-class standardsü Strengthen R&D of new products to cover the whole
spectrum in each of the product seriesü Increase product durability, enhance user-friendliness in
designs, extend product life cycles and improve safety of mining staff
7
After Market & Other Products
(RMB million)
2012H 2011H % Change
Revenue Revenue
After-market & Others 353.5 218.8 61.6%
8
R & D Capabilities
China Research Institute
Roadheaders Research Institute
Germany Research Institute ( Bedburg )
United States Research Institute (Atlanta )
IntegratedCoal Mining Research Institute
Narrow Tunnels Roadheaders
Research Institute
New Products Research institute
HydraulicResearch Institute
Domestic
Overseas
Mining Machines Research Institute
l As of 30 June 2012, the Group possessed141 patent applications, of which 58 are invention patents, 7 are overseas patents. Number of patent applications increased by 41% Y-o-Y.
l R & D professionals amounted to 879.
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Part Three: Industry Review
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Breakdowns by Region
Northwest
429.5(+77.6%)
(RMB million)
Northeast
130.6(+9.8%)
North China
928.6(+8.4%)
Central China
150.0(+15.9%)
East China
339.3(+13.7%)
West China
266.6(+115.4%)
Major domestic regions with revenue growth (RMB million)
Region Increase(proportion oftotal increase)
Shaanxi 194.0(34.5%) Mechanization rate increases and coal mine ‘s consolidation
Guizhou 132.0(23.5%) Mechanization rate increases and coal mine's consolidation
Jiangsu 99.0(17.7%) Success of major customers strategy and increase the bid - wining
Anhui 88.6(15.7%) Success of major customers strategy and increase the bid - wining
Beijing 39.6(7.1%) Expanded production of coal
Major sales regions (RMB million)
Region Revenue(proportion oftotal revenue)
Shanxi 729.9(31.1%) Shanxi region is a traditional coal producing province with a number of large coal enterprises, high completion in mergers of coal mines
Shaanxi 355.0(15.1%) Investment interest of coal mines in Shannxi region is relatively higher, Strong sales in Shannxiprovince in the first half of the year boosting the revenue proportion of the region
Anhui 262.3 (11.2%) Success of major customers strategy
Henan 140.5 (6.0%) Success of major customers strategy
Inner Mongolia
123.6 (5.3%) Coal mine’s consolidation
Overseas 100.6 (4.3%) Success of major customers strategy
Shaanxi, Gansu, Ningxia, Qinghai, Sinkiang
Heilongjiang, Liaoning, Jilin
Henan, Hubei, Hunan Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia
Sichuan, Yunnan, Guizhou, Chongqing
Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong
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Revenue DriversuTraditional Source of Growth:
ü Roadheader products: Leveraging its strong R&D and high-quality products, roadheader still managed to be the leader in the market and raked a record high revenue.
ü Standard combine coal mining unit: Quality is the key. Sales leaped. Significant improvement in manufacture technology, profitability further improved.
uNew Sources of Growth:
ü Off- highway mining trucks: Government policies in supporting large surface coal mines will increase the demand for surface coal mine equipment for a long period. Overseas experience is the key to increase profitability of underground transport vehicles. Sales of coal mine vehicle products is set to increase remarkably.
ü After market: Along the increase of market share in equipment market, after sales spare parts and maintenance have become the major profit generators of the Group. Enormous market for the business in future.
ü High-end equipment: Introduction of thin seam coal mining policy enhanced the demand for such equipment, profitability of high profit margin will become the major impetus for profit growth in future.
uPotential Sources of Growth
ü Coal mine concrete pump: Increasing complexity of underground mine as well as upgrade of mining technology will bring more room for market development and better prospects for the Group’s new products, such as plough coal units. Successful application of filling coal mining in certain parts of China will drive the demand for related equipment.
ü Continuous mining machinery and shuttle car: Design based on the need of overseas markets and mainly exports to Australia and North America.
ü Drilling and loading machine: New-generation of tunneling equipment, will replace roadheader under worst mining conditions, suitable for highest level of rock hardness, andhas been sold.
12
Industry Focus
1 The State Administration of Coal Mine Safety planned to further shut down at least 625 small coal mines in the end July meeting.
2
“ Coal Deep Processing Demonstration Project Planning”(煤炭深加工示範專案規劃) and “Coal Deep Processing Industry Development Policy”(煤炭深加工產業發展政策) prepared by the National Development and Reform Commission and National Energy Administration were approved by the Director General of the National Development . Reform Commission will be published and implemented in the near future.
3 With the decrease in coal prices, tax rate reform is imminent.
4 CCTV reported the successful trial run of fully-automated plough coal unit, hence increasing the awareness of the society on coal mining machine industry.
5 In July, the coal price has been stable and stopped downward trend.
6 Coal mining machine industry actively opens up cooperation with downstream coal enterprises and enhances the healthy growth of the industry.
7 Two domestic coal mining machine manufacturers, namely Citic Heavy Industry and Shijiazhuang ZhongmeiCoal Mine Equipment successfully launched their A share IPOs in China.
8 Listed companies of coal mining machine industry announced positive results, indicating a steady growth of the industry as a whole.
13
Company Culture
Help employees succeed
Quality changes the world
All for the customers
All start with innovations
幫助員工成功一切為了客戶
一切源於創新品質改變世界
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Ownerships StructureDomestic
14 individual shareholders
Public100%
72.94% 27.06%
Sany Heavy Equipment Co., Ltd
100%
100%
100%
Sany Heavy Industry Co. Ltd(600031.SH)
43.62%
Others
Public
56.38%
Sany Group
Sany Heavy Equipment Investments Company Limited
Sany Heavy Equipment International Holdings Company Limited(631.HK)
Sany Mining Machinery Co., Ltd
91%9%
Oversea
Domestic
Sany Hongkong Group Limited
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