Yahoo Finance SANY Heavy Industry Reports 2023 Earnings: Overseas Revenue Soars to 60% of Core Business Amid Market Pressures, Signaling Strong Global Expansion
SHANGHAI, May 16, 2024 /PRNewswire/ -- SANY Heavy Industry ("SANY" or "the Company"; SSE: 600031), a leading heavy machinery manufacturer, has reported a strong growth in international revenues in its recently announced annual results for 2023.
The Company reported RMB 74.02 billion (US$10.43 billion) in total revenues for the year 2023, down 8.44% year-on-year. Despite a challenging market, the decrease in revenue showed a narrowing decline of 15.92 percentage points compared to the previous year's changes.
SANY's net profit totaled RMB 4.6 billion (US$648.74 million) in 2023, posting a 4.16% year-on-year expansion. Its net cash flows from operating activities surged by 39.20% to reach RMB 5.7 billion (US$803.87 million).
The year 2023 was pivotal for SANY as its international business flourished. In 2023, the Company recorded RMB 43.3 billion (US$6.1 billion) in international business revenues, marking an 18% year-on-year increase and accounting for nearly 60% of its main business revenues.
Such significant growth highlights SANY's successful transition to a multinational engineering machinery conglomerate, with its sales spanning over 180 countries and regions. The sales revenues in Asia and Australia amounted to RMB 16.5 billion (US$2.32 billion), up 11.1% year-on-year, while the European region generated RMB 16.25 billion (US$2.3 billion), a substantial growth of 37.97%. The American market brought in RMB 7.58 billion (US$1 billion), rising 6.82%, and the African region contributed RMB 2.92 billion (US$411.8 million), up by 2.56%.
"SANY boasts a vibrant overseas market, top-tier partners, and an energetic local team," said Xiang Wenbo, chairman of SANY Heavy Industry. "Looking ahead this year, we remain committed to our 'Globalization, Digitalization and Decarbonization' strategy, as we continue to work with global partners to explore green development."
SANY's financial performance in 2023 demonstrated substantial improvements, with a notable increase in gross profit margin to 27.71%, up by 3.67 percentage points from the previous year, exceeding the industry median. Additionally, net profit attributable to shareholders rose to RMB 4.52 billion (US$637.4 million), a 5.53% year-on-year increase, and adjusted net profit after non-recurring items surged by 40.35% to RMB 4.38 billion (US$617.7 million). While the main gross profit margin and net profit margin grew, the Company also drove its operation growth. In terms of product lines, excavating machinery, lifting machinery and road machinery performed strongly during the reporting period. In addition, electric products realized revenues of RMB 3.146 billion (US$449.4 million) and hydrogen energy products realized revenues of RMB 130 million (US$18.6 million).
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SOURCE SANY Group
