#China #Shanghai #financial results #SANY Heavy Industry #International Revenue

SANY's 2024 Annual Report: Unveiling Exceptional Growth

SANY Heavy Industry, a leader in construction machinery, released its 2024 Annual Report on April 19, showcasing robust financial performance. The company achieved full-year sales and revenue of $10.88 billion, reflecting a 6.22% increase year-over-year. This impressive growth was complemented by a staggering 31.98% rise in net profit, which amounted to $0.84 billion. With international revenue now accounting for 64% of its core business revenue, SANY has solidified its position as a global player in the industry.

Core Business Performance and Revenue Breakdown

In terms of profitability, SANY reported a gross margin of 26.63% for its core business, marking a slight increase of 0.47 percentage points compared to the previous year. The hoisting machinery sector was particularly influential, contributing to a growth rate of 4.23 percentage points. Moreover, SANY's operating cash flow reached $2.07 billion, a remarkable increase of 159.53% compared to prior year figures.

Major Revenue Contributors

The company's earthmoving, concrete, and hoisting machinery segments were pivotal, together contributing 76% to the overall revenue. These segments generated $4.25 billion, $2.01 billion, and $1.83 billion, respectively. The road machinery division also excelled, achieving a year-on-year growth rate of 20.8%. SANY remains committed to sustainability, actively promoting decarbonization through the development of clean technologies; in 2024 alone, SANY filed 275 low-carbon patents, leading to low-carbon product sales of $0.56 billion.

In a significant push for innovation, SANY introduced more than 40 electric products in 2024, achieving sales of over 6,200 units. This emphasizes the company's focus on electrification of its main machines, core components, and power supply units, further highlighting its commitment to environmentally friendly initiatives.

International Expansion Milestones

SANY has made notable strides in its globalization efforts, establishing production bases, research and development centers, and localized marketing and service networks. In 2024, SANY’s international core business revenue surged to $6.78 billion, representing an increase of 12.15% from $6.06 billion in 2023. As a result, international revenue constituted 64% of the total core business revenue.

The company reported a 29.7% gross margin in international markets, underscoring efficient and profitable operations abroad. The growth was primarily driven by substantial gains in the Asia-Pacific and Australia regions, contributing $2.88 billion, a 15.47% increase year-over-year. Furthermore, the African market showed exceptional performance with a 44% revenue increase, totaling $0.75 billion. The European and American markets also demonstrated stability, posting growth rates of 1.86% and 6.64%, yielding revenues of $1.72 billion and $1.44 billion, respectively.

Looking Ahead

Reflecting on these achievements amidst a challenging global environment, Chairman Xiang Wenbo expressed pride in SANY's performance while emphasizing the imperative of continued innovation. He stated, "In 2025 we will deepen technological innovation, strengthen risk management, and enhance governance efficiency, contributing our corporate strength to global sustainable development." This statement reinforces SANY's commitment to not only financial success but also to its overarching goal of sustainable growth in the construction industry.

In summary, SANY Heavy Industry has demonstrated remarkable growth and resilience in 2024, securing a leading position in both domestic and international markets. As the company endeavors to maintain this trajectory through innovative practices and sustainability efforts, stakeholders remain optimistic about its future prospects.