CHANGSHA, China, Sept. 6, 2019 /PRNewswire/ -- Zoomlion Heavy Industry Science and Technology Co, (000157.SZ) a leading Chinese maker of engineering and agricultural equipment, reported a near tripling in first-half earnings, thanks to an industry boom and leveled up overall competitiveness among corporate management and products launched during the period.
Zoomlion reported a net profit of 2.58 billion yuan during the first six months of 2019, up 198.11 percent from a year earlier. Revenue jumped 51.23 percent during the period.
The stellar performance cemented Zoomlion's leading position in China's engineering equipment industry, where demand for the company's core products, including hoisting machinery and concrete pump machinery remained high.
Internal restructuring and a revamp in the company's incentive and management systems injected vigor and enhanced competitiveness during the same period allowing the manufacturer to take better advantage of rising demand.
Higher-profits in recent years have led to a boost in R&D, allowing Zoomlion to 'roll out' more intelligent and reliable products in the first half that better meet clients' needs. Zoomlion's 4.0 series of products were particularly well received in this area.
Zoomlion also accelerated the development of new engines of growth. Its aerial work platform remained popular, while its industry-leading, Lithium-powered products won 230 million yuan of orders on the first day of launch. At the same time, Zoomlion's earthwork machinery roared into the market with tremendous breakthrough, with sales expected to multiply on the back of an eco-system built around clients' needs.
HIGHER PROFITABILITY
Zoomlion not only grew in size but has also become more profitable. Its gross margins jumped by 4.68 percentage points in the first half, to 30.01 percent.
Higher margins were the result of a shift toward products with higher technological barriers. The company's 4.0 series of intelligent products already account for over 80 percent of total sales.
In addition, Zoomlion made strides in cutting costs. The company squeezed sales, management and finance expenses by 2.4 percentage points, contributing to higher profitability, while improving operational efficiency, with average days of receivable collection and inventory turnover dropping significantly - to 218 and 84 - respectively.
Despite the increasing competitiveness in the market, Zoomlion continued to take risk-management seriously and continues to closely monitor risks associated with clients and businesses, through big-data and their Customer Relationship Management (CRM) system.
The results see Zoomlion enjoying a healthier balance sheet and robust financial strength as it moves into the second half of the year with net operating cash flow up 124.19 percent from a year ago to 3.58 billion yuan, laying a solid foundation for quality growth.
Zoomlion will continue to provide superb products and services, and value for clients and shareholders through improvements in its engineering and agricultural business.
About Zoomlion
Founded in 1992, Zoomlion Heavy Industry Science & Technology Co., Ltd. (Zoomlion) (000157.SZ) is a high-end equipment manufacturing enterprise that integrates engineering machinery, agricultural machinery and financial services. The company now sells more than 460 cutting-edge products from 55 product lines covering 10 major categories.
