SANY On Track – Highlights from the SANY 2020 Annual Report
The report found that the SANY excavator achieved a turnover of 5.721 billion USD, an increase of 35.85% year-on-year, leading the Chinese market for 10 consecutive years. The production of hydraulic excavators in 2020 exceeded 90,000 units, the highest number among any manufacturer in the world. Meanwhile, SANY Concrete Machinery has maintained its position as the leading brand in the world with 4.124 billion USD in sales, up 16.6% year-on-year, and SANY lifting machines, the leading brand in China, hit 2.959 billion USD of revenue, up 38.84% year-on-year. In addition, sales of SANY pile drivers increased 41.9% year-on-year for $ 1.04 billion, retaining its position as a leading brand by China. On the road machinery side, turnover increased by 30.59% to 430 million USDwith the domestic market share of SANY asphalt pavers maintaining its number one position and that of graders and rollers enjoying significant improvement.
Improvements in operational capacity
Net profits attributable to shareholders reached 2.35 billion USD, achieving growth of 36.25% over one year. Costs for the period, including those related to sales, administration, research and development and financial affairs, decreased by 1.84%. The company took concrete steps to improve its risk management capability as the delinquent loan ratio continued to decline and cash flow increased by 12.45% to 2.04 billion USD. While inventory turnover was 4.17 times / year in 2020, 0.23 more than in 2019, receivables turnover fell to 80 days from 120 days in 2019.
Progress of digital transformation
Among SANY’s flagship factories, technologies such as visual recognition, process simulation and heavy robotics have been widely applied to increase productivity and reduce labor costs. The levels of standardization, digitization, automation and intelligence have been significantly improved in key business processes. Integrated operating software was introduced to interconnect all of the company’s links, including manufacturing, supply chain, purchasing, R&D, marketing and sales. Ten new electrical products rolled off the line, including hydraulic excavators, cranes, mixer trucks, dump trucks and road machinery. Autonomous driving technology, remote control, intelligent operation, big data analysis and 5G have become new elements in product design.
Progress towards internationalization
The year 2020, hit by the pandemic, saw a 27% reduction in the global construction machinery market. However, SANY’s global business has maintained steady growth amid the pandemic, achieving a 3% year-over-year increase in sales. 2.4 billion USD. Major growth of over 30% has been observed in overseas market share of SANY excavators, especially in North America, Europe, India and South East Asia. Progress has been made in developing overseas market channels, overseas service capabilities, global dealer networks, and overseas spare parts supply and service system.
Remarkable results in R&D and innovation
Incentive policies have been put in place to facilitate technical innovations across all product lines. In 2020, R&D investments increased by 33.2% to 954 million USD, representing 6.3% of the company’s total annual turnover. The number of employees in R&D reached 5,346, an increase of 69% from 2019. By the end of 2020, SANY had filed 10,278 patents and authorized 7,613, more than any other company in China in 2020. Some new representative products include:
- The SY870, SY980 and SY1250 super-large excavators
- The next-generation intelligent excavator product line
- The 4000 t crawler crane SCC40000A
Moving forward, SANY remains committed to its motto “Quality changes the world”. SANY will spare no effort to increase value for its customers through its brand, products, marketing and service and will continue to defend its position in the highly competitive international market. All SANY managers and employees will continue to do their utmost to make SANY a world-class leader in the manufacturing industry.
SOURCE SANY Group