Zhongjin Gold prelim 1H net income 2.6B yuan to 2.88B yuan

Zhongjin Gold prelim 1H net income 2.6B yuan to 2.88B yuan

Chinese construction machinery manufacturers are experiencing a significant shift in their revenue streams, with exports outpacing domestic sales in the first half of 2024. This trend is particularly evident in the performance of top players like Sany Heavy Industry Co. Ltd. and Zoomlion Heavy Industry Science and Technology Co. Ltd.

According to Sany Heavy Industry's half-year earnings released on August 29, the company generated 14.3 billion yuan ($2 billion) in domestic revenue, a 11.7% decrease year-on-year, while overseas revenue grew 4.8% to 23.5 billion yuan. International sales accounted for 62.2% of its total revenue [1].

Zoomlion Heavy Industry, on the other hand, reported a 43.9% increase in overseas revenue to 12 billion yuan in the first half of 2024, making up 49.1% of its total revenue. Domestic sales fell 20.5% to 12.5 billion yuan due to the real estate market downturn [1].

This shift is driven by the protracted real estate crisis in China, which has led to a slump in domestic sales. The total floor space of buildings for which construction has begun dropped 23.7% to 380 million square meters in the first half of 2024 [1].

The increased focus on overseas markets has resulted in a significant boost in profits for both companies. Sany Heavy Industry's profit rose 4.8% to 3.6 billion yuan, while Zoomlion's profit surged 12.2% to 2.3 billion yuan [1].

These developments highlight the resilience and adaptability of the Chinese construction machinery industry in the face of domestic economic challenges. The focus on international markets is likely to continue, driven by the need to maintain profitability and growth.

References:
[1] https://www.caixinglobal.com/2024-08-31/exports-prop-up-profits-of-chinese-excavators-amid-domestic-sales-slump-102232081.html