① At present, the overseas market is still a blue ocean market for China's construction machinery. From the perspective of export proportion, there is still a lot of room for expansion of product categories in many overseas countries. ② The company responds to market changes better through product category expansion and extreme cost reduction.
On June 28, Caixin Financial News (Reporter Huang Lu) reported that "we are building a huge, efficient and orderly international trade system abroad." Today, Zoomlion (000157. SZ) 2023 Annual Shareholders Meeting was held in Changsha, Hunan. Chairman and CEO Zhan Chunxin said that the company will accelerate its transformation and upgrading towards digitization, intelligence, and greenness, deepen international development, use the certainty of its own work to deal with the uncertainty of the external market, and seek progress while ensuring stability.
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A participant at the meeting asked: In a period of cyclical adjustment in the domestic market, some companies in the industry even experienced negative growth. What did Zoomlion do to achieve net profit growth of more than 50% last year? Zhan Chunxin responded that the first is globalization and the second is industrial diversification. The company has built an overseas business direct sales system based on "end-to-end, digitization, localization", and the overseas business has gone from breaking through local to comprehensive efforts. This has kept the company's overseas income rising rapidly for nearly three years. In terms of new business expansion, the proportion and profitability of excavators, aerial work platforms, mining machinery, and agricultural machinery are constantly improving, and the company's revenue structure is more optimized, making the company capable of truly growing into a global high-end equipment manufacturing company that can cross cycles.
According to the financial report, Zoomlion's overseas income in 2023 was 17.905 billion yuan, a year-on-year increase of 79.2%, and the proportion of overseas income increased to 38.04%. Regarding the expected judgment of the future overseas market for construction machinery, the relevant executives in charge of Zoomlion's overseas business stated that due to the base effect, it is expected that the Middle East, Southeast Asia and other regions will maintain a relatively fast growth rate, while exports to regions such as Latin America, Africa, India, Europe, and North America will have a higher growth rate. At present, the overseas market is still a blue ocean market for China's construction machinery.
He gave three reasons: First, the proportion of Chinese brands abroad is still not high, and the overseas market still has growth characteristics. Chinese construction machinery products are strong in performance, high in quality, high in cost performance, high in digital and intelligent degree, and have a short delivery cycle, which is recognized by overseas customers. Secondly, as domestic enterprises' channel layout abroad becomes more and more perfect, the comprehensive competitiveness of Chinese brands will continue to improve, and the penetration rate of overseas markets will also increase. In addition, from the perspective of the proportion of major export markets, there is still a lot of room for expansion of product categories in many countries at present.
According to him, Zoomlion has built more than 30 first-level business airports and more than 350 second-level branches worldwide. The branch construction has sinking from regional centers to important cities. The total number of global overseas employees exceeds 3,000 people, and the products cover more than 140 countries and regions. By the end of this year, the global second-level branch layout is expected to exceed 400.
A participating brokerage researcher asked: The domestic market is in a period of cyclical adjustment, and some companies in the industry are experiencing negative growth. What has Zoomlion done to achieve net profit growth of over 50% last year? How to view changes in demand in the domestic market and future strategic layout and tactics of the company? The relevant executives of Zoomlion stated that from the perspective of the company itself, the company's earthmoving machinery revenue has no longer been the "short" board in the past. The proportion of earthmoving machinery revenue has increased in the total revenue of the company. Especially in terms of domestic sales, Zoomlion's large and medium-sized excavator product spectrum is more comprehensive. In addition, the development of growing industries such as aerial work platforms, agricultural machinery, and mining machinery is very fast. The company responds to market changes better through product category expansion and extreme cost reduction. At present, the main reason for the positive growth in domestic excavator sales is still due to the growth of small excavators.
The relevant executives of Zoomlion stated that from the perspective of the company itself, the company's earthmoving machinery revenue has no longer been the "short" board in the past. The proportion of earthmoving machinery revenue has increased in the total revenue of the company. Especially in terms of domestic sales, Zoomlion's large and medium-sized excavator product spectrum is more comprehensive. In addition, the development of growing industries such as aerial work platforms, agricultural machinery, and mining machinery is very fast. The company responds to market changes better through product category expansion and extreme cost reduction. At present, the main reason for the positive growth in domestic excavator sales is still due to the growth of small excavators.