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Caixin Financial News, August 29th (Reporter: Huang Lu) The sales revenue of the main products increased in two areas and decreased in three areas. Sany Heavy Industry (600031.SH) saw a slight decrease in revenue in the first half of the year, but a nearly five-percentage-point increase in net profit compared to the same period last year.

Tonight, Sany Heavy Industry released the 2024 half-year report. The company achieved a revenue of 38.738 billion yuan in the first half of the year, a decrease of 1.95% year-on-year; the net profit attributable to shareholders of the listed company was 3.573 billion yuan, an increase of 4.80% year-on-year. At the same time, the net margin rose to 9.15%, an increase of 0.61 percentage points year-on-year.

In Q2, the company achieved a revenue of 21.076 billion yuan, a decrease of 2.94% year-on-year; the net profit attributable to shareholders of the listed company was 1.993 billion yuan, an increase of 5.28% year-on-year.

The financial report shows that the net cash flow from operating activities of the company was 8.438 billion yuan, an increase of 2204.61% year-on-year. In response, the company stated that this was mainly due to an increase in sales receipts and a decrease in purchase payments during the reporting period.

In terms of products, excavation machinery remains the main source of revenue for Sany Heavy Industry, with revenue of about 15.21 billion yuan in the first half of the year, accounting for nearly 40%. In the first half of the year, the revenue and net profit of this business increased by 0.43% and 0.58% respectively year-on-year, and the gross margin remained basically flat compared to the same period last year. In addition, the sales revenue of the company's road machinery in the first half of the year was 1.578 billion yuan, a 15.74% increase year-on-year.

In addition to the aforementioned two major product categories that saw an increase in revenue year-on-year, the other three major product categories showed varying degrees of decline compared to the same period last year. In the first half of the year, the sales revenue of the company's concrete machinery was 7.957 billion yuan, a decrease of 5.22% year-on-year; the sales revenue of lifting machinery was 6.62 billion yuan, a decrease of 10.10% year-on-year; and the sales revenue of piling machinery was 1.165 billion yuan, a decrease of 7.09% year-on-year.

In the first half of this year, the company's domestic revenue was approximately 14.29 billion yuan, a year-on-year decrease of 11.68%. The gross margin was 23.03%, a decrease of 1.44 percentage points compared to the same period last year.

The increase in overseas income has become the main force for the company to hedge against fluctuations in the domestic construction machinery cycle. In the first half of 2024, the company's main business achieved overseas sales revenue of 23.542 billion yuan, a year-on-year increase of 4.79%. Overseas income accounted for 62.23% of the main business income (compared to 56.88% in the same period last year).

Benefiting from the growth of overseas sales, price increases of some products, improvement of product structure, and the promotion of cost reduction and efficiency improvement measures, the company's overseas main business gross margin increased to 31.57%, an increase of 0.56 percentage points compared to the same period last year (31.01%).

Currently, the company's products' overseas sales cover more than 180 countries and regions. Sany Heavy Industry stated that in the first half of 2024, the Indonesian factory's second-phase expansion was completed, and production efficiency was effectively increased; the second-phase factories in India and South Africa are under construction in an orderly manner, and after being put into operation, they can comprehensively cover Southeast Asia, the Middle East, and other regions.

Sany Heavy Industry also mentioned in its semi-annual report that new energy and electrification are major opportunities for the development of the construction machinery industry. The company is comprehensively promoting the low-carbonization of engineering vehicles, excavators, loaders, and cranes, focusing on three major technological routes: pure electric, hybrid, and hydrogen fuel. It will continue to iterate new energy products. In 2024, the company will increase the coverage of new energy products and launch more than 80 new energy products.