SANY On Track - Highlights from the SANY 2020 Annual Report
BEIJING, April 6, 2021 /PRNewswire/ -- SANY Heavy Industry released its 2020 annual report. Last year, SANY's total sales revenue reached 15.14 billion USD with 31.29% year-on-year growth. Total assets increased to 19.25 billion USD, and net assets attributable to shareholders of the public company were 8.62 billion USD.
Continuous growth in core competencies
The report revealed that the SANY excavator achieved a sales revenue of 5.721 billion USD, an increase of 35.85% year-on-year, ranking at the top of the Chinese market for 10 consecutive years. Excavator production in 2020 exceeded 90,000 units, the most among all manufacturers globally. Meanwhile, SANY concrete machinery maintained its position as the world's leading brand with 4.124 billion USD in sales revenue, a 16.6% year-on-year increase, and SANY hoisting machinery, the top brand in China, hit 2.959 billion USD in sales revenue, a 38.84% year-on-year increase. In addition, SANY piling machinery grew in sales revenue by 41.9% year-on-year to 1.04 billion USD, retaining its position as the top brand in China. As for road machinery, sales revenues increased by 30.59% to 430 million USD, with the domestic market share of SANY pavers maintaining its number one rank and that of graders and rollers enjoying a clear improvement.
Improvements in operating capacity
The net profits attributable to shareholders reached 2.35 billion USD, achieving a 36.25% year-on-year growth. The period costs, including those on sales, administration, research and development, and financial affairs, dropped by 1.84%. The company made concrete steps in improving its risk management capability as the overdue loans ratio continued to decrease and cash flow increased by 12.45% to 2.04 billion USD. While the inventory turnover was 4.17 times/year in 2020, 0.23 more than that of 2019, the receivables turnover fell to 80 days from 120 days in 2019.
Progress in digital transformation
Among SANY's flagship factories, technologies such as vision recognition, process simulation and heavy-duty robotics were widely applied to boost productivity and cut labor costs. The levels of standardization, digitization, automation and intelligence were significantly improved upon in key business processes. Integrated operating software was introduced to interconnect all links in business including manufacturing, supply chain, procurement, R&D, and marketing and sales. Ten new electrically powered products have rolled off the line including excavators, cranes, truck mixers, dump trucks and road machinery. Self-driving technology, remote control, intelligent operation, big data analysis and 5G became new elements in product design.
Moves on internationalization
The year 2020, hit by the pandemic, saw a 27% reduction in the global market for construction machinery. However, SANY's global businesses maintained a steady growth in the context of the pandemic, achieving an increase of 3% in year-on-year sales topping 2.4 billion USD. A major growth of over 30% was seen in the overseas market share of SANY excavators, especially in North America, Europe, India and Southeast Asia. Progress was made in the development of overseas market channels, overseas service capability, global dealer networks and overseas service and spare parts supply system.
Remarkable results in R&D and innovation
Incentive policies were introduced to facilitate technical innovations on all product lines. In 2020, R&D investments increased by 33.2% to 954 million USD, accounting for 6.3% of the company's total annual revenue. The number of R&D employees reached 5,346, a 69% increase over 2019. By the end of 2020, SANY had applied for 10,278 patents and authorized 7,613, more than any other single company in China in 2020. Some representative new products include:
- The super-large excavators SY870, SY980 and SY1250
- The new-generation product line of intelligent excavators
- The 4,000 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 customers through its brand, products, marketing, and service and will continue to defend its position in the highly competitive international market. All SANY executives and employees will continue making the utmost effort to make SANY a world-class leader in the manufacturing industry.
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