ZOOMLION transformation sanitation machinery net profit reduced by six to 70%       

The fixed assets investment, especially the real estate investment growth continued to slow down, the construction machinery industry is still sluggish in the first half of this year. ZOOMLION

This effect, net profit reduced by six to 70%, while the sanitation machinery sales performance is good, it can be described as a wisp of sunshine under the cloudy weather.

ZOOMLION (000157.SZ) 15 released the first half of the performance prediction, net profit fell 60%~70%, while sanitation machinery and overseas good momentum of development, has become a bright spot in the transition. The first quarter of 2014, the company's cost of sales for the 5 consecutive quarter in the least, for 508 million yuan, while the lowest value since the management fees is the two quarter of last year, 407 million yuan.

ZOOMLION's announcement shows that the first half of this year, the net profit attributable to shareholders of listed companies 871 million 800 thousand yuan ~11.624 million yuan, down 60%~70% last year, basic earnings per share of 0.11 yuan ~0.15 yuan. Among them, the concrete machinery and lifting machinery products revenue fell year on year, is more obvious, so that the overall net profit dropped significantly.

In the first half of this year, ZOOMLION sanitation machinery products revenue and foreign sales revenue achieved better growth. See the editor from the previous 2013 earnings, the company's environmental sanitation machinery revenue reached 3 billion 280 million yuan, in several major parts (such as ZOOMLION concrete machinery, lifting machinery, pavement and piling machinery, earthmoving machinery leasing, etc.) ranked third in revenue income ratio was 8.52%; and in 2012, sanitation machinery accounted for only 6.99%, 1 billion 410 million yuan. During the past year, the income of sanitation machinery has increased by more than 1 times, and the main profit has increased from 396 million yuan in 2012 to 947 million yuan. At the same time, the company's overseas income from the previous year's 1 billion 280 million yuan, rose to 2 billion 790 million yuan last year, an increase of 1.17 times.

ZOOMLION said the company has successively adopted a series of measures to cut costs and lowering the efficiency of these measures, in effect gradually, will affect on the overall operation of the company. The transformation of environmental sanitation machinery, is a response to the national policy of environmental protection, on the other hand is in the slow development of demurrage engineering machinery to reduce pressure, to find new development direction.