31 North West Co achieve 20% growth in Xinjiang
Recently, the news, 31 North West Co in Xinjiang to achieve a rare "contrarian growth", an increase of about 20%. As we all know, in the past two years, the construction machinery industry in China is not optimistic, and 31 can achieve good performance in Xinjiang, but also with the local situation is inextricably linked.
About 20% of the growth, does not seem to be prominent, but in the current Chinese construction machinery industry, it is rare "contrarian"; because from a quarterly situation in 2014, Sany and ZOOMLION revenue has dropped by about 10%.
31 northwest Heavy Industry Co., Ltd. (hereinafter referred to as North West Co 31) chairman Li Jianhua, has been asked from time to time, in Xinjiang "unsafe security"?
"Now (Xinjiang) an accident, there are a lot of people call home friends, mainland friends, ask me.". I said, it's good to answer the phone. They ask Xinjiang how, is it safe? I said, "you come, there's a problem. I'm in charge."." That's what Li Jianhua usually says.
Sany and Limited by Share Ltd (600031.SH) assigned Li Jianhua to Xinjiang to build a wholly owned subsidiary for several months after the central Xinjiang work forum in 2010 for Xinjiang and the Northwest market. December 30, 2012 officially put into production, planing out the middle of the two difficult to construct cold winter, "in fact, spent ten months."".
Sany's most important competitor, China's construction machinery, another two strong - ZOOMLION Limited by Share Ltd (000157.SZ, hereinafter referred to as ZOOMLION), and Xugong machinery Limited by Share Ltd (000425.SZ, hereinafter referred to as XCMG machinery) has not set up production base in Xinjiang.
This makes Sany's products in Xinjiang market share reached about 60% at present, there are about 50%. Specific to sales, "last year, sixteen seven hundred million, about 1200000000 yuan in the first half of this year, is expected to be more than 2 billion yuan in the year, profits can reach 100 million yuan, last year is basically breakeven."." Li Jianhua said.
About 20% of the growth, does not seem to highlight, but in the current Chinese construction machinery industry, is indeed a rare "contrarian"". As of August 27, 2014, none of the top three construction machinery companies in China released the semi annual report this year. From a quarterly situation, Sany's operating income decreased by 10.2%, net profit fell by 47.39%; ZOOMLION revenue decreased by 10.01%, net profit fell by 33.12%; Xugong machinery although revenue increased by 3.66%, but net profit fell by 8.17%.
Li Jianhua said, the entire construction machinery industry, the two years is indeed in recession, but not including Xinjiang Northwest Region - because, in recent years, fixed asset investment is still increasing rapidly, including the Central Asian market is also growing."
31 northwest is not large in the entire company. In 2013, Sany annual revenue of 37 billion 300 million yuan, 31 northwest contributed 4% of them. But Sany has launched a larger investment plan in Xinjiang, that is, into the field of coal chemical and coal chemical equipment production, "a German imported vaporization furnace, you have to sell eight hundred million, one billion, which is a high profit market."."
It is also understood that the 31 group has a large number of agents, in Yantai, Guangdong, Hubei, Jilin and many other regions of the country, 31 hand in hand with each agent has also established 6S center. Now, in North China, East China, Southern China, central, southwest and northwest regions, 31 of the ultimate service become incapable of further increase the main reason for the growth performance.
