Not so easy: engineering giant 80% fell

The construction machinery industry started to get good results in this, even many large enterprises to expand overseas but that does not seem to be full of sound and colour, we see that behind these industries spoilers was nearly 80% decline in performance.

In the downturn in the real economy, the construction machinery industry continued to continue in winter. In March 31st, Xugong machinery and ZOOMLION disclosed the 2015 annual report successively, and the net profit declined by more than 80%.

Sany has not yet released its 2015 annual report, which had previously estimated net profit of about 709 million yuan in 2015, down 80%-90% from a year earlier.

In 2015, the operating income of Xugong machinery was 16 billion 658 million yuan, down 28.53% from the same period, and the net profit was 50 million 598 thousand and 200 yuan, down 87.76% from the same period. In ZOOMLION, its operating revenue was 20 billion 753 million yuan in 2015, down 19.72% from year to year, net profit of 83 million yuan, and 85.95% over the same period.

The ZOOMLION annual report showed that the amount of non recurrent profit and loss was up to 530 million yuan last year, of which the larger project was a government subsidy of up to 525 million yuan. Xugong machinery annual report shows that last year's non recurring gains and losses amounted to 900 million yuan, the larger amount of the project is non current assets disposal gains and losses (750 million yuan) and government subsidies (165 million yuan).

It is worth noting that although China Unicom and Xugong barely earn profits, they rely on government subsidies and other non recurring gains and losses to achieve this effect.

The reason for the decline in performance, Xugong said, affected by the macroeconomic growth rate down, fixed asset investment continued to slow down, the construction machinery market demand sluggish, the domestic construction machinery industry downturn and continuous adjustment, lack of overall demand for construction machinery industry, industry overcapacity, reshuffle.

In March 16th this year, 31 competitors of ZOOMLION announced that it will launch the Thai Property Insurance Limited by Share Ltd, to support industrial development entities. Two days later, 31 announced that the group's professional insurance company Jiulong property insurance company officially opened in Zhuhai hengqin.

Under the background of the downturn of construction machinery industry, industry giants are developing sideline to maintain performance and cash flow. One of them is the insurance industry that is currently in full swing in China.

On the transformation, for enterprises is indeed a rare good policy, but to see the industry market trends, can not be blind.

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