Slow demand, Fixed Asset Investment erode Sany’s 1st half net

SANY Heavy Industry Co, China’s leading machinery manufacturing company, saw its first half year net profit plunge by nearly half as domestic demand and fixed asset investment slowed while its overseas sales were also crimped by a global industry downturn, according to its semi-annual report yesterday.

The group’s net profit totaled 138 million yuan (US$20.7 million) in the first six months, down 48.6 percent from the same period last year. Its revenue fell 18.5 percent annually to 11.2 billion yuan.

But Sany still leads in global market for heavy machinery. The sales of Sany’s concrete machine parts totaled US$5 billion last year.

China’s machinery manufacturing industry took a hit from the slower growth in fixed-asset investment. From January to June the domestic fixed-asset investment grew 11 percent year on year, slower than the 12.5 percent rise a year ago.

The overseas markets didn’t help much for Sany this year as the sales contribution from overseas declined 2.6 percentage points compared with last year.

By Song Yingge