SANY released its semi-annual financial report early. Do you know why? Which child with good grades doesn’t rush to tell their parents? In the first half of 2025, SANY’s net profit soared by 46%! Net profit reached 724 million USD, with half-year revenue of 6.185 billion USD, up 15%. The net profit for the full year of 2024 was 830 million USD, almost earning the same amount in just half a year! There are three main reasons for this:
- Slow recovery in China’s industry
- Continued global expansion
- Active internal management, increased marketing expenses, reduced internal management costs, and R&D expenses.
- From a regional perspective: Overseas revenue serves as the primary growth engine, accounting for over 60% of the total revenue, with African revenue increasing by over 40%.
- From the perspective of product lines: excavator revenue amounted to 2.43 billion USD, a year-on-year increase of 15%, contributing profits of 305.6 million USD
As for the same period, CAT’srevenue declined by 5%, and operating profit dropped by over 20%. Due to the increasing cost, tariffs impact and pricing realization.
Is it because Chinese manufacturing has become too strong, impacting the industry leader?
In the face of China’s robust and well-developed industrial chain, Chinese companies have been continuously gaining more market share, while the market share of long-established foreign companies has been declining. Currently, in the mid-to-low-end market segments, they are becoming increasingly weaker and tend to avoid direct competition with Chinese enterprises, instead focusing more on maintaining prices and market share in the high-end market. Additionally, Chinese companies are placing greater emphasis on after-sales service and customer satisfaction to win over customers’ hearts and capture more market share.
In the next issue, I will discuss the changes in the Komatsu excavator index in China. Stay tuned!