Chinese crane enterprises for the first time ranked first in the world

The two latest lists, published at the same time, both show Chinese crane makers as the world's top crane maker, but the winners are not the same company.

The latest edition of THE ICM20 ranking of the world's largest crane manufacturers was released by THE KHL on Nov. 16. Xugong jumped three places from the fourth place in the world last year with sales of $5.66 billion, according to the official account of XUGong Group.

The list, released by KHL, a UK-based construction machinery information provider, shows four Chinese companies in the top 10. They are Xugong Machinery (000425.SZ) at the top, Zoomlion (000157.SZ) at the second, Zhenhua Heavy Industry (600320.SH) at the fifth and Sany Heavy Industry (600031.SH) at the sixth.

It is the first time a Chinese crane manufacturer has topped the list. At the end of last year, KHL released a ranking of the top 20 global crane manufacturers, and the top three are Liebherr, Koni and Zoomlion.

Crane refers to the vertical lifting and horizontal handling of heavy objects in a certain range of multi-action lifting machinery, also known as crane, navigation, crane.

According to KHL's International Cranes magazine, overall sales of the 20 companies on the list rose 11.8 percent. That's slower than last year's 18.6 percent increase, but "very strong double-digit growth" given the pandemic.

The magazine said the list had never changed so much, with 16 of the 20 companies on the list reporting falling sales. The four companies showing growth are all from China, helped by the fact that, after the early swift response to novel Coronavirus, China quickly continued its infrastructure development programme, with domestic manufacturers of all types of construction equipment and cranes working at full capacity to meet demand.

Chinese crane enterprises for the first time ranked first in the world

Xugong's sales reached $5.66 billion last year, up 74 percent from 2019, according to KHL disclosures.

On the same day, according to zoomlion's official account, China Construction Machinery magazine has also released a list of top 10 global crane manufacturers (including mobile cranes and tower cranes) for 2021.

Zoomlion topped the list with $5.345 billion in crane sales, up 68.05% year on year, followed by Xugong Machinery with $5.021 billion and Sany Heavy Industry fourth, according to the list.

Jiemian News asked zoomlion about the difference between the two lists. The staff replied that the turnover of hoisting machinery in the two lists may be different from the statistical methods of the two institutions. The specific operating income is subject to the company's annual report. Zoomlion will accept the data as long as it is objective and true, no matter what the ranking is.

Hoisting machinery and concrete machinery are zoomlion's two main products. According to the company's annual report last year, the annual revenue of lifting machinery 34.897 billion yuan, accounting for 53.6% of the total revenue proportion, year-on-year growth of 57.57%.

Xugong machinery's main products include lifting machinery, scraper machinery, piling machinery, etc. Among them, wheel crane is its main product, the world's first market share.

Xugong Machinery annual report disclosed that the revenue of hoisting machinery in 2020 was 26.489 billion yuan, accounting for 35.81% of the revenue, up 27.15% year on year; Construction machinery spare parts and others accounted for 23.87%; Piling machinery and scraper machinery accounted for 9.91% and 8.94% respectively.

Zoomlion's revenue was higher than Xugong's, according to the two companies' annual reports last year.

Since this year, affected by the cost of raw materials, infrastructure and other factors, the construction machinery industry has a downward trend, especially the excavator, known as a barometer of the plate, sales in October again hit the biggest year-on-year decline in the year.

Zoomlion said in the previous financial results, lifting machinery, concrete machinery and other post-cycle products of construction machinery, the next two years will continue to be in the peak period of equipment renewal, is expected to relay excavators, elongate the construction machinery industry boom cycle.

According to the construction machinery leading disclosure of the third quarter report, only Xugong machinery to achieve revenue and net profit growth.

Xugong said market demand remained strong during the reporting period and its product sales revenue increased significantly.

Data from Tianfeng Securities showed that in the first three quarters of 2021, XUGong machinery's consolidated gross margin was 15.83 percent, down 2.19 percent year-on-year. But the company's expense ratio, which includes sales and management expenses, fell 2.83 percent to 8.45 percent year-on-year, leaving more room for margin improvement.

Guoyuan Securities analysis said that the first three quarters of Xugong Machinery asset impairment and credit impairment losses totalled 620 million yuan, compared with 1.258 billion yuan in the same period last year, mainly due to the good collection of accounts receivable reduced.

On April 6 this year, XUGong Machinery announced that it planned to absorb and merge its controlling shareholder xUGong Construction Machinery Co., LTD. This move is considered as an important preparation for the overall listing of XUGong Group.

On November 8, XUGong machinery announced that it had received approval from the State-owned Assets Supervision and Administration Commission of Jiangsu Province for the merger of XUGong Construction Machinery Co., LTD.

By the close of Nov. 17, xUGong machinery shares closed at 6.06 yuan, up 0.83%; Zoomlion shares closed at 6.9 yuan, up 0.29 percent.

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