On the evening of March 30, 2021, Zoomlion released the 2020 annual report. In 2020, the construction machinery industry will maintain a high level of prosperity, and the agricultural machinery industry will become more active. Zoomlion adheres to the concept of high-quality development. During the reporting period, the company achieved operating income of 65.109 billion yuan, a year-on-year increase of 50.34%; net attributable to shareholders of listed companies The profit was 7.281 billion yuan, a year-on-year increase of 66.55%. The company's strong growth in revenue and net profit set a new record and hit the best level in history.

At the same time, Zoomlion’s performance forecast for the first quarter of 2021 was also released. It is expected that the net profit attributable to the company’s shareholders will be 2.2-2.6 billion yuan during the period, an increase of 114.41% -153.39% over the same period of the previous year, the highest in the company’s history. Good profit in the first quarter.

Deepen the implementation of the focus strategy, the product echelon competes for breakthroughs

Zoomlion’s annual report shows that in 2020, the company will continue to deepen its digital transformation, insist on high R&D investment, comprehensively upgrade technological products, accelerate the expansion of the industrial echelon, continue to break through emerging sectors, and achieve the best sales scale and operating quality in history.

The substantial increase in revenue and net profit stems from the increase in the market share of Zoomlion's core products and the leading industry in profitability. In 2020, the company's construction machinery business achieved sales revenue of 61.383 billion yuan, a year-on-year increase of 49.75%. The growth rate of revenue in each segment was better than the overall level of the industry.

In 2020, the market share of Zoomlion’s leading products, concrete machinery and cranes, will increase, and the growth rate will be higher than the industry level. In terms of concrete machinery, the market share of long-boom pump trucks, truck-mounted pumps, and mixing stations still ranks first in the industry; in terms of crane business, the sales volume of truck cranes of 30 tons and above ranks first in the industry, and the market share of crawler cranes ranks first in the domestic industry , The sales of construction hoisting machinery hit a record high, and the sales scale steadily ranks first in the world.

At the same time, Zoomlion made new breakthroughs in potential market businesses such as earthmoving machinery and aerial work platforms. Earth-moving machinery has obvious late-comer advantages. The annual sales volume has increased to the sixth place of domestic brands. Aerial work machinery has continued to exert its strength. More than 40 "reliable, green and intelligent" products have been launched, and its market share will be ranked first in the industry in 2020. . In 2020, the company will make a new layout in the field of dry-mix mortar materials, create a new segment of Zoomlion New Materials, and enter the blue ocean market.

With the promotion of national policies and the increased activity of the agricultural machinery industry, the profitability of Zoomlion's agricultural machinery business has increased significantly, and a beautiful answer was submitted-its sales revenue was 2.644 billion yuan, a year-on-year increase of 67.01%. "Ace" products of agricultural machinery have emerged. The company's sugarcane machines, seedling throwers, and balers have won the first place in the market, and the domestic market share of wheat machines and dryers has remained the second in the industry. While intensively plowing agricultural machinery manufacturing, the company is accelerating its transformation into smart agricultural machinery and smart agriculture.

It is worth mentioning that in 2020, Zoomlion’s R&D expenses will increase by 120.67% year-on-year. The increased investment in independent innovation and R&D provides a strong guarantee for the company to build technologically-leading high-end products and consolidate its leading position in the market.

Effective cost and expense management and continuous optimization of operating level

The annual report shows that in 2020, the business indicators of Zoomlion will continue to improve healthily and steadily. During the reporting period, the company's gross profit increased by 43.28% year-on-year to 18.616 billion yuan; in terms of net profit, the company achieved a net profit of 7.281 billion yuan attributable to the parent in 2020, a year-on-year increase of 66.55%. The growth rate of net profit was better than the growth rate of revenue.

In the first half of 2020, due to the impact of the epidemic, industry customers' payment problems appeared. In 2020, the net cash flow generated by Zoomlion’s operating activities reached 7.422 billion yuan, achieving a year-on-year growth of 19.33%.

While the industry is improving and sales revenue has increased significantly, Zoomlion has strictly controlled various costs and expenses. During the reporting period, the company's period expense ratio including financial expenses, management expenses, sales expenses and R&D expenses decreased by 4.14% year-on-year. At the same time, corporate efficiency continues to improve, and the per capita output value of Zoomlion in 2020 will increase by 21.5% year-on-year.

Zoomlion said that based on effective cost management and improved operating levels, the company's profitability in 2020 has been greatly improved, creating more significant benefits and greater value for all shareholders.

In order to consolidate business quality and prevent and control operating risks, Zoomlion has increased the provision and write-off of impairment of accounts receivable in 2020. The company carefully considers the impact of the new crown pneumonia epidemic on long-age customers, comprehensively cleans up stock receivables, fully evaluates the impairment risks of more than 3 years of age, and writes off bad debt losses that have been confirmed to be uncollectible. After the provision and write-off of bad debts, the aging structure and quality of the company's ending accounts receivable have been significantly optimized.

Pre-happy for the first quarter of 2021, multiple positives can be expected throughout the year

Since 2021, the construction machinery industry has been driven by multiple positive drivers such as investment-driven, global economic recovery, increased industry concentration, and equipment environmental protection upgrades. Market demand has continued to be strong, and the industry currently maintains a high level of prosperity. Zoomlion also issued an announcement on the first quarter profit increase on the day of the release of the annual report: it is expected that the net profit attributable to the parent in the first quarter of 2021 will increase by 114.41% -153.39% over the same period of the previous year, and the deduction of non-net profit will increase by 137.88% over the same period of the previous year- 189.59%, setting the best first-quarter profit in the company's history.

In 2021, the company will continue to uphold the concept of "use Internet thinking to do business, and use extreme thinking to make products", with scale, profit, operating cash flow and sustainable growth as the traction, and adhere to the "active business strategy, sound financial plan". The business policy is to accelerate the transformation and upgrading of automation, digitization, intelligence, and greenization, make every effort to promote international development, accelerate the construction of a smart industrial city, and create an innovative and smart future enterprise with high quality. Editor/Sang Xiaomei