A Year of Records--Highlights from the SANY 2019 Annual Report

BEIJING,May 4,2020 -- SANY Heavy Industry ("SANY" or "the Company") released its 2019 annual report. Last year,SANY's total sales revenue reached USD 10.691 billion with 35.55% year-on-year growth. Total assets increased to USD 12.793 billion and net assets attributable to shareholders of the public company were USD 6.277 billion. According to the report,SANY achieved significant improvement in operating efficiency and per capita output,profitability and global market share,and the control of operating risks.

Sany Changsha Industrial park

Robust sales growth and increased global competitiveness

The report revealed that the SANY Excavator achieved sales revenue of USD 3.903 billion,an increase of 43.52% year on year. More than 60,000 excavator units were sold,ranking SANY first in the Chinese market for nine consecutive years. Meanwhile,SANY Concrete Machinery maintained its position as the world's leading brand with USD 3.278 billion in sales revenue,a 36.76% increase year-on-year,and SANY Hoisting Machinery hit USD 1.975 billion in sales revenue,resulting in a record high 49.55% year-on-year growth. In addition,SANY Crawler Crane defended its leading industry position,and SANY Piling Machinery grew sales revenue 2.54% year-on-year to USD 0.680 billion-- retaining its position as the top brand in China.

Considerable upgrades to operating capacity which reached record highs

Last year,SANY's gross margin rate increased 2.14 percentage points to 33.26%; while its net profit rate rose 3.9 percentage points to 15.19%,and net profits increased 83.23% year on year to reach USD 1.584 billion. SANY's cash flow reached historic highs of USD 1.874 billion – a 26.01% increase year on year.

Leaps in digital transformation

In 2019,SANY integrated technology to eliminate manufacturing defects while bolstering marketing ability,improving after-sales efficiency,and raising the online presence of clients and their equipment. Through digital transformation,SANY significantly improved operating capacity and per capita output,and now holds the leading position globally in construction machinery industry.

Steadily increased sales in overseas markets

Last year,SANY achieved USD 2.002 billion international sales revenue,up 3.96% year on year,with rapid growth in Indonesia,USA,Europe,Russia and Latin America. In addition,SANY further improved its response ability and service capability; and boosted its position in overseas markets by building better systems and enhancing market channel capacity.

Remarkable results in R&D and innovation

At the end of 2019,SANY had applied for 9,151 patents,7,298 of which were granted —ranking number one in the industry in China on both counts. SANY actively facilitated its R&D,launching a number of innovative,highly competitive products including its H-series excavators represented by SY550H,55t T-series crane trucks,and YM5440THBV 620C-10A concrete pump trucks. SANY also holds the leading industry position for smart product development,and made breakthroughs in its unmanned pavement builders cluster.

Significantly improved brand image and emerged in the Top 3 global construction machinery manufacturers

SANY also made great strides in brand awareness and perception in 2019. During celebrations for the 70th Anniversary of the P.R.C.,six SANY cranes raised China's national flag on Tiananmen Square. Meanwhile,SANY Heavy Industry became Fortune's Most Admired Chinese Company,and in November 2019,the Nihon Keizai Shimbun placed SANY among the Top 3 Construction Machinery Manufacturers worldwide.

Moving forward,SANY remains committed to its motto,"Quality changes the world". SANY will spare no effort to increase value for customers through its brand,products,marketing,and service,and will continue to defend its position in the highly competitive international market. All SANY executives and employees will continue making arduous efforts to build SANY into a world-class leader in the manufacturing industry.

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