Zoomlion Reports First Quarter 2020 Results
CHANGSHA, China, May 18, 2020 /PRNewswire/ -- Zoomlion Heavy Industry Science & Technology Co., Ltd. (Zoomlion) announced financial results for its first quarter on April 29. Operating income was 9.066 billion yuan (USD 1.276 billion), 49.9 million yuan (USD 7.05 million) increase versus the prior-year quarter with strong growth seen in concrete machinery, mobile cranes and construction hoisting product sales. Net profit attributable to equity shareholders of the Company was 1.026 billion yuan (USD 145 million), delivering a 2.39% year-on-year growth.
Despite the COVID-19 pandemic, the safety and health of our workforce, partners, and communities, as well as continuing to operate with growth remain the company's top priorities. Zoomlion implemented several precautionary measures to protect the health of returning employees. The high return-to-work rate also ensured the company is meeting the strong and increasing market demand from home and abroad. New business forms such as "Cloud Marketing" have strengthened the business operation and led to better profit results. The revenue growth rate is significantly higher than the average performance in the industry.
Q1 Business Updates
Benefiting from improvements in product competitiveness, the company's stronger business sectors continue to grow steadily, while emerging business sectors have started to boom. The market share reached the highest level in company history.
During the first quarter, the sales volume of Zoomlion's concrete machinery products witnessed strong growth, retaining the leading position in the market. The sales volume of pump truck products increased by 25% year-on-year and reached the highest sales peak in recent years. The market share of mobile cranes has also grown significantly, with sales both at home and abroad, achieving a record high. Zoomlion continues to maintain the leading position in the construction hoisting category. The booming of the agricultural machinery industry has lead to increased sales of the company's agricultural machinery business sector, which significantly improved the company's profitability. New products such as rice seedling throwers have enjoyed a favorable sales figure in the market. Zoomlion actively explored the market in the earth moving machinery sector and achieved a significant year-on-year growth in sales, while the successful launch of the arm aerial work platform bring forth new growth opportunities to the company.
In response to COVID-19, Zoomlion actively took precautionary measures to ensure workplace safety prior to the resumption of work and production. Since returning to work from February 5, the company's production capacity has quickly recovered.
As of the report is being released, the company's production capacity has reached the same level as the time before the outbreak of COVID-19, with the total return-to-work rate reaching 100%. Sales in the second quarter are expected to achieve better growth.
Founded in 1992, Zoomlion Heavy Industry Science & Technology Co., Ltd. (01157.HK) is a high-end equipment manufacturing enterprise that integrates engineering machinery, agricultural machinery, and financial services. The company now sells more than 600 cutting-edge products from 55 product lines covering ten significant categories.