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produced by radar finance hongtu | edited by li yihui | deep sea

the leading engineering machinery company with a market value of hundreds of billions of yuan was sold off in a "group" manner.

recently, sany heavy industry announced that the company's shareholders xiang wenbo, zhou fugui, yu hongfu, liu hua, liu daojun, sun xinliang and xi qing plan to reduce their holdings by a total of 7.5491 million shares through centralized bidding or block trading due to personal financial needs.

among the above-mentioned persons who reduced their holdings, there are not only persons acting in concert who have a concerted action relationship with the company's controlling shareholder, sany group co., ltd., but also the company's chairman, vice chairman, president, senior vice president and other directors, supervisors and senior management personnel.

as the news of the share reduction came out, sany heavy industry opened low and continued to fall on september 9, closing down nearly 6%. the current total market value is about 129.2 billion yuan, which has shrunk by more than 260 billion yuan compared with its peak of over 390 billion yuan.

as the market value fell from its highs, sany heavy industry's revenue also declined. in 2020, the company's revenue exceeded 100 billion yuan for the first time. at that time, liang wengen, the founder of sany heavy industry, said that sany was facing a new and unprecedented opportunity, and promised that when sany's total market value reached 1 trillion yuan, a bonus of 5 million yuan would be given to each "gold medal employee".

but by 2023, the company's annual revenue will be only 74 billion yuan, and in the first half of this year it fell again by 2.14% year-on-year. the decline in performance has also made the total market value of the sany group even further away from the trillion yuan target. currently, the total market value of the three sany listed companies is less than 170 billion yuan.

shares were sold off by directors, supervisors and senior executives

on september 9, sany heavy industry's stock price opened low and continued to decline, with a sharp drop during the trading session, and was still down 5.52% at the close.

on the news front, the company disclosed the plans of shareholders and directors, supervisors and senior managers to reduce their holdings. according to the announcement, as of the date of disclosure, the company's shareholders xiang wenbo, zhou fugui, yu hongfu, liu hua, liu daojun, sun xinliang and xi qing held 32.1932 million shares, 3.02 million shares, 4.1342 million shares, 1.6866 million shares, 794,800 shares, 663,800 shares and 400,000 shares of the company respectively.

the main content of the share reduction plan is that xiang wenbo, zhou fugui, yu hongfu, liu hua, liu daojun, sun xinliang and xi qing plan to reduce their holdings by no more than 5 million shares, 755,000 shares, 908,000 shares, 421,600 shares, 198,600 shares, 165,900 shares and 100,000 shares respectively from october 9, 2024 to january 8, 2025 (no share reduction during the window period) through centralized bidding or block trading due to personal financial needs. the reduction price will be determined according to the market price.

in summary, the total number of shares that the seven shareholders plan to reduce their holdings reaches 7.5491 million shares, and the shares to be reduced come from private placement, equity incentives and centralized bidding, etc.

in addition, the above-mentioned persons who reduced their holdings are not ordinary shareholders of the company, but several current directors, supervisors and senior managers of the company. among them, xiang wenbo is the director and chairman of the company, and xiang wenbo and zhou fugui are both major shareholders of sany group co., ltd. (hereinafter referred to as "sany group"). according to the relevant provisions of the "management measures for acquisition of listed companies", xiang wenbo, zhou fugui and sany group have a concerted action relationship.

the semi-annual report shows that as of the end of june this year, sany group directly held 29.23% of sany heavy industry's shares and was the company's controlling shareholder.

in addition, the 2023 annual report shows that yu hongfu, who plans to reduce his holdings, serves as the company's director, vice chairman, and president, liu hua serves as the company's senior vice president and financial director, liu daojun serves as the company's chairman of the supervisory board, sun xinliang serves as vice president, and xi qing has served as the company's independent director since april 2022.

regarding the impact of the plan insisted by directors, supervisors and senior managers on the company's stock price, relevant company personnel responded to the media that the stock price (and the reduction plan) have certain reasons (relationships), and (the company announced) that relevant leaders have a reduction plan, which the market believes is a big negative.

the insider said that the leaders can only reduce their holdings by 25% each year. when the leaders had the idea of ​​reducing their holdings in the early stage, the company had already delayed it as much as possible. now the reduction has been put off to the last three months because the leaders have personal funding needs. if they don’t disclose it, there will be no chance this year. from the perspective of the leaders, the reduction has little to do with the company’s operations, it is just because of their personal funding needs.

in fact, before this share reduction, sany heavy industry's director yi xiaogang and vice president zhang ke announced the completion of the share reduction on july 31, 2024, reducing 773,000 shares and 209,700 shares respectively, corresponding to cash amounts of 12.4208 million yuan and 3.3606 million yuan.

in the secondary market, sany heavy industry's performance was also disappointing. its latest market price was 15.24 yuan per share, a sharp drop from its previous high of more than 46 yuan per share.

operating income has been declining year by year

the semi-annual report shows that sany heavy industry is mainly engaged in the research and development, manufacturing, sales and service of construction machinery. the company's products include concrete machinery, excavators, lifting machinery, pile-driving machinery, and road machinery. among them, concrete equipment is the world's no. 1 brand, and leading products such as excavators, large-tonnage cranes, rotary drilling rigs, and road equipment have become china's no. 1 brand.

as an industry closely related to industries such as real estate, the prosperity of the construction machinery industry is also significantly affected by downstream related industries.

guosheng securities recently released a research report stating that, judging from annual data, in this round of downward cycle in china, the sales volume of excavators last year was close to 90,000 units, which is less than 1/3 of the historical high of nearly 300,000 units in 2020; and in the previous downward cycle, the bottom of the cycle in 2015 was 50,000 units, which is also less than 1/3 of the cycle high of 180,000 units in 2011.

liugong, the leading domestic loader company, also responded to investors in the first quarter that after the domestic construction machinery industry market size reached a temporary peak in 2020, it has declined sharply for three consecutive years due to macroeconomic fluctuations and declining demand, which has indeed had a major impact on the company's production and operations.

for sany heavy industry, it also faces pressure in the industry's downward cycle. according to ifind data from tonghuashun, the company exceeded the 100 billion yuan sales peak in 2020 and 2021, with total operating revenues reaching 100.054 billion yuan and 106.873 billion yuan respectively.

starting from 2022, the company's total operating revenue has declined for two consecutive years. the total revenue in 2022 was 80.822 billion yuan, a year-on-year decrease of 24.38%; the net profit attributable to the parent was 4.273 billion yuan, a year-on-year decrease of 64.49%.

in 2023, the domestic construction machinery market is still in the bottoming period, but it is showing an accelerated recovery trend, and the decline has narrowed significantly. according to the financial report, sany heavy industry achieved a total operating income of 74.019 billion yuan in the whole year, a year-on-year decrease of 8.44%; the net profit attributable to shareholders of listed companies was 4.527 billion yuan, a year-on-year increase of 5.53%.

although the revenue scale has dropped from 100 billion yuan to 74 billion yuan, it is worth noting that in response to adjustments in the domestic market, sany heavy industry has continued to focus on overseas markets, thus avoiding a continued expansion of the company's revenue decline.

the financial report shows that in 2023, the company achieved overseas sales revenue of 43.258 billion yuan, a year-on-year increase of 18.28%. the company has established an overseas market channel system covering more than 400 overseas subsidiaries, joint ventures and outstanding agents.

at the same time, the high gross profit margin of overseas business enables sany heavy industry to maintain strong profitability when revenue declines. in 2023, the company's international business gross profit margin was 30.78%, much higher than the 23% in the domestic region.

in the industry's view, affected by factors such as the continued adjustment of the real estate market, domestic demand in the construction machinery industry is still hovering at the bottom in the first half of this year.

sany heavy industry's semiannual report shows that during the reporting period, the company achieved operating income of 38.738 billion yuan, a year-on-year decrease of 1.95%; net profit attributable to shareholders of listed companies was 3.573 billion yuan, a year-on-year increase of 4.8%.

although the decline in revenue has further narrowed, the high growth of the company's foreign market in the first half of the year came to an abrupt halt. during the reporting period, the company's main business achieved overseas sales revenue of 23.542 billion yuan, a year-on-year increase of 4.79%. in contrast, in the first half of 2023, the company achieved international sales revenue of 22.466 billion yuan, a significant year-on-year increase of 35.87%.

the company did not directly explain the reasons for the slowdown in overseas revenue. in terms of regional distribution, sany heavy industry's revenue in the americas region decreased by 4.19% year-on-year in the first half of the year, making it the only overseas market to experience a decline.

some analysts believe that due to the high base last year, the growth rate of my country's construction machinery export volume and export value began to slow down this year, and trade frictions have imposed certain restrictions on exports in some regions.

liang wengen's trillion-dollar dream has not yet been realized

tianyancha app shows that sany heavy industry was established in 1994 and is located in beijing with a registered capital of 8.475 billion yuan. the company was listed on the shanghai stock exchange in july 2003.

the soul of sany heavy industry is undoubtedly liang wengen, who has retired behind the scenes. public information shows that liang wengen was born in daotong village, maotang town, lianyuan city, hunan province in 1956. liang wengen's original name was "liang yonggen", and later he changed "yong" to "wen".

after graduating from high school, the college entrance examination had not yet been resumed, so liang wengen returned to his hometown and became a farmer. later, he served as a village cadre.

in 1978, the college entrance examination was resumed. liang wengen was admitted to the central south university of mining and metallurgy (now central south university) with a major in materials science after two attempts. after graduating from university, he was assigned to the hongyuan machinery factory in the mountainous area of ​​lianyuan city. in this state-owned machinery factory, liang wengen met tang xiuguo, mao zhongwu, yuan jinhua and other veterans of sany heavy industry.

in 1986, 30-year-old liang wengen was already a deputy-division-level cadre of this department-level state-owned enterprise and the deputy director of the economic restructuring committee of hongyuan machinery factory. however, he chose to resign and start his own business, raising 60,000 yuan with several friends.

but the road to entrepreneurship was not smooth. at first, they tried to sell sheep, make wine, and make fiberglass, but all ended in failure. after analysis, liang wengen hoped to create a product that was urgently needed in the market but not in supply, and finally set his sights on welding materials.

to this end, they established the lianyuan maotang welding material factory and worked hard in the basement to adjust the formula. after hundreds of formula adjustments and dozens of process changes, they successfully developed 105 copper-based solder. facing quality problems, liang wengen, with the help of his university teacher, successfully launched the improved version of 105 copper-based solder and it was a great success. his small factory achieved a revenue of 10 million yuan in 1989.

in 1991, liang wengen changed the name of the company to "sany group", invited professional manager xiang wenbo to join the management team, and moved the headquarters to changsha, the capital of hunan province, where he began to develop engineering machinery products such as concrete pumps.

since then, sany started to make great strides forward, and from 1993 to 2003, it leapt to the forefront of china's construction machinery industry in just 10 years.

on july 3, 2003, sany heavy industry was listed on the shanghai stock exchange. according to china news service, in september 2011, hurun research institute released the top 50 of the "hurun rich list", and liang wengen became the "china's richest man in 2011" for the first time with a wealth of 70 billion yuan.

in 2012, sany heavy industry acquired putzmeister, the world's leading brand of concrete machinery, and took the first step towards internationalization.

according to media reports, after sany heavy industry's revenue exceeded 100 billion yuan in 2020, liang wengen made a promise at the "sany festival" the following year: "when the total market value of sany's listed companies reaches one trillion yuan, a bonus of 5 million yuan will be given to each gold medal employee."

on february 28, 2023, liang wengen once again proposed that sany group start its third entrepreneurial journey and achieve a market value of one trillion yuan.

how can the trillion-yuan target be achieved? in liang wengen's view, the key lies in digitalization and international transformation. however, as he grew older, liang wengen retired and resigned as chairman of sany heavy industry and sany group.

currently, the sany group has three listed companies. in addition to sany heavy industry, there is sany international, which is listed on the hong kong stock market and mainly deals in coal mining machinery and port machinery; and sany heavy energy, which was listed on the science and technology innovation board on june 22, 2022 and mainly deals in the production and sales of wind turbines, and the construction and operation of wind farms.

as of september 9 this year, the combined market value of the three companies was close to 170 billion, which is still a long way from a trillion-yuan market value. can the successors achieve the trillion-yuan market value that liang wengen left unfinished? only time will tell.