Overseas contributions account for 64% of revenue, Sany Heavy Industry accelerates globalization: net profit increased by over 40% last year

AI Q · Why is Sany Heavy Industry’s overseas business gross margin nearly 11 percentage points higher than in China?

On March 30, Sany Heavy Industry (600031) released its latest annual report. In 2025, the company achieved revenue of RMB 89.231 billion, up 14.73% year over year; net profit was RMB 8.408 billion, up 41.18% year over year. The company said that during the reporting period, revenue growth was mainly due to year-over-year increases in both domestic and international sales. Profit growth benefited from the sustained recovery in market demand and the effective implementation of the company’s cost reduction and efficiency improvement measures.

The announcement shows that in 2025, Sany Heavy Industry’s engineering machinery products achieved output of 117,554 units, up 17.75% year over year; and sales of 114,115 units, up 16.82% year over year.

Overseas markets have continued to be the core engine driving Sany Heavy Industry’s performance growth. In 2025, the company accelerated its comprehensive operational upgrade from “product exports” to “industrial overseas expansion.” Full-year overseas revenue was RMB 55.856 billion, up 15.14% year over year, accounting for about 64% of total revenue. At the same time, benefiting from the expansion of overseas sales scale, improvement in product mix, and the ongoing implementation of cost reduction and efficiency improvement initiatives, the gross margin of its overseas business rose to 31.64%, nearly 11 percentage points higher than the domestic market.

By region, Africa maintained a high-growth momentum, with a year-over-year growth rate exceeding 55%, and revenue of about RMB 8.31 billion. The Asia-Pacific and Oceania region, as the company’s largest overseas market, generated revenue of RMB 23.89 billion, up 16.17% year over year. The Europe and the Americas regions achieved revenue of RMB 12.5 billion and RMB 11.16 billion, respectively, with year-over-year growth of 1.5% and 8.52%. As of the end of 2025, the company’s overseas product sales had covered more than 150 countries and regions.

In addition, on October 28 last year, Sany Heavy Industry was officially listed on the Main Board of the Hong Kong Stock Exchange. This was a key step the company took in its capital layout and globalization strategy, marking the successful establishment of an A+H dual-platform listing structure. According to the disclosed information, from 2022 to 2024, the company’s overseas revenue compound annual growth rate reached as high as 15.2%.

By business line, in 2025, Sany Heavy Industry tapped into the domestic market share of leading products such as excavators and concrete machinery, maintaining the #1 position domestically, while its global share also increased in parallel. Specifically, excavators achieved revenue of RMB 34.544 billion, up 13.73% year over year; concrete machinery revenue was RMB 15.738 billion, up 9.53% year over year; and revenue for lifting machinery, road machinery, and piling machinery was RMB 15.563 billion, RMB 3.757 billion, and RMB 2.82 billion, respectively, with year-over-year growth of 18.67%, 25.18%, and 35.81%, respectively.

Of note is that the company’s new energy products such as electric concrete mixers and electric dump trucks saw explosive growth. Full-year sales revenue of new energy products reached RMB 8.64 billion, up 115% year over year.

Also, during the reporting period, the net cash flow from operating activities was RMB 19.98 billion, up 34.8% year over year, reaching the highest level in history.

In its annual report, Sany Heavy Industry stated that in 2025, China’s domestic engineering machinery industry entered a new stage of mild recovery and structural optimization. Under the joint catalysts of the “large-scale equipment renewal” policy, a package of incremental macroeconomic policies to support demand, and the trend of “machines replacing people,” domestic market sentiment is steadily recovering. The overseas engineering machinery market has demonstrated strong resilience, with robust demand in emerging markets such as Africa and Southeast Asia. The global share and profitability of China’s engineering machinery manufacturers have continued to improve steadily.

Judging from excavator data, which reflects the engineering machinery industry’s “barometer,” in 2025, domestic excavator main manufacturers sold a total of 235,300 units, up 17% year over year. Among them, domestic sales were 118,500 units, up 17.9% year over year; exports were 116,700 units, up 16.1% year over year.

Looking ahead to 2026, Sany Heavy Industry believes the engineering machinery market is expected to continue improving. In the domestic market, demand such as infrastructure investment, new-type urbanization, and mining and water conservancy engineering will be further released under policy support. Combined with the gradual implementation of ultra-long-term special treasury bonds and local debt-reduction funds, the market is expected to accelerate its recovery. In addition, the increased penetration of new energy and intelligent products will unleash massive demand for upgrades and replacements, further promoting industry growth. In the overseas market, global infrastructure and mining investment will maintain relatively high levels of activity. Despite uncertainty arising from geopolitical issues and trade barriers, China’s engineering machinery manufacturers are achieving a dual leap in both global market share and brand value through active “localization” global expansion and technological innovation.

As of the midday close on March 31, Sany Heavy Industry was trading at RMB 19.28 per share, with a total market capitalization of RMB 177.28 billion.