Zoomlion Heavy Industry Science and Technology Co., Ltd.
中联重科
000157
Shenzhen Stock Exchange
Company Profile
(I) Forward-Looking Strategic Decision-Making and Efficient Strategic Execution Capabilities In formulating macro-level corporate strategies, the Company places great emphasis on researching global industry development trends. The Company positions its business development within the broader context of international competition, strengthens the forward-looking nature of its strategic direction, and ensures the enterprise stays on the right development path. (II) Global Network for R&D, Manufacturing, Supply Chain, Sales, and Services The Company prioritizes integrating high-quality resources on a global scale to achieve rapid expansion, and has built a worldwide network encompassing R&D, manufacturing, sales, and services. In terms of manufacturing bases, through the integration and layout of industrial parks at home and abroad, the Company has established an extensive global network of manufacturing facilities. In terms of product sales and service networks, the Company’s products now reach over 170 countries and regions worldwide. The Company has developed a global market layout, along with a global logistics network and spare parts supply system, with particular emphasis on setting up subsidiaries, branches, and permanent offices along the “Belt and Road” routes. As a key equipment manufacturing enterprise benefiting from the “Belt and Road” Initiative, the Company is committed to deepening its presence in overseas markets. It has established industrial parks or production bases in countries along the “Belt and Road” routes, such as Italy, Germany, Hungary, Mexico, Brazil, Turkey, and India. This has enabled the Company to implement its overseas development strategy of moving from “going global” to “rooting locally,” creating new growth opportunities for the business. (III) Developer of Industry, National, and International Standards; Leading Product and Technology Innovation in the Industry The Company traces its roots to the former Construction Machinery Research Institute of Changsha. With over 60 years of technological accumulation, the Company is recognized as the cradle of China’s construction machinery technology. As a standard-setter in China’s construction machinery industry, the Company has led, participated in, set and revised more than 490 national and industrial standards. It is also the first enterprise in China’s construction machinery industry to host a secretariat of an international standardization organization, representing the interests of the entire industry and enhancing China’s voice in the international market access for construction machinery. The Company boasts 8 national-level innovation platforms, including a National Enterprise Technology Center, a National Key Laboratory, a National Engineering Technology Research Center for Concrete Machinery, a National-Local Joint Engineering Research Center for Mobile Crane Technology, a National Industrial Design Center, a National-Local Joint Engineering Research Center for Modern Agricultural Equipment, and a National Postdoctoral Research Station. The number of these national-level innovation platforms ranks among the top in the industry. Mastering core technologies in the sector, the Company has developed a range of high-performance “extreme” products to meet the needs of major national engineering projects. (IV) Leading the Industry’s “Eco-friendly, Intelligent, and Digital” Development Trend The Company has always adhered to the technological innovation concept of “more intelligent, more eco-friendly, more industrial Internet,” and is committed to advancing development along the path of eco-friendliness, intelligentization, and digitalization. By continuously increasing R&D investment in eco-friendliness, intelligentization, and digitalization, and driven by breakthroughs in core technologies, the Company has reshaped its core competitiveness in the industry, strengthened its voice in international standard-setting, and maintained its position as a leader in industrial technological development. During the Reporting Period, the Company’s patent portfolio for eco-friendliness, intelligentization, and digitalization technologies reached a total of 5,974 patents, forming a solid technological barrier. Meanwhile, the Company has taken the lead in formulating a number of national green product evaluation standards for equipment such as concrete pump trucks, concrete mixing plants, and crawler cranes. The number of green standards it leads in developing ranks first in the industry, setting a benchmark for the industry’s green development. In recent years, Zoomlion has continuously set new industry records: launching the world’s first all-electric port tire crane, the world’s first 5-axle 38-ton all-electric folding-arm truck-mounted crane, and the world’s first 10kg hybrid harvester, among other landmark products. (V) Outstanding “Soft Power” in the Industry; Steadily Rising Global Brand Influence Since the establishment in 1992, the Company has secured a solid leading position in China’s equipment manufacturing sector and fully demonstrated the influence of Chinese independent brands in the international market. The Company’s core brand concept “Ideas Build the Future” has been widely accepted by society and highly recognized by the industry. The Company has always advocated the quality and brand concept of “Consistency in Appearance and Essence, Excellence in Quality,” striving to create maximum value for society, customers, employees, shareholders, and stakeholders while achieving harmonious win-win outcomes. The Company is a demonstration enterprise for industrial brand development designated by the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT), and its brand IP development project has been selected as a case study for industrial brand cultivation by the MIIT. (VI) Pioneer in Global Resource Integration and Leader in Global Independent Channel Development in the Industry Since 2001, the Company has successively acquired more than a dozen enterprises at home and abroad, pioneering the integration of overseas resources in China’s construction machinery industry. Through this series of M&As, the management team has accumulated rich experience in M&As, and summarized five core principles for successful corporate M&As: “Inclusiveness, Responsibility, Rules, Co-creation, and Shared Benefits.” The Company’s corporate culture has facilitated the smooth integration of acquired enterprises into its management system, attracted a large number of outstanding talents with extensive experience, and successfully addressed the management challenges associated with post-acquisition integration. In particular, during overseas M&As and resource integration, the Company adheres to corporate culture as a guide, maintains control over strategic decision-making, pursues in-depth synergy and potential tapping, and achieves the goals of “taking the lead, deepening engagement, and maximizing results”. Meanwhile, the Company has built over 30 first-level business airports and more than 430 secondary and tertiary network outlets worldwide, extending its network from regional centers to key cities.
Full description
(I) The Company's Principal Activities and Products The Company is primarily engaged in the R&D, manufacturing, sales, and services of construction machinery, agricultural machinery, and mining machinery. Construction machinery includes concrete machinery, crane machinery, earthwork construction machinery, pile foundation machinery, aerial work machinery, emergency rescue equipment, forklifts, etc. It mainly serves construction activities such as infrastructure construction and is widely used in fields such as urban construction, transportation construction, energy industry construction, national defense construction projects, agriculture, forestry and water conservancy construction, and industrial and civil buildings. Agricultural machinery includes tillage machinery, harvesting machinery, drying machinery, agricultural implements, etc. It mainly provides full-process services for agricultural production, including seed breeding, soil preparation, sowing, field management, harvesting, drying and storage. Mining machinery mainly provides full-process services for the exploration, extraction, transportation, separation and processing of mineral resources, including three major categories of products: open-pit mining equipment, crushing and screening equipment, and material conveying equipment. Among them, mining equipment includes mining drills, mining excavators and mining trucks; aggregate equipment includes a full range of mobile crushing and screening stations and fixed crushing and screening lines; material conveying equipment includes a full range of stackers and reclaimers, pipe belt conveyors, loading and unloading machinery, etc. (II) Industry Trends for the Company 1. Construction Machinery The construction machinery industry is characterized by high technical barriers, and is capital- and labor-intensive. Its manufacturing process features high product variety, small batch production, a large number of components, and complex manufacturing techniques, resulting in high entry barriers. The industry’s prosperity is closely tied to global fixed asset investment, infrastructure investment, real estate development investment, and the activity level of mining investment. In recent years, the market concentration of the construction machinery industry has been on the rise. Leading enterprises that have gained competitive advantages through technological accumulation are increasingly prominent in terms of R&D intensity, technical reserves, talent aggregation, customer resources, overseas expansion, channel development, industrial synergy, management experience, brand influence, and economies of scale. Resources continue to concentrate on these leaders, highlighting the "stronger-get-stronger" effect, and market concentration is expected to further increase. With the all-round improvement of China’s construction machinery industry development level, the process of domestic substitution has accelerated, and the export competitiveness of products has been continuously enhanced. Amid the restructuring of the global industrial chain, the industry is moving toward higher-end, globalization, and green development, gradually forming an industrial pattern of "the stronger-get-stronger". Driven by favorable factors such as the continuous expansion of overseas markets, the incubation of high-growth emerging industries, stricter environmental protection policies, and the deepening trend of machinery replacing manual labor, the cyclical fluctuations of the industry have been mitigated. In the era of intelligent interconnection, new technologies represented by 5G, big data, cloud computing, industrial Internet, and generative AI have been widely applied, providing strong impetus for the digital and intelligent development of construction machinery. Meanwhile, factors such as the weakening demographic dividend in China, the large-scale nature of modern construction projects, increasingly stringent environmental requirements, and customers’ higher demands for product value have all urged the industry to accelerate its transformation and upgrading toward digitalization, intelligence, and green development. In addition, the implementation of China’s "dual carbon" strategy (carbon peaking and carbon neutrality) has opened up new prospects for the industry’s green development and brought about era-defining opportunities. 2. Agricultural Machinery The market demand for agricultural machinery exhibits distinct regional and seasonal characteristics. The industry’s growth rate is mainly affected by factors such as crop planting area, government subsidies for agricultural machinery purchases, and fluctuations in grain prices. In recent years, Chinese agricultural machinery enterprises have increased R&D investment, gradually filling the gap in the independent production of high-end agricultural machinery products and narrowing the gap between China’s agricultural machinery industry and advanced international standards. Currently, domestically branded agricultural machinery products offer a richer variety and improved performance. As the trend of full-process and all-round mechanization in crop cultivation continues to develop, and with the government’s strengthened policy support for industries such as "high-end equipment" and "smart agriculture," agricultural machinery enterprises are continuously seeking development and breakthroughs in innovation and building core competitive advantages. This will bring market opportunities for mid-to-high-end agricultural machinery products and smart agriculture. 3. Mining Machinery The domestic mining machinery market has maintained a growth momentum, and the industry is accelerating its in-depth transformation toward larger scale, intelligence, and green development, entering a critical stage of shifting from scale expansion to quality improvement. Driven by both intelligence and green development, the overseas mining machinery market has entered a high-prosperity cycle. The demand release from emerging markets and continuous breakthroughs in technological innovation constitute the core drivers of growth. Leveraging the advantages of a complete industrial chain, Chinese mining machinery enterprises are accelerating their penetration into the global market and reshaping the global competitive landscape.