Zhan Chunxin: tower cranes are rapidly gaining confidence in the future

On June 3, Zoomlion (000157), one of the leading domestic construction machinery companies, convened the 2010 Annual General Meeting of Shareholders to address the default risk of shareholders after the sharp increase in credit sales in the construction machinery industry. Zhan Chunxin, head of Zoomlion It stated that the company has set a threshold for credit sales and will gradually increase the cash sales ratio from this year.

GPS monitoring of each construction machinery "our credit sales are doing quite well. From the current sales point of view, the proportion of credit sales is declining." Zhan Chunxin said at the shareholders meeting. It is understood that Zoomlion has introduced third-party supervision in the field of credit sales and can monitor the entire process in real time. The person in charge of corporate finance stated that this year the company will gradually increase the proportion of cash sales and further reduce the proportion of financial leasing sales in the company’s total sales.

“We have a threshold for credit sales customers. If the customer only has one construction machine, we will not issue a credit sales license to it. This means that customers who choose mortgage repayment here have multiple machines operating at the same time. This will reduce the company's risk." The person in charge said that unlike other construction machinery companies, Zoomlion also introduced GPS monitoring to strengthen risk prevention and control. "We can monitor each credit sales project through GPS. Machinery, to see if the machine is working, if it stays in place for a long time, then this machine may be in danger of being idle and we will prevent it in advance."

It is also a matter of concern to shareholders that tower cranes will have an overcapacity in the construction machinery industry this year. In this regard, Zhan Chunxin quite confidently said: "Construction machinery is a very big industry. At present, there are no ceilings for the development of the industry." However, Zhan Chunxin also told shareholders that there are indeed signs of overcapacity in the field of excavators. Zoomlion had long anticipated at the beginning of the year that tower cranes would be a bright spot for company development this year.

"The excavator has made money in previous years. Now there are many people who come in. Everyone will come in and cause problems. We have not given up excavators. We are currently stocking talents and waiting for the right time to intervene again." Zhan Chunxin said that with China's affordable housing With the completion of the project, the demand for tower cranes will increase significantly this year. Zoomlion’s efforts in previous years have finally paid off. Zhan Chunxin revealed to reporters that sales of tower cranes are increasing rapidly this year and are expected to rise to second place in the company’s product sales rankings.

Market value management will be put on the company's agenda For shareholders' questions about the company's market value management, Zhan Chunxin said frankly that he had no previous experience in market value management, but from this year onwards, market value management will be put on the agenda of the company and shareholders will receive good returns.

The reporter also learned that Zoomlion's overseas business has expanded smoothly. This year it will focus on overseas sales channels and build R&D centers overseas. Two overseas manufacturing bases are under construction. It is expected that this year's overseas business will account for the company’s business. The ratio will increase to 30%. “In the past, our goal was to sell 100 billion yuan in 2015, but from the company's good development, 100 billion yuan is an immediate matter. We are looking forward to 200 billion yuan to 300 billion yuan.” The future of Zoomlion Zhan Chunxin is full of confidence.