On July 7, XCMG announced that from July 2 to July 5, the company had sold 8.7168 million shares of industrial securities, which had an impact on the company's net profit in the third quarter of 2012 of about 67 million yuan
some analysts believe that the move of Xiamen Construction Engineering Co., Ltd. is intended to ease the tense capital chain and dress up its performance. Yesterday (July 9), wangzhiyong, the Secretary of the board of directors of Xiamen Construction Engineering Co., Ltd., explained to the daily economy that selling stocks has objectively increased profits, but this is not the original intention of the company. The main reason for the selling is the company's judgment of the stock price trend of its shares in order to obtain the maximum investment income. He also denied rumors that the company was preparing to lay off staff
many industry analysts said that since this year, the construction machinery industry has been hovering at a low ebb, and the price of XCMG has jumped to 100000 to 200000 yuan per ton, which is a microcosm of the industry. Declining performance and tight capital chain have become common phenomena
the profit from the five holdings reduction was 400million
the previous announcement showed that this was not the first time that Xiamen Industrial Group Co., Ltd. sold its Industrial Securities shares
in January 2011, pay attention to turning off the main motor source. From October to December, Xiamen Industrial Group Co., Ltd. reduced its holdings of 9.3509 million shares of Industrial Securities for the first time. In February, March and June 2012, XCMG issued three reduction announcements, reducing its holdings of 8.1036 million shares, 13.309 million shares and 7.074 million shares of Industrial Securities respectively. With the 8.7168 million shares sold this time, XCMG reduced its holdings of 46.5543 million shares of industrial securities, making a profit of about 400million yuan
behind the frequent stock market cash out behavior is the profit dilemma and tight capital chain encountered by XCMG. In the fourth quarter of 2011, XCMG achieved a net profit of 37.25 million yuan, a year-on-year decrease of 66%. The cash flow from operating activities in the current period fell sharply from 470 million yuan in the same period last year to -1.31 billion yuan. In the first quarter of 2012, the net profit of the company after deducting non recurring profits and losses decreased by 81% year-on-year, and the cash flow of current operating activities was -625 million yuan
according to the announcement, through the three reduction of industrial securities in the first half of the year, Xiamen Industrial Group Co., Ltd. increased its profit by about 240million yuan in the first half of the year
analysts believe that the company's desire to quickly replenish capital under the declining performance and tight cash flow is the main reason for the continuous sale of financial assets by XCMG. Duan Jiaxuan, a researcher in the machinery industry of CIC, said that at the end of 2011, the current liabilities of Xiamen Construction Engineering Co., Ltd. accounted for 89.58% of the total liabilities. The short-term debt repayment pressure is huge, and a large amount of funds are needed to alleviate the short-term capital pressure. The sale of financial assets by the company can not only quickly supplement the blood of funds, but also alleviate the pressure of debt repayment, create bright performance data, and play a supporting role in the subsequent financing of the company
the road to recovery is still long
sharply declining performance and tight capital chain. In the view of many industry analysts, the situation of XCMG is only a microcosm of the construction machinery industry, which is still hovering at the bottom of the cycle
"in the past two years, stimulated by the 4trillion policy, the performance of construction machinery enterprises has increased significantly. However, due to the macro-control of real estate, the reduction of infrastructure and other factors, the once high growth of China's construction machinery industry has entered a trough since 2011." An industry analyst said
according to the statistical analysis of international construction machinery, in June this year, although the sales volume of construction machinery increased year-on-year, the decline rate compared with the same period last year remained at about 20%. And "the recovery is still a base effect rather than demand driven, and there is no positive signal from the terminal response."
statistics also show that in the first quarter, the cumulative operating income of nine listed companies in the construction machinery industry was 45.2 billion yuan, a year-on-year decrease of 12.7%, a new low since 2009
among them, Liugong achieved an operating revenue of 3.425 billion yuan in the first quarter, a year-on-year decrease of 42.31%, and the tensile machine industry market has recovered significantly% after experiencing the economic crisis and increasing the total number of machines in Hainan's maritime border trade; The net profit attributable to the shareholders of the parent company was 148 million yuan, a sharp decline of 75.8% year-on-year. XCMG machinery achieved an operating income of 7.988 billion yuan, a year-on-year decrease of 17.83%, and the net profit attributable to the shareholders of the parent company was 740 million yuan, a year-on-year decrease of 27.27%
although Sany Heavy Industry and Zoomlion barely achieved a small increase of 5.3% and 3.2% in net profit, they are facing the pressure of high tension in the capital chain. As of the first quarter, the book monetary capital of Sany Heavy Industry was only 6.893 billion yuan, a decrease of 3.353 billion yuan over the beginning of the year and a decrease of 30.29% over the same period last year. However, accounts receivable reached 20.123 billion yuan, an increase of 8.8 billion yuan over the beginning of the period. Zoomlion's accounts receivable reached 14.193 billion yuan, a sharp increase of 21.74% over the beginning of the year
"this situation is mainly caused by the current sales mode of construction machinery products." An industry analyst said that construction machinery products generally adopt credit sales modes such as installment payment, mortgage loan or financial leasing, and the down payment ratio is controlled between 20% and 50%. However, under the circumstances of market downturn and fierce competition, many enterprises allow the down payment ratio of machinery to be lower and lower, hoping to expand sales. "But it also brings great repayment risk to the sales enterprises."
in order to supplement working capital, construction machinery enterprises have to "find money" to save themselves. In March this year, Zoomlion issued a listing and transfer announcement that it would sell 80% of the equity of Zoomlion environmental sanitation machinery subsidiary at a price of no less than 3.2 billion yuan. Liugong issued 1.3 billion yuan of corporate bonds on March 14, and sany is also trying to restart its H-share listing plan, planning to raise about US $2billion in Hong Kong
in the view of industry analysts, although financing can alleviate the tight capital chain of construction machinery enterprises, the recovery prospect of the industry is not optimistic. "Driven by the 4trillion stimulus policy, the construction machinery industry has shown a state of rapid development, and the industrial ownership has increased significantly. However, since 2011, with the economic downturn, the market demand has plummeted, the number of customer purchases has declined, and at the same time, the new production capacity is also large, resulting in the industry facing a period of low profits, and the recovery of the industry will be a long process." Duan Jiaxuan said
he said that under the current uncertain economic situation and the sluggish stock market and real estate market, there is no clear timetable for domestic economic recovery, and the recovery of the construction machinery industry will also be a long process. At present, construction machinery enterprises should strengthen the control of new production capacity, improve sales management, strengthen and expand the in-depth cooperation between the upstream and downstream of the industrial chain, improve the competitiveness of the company, and then maintain a leading level in the industry
however, in Wang Zhiyong's view, this view "views the industry too pessimistically". He said that at present, the industry is still in a low season, and the situation is expected to improve in the next few months. "Although there will be no explosive growth, there will be a slow growth process."