- Net profit up 198.11 percent from a year earlier to 2.58 billion yuan. 
- Revenue jumped 51.23 percent during the same period. 
- Gross margins jumped 4.68 percentage points to 30.01 percent. 

Zoomlion Heavy Industry Science and Technology Co, (000157.SZ) a leading 
Chinese maker of engineering and agricultural equipment, reported a near 
tripling in first-half earnings, thanks to an industry boom and leveled up 
overall competitiveness among corporate management and products launched during 
the period.

Zoomlion reported a net profit of 2.58 billion yuan during the first six months 
of 2019, up 198.11 percent from a year earlier. Revenue jumped 51.23 percent 
during the period. 

The stellar performance cemented Zoomlion's leading position in China's 
engineering equipment industry, where demand for the company's core products, 
including hoisting machinery and concrete pump machinery remained high. 

Internal restructuring and a revamp in the company's incentive and management 
systems injected vigor and enhanced competitiveness during the same period 
allowing the manufacturer to take better advantage of rising demand. 

Higher-profits in recent years have led to a boost in R&D, allowing Zoomlion to 
'roll out' more intelligent and reliable products in the first half that better 
meet clients' needs. Zoomlion's 4.0 series of products were particularly well 
received in this area. 

Zoomlion also accelerated the development of new engines of growth. Its aerial 
work platform remained popular, while its industry-leading, Lithium-powered 
products won 230 million yuan of orders on the first day of launch. At the same 
time, Zoomlion's earthwork machinery roared into the market with tremendous 
breakthrough, with sales expected to multiply on the back of an eco-system 
built around clients' needs. 

HIGHER PROFITABILITY 

Zoomlion not only grew in size but has also become more profitable. Its gross 
margins jumped by 4.68 percentage points in the first half, to 30.01 percent. 

Higher margins were the result of a shift toward products with higher 
technological barriers. The company's 4.0 series of intelligent products 
already account for over 80 percent of total sales. 

In addition, Zoomlion made strides in cutting costs. The company squeezed 
sales, management and finance expenses by 2.4 percentage points, contributing 
to higher profitability, while improving operational efficiency, with average 
days of receivable collection and inventory turnover dropping significantly - 
to 218 and 84 - respectively. 

Despite the increasing competitiveness in the market, Zoomlion continued to 
take risk-management seriously and continues to closely monitor risks 
associated with clients and businesses, through big-data and their Customer 
Relationship Management (CRM) system. 

The results see Zoomlion enjoying a healthier balance sheet and robust 
financial strength as it moves into the second half of the year with net 
operating cash flow up 124.19 percent from a year ago to 3.58 billion yuan, 
laying a solid foundation for quality growth.

Zoomlion will continue to provide superb products and services, and value for 
clients and shareholders through improvements in its engineering and 
agricultural business.   

About Zoomlion 

Founded in 1992, Zoomlion Heavy Industry Science & Technology Co., Ltd. 
(Zoomlion) (000157.SZ) is a high-end equipment manufacturing enterprise that 
integrates engineering machinery, agricultural machinery and financial 
services. The company now sells more than 460 cutting-edge products from 55 
product lines covering 10 major categories.

Source: Zoomlion