Announced by Sany Heavy Industry Company in last week, the sales revenue in 2015 of the company was challenged with a risk of dropping by over 90%, and even with the risk of deficit.

In the former years of the past ten years, Sany Heavy Industry Company performed in good manner. However, in recent years, the sales revenue of Sany Heavy Industry started its pace of sharp decrease. In the former three quarters of 2015, the net profits of Sany Heavy Industry was reported to reach less than 40 Million CNY, 97.58% declined comparing with that of the last year.

Based on the announcement, the principal factor leading to the decline of net profits was the worse overall marketing environment of Construction Machinery Industry in 2015. Impacted by the sluggish economic environment, for example, the falling pace of the increasing rate of macro-economy and the slowing-down of investment on real estate, the demand of Construction Machinery Industry turned into the downturn phase, leading to the poor performance of Sany Heavy Industry.

Sany Heavy Industry was not alone, since the whole industry was under the threat of the poor performance. Showed by the former three quarterly reports, several giant companies in Construction Machinery Industry were reported to underperform as well. Zoomlion Heavy Industry lost 0.52 Billion CNY, while Xuzhou Construction Machinery Group Co., Ltd. (XCMG) gained only 12.35 Million CNY.

“It is less possible that there would be any policy come out to stimulate the growth of economy. Now, the China Government has proposed a new concept of ‘Reform of the Supply Aspect’, which essentially is a structural reform, indicating the change of national policy. It is in a great possibility that 2016 would still be a harsh year for the Construction Machinery Industry.” said an analyst.