Zoomlion Vice President Sun Changjun revealed in a conference call with reporters that the company will accelerate the development of its environmental sanitation machinery, agricultural machinery, heavy truck and financial businesses in the future, with the environmental sanitation machinery segment to be expanded and relocated to a new production base in August this year.
　　“The machinery industry has been rather sluggish this year, and we have been thinking about whether there should be some new breakthroughs,” Sun Changjun said, adding that the company has high hopes for the environmental sanitation machinery segment.
　　Environmental sanitation machinery is now under Zoomlion, with products including sweepers, snow removal vehicles and other complete sets of equipment. Despite generating revenue of 3.03 billion yuan last year, it ranked third among the eight business segments in terms of sales revenue. “We plan to continue developing the production and manufacturing of equipment for construction waste and sewage and sludge prevention and treatment.”
　　He said that at present the production of the environmental sanitation machinery segment is mainly located in the old Zoomlion Science and Technology Park, a park of more than 180 mu that houses many product lines, and the development of environmental sanitation machinery faces bottlenecks. Therefore, the company will fully relocate the environmental sanitation machinery production line to another site covering 600 mu in August this year. “The new industrial base is still in Changsha, about a 15-minute drive from Zoomlion's Lugu Industrial Park.”
　　Sun Changjun said that the reason Zoomlion pays attention to the development of environmental sanitation machinery is that, in addition to meeting the needs of domestic urbanization and the huge domestic demand for environmental protection products, it can also raise Zoomlion's valuation.
　　“The valuation of domestic listed machinery companies has dropped from 12 times to 8 times or 5 times, while the valuation of some listed environmental sanitation companies is even above 30 times. Therefore, increasing investment in environmental sanitation machinery can also enhance our company's recognition in the capital market.”
　　In addition to the above segments, Zoomlion will also enter two new markets: agricultural machinery and heavy trucks. “The agricultural machinery market is huge, and the mid-to-high-end segment is basically dominated by Japanese and American companies. Although China's own agricultural machinery companies have a certain foundation, their market share is not high and their product categories are relatively scattered. We hope to leverage our previous advantages in construction machinery to make agricultural machinery one of our business highlights. In the heavy truck industry, we will not engage in redundant capacity stacking, but will cooperate with top international technology and manufacturing companies. Soon everyone should see the specific planning details of our business in this area.”
　　Based on Zoomlion's current revenue composition, 80% of revenue comes from traditional construction machinery fields such as concrete machinery, lifting machinery, road and piling machinery, and earthmoving machinery. According to Sun Changjun, in the next three to five years, environmental sanitation machinery, heavy trucks, agricultural machinery and even the supporting financial services industry will all increase to a certain proportion, and it is estimated that the total revenue of the latter segments will account for more than 30% of the company's revenue.
　　“Previously, some voices disturbed Zoomlion, such as claims that our performance was falsified, that senior executives engaged in a roundabout MBO, and that management used the listed company for benefit tunneling. Starting today, we will respond to the above matters one by one and are willing to accept detailed investigations by the securities regulatory authorities and the State-owned Assets Supervision and Administration Commission. At the same time, we are also preparing to initiate relevant legal proceedings and sue individual companies to safeguard the interests of minority shareholders.”