Sany to list second unit in Hong Kong
Sany Group, one of China’s biggest manufacturers of construction machinery, aims to list a second subsidiary on the Hong Kong stock exchange.
Its Shanghai-listed unit Sany Heavy Industry announced on the Shanghai stock exchange website on Wednesday morning that it plans to list its wholly owned subsidiary Sany Heavy Machinery China in Hong Kong.
Coal-mining machinery maker Sany Heavy Equipment International, another subsidiary of Changsha, Hunan province-based Sany Group, is already listed in Hong Kong.
“To develop its excavation machinery business, tap the international market, raise its international competitiveness, boost its innovativeness, Sany Heavy’s 100-per-cent owned subsidiary Sany Heavy Machinery China will list on the mainboard of the Hong Kong Stock Exchange,” Sany Heavy Industry said.
It said the main product of Sany Heavy Machinery, a British Virgin Islands firm, is excavation machinery, while the other products of its parent firm include concrete machinery, lifting machinery, pile driving machinery and road surfacing machinery.
“The products of Sany Heavy and Sany Heavy Machinery China are completely different with no duplication. There is a clear difference between their sales models, clients and raw material suppliers,” it said.
Sany Heavy Industry’s net profit has progressively decreased from 8.65 billion yuan (HK$10.9 billion) in 2011 to 5.69 billion yuan in 2012 to 2.9 billion yuan last year.
Sany Heavy Machinery’s net profit was 1.17 billion yuan last year, while the firm accounted for no more than 30 per cent of Sany Heavy Industry’s net assets at the end of last year.