Last year, Zoomlion, which put forward the top three positions in the global construction machinery industry within four years, has recently been caught in a series of speculations from the outside world.

Recently, some media reported that "the Fiat Group's asking price of 4.5 billion yuan has been negotiating with Zoomlion on the acquisition of Case," and "the final result will be settled in November this year and will be released to the public." Yesterday afternoon, Zoomlion held a press conference to respond to outside conjecture and stated that the company had not conducted any form or contact with Case. Bu Ang newspaper reporter Changsha reported <br> <br> takeover rumors?

Response: There has been no contact with Case of the United States. Zoomlion will invest US$4.5 billion in the acquisition of Case of the United States. This is a heavy news in the A-share market in recent trading days.

According to public information, Case is the world’s oldest construction machinery company and has a history of 170 years. It is the world's first manufacturer of hydraulic excavators and an absolute leader in the field of backhoe loaders worldwide. Its controlling shareholder is an Italian car. Giant Fiat Group Automobile Co., Ltd. Previously, according to media reports, Zoomlion’s preparation for the acquisition of Case’s funds was mainly from the sale of shares in environmental sanitation machinery.

However, this rumor was yesterday denied by Zoomlion. Sun Changjun, vice president of Zoomlion, officially stated that “We are in zero contact with Caesar in the United States.” Zoomlion admitted that it does have contacts with the Fiat Group, but neither in terms of business nor mergers and acquisitions, and the United States Kay Sri Lanka had any contact.

Slowing down?

Response: The investment in the western region will be increased In fact, a number of construction machinery companies including Zoomlion recently received market attention and there are many speculations about the overall direction of the industry.

A Financial Times report on June 6th said that hedge funds have determined that the rapid growth of domestic construction machinery manufacturers will eventually end in pain. As soon as the report came out, it immediately triggered a sell-off of construction machinery stocks in the Hong Kong market. Many stocks, including Zoomlion, fell to varying degrees.

Zoomlion believes that during the 12th Five-Year Plan period, the overall growth rate of the construction machinery industry does indeed have a downward trend. According to the prediction of the China Construction Machinery Industry Association, during the 12th Five-Year Plan period, the annual growth rate of the construction machinery industry was 16%. In the past 20 years, Zoomlion’s compound annual growth rate reached 60%, and considering the overall background of the industry, the company expects the CAGR to be around 25% during the 12th five-year period. Based on this calculation, Zoomlion will realize sales revenue of RMB 200 billion in 2015.

“At present, the sales of our Xinjiang company are growing rapidly. This is also the result of our preliminary layout for the western region in the future.” Sun Changjun told reporters that Zoomlion has increased its focus on the western region in consideration of the slowdown in the growth of the industry. Regional investment. The acquisition of Shaanxi Xinhuanggong in 2008 was intended to be based on the development of the western region. From 2012 until now, Zoomlion's excavators have achieved a converse growth with an overall 40% decline in the excavator industry. This year, they signed the largest order in the history of the industry and sold 200 36-ton excavators at a time.

Capital hunger?

Respond: In the first quarter, the book cash of RMB 17.7 billion was really no shortage of money. M & A rumors One after another, there are still many questions about the financial situation of construction machinery companies. On June 4, Zoomlion announced that it will apply for an annual credit line of RMB140 billion. In March 2012, Sany Heavy Industry also issued an announcement to apply to the relevant banks for the credit line for the year 2012, with a total credit line of 136.8 billion yuan. In addition, Xugong and Liugong also submitted similar applications to the shareholders' meeting, with a quota of 50 billion and 96 billion yuan respectively.

The huge number of credit grants made the market think of the “zero down payment” of the previous Trinity and China Unicom trusses, and worried that due to the excessively aggressive sales strategy, the construction machinery giants all suffered financial hunger. Thirsty.

In this regard, Sun Changjun said, "From the first quarter, Zoomlion accounted for 17.7 billion yuan in cash." He also said with a laugh: "We have so much cash, we did not buy an aircraft, and did not buy a luxury car. So, we really don't need money."

Sun Changjun also stated that the line of credit is not the actual loan amount, nor is it equal to the financing amount of the company. Currently, the asset-liability ratio of Zoomlion is only 51.4%, which is already the industry's lowest level of debt. Bank credits include various bank settlement services such as working capital loans, mortgages, and financial leasing. According to the usual practice, at the beginning of the year, the company will apply for quotas from banks at the approval of the board of directors and the general meeting of shareholders. Its purpose is to win more credit resources for the company and is also a confirmation of the credit status of the financial system. Sun Changjun also responded to the “Zero Down Payment” that has a lot of controversy in the industry. “The mortgage sale is a common phenomenon in the automobile and construction machinery industry, and it is also a trend. For some strategic customers, if the risk is controllable, it will not be ruled out. There is a zero down payment."