SANY's semiannual report of 2007

Recently, SANY Heavy Industry launched its semiannual report of the year 2007 which indicates that the revenue of major business amounts to 4.394 billion RMB, profit is 1.044 billion RMB and net profit is 0.824 billion RMB, realized a increase of 81.54%, 219.32% and 220.29% respectively.

In the first half year, the sales revenue of concrete machinery reported a 92.41% year on year increase to 2.937 billion RMB. And the sales revenue of road machinery and crawler cranes realized a 128.5% and 174.92% year on year growth respectively. At the same time, SANY Heavy Industry purchased Beijing Rotary Drilling Rig sector.

Benefit from the fast growing of construction equipment industry, and a series of big projects like town construction, high-speed railway, Shanghai World Expo and international aid projects. It is estimated that the market of concrete machinery in China would maintain a fast growing trend during the "11th five year" plan. As Chinese first brand of concrete machinery, the product quality of SANY has reached world level. It is now the most powerful concrete equipments supplier in the industry.

The expansion of overseas market and capacity are two evident increase points. Now SANY's business has covered 132 countries, SANY's products has exported to 70 countries. In 2006, the export volume was 0.477 billion RMB. However, in the first half of 2007, The export volume has already reached to 0.511 billion RMB. It is reported that SANY's plants in India could realized an annual capacity of 60 truck-mounted concrete pumps, 150 trailer-mounted concrete pumps, 50 concrete batching plants, 350 concrete mixer trucks, 150 motor graders, and 300 other construction equipments after its put into production. The estimated ratio of return on investment would be 30.4%.

Meanwhile, aiming at meeting customers'needs, further promoting service competitiveness, strengthening service network build, SANY has started to established 6s shops in major cities around China. After their completion, SANY could carry out products and brand promotion locally more conveniently, and provide customers with multi-service, which would further strengthen SANY's service competitiveness in China. It is estimated that SANY would invest 0.28 billion RMB on this project.