Zoomlion offers customers financial packages to buy equipment

1175 Zoomlion is looking to continue its strong growth, having expanded through a series of acquisitions as well as through organic growth. And with its strong base there is a potential for future acquisitions to come. Zhang Jianguo is senior president of Zoomlion’s overseas division and explained that the firm’s financial packages offered to customers have been helpful in building its Chinese market share. He said, “Zoomlion has made great progress in financial solutions.”

He added that new tax reforms and changes to VAT in China have put some constraints on financial leasing. However he added that the 2719 Chinese Government is working hard to resolve this issue and provide a solution that will boost this important trade matter. The financial leasing operation is now being offered worldwide for markets including Russia, Africa, Europe, Hong Kong, Australia, Latin America and the Middle East. This forms part of its strategy of increasing exports and overseas trade, with a move into the US market anticipated at some point in the future. Although the US market is sluggish, it still offers considerable potential for the company and Jianguo commented, “A thin camel is still bigger than a horse.”

The company is now a leader in the concrete pumping and crane sectors and is also looking to increase sale of machines from other divisions, such as the earthmoving machines.

Jianguo continued, “In the past few years, industry sales have been aggressive.” And he said that as a result, machine sales spiked and outstripped the market.

But he said that Zoomlion is cautious compared to some other Chinese manufacturers. “Next year we will maintain our prudent strategy and at the same time, we will explore the international market. Zoomlion will strive to grow next year.”

Zoomlion claims that its borrowings are at a low level and its asset ratio has been kept at around 50%, while it has strong cashflow. Jianguo said, “Our revenue from overseas sales is relatively low and less than 10% of total sales but we’re looking forward to an increasing percentage. We will focus on product quality. Service support and product quality are key to increasing overseas sales.”

Further partnerships look extremely likely and the company is looking ahead to establishing a full joint venture for the heavy truck market but is not in a position to say more at present.