△ Sun Changjun, Vice President of Zoomlion, attended the award ceremony
On August 8, Boston Consulting Group (BCG) released 2018 List of Global Challengers in Beijing. Among the representative companies in the selected world's 100 emerging economies, Zoomlion, together with Haier, MIUI and other 25 Chinese companies, were on the list, becoming new power for economic growth in the world. This is the third time for Zoomlion to appear on the list since 2014 when Zoomlion was put on this list for the first time, marking Zoomlion’s becoming the unique listed company in the industry. Sun Changjun, Vice President of Zoomlion, attended the release activity.
It is understood that Boston Consulting Group, founded in 1963, is a global consulting management company, which is the world-leading business strategy consulting organization. BCG Global Challengers released by it is rated every 18 months. Each challenger, as a leader involved in the industry in the local market, challenges the existing pattern of the industry in the global market. Boston Consulting Group predicted that these global challengers would profoundly change the industries and markets in the world.
It was understood that Boston Consulting Group possessing a complete set of quantitative and qualitative standards finalized 100 challengers on the basis of the all-aspect data obtained through long-term tracking and observation, such as company's annual incomes, the number of employees, growth rate and overseas incomes, in conjunction with the opinions of industry experts around the globe.
The report showed that global challengers meant long-term, high-speed and stable growth, and being good at maintaining positive development trend in uncertainty. “The performance of top 100 global challengers outdistanced their global peers and market indices.”
It was understood that Zoomlion has set up the impressive performance: winning an annual average compound growth rate of more than 60%. Since then, Zoomlion underwent a five-year “severe winter period” of the industry when Zoomlion still maintained the positive development trend, and even achieved high-quality and sustainable development. In 2017, the company won an operation revenue of RMB 23.273 billion, with a year-on-year growth of 16.23% and a net profit up to RMB 1.332 billion. Meanwhile, since the listing of the company, the company continued to return to shareholders with high dividends—cash bonus for 18 consecutive years, cash dividends for 19 times, transfer of shares for 8 times, and the total dividends amounted to about RMB 11.8 billion.
In addition to high-speed growth, the report showed that global challengers must also be enterprises which were indeed eager to build globalized business.
It was told by Zoomlion’s relevant principals that the advantage of Zoomlion was to actively develop overseas markets, continuously speed up the pace of “going global” and deepen the level of international cooperation. It was understood that as of 2001, Zoomlion had successfully implemented merger and acquisition on five overseas companies. Meanwhile, Zoomlion implemented investments in foreign countries for the construction of factories, possessing Indian Industrial Park, Brazilian Industrial Park and Belarusian Industrial Park under construction. The two major production bases in Turkey and Saudi Arabia are also under construction. These overseas production bases will form a localized manufacturing cluster around “One Belt And One Road”. With respect to research and development (R&D), Zoomlion possesses European and North American R&D centers around the world.
Meanwhile, global challengers shall become strong performers in their industry with digital innovation and digital power in local and global markets.
In recent years, Zoomlion vigorously implemented innovation strategy based on “Industry 4.0 Technology” by which a new generation of 4.0 engineering machinery & agricultural machinery products that are flexible and intelligent have been created, and implemented equipment connections with the help of such technologies as Internet of Things, big data, mobile Internet by taking 4.0 intelligent products as the carrier to provide data support and services for enterprises and customers. Meanwhile, the company actively embraced new technologies. Recently, the company signed a cooperation agreement with Wu En’da, the world's top-level artificial intelligence expert, which will endow the new kinetic energy of AI to its agricultural machinery section.
Chen Qinglin, a partner of the Boston Consulting Group and the leader of Greater China for Global Advantage practice, said that: “Looking ahead, we believed that global challengers have found their own positions, understood how to leverage their digital assets and technical advantages and fully captured many features of the emerging market and obtained benefits therefrom.”