The further decline in the construction machinery market and the intensification of competition have forced major listed companies in the industry to accelerate their financing in the hope of squeezing out competitors in a declining market.
On March 29 this year, Sany Heavy Industry issued an announcement. According to the annual capital budget, the company plans to apply to the relevant bank for the total amount of credit granted in 2012 for 136.8 billion yuan.
In addition, Sany Heavy Industry recently resubmitted its IPO application in Hong Kong. Although the proposed financing is lower than the previous US$3.3 billion, it is still as high as US$2 billion.
On May 10, Liugong Parent Group Guangxi Liugong Group and Bank of China Guangxi Branch signed a "Bank-Enterprise Strategic Cooperation Agreement" with a credit line of 20 billion yuan.
In the same month, Xugong Group’s parent company Xugong Group and Agricultural Bank of China Jiangsu Branch held a strategic cooperation contract of 8 billion yuan and the unveiling ceremony of Xugong Sub-branch.
On June 4, China Construction Machinery Corporation Zoomlion issued an announcement that, in accordance with the financing needs of the company's business in 2012, the company plans to apply for credit (credit) and financing services from relevant banks, with a total scale of no more than RMB 140 billion. This includes: bank-related businesses such as working capital loans, mortgage business, financial leasing, and various guarantees. Zoomlion’s plan to increase sales through the increase of financial leasing business attracted market attention.
According to industry analysts, Zoomlion applied to banks for a credit line of RMB 140 billion, hoping to seize the opportunity to overwhelm its opponents with an overwhelming advantage when the entire construction machinery industry fell.
XGMA announced on June 14 that the company plans to publicly issue corporate bonds of no more than 1.5 billion yuan. The online subscription date is June 18 of this year, and the term of the bonds is 5 years.
After deducting the issuance expenses for the bond proceeds, 1.1 billion will be used to repay bank loans, adjust the debt structure, and use the remaining funds to supplement the company's working capital and improve the company's funding status.
At the beginning of last year, XGMG originally planned to raise funds of 2.165 billion yuan through non-public issuance of stocks. However, due to the decline in stock prices and the overall downturn in the market, as of February 24 this year, XGM shares only raised 250 million yuan.
On June 5, China Longgong Holdings Co., Ltd. was included in the negative credit watch list by Standard & Poor's. China Longgong is the first overseas listed company in the Chinese construction machinery industry and is one of the leading manufacturers of construction machinery in the Mainland. However, S&P said that its profit margins and credit protection measures may deteriorate in the next 12 months, and its operating conditions are getting weaker. Demand for infrastructure, mining equipment, and the real estate industry is declining, or it will continue to hit demand for construction machinery.
According to statistics, in the first quarter, the cumulative operating income of 9 listed companies in the construction machinery industry totaled 45.2 billion yuan, a year-on-year decrease of 12.7%, which was the lowest since 2009.
On March 29 this year, Sany Heavy Industry issued an announcement. According to the annual capital budget, the company plans to apply to the relevant bank for the total amount of credit granted in 2012 for 136.8 billion yuan.
In addition, Sany Heavy Industry recently resubmitted its IPO application in Hong Kong. Although the proposed financing is lower than the previous US$3.3 billion, it is still as high as US$2 billion.
On May 10, Liugong Parent Group Guangxi Liugong Group and Bank of China Guangxi Branch signed a "Bank-Enterprise Strategic Cooperation Agreement" with a credit line of 20 billion yuan.
In the same month, Xugong Group’s parent company Xugong Group and Agricultural Bank of China Jiangsu Branch held a strategic cooperation contract of 8 billion yuan and the unveiling ceremony of Xugong Sub-branch.
On June 4, China Construction Machinery Corporation Zoomlion issued an announcement that, in accordance with the financing needs of the company's business in 2012, the company plans to apply for credit (credit) and financing services from relevant banks, with a total scale of no more than RMB 140 billion. This includes: bank-related businesses such as working capital loans, mortgage business, financial leasing, and various guarantees. Zoomlion’s plan to increase sales through the increase of financial leasing business attracted market attention.
According to industry analysts, Zoomlion applied to banks for a credit line of RMB 140 billion, hoping to seize the opportunity to overwhelm its opponents with an overwhelming advantage when the entire construction machinery industry fell.
XGMA announced on June 14 that the company plans to publicly issue corporate bonds of no more than 1.5 billion yuan. The online subscription date is June 18 of this year, and the term of the bonds is 5 years.
After deducting the issuance expenses for the bond proceeds, 1.1 billion will be used to repay bank loans, adjust the debt structure, and use the remaining funds to supplement the company's working capital and improve the company's funding status.
At the beginning of last year, XGMG originally planned to raise funds of 2.165 billion yuan through non-public issuance of stocks. However, due to the decline in stock prices and the overall downturn in the market, as of February 24 this year, XGM shares only raised 250 million yuan.
On June 5, China Longgong Holdings Co., Ltd. was included in the negative credit watch list by Standard & Poor's. China Longgong is the first overseas listed company in the Chinese construction machinery industry and is one of the leading manufacturers of construction machinery in the Mainland. However, S&P said that its profit margins and credit protection measures may deteriorate in the next 12 months, and its operating conditions are getting weaker. Demand for infrastructure, mining equipment, and the real estate industry is declining, or it will continue to hit demand for construction machinery.
According to statistics, in the first quarter, the cumulative operating income of 9 listed companies in the construction machinery industry totaled 45.2 billion yuan, a year-on-year decrease of 12.7%, which was the lowest since 2009.
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