I. Brief Introduction
Zoomlion Heavy Industry Science & Technology Development Co., Ltd. (hereinafter referred to as “Zoomlion”), founded in 1992 and listed on both Shenzhen Stock Exchange (stock code: 000157) in 2000 and Hong Kong Stock Exchange (stock code: 01157) in 2010, is mainly engaged in the R & D and manufacturing of advanced technologies and equipment for national key infrastructure construction projects, including construction engineering, energy engineering, environment engineering and transportation engineering projects. With a registered capital of RMB 7.706 billion and a workforce of over 30,000 employees, Zoomlion’s subordinate operation units achieved an sales revenue of nearly RMB 85 billion with a tax contribution of more than RMB 12 billion in 2011, ranking 7th in the global construction machinery industry.
In the past 20 years since its establishment, Zoomlion maintained an annual average compound growth rate of over 65% and has become the fastest growing global construction machinery enterprise. Zoomlion provides 13 categories, 86 series, over 800 varieties of leading products with completely independent intellectual property rights, and is a global construction machinery enterprise with the most complete product chain. The company’s two business segments, concrete machinery and hoisting machinery, both rank second in the globe.
II. Industrial Layout
Zoomlion has manufacturing bases located around the world, including Zoomlion Technology Park, Lugu Industrial Park, Quantang Industrial Park, Lugu Environmental Protection Industry Park, Changde Guanxi Industrial Park, Changde Deshan Industrial Park, Wangcheng Industrial Park, Yiyang Yuanjiang Industrial Park, Yueyang Xiangyin Industrial Park, Shanghai Industrial Park, Shaanxi Weinan Industrial Park and Jiangyin East China Industrial Park in China, as well as CIFA Industrial Park in Italy. Zoomlion has subsidiaries and marketing and research institutions in over 40 countries, creates values for customers in over 80 countries across six continents, and owns a complete sales network and strong service system covering the whole world.
Zoomlion is the first listed company in both A and H share markets in China’s engineering machinery industry. In future, the company will take the capital as the link, strengthen overseas resource integration and market inputs, establish more complete spare parts centers in Europe, South Asia, and West Asia, build more state-of-the-art manufacturing centers in Europe, West Asia, South Asia, Southeast Asia and North America, and construct R & D centers closer to customers in Europe, South America, South Asia, and East Asia.
III. Institutional Innovation
As a research institute enterprise, Zoomlion continuously pushes forward the reform. The company has formed a virtuous institutional mechanism of “research supporting industry and industry financing research”, and has become a model for the restructuring of state-owned research institutes. As a listed company with established modern enterprise system, through reorganization and acquisition, Zoomlion participated in traditional state-owned enterprise reform, reorganization, transformation to implement new mechanisms and new technologies in old enterprise. The company has achieved economic and social dual benefits, and has become the benchmark of state-owned enterprise reform.
Zoomlion is the first to integrate overseas resources in China’s engineering machinery industry. By adopting capital leverage and integrating high-quality assets on a global scale, the company has achieved rapid expansion and built global manufacturing, sales and service networks. Up to now, Zoomlion has conducted nine domestic and international mergers and acquisitions, and achieved excellent results. Among them, the acquisition of Italian CIFA, the world’s third largest concrete machinery manufacturer, in 2008 helped the company become the pioneer and leader of construction machinery internationalization in China, and that merger entered Harvard University classroom as a classic case.
IV. Technological Innovation
Zoomlion was formerly known as Changsha Construction Machinery Research Institute of the Ministry of Construction which had more than 50 years of technical accumulation and was the birthplace of China’s mechanical engineering technology. With the heritage of technical background and industry mission of a national research institute, Zoomlion adheres to the technological innovation strategy of “aiming at high-end market, achieving breakthroughs in key areas, and fully catching up”, continues overcoming world scientific problems of the construction machinery industry via its high-end technological innovation system, introduces many world-class products, and constantly promotes technological progress. The company was approved by the Ministry of Science and Technology, the Ministry of Industry and the Ministry of Finance as the first batch of “National Innovation-oriented Enterprises” and “National Technology Innovation Demonstration Enterprise”, and won the first National Science and Technology Progress Award in the concrete machinery industry in China.
On the basis of National Authorized Enterprise Technology Center and National Post-doctoral Workstation, Zoomlion built the industry’s only National Engineering Machinery Key Technology Laboratory, National Concrete Machinery EngineeringResearch Center and National Urban Public Equipment Technology Research Institute. Currently, the company has nearly 7,000 R & D personnel and R & D branches in Changsha, Shanghai, Beijing, Xi’an, Chengdu, Shenyang, Italy and United Kingdom.
As a standard setter of a wide range of engineering machinery industry national standards, Zoomlion participated in the development of over 300 engineering machinery national and industrial standards. On behalf of China, the company fulfilled international vote and domestic duties jurisdiction of mobile cranes and tower cranes in the International Organization for Standardization (ISO). Zoomlion is a secretariat unit of concrete machinery and other two national standardization technical committees, and a chairman unit of construction machinery and other three technical committees. The company owns more than 2,400 domestic patents and more than 200 international patents, and has undertaken national “Construction Machinery Electrical Systems Electromagnetic Compatibility Key Technologies Research”, “Hoisting Truck Safety Monitoring and Early Warning Applications Development”, “Large Mobile Cranes Research and Industrial Development” and other more than thirty 973, 863, and national key science and technology projects.
The company’s R & D investment accounts for more than 5% of its annual revenue. Every year, the company averagely creates about 300 new technologies and new products, and the contribution rate to annual operating income reaches more than 50%. In 2011 alone, Zoomlion presented the world’s longest carbon fiber boom pump truck, the world’s largest crawler crane, the world’s largest tower crane, the single drum vibratory roller with the world’s largest tonnage and other world’s leading products.
V. Cultural Innovation
Zoomlion adheres to the core corporate concept of “Sincerity and Consistency, Essence and Perseverance”. “Honesty” is the cause origin and value coordinates of Zoomlion. Under the guidance of the core concept, Zoomlion has formed the cultural system of “one focus, two dimensions, three publics, four morals, five hearts, six diligence, seven abilities and eight virtues”.
In the process of internationalization, Zoomlion constantly innovates and enriches the cultural connotations of “Sincerity and Consistency, Essence and Perseverance”. During the course of overseas resource integration, relying on the concept of “tolerance, sharing, responsibility” and the mind of “lowering self and fulfilling others’ achievements”, Zoomlion has won recognition and welcome of international society. Italian President Giorgio Napolitano personally presented the company the “Leonardo International Award”, enhancing the international image of overseas Chinese enterprises.
Zoomlion has been at the forefront amongst listed companies on Shanghai and Shenzhen Stock Exchanges for its overall performance since it was listed. In 2012, with excellent corporate governance, Zoomlion won the “Golden Round Table Award for Best Board” for the fifth time, becoming the only listed company in China’s construction machinery industry to win the award and the listed company in Shanghai and Shenzhen Stock exchanges winning the most of this award. The company was selected as one of the “Top 500 China’s Enterprises” and “China Machinery Industry Top 50 Enterprises”, and has been appraised as one of the “Most Promising Enterprises”, “Most Influential Enterprises” and “Nationwide Customer Satisfaction Companies” for many consecutive years, and also won “Advanced and Model Enterprises with Modern Management” in China’s machinery industry, “National May Day Labor Award”, “Top 10 China Independent Innovation Companies”, “China Most Influential Brand”, “China Most Internationally Competitive Brand”, “Award for Outstanding Contribution to China’s Charity Cause”, “National Heroic Group in Fighting Earthquake and Relieving Disasters” and other honorary titles. In 2011, Zoomlion was awarded “2011 Best Employers in China” and “2011 Most Socially Responsible Employers”.
The Party and state leaders spoke highly of Zoomlion for its development achievements. President Hu Jintao listened to Zoomlion’s reports twice; Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and He Guoqiang inspected the company and expressed their earnest expectations for the company’s development while affirming its achievements. Zoomlion will continue promoting reform and internationalization, achieve a robust high-speed development in the changing industry landscape, build a global engineering and machinery industry cluster, and march toward the goal of an annual sales revenue of RMB 100 billion!