“I'm actually not very satisfied with the first-half results!” During BICES 2017, Sunward Chairman He Qinghua made this remark when discussing the report card of “operating revenue of 1.770 billion yuan, a year-on-year increase of 109.96%; net profit attributable to the parent company of 84.14 million yuan, a year-on-year increase of 376.97% (company semi-annual report).”

“At the annual meeting at the end of 2016, I proposed that Sunward should achieve leapfrog growth in 2017. This was based on the solid work we had done in management improvement, team building, and product R&D over the past few years, and the results had already begun to show. In fact, as early as the first half of 2016, Sunward had already achieved growth against the trend. Therefore, we set this leapfrog growth target entirely based on the company's own operating conditions. We just didn't expect the industry to grow so much this year!”

He Qinghua at BICES 2017

In the reporter's view, He Qinghua's “dissatisfaction” is not hard to understand at all——after all, Sunward secured nearly 300 million yuan in orders in just one day on the first day of the Beijing exhibition, and all exhibits were sold out!

In fact, if not for being constrained by “insufficient production capacity” (in the first half of 2017, Sunward's various product lines were almost always in a state of supply shortage), Sunward should indeed have achieved better results. He Qinghua said that the company's management team had been conservative in budgeting in recent years, especially insufficient investment in long-cycle purchased parts, which restricted production capacity in the first half of this year.

“However, from another perspective, appropriate supply shortage may not be a bad thing. It allows us to focus more on products, perfect every detail, and ensure that every product launched on the market is a high-quality masterpiece.”

Sunward booth at BICES 2017

Sunward excavator products

During BICES 2017, Sunward showcased more than 20 innovative products and industry-leading energy-saving and environmental protection technologies. With outstanding performance in green intelligence and other aspects, it won praise from visiting customers, and orders poured in. All exhibits were ordered on the first day. Many users said that Sunward's series of innovative products have indeed brought them differentiated competitive advantages, making construction more efficient and profitable.

In response to supply-side reform requirements, Sunward positions its strategy as “One Point, Three Lines”: “One Point” means focusing on the equipment manufacturing industry, and the company's future development must always be based on equipment manufacturing without wavering; “Three Lines” means simultaneous development of engineering equipment, special equipment, and aviation equipment. It is understood that in engineering equipment, Sunward's full range of underground engineering equipment and energy-saving excavator technology are leading nationwide and even worldwide; in special equipment, Sunward's unmanned equipment has been highly recognized by the military, and a special equipment company has been newly established to further strengthen its strategic position; in aviation equipment, it has wholly acquired North America's largest aircraft leasing company——Canada's AVMAX, and Sunward has become one of the few domestic enterprises with integrated development of the entire aviation industry chain, including R&D, production, training, and leasing.

“I want to emphasize Sunward's underground engineering equipment. In fact, Sunward was the first to systematically propose the concept of underground engineering equipment. From our initial Piling Research Institute, to the later Foundation Equipment Research Institute, and now the Underground Engineering Research Institute, Sunward has been investing heavily in this field.”

He Qinghua told reporters that underground engineering equipment can be divided into two major categories: one is building foundation construction and corresponding equipment, such as rotary drilling rigs and static pile drivers; the other is underground space construction equipment, such as cantilever boring machines, hydraulic rock drills, and shield machines. “Sunward has a relatively complete product system in both fields, plus construction methods——we have a Grade I construction qualification for underground engineering. It should be said that Sunward has established a complete industrial chain for underground engineering equipment, and globally, it is among the most complete in series and highest in technical level.”

CREC Sunward shield machine model at BICES 2017

Sunward underground engineering equipment exhibition area

He Qinghua cited the dual-power-head powerful multi-function drilling rig that successfully entered the South Korean market as an example to prove that Sunward's underground engineering equipment has entered the world's top level. “This field was originally dominated by Japanese brands. After Sunward entered, it added a large number of innovative elements, such as integrated operation, dual power mode, quick assembly and disassembly, and some localized improvements for Korean construction characteristics, ultimately successfully replacing Japanese brands and becoming the first choice in the South Korean market.”

“In the past two years, I have also visited underground engineering equipment markets in Europe and the United States. I can say with great confidence that in terms of technology, we are significantly ahead of them.”

In He Qinghua's view, China's construction machinery has successfully entered the global first tier. Of course, the level of various brands is still uneven, and there is still much room for improvement in operational efficiency. “This is exactly the direction we will strive for in the coming years.”