A Comparative Research On Operating Management Pattern And Financial Performance Of Sany Heavy Industry And Zoomlion

Engineering machinery-manufacturing industry is known as the backbone of China’s manufacturing industry. Since2009, the sales revenue of the engineering machinery manufacturing industry in China has become the world’s No. land keep the leading position for many years. Therefore, engineering machinery manufacturing industry plays an indispensable role in China’s economic development. However, the operating performance of enterprises among engineering machinery companies shows great disparity in China. To choose an appropriate operating model (including trade structure, credit sales, financial strategy and expansion strategy, etc.) is undoubtedly one of the key factors that affect the performance of engineering machinery manufacturing enterprises. It’s a pity that there is little research on operating model and operating performance about engineering machinery manufacturing enterprises which can explain phenomenon above.The study selects Sany Heavy Industry Co., LTD and Zoomlion Heavy Industry Co., LTD as the research object, as they are typical representatives in the construction machinery industry. This paper is trying to research into the different operating models’influence on companies’financial performance. In fact, these two successful construction machinery manufacturers have similar product structure and are same in scale, while their operation models are quite different. This paper aims to explore the differences of operation models between these two companies. How do these differences display in the financial statements? And what impact will these differences leaves on the company’s financial performance? This paper compares the different operating models through comparing their three-dimensional financial statements, and comparing their financial performance indexes to find out answer for all questions mentioned above.There are six chapters. The first chapter is introduction, which introduces the research background of this article, briefly elaborated the reason of selecting the topic, the research content and research framework; the second chapter describes the characteristics of the construction machinery industry, elaborating on the development of the construction machinery industry and market conditions; the third chapter is the starting point of this research, focusing on the comparison of Sany Heavy Industry’s and Zoomlion heavy section’s operation model and their key differences in accounting treatment; the fourth chapter analyzed Zoomlion and Sany heavy industry’s the financial statements from three dimensions, and discussed the affect of operating model’s difference on their financial statements; the fifth chapter focused on comprehensive analysis and comparison of Sany’s and Zoomlion’s financial indexes to find out both parties’shortcomings and strong points and to further deep into the influence of operation model on financial performance; the sixth chapter is the conclusion of this article, which summarized the research and brought up the shortcomings of this paper.