Sany Heavy Equipment 'l Hlds : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SANY HEAVY EQUIPMENT INTERNATIONAL HOLDINGS COMPANY LIMITED

三 一 重 裝 國 際 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 631) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

The board ("Board") of directors (the "Directors") of Sany Heavy Equipment International Holdings Company Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2017. These interim results have been reviewed by the audit committee of the Company (the "Audit Committee"), comprising solely the independent non-executive Directors, one of whom chairs the Audit Committee.

FINANCIAL SUMMARY

For the six months ended 30 June 2017, the Group recorded revenue of approximately RMB1,200.5 million, with an increase of approximately RMB341.0 million from approximately RMB859.5 million for the six months ended 30 June 2016, representing an increase of approximately 39.7%. Such increase was mainly attributable to (1) the fact that in the first half of 2017, as the coal price rebounded, the coal industry was stabilizing and recovering, which led to the increase of the market demand for roadheaders; and (2) the increase of the international sales of port machinery.

For the six months ended 30 June 2017, the Group's profit margin before tax was approximately 15.4%, as compared to the Group's loss margin before tax of approximately of 6.1% for the six month ended 30 June 2016. Such change was mainly due to (1) the increase in the revenue and gross profit for the six months ended 30 June 2017; (2) the decrease in the ratio of the Group's selling, distribution and administrative expenses; and (3) the decrease in the Group's provision for impairment of trade receivables in the first half of 2017.

For the six months ended 30 June 2017, the Group's profit attributable to owners of the parent was approximately RMB132.0 million, as compared to the Group's loss attributable to owners of the parent of approximately RMB36.0 million for the same period of last year. Such change was mainly because (1) the Group's revenue from port machinery products and coal machinery products increased for the six months ended 30 June 2017; and (2) the Group's impairment provision of trade receivables decreased in the first half of 2017 due to the overall improvement in coal mining industry, which resulted in the improvement in the collection of receivables from sales of the Group's coal mining machinery.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Six months ended 30 June 2017

Six months ended 30 June

Notes	2017 RMB'000 (Unaudited)	2016 RMB'000 (Unaudited)
REVENUE	4	1,200,529	859,455
Cost of sales	(803,697)	(586,727)
Gross profit	396,832	272,728
Other income and gains	4	87,653	81,761
Selling and distribution expenses	(114,676)	(107,035)
Administrative expenses	(150,985)	(160,338)
Other expenses	(32,715)	(138,979)
Finance costs	6	(1,778)	(960)
Profit/(loss) before tax	5	184,331	(52,823)
Income tax expense	7	(52,773)	11,977
PROFIT/(LOSS) FOR THE PERIOD	131,558	(40,846)
Attributable to: Owners of the parent	131,961	(36,027)
Non-controlling interests	(403)	(4,819)
131,558	(40,846)
EARNINGS/(LOSS) PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT Basic (RMB)	9	0.04	(0.01)
Diluted (RMB)	9	0.04	(0.01)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended 30 June 2017

Six months ended 30 June

2017 RMB'000 (Unaudited)	2016 RMB'000 (Unaudited)
PROFIT/(LOSS) FOR THE PERIOD	131,558	(40,846)
OTHER COMPREHENSIVE (LOSS)/INCOME
Other comprehensive (loss)/income to be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations	(1,809)		2,256
Net other comprehensive (loss)/income to be reclassified
to profit or loss in subsequent periods	(1,809)		2,256
OTHER COMPREHENSIVE (LOSS)/INCOME, NET OF TAX	(1,809)		2,256
TOTAL COMPREHENSIVE INCOME/(LOSS), NET OF TAX	129,749		(38,590)
Attributable to:
Owners of the parent	130,152		(33,771)
Non-controlling interests	(403)		(4,819)
129,749		(38,590)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 June 2017

Notes	30 June 2017 RMB'000 (Unaudited)	31 December 2016 RMB'000 (Audited)
NON-CURRENT ASSETS Property, plant and equipment	2,745,983	2,756,773
Prepaid land lease payments	671,693	679,438
Goodwill	1,129,520	1,129,520
Intangible assets	10,533	21,366
Trade receivables	11	63,517	81,996
Available-for-sale investment	10,636	10,636
Non-current prepayments	999,383	736,305
Deferred tax assets	447,139	476,692
Total non-current assets	6,078,404	5,892,726
CURRENT ASSETS Inventories	10	992,307	915,140
Trade receivables	11	1,525,100	1,556,871
Bills receivable	11	381,362	213,315
Prepayments, deposits and other receivables	353,790	310,665
Available-for-sale financial investments	390,000	390,000
Pledged deposits	23,838	27,200
Cash and cash equivalents	1,073,178	833,162
Total current assets	4,739,575	4,246,353
CURRENT LIABILITIES Trade and bills payables	12	1,059,693	955,559
Other payables and accruals	990,949	944,138
Interest-bearing bank and other borrowings	13	3,561	-
Tax payable	298,073	289,509
Provision for warranties	7,566	9,485
Government grants	81,362	69,800
Total current liabilities	2,441,204	2,268,491
NET CURRENT ASSETS	2,298,371	1,977,862
TOTAL ASSETS LESS CURRENT LIABILITIES	8,376,775	7,870,588