Comparative Research In Financial Statements Of Zoomlion And Sany

In recent years, the rapid rise of Chinese engineering machinery manufacturers causes a more intense competition among these Chinese manufacturers. Of these machinery enterprises, Zoomlion and Sany are particularly concerned.The two companies in the city of Changsha,being the leader in the Chinese engineering machinery industry, have different enterprise systems. Zoomlion is a state-owned enterprise, but Sany a private one. The difference makes the two listed companies have different operating characteristics.This article tries to draw a financial comparison of the two enterprises in order to find the difference of operating efficiency between the two listed companies.The paper firstly introduces some present financial analysis theories and illustrates the theory framework for the financial comparison.Then the development of the engineering machinery industry and the development of the two listed companies are introduced, plus their development strategies.After that,the paper, based on the financial statements of the two companies from2007to2010,makes a comparison of both the accounting data about the two listed companies and their critic financial abilities including solvency profitability, operating ability and viability.At the same time, the paper makes a comparison of the comprehensive achievements of the two listed companies by Dupont analysis.Finally,based on the comparisons, the paper draws a financial conclusion of the two companies that Sany carries out a better operation than Zoomlion and also gives some suggestions for Zoomlion’s development in the future.