August 2012 0

Part One: Major Achievements

1

Product Quality：u The exhibition project of Sany

International , “Mining Machinery” was awarded the Gold prize of Geneva International Exhibition of Invention Award.

u Successfully launched the latest model of thin seam shearer which was jointly designed by China and Germany research and development teams.

u Successfully launched the Group’s self-developed automated plough coal unit with the highest power and productivity in the world.

u Successfully released the Group’s self-developed series 3000 coal mining machinery.

u Successfully released its self-developed new generation of ML360 continuous miner.

Overseas Market：u Overseas sales recorded

remarkable increase in the first half of 2012 compared with the corresponding period last year. Overseas sales for the whole year is expected to reach a record high.

u Entered into Strategic Framework Agreement with DTEK, Ukraine’s largest coal enterprise.

Customer Service：u The service database system

of Enterprise Controlling Center (ECC) has been established in April 2012, implemented 24-hour service process monitoring.

u Service response speed further increased by 30%.

Domestic Market：u A CCMU promotion national

tour namely the “Witness the NO.1 Power Tour” has been held by the Group. The exhibitions were held in various places including Erdos, Chengdu, Nanchang, Huaibei, Xuzhou, Zhengzhou ,and so on. The Group has met with more than 3,000 major mining enterprises customers during the exhibitions, and orders of CCMU have reached record high. While the sales of roadheaders was also enhanced through the exhibitions.

2

Financial Highlight *Note 1: Excluding the effect of tax on dividends*Note 2: Average of net profit for the half year of 2011

Result Highlight - (RMB Million) 1H2012 % 1H2011 % Change

Revenue 2,345.1 1,781.8 31.6%

Gross Profit& GP Margin 951.8 40.6% 809.8 45.4% 17.5%

Net Profit (Adjusted)& NP Margin 493.7 21.1% 415.6/387.2 23.3% 18.8%/27.5%

Selling and Distribution Costs 307.5 13.1% 215.1 12.1% 43.0%

Administrative Expense 91.9 5.2% 115.0 4.9% 25.1%

ROE 8.7% 8.3% 0.4pp

EPS RMB0.16 RMB0.13 23.1%

Balance Sheet- (RMB Million) 1H2012 1H2011 Change%

Current asset 4,821.0 4,685.1 2.9%

Non- current asset 3,098.3 1,908.8 62.3%

Total asset 7,919.3 6,593.9 20.1%

Current liabilities 1,829.9 1,293.4 41.5%

Non- current liabilities 430.1 275.9 55.9%

Total liabilities 2,260.0 1,569.3 44.0%

Net asset 5,659.3 5,024.6 12.6%

Cash Flow- (RMB Million) 1H2012 1H2011 Change

Cash flow from operating activities -147.0 -364.4 217.4

Cash flow from investment activities 228.2 498.9 -270.7

Cash flow from financing activities -139.7 -126.9 -12.8

Net cash flow -58.6 7.6 -66.2

Cash and cash equivalents at the beginning of the period 477.5 762.5 -285

The effect of foreign exchange rate on cash flow 0.9 -10.0 10.9

Cash and cash equivalents at the end of the period 419.8 760.2 -340.4

1 2

Part Two: Business Review

4

Roadheader

929.6

1,338.0 1,476.6

1H2010 1H2011 1H2012

Revenue

290

382 425

1H2010 1H2011 1H2012

Units Ø Product sales and structureü Stable growth in revenueü Maintained strong profitability with edges in

technologies

Ø Technologyü Successfully launched the third-generation digital

roadheaders

Ø Direction for developmentü Maintain stable growth in revenueü Enhance and maintain product profitability

through technology upgradesü Further enhance contributions from high-end

equipmentü Increase proportion of components

manufactured in house

RMB million

5

CCMUs

225.0 225.0

401.9

1H2010 1H2011 1H2012

RevenueRMB million

6 8

12

1H2010 1H2011 1H2012

Units

0

Ø Product Salesü Significant increase in revenue, reflecting customers’

endorsement on products qualityü Gross profit margin increased due to production capacity

expansion and application of new manufacturing technologies

Ø Technologyü Successfully developed automated plough coal units that boast

the highest power and productivity in the worldü Successfully launched new thin seam shearers which are the

smallest in the worldü Successfully launched a new generation of hydraulic shanks

Ø Strategyü Maintain high-speed growth in revenueü Reduce production costü Increase proportion of sales derived from high-end products

6

RMB million

0

113.2

1H2011 1H2012

Revenue

0

30

1H2011 1H2012

Units

Coal Mining Vehicles

Ø Existing Core Products & Newly Developed Productsü Existing core product: off- highway mining truckü Launched in April large scale electric off highway mining

trucks with a loading capacity of 230 tonnes

Ø Market Shareü The Group’s share of machinery mining trucks in the

domestic market rose to 10% from less than 4% in 2011

Ø Directions for Developmentü Enhance product quality to meet world-class standardsü Strengthen R&D of new products to cover the whole

spectrum in each of the product seriesü Increase product durability, enhance user-friendliness in

designs, extend product life cycles and improve safety of mining staff

7

After Market & Other Products

(RMB million)

2012H 2011H % Change

Revenue Revenue

After-market & Others 353.5 218.8 61.6%

8

R & D Capabilities

China Research Institute

Roadheaders Research Institute

Germany Research Institute ( Bedburg )

United States Research Institute (Atlanta )

IntegratedCoal Mining Research Institute

Narrow Tunnels Roadheaders

Research Institute

New Products Research institute

HydraulicResearch Institute

Domestic

Overseas

Mining Machines Research Institute

l As of 30 June 2012, the Group possessed141 patent applications, of which 58 are invention patents, 7 are overseas patents. Number of patent applications increased by 41% Y-o-Y.

l R & D professionals amounted to 879.

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Part Three: Industry Review

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Breakdowns by Region

Northwest

429.5（+77.6%）

(RMB million)

Northeast

130.6（+9.8%）

North China

928.6（+8.4%）

Central China

150.0（+15.9%）

East China

339.3（+13.7%）

West China

266.6（+115.4%）

Major domestic regions with revenue growth (RMB million)

Region Increase（proportion oftotal increase）

Shaanxi 194.0(34.5%) Mechanization rate increases and coal mine ‘s consolidation

Guizhou 132.0(23.5%) Mechanization rate increases and coal mine's consolidation

Jiangsu 99.0(17.7%) Success of major customers strategy and increase the bid - wining

Anhui 88.6(15.7%) Success of major customers strategy and increase the bid - wining

Beijing 39.6(7.1%) Expanded production of coal

Major sales regions (RMB million)

Region Revenue（proportion oftotal revenue）

Shanxi 729.9(31.1%) Shanxi region is a traditional coal producing province with a number of large coal enterprises, high completion in mergers of coal mines

Shaanxi 355.0(15.1%) Investment interest of coal mines in Shannxi region is relatively higher, Strong sales in Shannxiprovince in the first half of the year boosting the revenue proportion of the region

Anhui 262.3 (11.2%) Success of major customers strategy

Henan 140.5 (6.0%) Success of major customers strategy

Inner Mongolia

123.6 (5.3%) Coal mine’s consolidation

Overseas 100.6 (4.3%) Success of major customers strategy

Shaanxi, Gansu, Ningxia, Qinghai, Sinkiang

Heilongjiang, Liaoning, Jilin

Henan, Hubei, Hunan Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia

Sichuan, Yunnan, Guizhou, Chongqing

Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong

11

Revenue DriversuTraditional Source of Growth:

ü Roadheader products: Leveraging its strong R&D and high-quality products, roadheader still managed to be the leader in the market and raked a record high revenue.

ü Standard combine coal mining unit: Quality is the key. Sales leaped. Significant improvement in manufacture technology, profitability further improved.

uNew Sources of Growth:

ü Off- highway mining trucks: Government policies in supporting large surface coal mines will increase the demand for surface coal mine equipment for a long period. Overseas experience is the key to increase profitability of underground transport vehicles. Sales of coal mine vehicle products is set to increase remarkably.

ü After market: Along the increase of market share in equipment market, after sales spare parts and maintenance have become the major profit generators of the Group. Enormous market for the business in future.

ü High-end equipment: Introduction of thin seam coal mining policy enhanced the demand for such equipment, profitability of high profit margin will become the major impetus for profit growth in future.

uPotential Sources of Growth

ü Coal mine concrete pump: Increasing complexity of underground mine as well as upgrade of mining technology will bring more room for market development and better prospects for the Group’s new products, such as plough coal units. Successful application of filling coal mining in certain parts of China will drive the demand for related equipment.

ü Continuous mining machinery and shuttle car: Design based on the need of overseas markets and mainly exports to Australia and North America.

ü Drilling and loading machine: New-generation of tunneling equipment, will replace roadheader under worst mining conditions, suitable for highest level of rock hardness, andhas been sold.

12

Industry Focus

1 The State Administration of Coal Mine Safety planned to further shut down at least 625 small coal mines in the end July meeting.

2

“ Coal Deep Processing Demonstration Project Planning”(煤炭深加工示範專案規劃) and “Coal Deep Processing Industry Development Policy”(煤炭深加工產業發展政策) prepared by the National Development and Reform Commission and National Energy Administration were approved by the Director General of the National Development . Reform Commission will be published and implemented in the near future.

3 With the decrease in coal prices, tax rate reform is imminent.

4 CCTV reported the successful trial run of fully-automated plough coal unit, hence increasing the awareness of the society on coal mining machine industry.

5 In July, the coal price has been stable and stopped downward trend.

6 Coal mining machine industry actively opens up cooperation with downstream coal enterprises and enhances the healthy growth of the industry.

7 Two domestic coal mining machine manufacturers, namely Citic Heavy Industry and Shijiazhuang ZhongmeiCoal Mine Equipment successfully launched their A share IPOs in China.

8 Listed companies of coal mining machine industry announced positive results, indicating a steady growth of the industry as a whole.

13

Company Culture

Help employees succeed

Quality changes the world

All for the customers

All start with innovations

幫助員工成功一切為了客戶

一切源於創新品質改變世界

14

Ownerships StructureDomestic

14 individual shareholders

Public100%

72.94% 27.06%

Sany Heavy Equipment Co., Ltd

100%

100%

100%

Sany Heavy Industry Co. Ltd(600031.SH)

43.62%

Others

Public

56.38%

Sany Group

Sany Heavy Equipment Investments Company Limited

Sany Heavy Equipment International Holdings Company Limited(631.HK)

Sany Mining Machinery Co., Ltd

91%9%

Oversea

Domestic

Sany Hongkong Group Limited

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