Caixin
Jan 21, 2022 07:36 PM
TECH

Construction Giant Sany’s Founder Steps Down as Chairman

What’s new: Liang Wengen, the founder of China’s leading construction-machinery maker Sany Heavy Industry Co. Ltd., has stepped down from his role as chairman in a core leadership shakeup that came after the company suffered a poor third quarter.

That’s the message from a Thursday exchange filing, in which Sany said that the personnel change aimed to improve corporate governance and nurture senior executives, with Liang “devoting himself to the company’s strategic transition.”

Xiang Wenbo, the former vice chairman and president of Sany, has been appointed its new chairman, the filing said. It added that Liang will continue to serve as a member of the board.

The background: The announcement came months after Shanghai-listed Sany reported its third-quarter net profit fell 35% year-on-year to 2.5 billion yuan ($393.9 billion) on 20.6 billion yuan in revenue, which was down 13% from the previous year. The company attributed its poor performance to weaker demand for its equipment, and increased spending on talent and research and development.

In recent years, Sany has dipped its toes into the industrial internet in an effort to diversify its sources of revenue. In February 2017, the Changsha-based company started providing its clients with industrial internet services such as big data analytics and cloud services. 

Contact reporter Ding Yi (yiding@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

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