RESULTS HIGHLIGHTS

1

(RMB mn) 2014FY YoY Change

Revenues and Profits

Revenues 2,175.2

Gross margin 32.6% -3.5ppts

Net profit attributable to parent

168.3 -52.8%

Earnings per share (RMB Yuan)

0.06 -50.0%

Assets and liabilities

Total assets 12,753.2 +46.4%

Asset to liability ratio 47.0% +13.9ppts

Net assets 6,761.8 +16.0%

Cash flow Net operating cash flows 92.3

-32.6%

I. BUSINESS REVIEW

Gradual Changes in Breakdown of Revenue – Strategic Transformation Accomplished Preliminary Results

Changes in composition of revenue from principal activities

Strategic transformation for reducing risks of

industrial cycle

Increasing percentage of integrated mining

products supported future growth of

Company.

Mass production of LNG30 and LNG60

(products in series of natural gas filling

stations) became feasible with the

completion of R&D.

Increasing sales of mining dump trucks

became growth driver of Company’s profit.

Innovative model of value-added services

reinforced sales of aftermarket services.

BUSINESS REVIEW

2

33.9%

29.9%

13.1%

0.3%

22.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2013

2014

BUSINESS REVIEW Improvement in Production and Management – Increase in Gross Margin

51.7%

19.5%

52.5%

12.7%

49.0%

34.0%

53.0%

-6.3%

Roadheaders Mining dump trucks Spare parts Hydraulic support systems

2013FY 2014FY

Gross margin of scraper conveyors Gross margin of coal mining machines

10.6%

23.6%

2013FY 2014FY

Gross margin of others

Gross margin of new natural gas products reached 23%.

Gross margins of CCMU and mining dump trucks significantly increased; gross margins of scraper conveyors and

spare parts moderately increased.

Gross margins of roadheaders and hydraulic support systems decreased.

3

11.5%

12.2%

2013FY 2014FY

BUSINESS REVIEW

Improvement in Operation – Reduction in Costs and Lower Growth in Trade Receivables

Stringent control on terms of trading. Production and

delivery will not be arranged if sufficient deposit has not

be paid, such that overdue balances can be reduced.

Each customer has a separate account on outstanding

payment. Control system covered whole process of trade

receivables to ensure timely collection of payments.

Compliance system reinforced to reduce risks of trade

receivables. 4

57.3%

8.5%

19.6%

-46.4% -60%

-40%

-20%

0%

20%

40%

60%

Trade receivables Bills receivable

Growth in 2013 Growth in 2014

859.9

671.6

0

100

200

300

400

500

600

700

800

900

1000

3 items of costs

2013

2014

Control reinforced to reduce wastage in production

process.

Supply chain consolidated to reduce purchase costs.

Necessity and rationality of expenses assured.

On-going discussion and improvement on measures

of control.

(RMB million)

15.5%

22.7%

2013FY 2014FY

BUSINESS REVIEW

Improvement in Marketing – Changes in Business Models

Percentage of revenue from spare parts and services increased, indicated preliminary effect of exploration on aftermarket.

Satisfaction to services kept leading.

Extended service network ensuring radius of service

coverage to be less than 50 km.

Rising percentage of sales of spare parts, with increasing

sales amount of self-produced oil tanks, picks and valves.

Reinforcement in marketing

+7.2ppts

5

Changes in agency model

Agency model changed from “operation by board of directors” to “teams of professional managers employed by shareholders”, such that marketing activities reinforced by hiring high calibre candidates

Changes in service model

Shifting to model of comprehensive EPC and EPCO value-added services on top of existing prime service brand and sound network

Changes in product mix for

sales

By the strategy of “Consolidation, Innovation and Addition”, adding innovative products such as non-coal mining and natural gas products and automated equipment, and complementary products such as oil tanks, valve blocks and picks with an aim to develop new growth drivers to the listed company

New Business Segment – Port Machinery and Marine Industry

BUSINESS REVIEW

6

In 2014, the Company acquired the entire equity

interests of Sany Marine Industry International

Holdings Company Ltd., extending its product lines to

port machinery and marine heavy machinery.

Reachstackers ranked first in the PRC with 55% market

share.

Empty container handlers among top 3 in the PRC with

37% market share.

With increasing global throughput of containers and

investment in ocean development, sales of Sany

Marine Industry International will maintain steady

growth. Port machinery business will be creating value

for the Company.

New Driver of Profit – Natural Gas Equipment

BUSINESS REVIEW

7

R&D on LNG30 and LNG60, equipment products

of “station” series of the Company, has been

completed and achieved sales.

Natural gas products sold are widely recognised

by customers, providing strong fundamentals for

further development of the Company in the

natural gas market. 0

690

2013FY 2014FY

Revenue from sales of natural gas equipment

(RMB ten thousands)

In 2015, the Company will increase R&D and

marketing activities on its natural gas products

with an aim to accomplish steady growth in sales.

II. PROSPECT

Indispensable and stable demand: Aggressive expansion •In 2014, apparent demand for oil was up 3% YoY at 10.10 mn barrel/day.

•In 2014, apparent natural gas consumption in the PRC was up 7.4% YoY to 180 bn m3.

•In 2015, oil demand in the PRC is up 3% YoY to 533.67 mn tonne.

•In 2015, estimated production on natural gas to grow 9.1% YoY to 137 bn m3.

Rapidly growing new demand: Planning

•In 2014, newly installed wind power capacity in the PRC was up 45.1% YoY to 23.3505 mn kw.

•In 2015, newly installed wind power capacity may reach 25 mn kw, and may exceed 200 mn kw by 2020.

— Full Transformation and Breakthrough from Conventional to Environment-friendly New Energy

INDUSTRIAL PROSPECT

8

65.70%

24.50%

9.80%

Coal, 64.20%

Oil & gas, 24.5%

Non-fossil energy, 11.30%

Sources: National Bureau of Statistics, National Energy Administration and Platts

2014

2013

Structure of primary energy in the PRC

Huge existing demand: In-depth development

•In 2014, coal consumption in PRC was down 3% YoY to

approximately 3.51 bn tonne.

•In 2015, consumption in coal in the PRC will decrease further.

“Surface” & “Non-

coal Mining” Environment-friendly new energy equipment

EPC & EPCO Diversified Business

Port & Marine

Equipment

2

1

5 4

3

Consolidation, Innovation and Addition – Strategy for Industrial Presence and Transformation

FUTURE STRATEGY

Consolidation: Ensuring absolute competitive advantage of roadheader, combined coal mining unit and mine transportation equipment as

the 3 major existing products are the foundation of the Company.

Innovation: Developing the 3 innovative products of non-coal mining, natural gas and automated equipment as new growth drivers for the

Company’s development.

Addition: Organizing expert teams for the producing and selling oil tanks, valve blocks and picks, the additional products. Implementing the

“big spare parts” strategy in reliance on the brand of SANYI to supplement the development of the Company.

9

Port machinery

Under the concept of “One Belt and One Road”, the Company will expand its product mix to include logistics and shore development machinery in order to gain complementary and synergy effect with its existing business, such that its existing business can become diversified and effectively counter industrial cycles. The Company’s presence in the general energy machinery industry has become larger after establishing this business segment.

In future, design of the port machinery products will be further improved to increase gross margins and

market shares, such that SANYI can become the top brand in the PRC and the quality of its products can be leading in the industry.

FUTURE STRATEGY

Strategic Transformations — Port and Marine Equipment

10

Strategic Transformations – “Surface” and “Non-coal Mining”

FUTURE STRATEGY

“Non-coal mining” – Non-coal road heading and mining equipment

First product of non-coal mining machinery –

EBS630 roadheader can be applied in potash and

surface mines. In 2015, the Company will

reinforce its R&D and develop a new model

EBS330.

“Surface” – Large equipment for surface coal mines

Covering whole series of dump trucks for mines

(deadweight 30t~360t) and extending product

mix to electric shovels and articulated trucks

such that the market share can gradually

increase. In addition, market potential is still

satisfactory as huge potential exists in global

markets and our mine vehicles are still

competitive in developing countries.

11

Environment-friendly new energy equipment

Aiming at providing solutions for the

whole operation chain.

In 2015, new products such as liquefied

and storage equipment will be rolled out

to expand product mix.

Fully exploring the natural gas market of

the existing engineering machinery

industry and expanding to environment-

friendly new energy industry.

52.6M3LNG tank truck

FUTURE STRATEGY

Strategic Transformations — Environment-friendly New Energy Equipment

According to the new energy plannings

across the world, rapid growth of wind

power equipment will continue. The

Company will further develop its strategic

presence in energy equipment business.

12

FUTURE PROSPECT

Strategic Transformations – Diversified Operation

Full set of intelligent solution on emulsifier hydraulic

pumping station custom made for customers. Sales

commenced at increasing amount.

Expansion to oil tank market and promotion in reliance

on brand of SANYI, largest oil tank production base in

northeast China and advanced production lines.

Acquisition of market share by customized services to

each order.

Self-developed explosion-proof variable frequency

drives, variable frequency drives for mining machinery

and combination switches for mining equipment widely

used in full sets of integrated mining machinery. External

sales have also been achieved.

13

Strategic Transformations – Provision of Mining EPC General Contracting Service and Full-service EPCO Cooperation

Whole industry chain

EPCO

Industry Prospect

EPC

Engineering

Procurement

Construction

Operating

Protection by future demand

Increasing scale

Professionalism

Mechanisation

Engineering

Procurement

Construction

Demand for mining services assured by growth of demand for mineral resources driven by global industrialization and urbanization.

Nearly 7,000 mining companies currently existing in the PRC.

Mining service industry to be more extensive, professional and mechanised with implementation of mine integration policies of PRC government.

Mining & design Machinery

procurement Construction &

mining

Advantages of SANY

International

Existing customer base

Self-owned machinery

Strong management system

With more than 20 years’ operation in engineering and machinery industry and 10 years’ expansion in mining equipment industry, we have a large number of customers who are mine owners or operating in the mining construction industry.

Self-owned prime, full-model and professional equipment favourable to undertaking mine services with high entry barriers.

SANYI is able to reform loose and inattentive mine services for accomplishing win-win situation with resources companies.

14

Mining & design

Machinery

procurement Construction

& mining Operation

and services

Whole industry chain

FUTURE PROSPECT

QUALITY CHANGES THE WORLD

IR Hotline: 86-24-89318000 89318111 IR E-mail: tanglin@sany.com.cn Website: www.sanyhe.com.cn Address:No.25,16Kaifa Road, Shenyang Economic and Technological Development Zone, Shenyang, Liaoning Province, PRC