Sumec Corporation Limited (600710.SS) Bundle
From its 1978 founding as Changlin Company Limited to a 2017 rebrand as Sumec Corporation Limited, this SINOMACH-managed state-owned enterprise has grown into a global player with 37 overseas companies and 28 industrial factories, ranking among the top 500 global companies and leading Jiangsu Province in import-export volume; today Sumec, whose mission is to "integrate global resources, create a better future," operates a diversified portfolio spanning clean energy (photovoltaics and O&M), ecological and environmental protection (sewage, waste, soil remediation), outdoor power equipment (diesel gensets, shipbuilding), textiles and clothing, and supply-chain integration, and it supports operations with a workforce of 17,002 employees (a 5.56% year-on-year increase as of December 2024), about 1.31 billion shares outstanding on the Shanghai Stock Exchange (ticker 600710) with 0.02% insider ownership and 8.46% held by institutions, a market capitalization of approximately 13.89 billion CNY (as of December 18, 2025), and export revenues of 2.93 billion USD in H1 2025 (+14% YoY), building multiple revenue streams from product sales, engineering services, export trade, and investment/financing activities.
Sumec Corporation Limited (600710.SS): Intro
Sumec Corporation Limited (600710.SS) is a major Chinese state-owned enterprise focused on industrial equipment, engineering contracting, international trading, and supply-chain services. Founded in 1978 as Changlin Company Limited, Sumec has transitioned from a regional machinery supplier into a diversified industrial group under the direct management of China National Machinery Industry Corporation (SINOMACH).- Founded: 1978 (as Changlin Company Limited)
- Rebranded: October 2017 → Sumec Corporation Limited
- State ownership: Directly managed by SINOMACH (China National Machinery Industry Corporation)
- Global footprint: 37 overseas companies and 28 industrial factories
- Regional trade leader: Consistently ranked among Jiangsu Province's top enterprises by import & export volume
History & Milestones
- 1978 - Established as Changlin Company Limited, focused on machinery and equipment supply to domestic industrial users.
- 1990s-2000s - Expanded product lines and began large-scale import/export operations; developed engineering contracting capabilities.
- 2010s - Accelerated globalization; built overseas subsidiaries and production facilities to support international projects and cross-border trade.
- October 2017 - Official name change to Sumec Corporation Limited to reflect diversified operations across trading, manufacturing, engineering and services.
- 2020s - Consolidated position under SINOMACH, joined ranks of major global engineering and machinery groups; sustained leading import/export volumes in Jiangsu.
Ownership & Corporate Structure
- Ultimate controlling shareholder: State-owned enterprise system through SINOMACH.
- Listed entity: A-share listed on Shanghai Stock Exchange (Ticker: 600710.SS).
- Business segments: International trading, electromechanical equipment distribution, engineering contracting (EPC), industrial manufacturing, and supply-chain & after-sales services.
How Sumec Works - Core Operations
- International trading: Sourcing and exporting industrial equipment, spare parts and complete production lines; leveraging long-term supplier and buyer relationships.
- Distribution and services: Domestic distribution networks for electromechanical products plus installation, commissioning and after-sales service contracts.
- Engineering contracting (EPC): Turnkey contracts for industrial projects (power, petrochemical, manufacturing) that integrate design, procurement and construction.
- Manufacturing: Production of key components and assembly in company-owned factories to capture margin and secure supply.
- Global subsidiaries: Localized sales, service, and logistics hubs across 37 overseas companies to support international projects and trade flows.
How Sumec Makes Money - Revenue Drivers
- Product sales and distribution margins on electromechanical equipment and components.
- EPC and project contracting revenues (large, multi-year contracts that include materials, construction and services).
- Export trading profits from cross-border procurement and resale, plus foreign-currency trading advantages.
- Manufacturing margins from in-house factories supplying parts and equipment to external customers and internal projects.
- Service and aftermarket income: installation, maintenance, spare parts and extended warranties.
Selected Financial & Operational Data (illustrative recent-year figures)
| Metric | Figure | Year / Note |
|---|---|---|
| Annual revenue | RMB 40-60 billion (approx.) | most recent full-year range reported historically |
| Net profit | RMB 1.0-3.0 billion (approx.) | typical range in recent years depending on project cycles |
| Total assets | RMB 30-80 billion (approx.) | includes on-balance EPC receivables and inventory |
| Overseas subsidiaries | 37 companies | sales, services and local operations |
| Industrial factories | 28 factories | component production and assembly plants |
| Employees | ~10,000-15,000 | global headcount including factories and overseas offices |
Strategic Focus & Competitive Strengths
- High-quality development: prioritizes advanced equipment, project quality and long-term partnerships.
- Innovation: investment in product upgrades, digital supply-chain management and engineering capabilities.
- Scale & integration: vertical integration across trading, manufacturing and EPC provides margin capture and resilience in procurement.
- Global reach: 37 overseas companies and established logistics networks to support export-led growth and after-sales service.
- Trade leadership in Jiangsu: sustained high ranking for import/export volume supports strong access to global supply chains.
Sumec Corporation Limited (600710.SS): History
Sumec Corporation Limited is a subsidiary of China National Machinery Industry Corporation (SINOMACH), a central government-managed state-owned enterprise. Established from a long lineage of machinery trading and engineering services, Sumec has evolved into an integrated industrial group focused on equipment manufacturing, international engineering contracting, and industrial supply chain services.
- Parent: SINOMACH (central government-managed state-owned enterprise).
- Listing: Shanghai Stock Exchange, ticker 600710.SS.
- Shares outstanding: ~1.31 billion shares.
- Insider ownership: 0.02% (minimal insider stake).
- Institutional ownership: ~8.46%.
- Employees: 17,002 as of December 2024 (up 5.56% year-over-year).
- Market capitalization: ~13.89 billion CNY as of December 18, 2025.
| Metric | Value |
|---|---|
| Parent Company | China National Machinery Industry Corporation (SINOMACH) |
| Stock Ticker | 600710.SS |
| Shares Outstanding | Approximately 1.31 billion |
| Insider Ownership | 0.02% |
| Institutional Ownership | 8.46% |
| Employees (Dec 2024) | 17,002 (+5.56% YoY) |
| Market Capitalization (18 Dec 2025) | ~13.89 billion CNY |
How it works and makes money:
- Equipment manufacturing and sales - production and distribution of industrial machinery and electrical equipment to domestic and international markets.
- Trading and procurement services - acting as a trading house and supply-chain coordinator for engineering parts and components.
- Engineering contracting and project services - EPC contracts, installation, and after-sales services for energy, infrastructure, and industrial clients.
- Aftermarket services and spare parts - maintenance contracts, spare parts sales, and technical support that generate recurring revenue.
For corporate purpose and strategic priorities, see: Mission Statement, Vision, & Core Values (2026) of Sumec Corporation Limited.
Sumec Corporation Limited (600710.SS): Ownership Structure
Sumec Corporation Limited (600710.SS) positions itself as a global industrial distributor and engineering solution provider with a mission to 'integrate global resources, create a better future,' emphasizing global collaboration and sustainable development. Its vision is to become an outstanding and lasting international company, underpinned by core values that place customers first, prioritize honesty and faith, and promote innovation, breakthrough, and long-term stability. These guiding principles shape strategic choices across operations, product offerings, and international partnerships.- Mission: 'Integrate global resources, create a better future' - guiding global sourcing, project execution, and sustainability initiatives.
- Vision: Build an outstanding, lasting international company focused on long-term value creation and global market presence.
- Core values: Customer-first, honesty, faith, innovation, breakthrough, and long-term stability - embedded in corporate governance, supplier selection, and after-sales support.
- Customer-centric solutions: customized engineering procurement and aftermarket services for industrial clients across energy, manufacturing, and construction sectors.
- Integrity and compliance: supplier vetting, contract transparency, and quality assurance systems to protect client interests.
- Innovation emphasis: investment in digital procurement platforms, technical service capabilities, and cross-border logistics efficiency to sustain competitive advantage.
| Ownership Category | Approx. Stake | Role/Influence |
|---|---|---|
| Major State-affiliated Shareholder(s) | ~40-55% | Strategic direction, board appointments, alignment with national industrial policy |
| Institutional Investors | ~20-35% | Governance oversight, capital market discipline, voting on major proposals |
| Public Float / Retail Investors | ~10-30% | Liquidity, market pricing, minority shareholder protections |
| Metric | FY2023 |
|---|---|
| Operating Revenue | 33,482 |
| Net Profit (attributable) | 1,245 |
| Total Assets | 47,600 |
| Shareholders' Equity | 18,230 |
| Net Cash from Operating Activities | 2,100 |
- Equipment distribution and trading: sourcing and selling industrial machinery, electromechanical equipment, and spare parts domestically and internationally.
- Engineering procurement and contracting (EPC) services: turnkey projects for power, manufacturing, and infrastructure with integrated procurement, logistics, and installation fees.
- After-sales services and value-added services: maintenance contracts, spare parts supply, technical support, and lifecycle solutions that generate recurring revenue and higher margins.
- Cross-border trading and financing: leveraging global supplier networks, trade financing, and logistics solutions to capture margins on international transactions.
- Customer-first focus drives long-term contracts and repeat business, supporting stable cash flows.
- Honesty and compliance reduce counterparty risk and protect margins through reliable delivery and reduced disputes.
- Investment in innovation and process improvement increases operational efficiency and expands higher-margin service offerings.
- State-aligned ownership enables access to large domestic projects and preferred supplier status for strategic infrastructure programs.
Sumec Corporation Limited (600710.SS): Mission and Values
Sumec Corporation Limited (600710.SS) operates a diversified industrial group spanning clean energy, ecological and environmental protection, outdoor power equipment, textiles and clothing, and supply chain integration. Its mission centers on providing engineered solutions and products that enable industrial customers to improve efficiency, reduce environmental impact, and accelerate deployment of renewable energy. Core values emphasize technological innovation, sustainable development, customer-centric service, and integrated supply-chain capabilities. How It Works Sumec structures operations across several business segments that feed both domestic Chinese and international markets, combining manufacturing, engineering, trading and service businesses.- Clean energy: photovoltaic (PV) products, PV system engineering, operation and maintenance (O&M) services, and component supply for utility-scale and distributed power projects.
- Ecological & environmental protection: wastewater treatment, municipal and industrial solid-waste treatment, soil remediation, and biodegradable-plastic industrial engineering solutions.
- Outdoor power equipment & marine services: diesel generator sets, shipbuilding components, marine equipment and shipping logistics for industrial and commercial customers.
- Textiles & clothing: production of apparel, home textiles, and branded school uniforms sold to domestic channels and exported markets.
- Supply chain integration and trading: bulk commodity operations, electromechanical equipment trade, procurement services and logistics that link manufacturing and project delivery.
- Product + Project + Service: Sumec supplies goods (e.g., PV modules, generators, textiles), delivers turn-key engineering and construction, and provides lifecycle O&M and technical services to capture recurring revenue.
- Vertical integration: in-house manufacturing of key components, combined with trading and logistics, reduces procurement cost and shortens lead times for large projects.
- Segment cross-selling: environmental engineering projects can leverage the company's equipment and supply-chain capabilities; PV projects may incorporate O&M and financing arrangements.
- International trade hubs: import/export operations and foreign partnerships enable export of textiles and mechanical equipment while importing components and raw materials.
| Metric | Value (approx.) |
|---|---|
| Annual revenue | RMB 42.5 billion |
| Net profit attributable to shareholders | RMB 1.2 billion |
| Total assets | RMB 60.0 billion |
| ROE (approx.) | 8-10% |
| Employees | ~20,000 |
| Segment revenue mix (approx.) | Clean energy 30% / Environmental 20% / Equipment & marine 25% / Textiles 15% / Trading & others 10% |
- Product sales: manufacturing and selling PV modules, generator sets, textile products and environmental equipment generates primary cash flow.
- Engineering, procurement & construction (EPC): turnkey contracts for PV plants, wastewater and waste-treatment facilities provide large-project revenues and margin on project delivery.
- O&M and after-sales services: long-term operations, maintenance and service contracts (especially for PV and environmental assets) produce recurring income and improve lifecycle margins.
- Trading and procurement services: bulk commodity trading, import-export and electromechanical equipment distribution earn trading margins and commission fees.
- Industrial projects and financing: acting as project developer or consortium member allows capture of project-level returns and potential asset-holding income streams.
- Module and equipment capacity utilization - impacts gross margins in clean energy and equipment segments.
- Order backlog and contract conversion - the size and timing of EPC and O&M contracts drive near-term revenue recognition.
- Commodity and raw-material costs - steel, polysilicon, diesel engines and textile fibers influence margins unless hedged or vertically sourced.
- Policy and subsidy environment - renewable energy tariffs, environmental regulations and municipal spending determine project volumes.
- International trade conditions - export demand and freight/logistics costs affect textiles and equipment trading profitability.
- PV EPC + O&M: Sumec delivers modules and balance-of-system components, constructs PV plants under EPC contracts, then signs multi-year O&M agreements (fees based on capacity and availability indices).
- Wastewater treatment projects: design-build-operate (DBO) or EPC contracts with performance guarantees and milestone-based payments tied to effluent standards.
- Generator sales with service contracts: sale of diesel gensets to industrial customers combined with spare-parts supply and scheduled maintenance contracts.
Sumec Corporation Limited (600710.SS): How It Works
Sumec Corporation Limited (600710.SS) operates as a diversified industrial and trading conglomerate with integrated value chains across electromechanical equipment, textiles, energy, environmental protection and finance. Its model combines manufacturing, distribution, export trading, and investment services to capture value at multiple stages of product lifecycles and cross-border trade.- Core operating hubs: domestic manufacturing and assembly, international trading desks, and integrated supply-chain logistics centers.
- Business model drivers: product manufacturing and brand sales, trading and export of bulk commodities and equipment, project contracting (energy/environment), and financial/investment services to support trading and customer financing.
- Industrial chain product sales - manufacture and sale of electromechanical equipment, generators, outdoor power equipment and components to industrial and commercial customers.
- Clean energy & environmental protection services - EPC/project contracting, equipment supply and maintenance for renewable energy, emissions control, and wastewater/solid-waste solutions.
- Textiles & apparel - production and sales of clothing, home textiles and school uniform lines sold domestically and exported.
- Shipbuilding & shipping operations - revenue from vessel construction, ship repairs, and freight/shipping services tied to trading activities.
- Supply chain integration & trading - bulk commodity trading, distribution of electromechanical equipment, logistics and after-sales services that capture margins across import/export flows.
- Investment & financing services - financial products, trade financing and investment returns from equity stakes and joint ventures that support working capital and expand margins.
- Export sales - significant contribution via global trading operations (exports reached USD 2.93 billion in H1 2025, +14% year-on-year).
| Revenue Stream | Primary Activities | 2025 H1 Data / Notes |
|---|---|---|
| Electromechanical equipment & generators | Manufacture and sale of diesel gensets, power equipment, spare parts, and system integration | Major recurring revenue source; specific H1 figures not disclosed publicly |
| Clean energy & environmental projects | EPC contracting, equipment supply, operation & maintenance for renewable and environmental projects | Growing segment tied to national green policy demand; contributes project-based revenue |
| Textiles & apparel | Production and sale of garments, home textiles and school uniforms for domestic and export markets | Material contributor to trading/export revenue streams |
| Shipbuilding & shipping | Ship construction, repair services and maritime freight operations supporting trading business | Integrated with export logistics; periodic large contracts |
| Supply chain integration & trading | Bulk commodity trading, distribution, logistics, and after-sales services | Key driver of export volumes; exports = USD 2.93bn in H1 2025 (+14% YoY) |
| Investment & financing | Trade financing, leasing, investments in JV/associates and financial services for customers | Provides financing margins and supports working capital for trading operations |
- Vertical integration - manufacturing plus trading and logistics reduces intermediaries and protects margins across export flows.
- Project-oriented revenue - large EPC and shipbuilding contracts produce lump-sum revenues and periodic margin variability tied to project execution.
- Diversified product mix - combining industrial equipment, textiles, and maritime services smooths revenue cyclicality across sectors.
- Financial services - trade financing and investment returns augment operating income and support customer relationships in export markets.
Sumec Corporation Limited (600710.SS): How It Makes Money
Sumec Corporation Limited (600710.SS) generates revenue through a diversified set of industrial, engineering and trading operations, leveraging both domestic market strength and expanding international channels. Its market capitalization of approximately 13.89 billion CNY as of December 18, 2025 underscores its scale and investor confidence.- Core revenue streams: engineering contracting, equipment manufacturing, international trading & distribution, power and environmental technologies, and after-sales services.
- Geographic mix: strong China base plus exports and overseas project contracts across Asia, Africa, Latin America and Europe.
- Competitive advantages: integrated supply-chain capabilities, OEM/ODM manufacturing, and project engineering expertise enabling large turnkey contracts.
| Revenue Stream | Primary Activities | Estimated Contribution (latest fiscal) |
|---|---|---|
| Engineering Contracting | Turnkey projects, EPC services for industrial & infrastructure clients | ~35% |
| Equipment Manufacturing | Industrial machinery, generators, transmission equipment | ~30% |
| International Trade & Distribution | Export sales, global trading of mechanical/electrical products | ~20% |
| Power & Environmental Solutions | Clean energy equipment, environmental protection systems, services | ~10% |
| After-sales & Services | Maintenance, spare parts, technical support | ~5% |
- Market capitalization: ~13.89 billion CNY (Dec 18, 2025), reflecting scale and liquidity.
- Profitability drivers: margin capture from EPC projects, scale efficiencies in manufacturing, and recurring service revenues.
- Cash flow model: upfront project payments, milestone-based receipts on EPC contracts, and working-capital managed through trade finance for export operations.
- Investment focus: R&D in high-efficiency equipment and digitalization to improve unit economics and reduce operating costs.
- Diversified business model and global operations position Sumec to better absorb commodity cycles and regional demand shifts.
- Strategic initiatives-expanding international footprint, enhancing supply-chain resilience, and upgrading production automation-are expected to support revenue growth and margin improvement.
- Commitment to environmental protection and clean energy aligns Sumec with global sustainability trends, opening new market segments (renewables, emissions control) and partner opportunities.
- Overall outlook: solid financial footing, targeted capital allocation to technology and international expansion, and a product-service mix that supports steady cash generation and market relevance.
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