Although industry analysts expect the machinery industry to slow down this year, the machinery industry is still confident to maintain double-digit growth this year after unexpectedly hitting a record high in sales last year.  

Construction Machinery: Expansion and Upgrade

China Construction Machinery Industry Association predicts that the domestic construction machinery market will continue to rise in the next five years, with an annual growth rate of approximately 17%.

Construction machinery listed companies that have disclosed annual reports are expected to maintain steady and rapid growth in revenue this year. Xugong Machinery plans to achieve a total operating income of 35.2 billion yuan in 2011, an increase of 39% over last year's 25.214 billion yuan. Liugong plans to achieve sales revenue of 23 billion yuan in 2011, which will increase 49% compared with the company's 2010 operating income of 15.366 billion yuan.

Analysts believe that the future market competition pattern of construction machinery will be: industry concentration will continue to increase; market competition will shift to technology, quality, service competition; independent innovation will increase; more emphasis will be placed on key component research and development, and technology investment will increase. . Therefore, adjustment, transformation, innovation and upgrading will become the main theme of the development of the domestic construction machinery industry.

Capacity expansion and technology upgrades have become the strategic focus of construction machinery companies.

XGMA plans to raise funds of approximately 2.165 billion yuan in 2011, investing in 15,000 production capacity technical transformation projects of excavators and the second phase of technical renovation and expansion projects of Xiagong Machinery (Jiaozuo) Co., Ltd.

Xugong Machinery focuses on transmission, hydraulic, intelligent control, energy saving and environmental protection, structural strength analysis, new materials, new process test research and machine testing technology, etc., which are obtained in the commonality, basic research, core technology and key technical fields of engineering machinery. leading position.

To this end, most construction machinery companies have arranged expansionary investment plans this year. XGMA plans to have a capital requirement of about 5.7 billion yuan in 2011, of which 3.7 billion yuan is in liquidity; it is estimated that capital investment in 2011 will be about 1.6 billion yuan. Liugong expects a capital investment of about 4.1 billion yuan in 2011. These funds will be raised mainly through the private placement of capital markets.