Media reports 2, China Construction Machinery Industry Association Secretary General said that the construction machinery industry in the "Twelfth Five Year" plan has been submitted to the relevant departments of the state, will be released in July. We believe that the industry"Twelfth Five Year Plan" will be released in the next five years for construction machinerydevelopment direction, is conducive to enhancing the market of construction machinery of long-term growth of confidence.

1) the industry as a whole will continue to achieve steady growth: "the Twelfth Five Year Plan"period, the construction machinery industry in 2015 sales revenue is expected to reach 900000000000 yuan, an average annual compound growth rate of 17%, of which exports, the industry will reach $26000000000, exports accounted for nearly 20%. Although 2006-2010and 2001-2005, 21.3% and 28.1% growth rate compared with the "Twelfth Five Year Plan" period, the industry growth rate has slowed down significantly. But we believe that in the experience of the past ten years of growth, the market worried about the construction machinery market is already saturated, it is difficult to achieve growth, while the "Twelfth Five Year Plan" will be introduced to a certain extent, enhance market of construction machinery of long-term growth of confidence.

2) of each product will reflect the differences in growth performance: from the 12 productsindustry association statistics point of view, to benefit from the penetration rate of increase,the tower crane and the concrete pump truck, concrete mixer truck as the representative of the concrete machinery in the next five years the average annual compound growth rate is expected to reach more than 15% wheeled, crawler crane; cranes, graders, pavers is expected to achieve steady growth in the next five years the average annual compound growth rate of more than 10%; and the rollers, loaders, bulldozers, because the market retains the quantity increased significantly and the substitution effect of low growth, the next five years the average compound growth rate of only to maintain single digit growth;

3) development of core parts will be elevated to a new height: the lag development of key parts is the bottleneck of China's long-term competitiveness of the engineering machinery.Over the past ten years, the market demand, enterprises will focus on the rapid expansion ofthe host capacity to meet market demand, the development of key components and the basic process of long lag. We believe that, with the "industry competition in the Twelfth Five Year Plan" period, the core parts of the research work is expected to be elevated to a new height, is expected to form a government led, industry associations, leading enterprises led jointbreaking situation, so as to achieve a qualitative leap;

4) is expected to accelerate industry restructuring mergers and Acquisitions: we believe thatsince 2010, with a new round of expansion of production capacity, excess capacity in the "12th Five Year Plan period" may become a key factor restricting the development of the market.The next five years, industry leading enterprises, is expected to make use of their own advantages, through mergers and acquisitions to expand the product chain and the layout of the market, the market competition mechanism to eliminate backward and low level repeatedconstruction, industry concentration will be significantly improved.