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With the COVID-19 pandemic gradually under control in mainland China, the resumption of work and production has started while the demand for infrastructure and real estate construction has fueled the strong growth of the construction machinery industry. Precision Tsugami (China) Corporation Limited (“Precision Tsugami”, together with its subsidiaries, the “Group”, share code: 1651), the largest foreign-owned high-precision CNC machine tool manufacturer in China has made advanced business deployment in the industry and has taken advantage of related opportunities. leading to substantial year-on-year growth of nearly 140% in construction machinery-related orders between January and August 2020.
According to the latest data released by the China Construction Machinery Association, statistics from 25 excavator manufacturers showed that a total of 20,939 excavators of different types were sold in August 2020, representing a growth of 51.3% year-on-year. . Excavator sales volume in China maintained a year-on-year growth of more than 50% for the fifth consecutive month. The total sales volume in the first eight months of this year already represented 89.3% of the annual sales volume in 2019.
The construction machinery industry is one of the downstream sectors in which the Group has been involved over the years. Driven by factors such as higher demand for infrastructure and equipment improvements, the Group recorded notable year-on-year growth of almost 140% in the number of orders related to construction machinery between January and August 2020. These orders came mainly from recognized manufacturers of high-end hydraulic devices in China, and the Group acts as a supplier of parts for high-precision hydraulic devices, such as hydraulic pump spools for excavators. As the largest foreign-owned high-precision CNC machine tool manufacturer in China, the Group’s main product, the CNC high-precision automatic lathe, has an advantage over its peers in the processing of hydraulic device parts, with higher requirements. precision and rigidity.
Looking ahead, China’s burgeoning construction machinery industry is expected to create opportunities for the CNC lathe industry, particularly high-end CNC lathe products with high precision, high rigidity and high efficiency. The Group is focusing on developing models with higher processing efficiency for construction machinery products in order to complement the latest industry trends and expand its market share in the industry. As always, the Group will execute sound, pragmatic and aggressive business strategies to overcome difficulties in the challenging market environment and capitalize on opportunities in the industry with agility.
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