Machinery manufacturing industry has significantly improved

Machinery and equipment manufacturing industry is a basic industry that provides technical equipment for China's economic development and national defense construction. It is crucial for China to promote strategic adjustment of its economic structure, promote industrial upgrading, expand domestic demand, and realize a strategy of sustainable economic development. At present, we believe that some leading domestic machinery companies have strong R&D capabilities. Most of the products have independent intellectual property rights and have begun to have international competitiveness.

To maintain sustainable economic development in the long-term, China must revitalize its machinery and equipment manufacturing industry, realize industrial upgrading and strategically adjust its economic structure. Industrial upgrading is conducive to expanding domestic demand, changing the mode of economic growth, and achieving a virtuous cycle of economy. In the long run, we believe that China will gradually replace the United States and become the largest manufacturing country in the world. We believe that the machinery and equipment manufacturing industry will play a key role in the process of China's global rise.

In the past five years, the machinery industry has been at a high speed and stable development stage. At the same time, the profitability of the machinery industry is gradually increasing. Under the complex and volatile domestic and international economic environment this year, the overall operation of China's machinery industry is still relatively good. In the long run, analyst Liu Xiangfeng of China Tooling Network believes that the main machinery and equipment industry will continue to maintain a growth rate of around 2530% in the context of import substitution. It is believed that domestic machinery and equipment companies with independent core technologies will be the main beneficiaries.

At the same time, we believe that the industry's increasing profits, such as the increase in sales volume, product structure improvement, and product price increase, are still greater than the profit reduction factors brought about by the increase in raw material prices. A number of mechanical listed companies have announced good interim results, and overall sales revenue and profits have maintained a relatively rapid growth.