Machinery / Industrial Parts & Tools

According to customs data, from January to November, the overall sales volume of Liugong's overseas market exceeded 20000, with a year-on-year growth of nearly 40%. Customs data shows that the annual overseas sales revenue has been rising all the way, and it is expected that the year will hit a record high!

The overseas market has a high starting sight, helping domestic construction machinery to go to sea. Since this year, the domestic market has been affected by the high base, macro-economy and epidemic situation, and the demand for downstream construction is relatively low, but the overseas construction machinery market is relatively prosperous.

According to the statistics of customs data, from January to October 2022, China's export of construction machinery amounted to 36.521 billion US dollars, an increase of 34.2% year on year. The export volume maintained a high level of growth, indicating that the annual export of construction machinery products this year has been guaranteed to show a significant growth trend. Against the background of multiple uncertain factors such as unclear development trend of global epidemic prevention and control, geopolitical conflicts still exist, and unstable policies in some regions and countries, Liugong also encountered challenges such as logistics, customs clearance and market risks in export operation and development. In the face of the lack of resources in the south terminal of ro ro ships and bulk carriers, and the difficulty in shipping nearby, Liugong has adopted a strategic cooperation mode with downstream industries (logistics) to solve the problem.

On April 25, the China Vietnam international freight train loaded with 35 sets of Liugong's equipment left Liuzhou Station and went straight to the same station in Vietnam, which was the first China Vietnam train of Liugong under RCEP. In July of the same year, Liugong signed a strategic cooperation agreement with COSCO Shipping Special Transportation Co., Ltd. (COSCO Haite), and shipped the first batch of more than 100 sets of equipment from Qinzhou Bonded Port Zone in Guangxi to Indonesia and Australia for the first time.

In addition, the effective implementation of RCEP has brought new opportunities for Liugong in many aspects such as trade in goods, services and investment. It is mainly reflected in zero tariff and intra regional trade facilitation. Now it is no longer necessary to apply for the certificate of origin at the customs, but only need to issue the declaration of origin, which not only saves time, but also makes trade arrangements more convenient and customs clearance efficiency further improved.

In terms of parts import, after the implementation of RCEP, the cost of parts imported from Japan and South Korea decreased, and the average import tariff directly decreased from 5.4% to 4.8%; At the same time, according to the cumulative rules of origin, the complete construction machinery products carrying these parts can be exported to the countries in the RCEP region, and also enjoy tariff preferences. RCEP also provides more open market access, creating conditions for Chinese enterprises to compete equally with local enterprises in providing product services and financial services to consumers or enterprises in other RCEP member countries. In addition, investment barriers have been further broken, foreign investment has further shifted to domestic investment, the market and space have grown significantly, and investment attraction and openness have further improved.

According to customs data, as of November, Liugong sold more than 4000 complete machines in the RCEP region this year, up nearly 50% year on year; According to customs data, sales revenue increased by nearly 70% year on year.

With the help of RCEP, Liugong will focus on high-quality sustainable development in the future, deepen the strategic policy of "R&D - manufacturing - supply chain - marketing - service" of the whole value chain building of strategic core countries, continue to increase overseas investment in key core countries in various regions, especially in RCEP and countries along the "the Belt and Road", and expand new energy, intelligent and other new technology products and services in key countries in the RCEP region, Accelerate the construction of a new development pattern.