Mechanical engineering company focused on comments:

     Liugong A (000528)
     Loader leading products for the company, in 2006 the proportion of the main business revenue 81 percent, followed by the excavators, accounting for 11 percent, the two together accounting for 92 percent. 2001, the company loaders and excavators proportion of business in a more positive changes that excavators from 2001 to 1 percent in 2006 to 11% from 87% loader dropped to 81 percent. Company Loader domestic market share to become the first since 2004, has maintained for the first three years, and steadily increased in 2006 to 19.1 percent while the excavator to maintain domestic market share of 10, 3.2%, is still present Leading foreign products.



     Liugong domestic Loader's main rival is The Long, Ha workers, in particular the rise of the Dragon, China's domestic loader manufacturing enterprises have gradually formed a Liugong, Lung workers, building the tripartite confrontation trend. This three enterprises in 2006 occupied a total market share of 44 percent, occupy almost half of the country. 2006 China loader the first time in the industry with an annual output of 20,000 sales of super-two Taiwan enterprises, both entered the world of the first three loader manufacturing strong. 2006 Liugong production of the loaders 20,214 units sold 20,177 sets of 20,340 Taiwan-production workers, sales of 20,016 Taiwan.



     Hill pushed shares (000,680), leading products and accessories for the bulldozers, 2006, bulldozers of the main business revenue 43 percent share, accounting for 34 percent accessories, the two together accounting for 77 percent. Nearly four years ago, the company bulldozers continued to improve profitability, products, the gross margin from 2003 to 19.2 percent continued in 2006, 25.6 percent; products and accessories have also maintained good profitability levels, in 2006 gross margin was 18 percent.



     The company is a leading domestic industry bulldozer, bulldozers business last six years since the steady increase in market share, 06 to maintain domestic market share of the first, about 45 percent of the high-end products of the market share close to 60 percent, with prices On the edge, the company's competitiveness in overseas markets also quite strong, and expected the next few years bulldozers export business will continue to maintain a growth rate of 40-50%. Komatsu companies in China as the most important cooperative partners, has long been the excavator for Komatsu products provide high-quality, reliable and competitive prices on the types of complementary pieces, therefore, matching pieces in the industry's competitive edge is very clear, Accessories business will maintain its very high growth rate, annual sales of 07 is expected to grow 50 percent year-on-year, the 08-year annual sales growth of 40 percent.