It is already mid-August, and the successive release of semi-annual reports by construction machinery-related enterprises still makes us feel the severity of the market environment. However, no matter what the market environment is, there will always be enterprises that break through against the trend. For example, Ancha Group achieved sales revenue growth of more than 8% year on year. According to the editor of China Construction Machinery Business Network, the downstream application targets of construction machinery are mainly real estate and infrastructure; while the downstream of forklifts consists of various industrial and commercial enterprises involved in material handling, with very broad downstream applications, making the forklift industry cycle clearly different from construction machinery enterprises affected by real estate and infrastructure. In addition, the forklift industry was not affected by the crazy promotions of previous years, nor did it suffer the adverse consequences brought by large-scale credit sales in the construction machinery industry, which is why it was able to perform impressively in the sluggish construction machinery market.

       Judging from the market performance in the first half of the year, constrained by the downturn in real estate, construction machinery equipment sales came under tremendous pressure, and among construction machinery products, cranes performed relatively steadily. According to statistics, in the first half of 2014, the cumulative sales area of commercial housing fell by 6%, and the cumulative floor space of newly started housing fell by 16.5% year on year. As one of the important downstream sectors of construction machinery, weak new construction starts largely suppressed sales of construction machinery equipment. At the same time, government "mini-stimulus" measures such as infrastructure also provided important momentum for the performance of construction cranes and road machinery. We have seen crane products from many enterprises such as XCMG, Zoomlion, Terex, and Konecranes begin to support the construction of various projects across the country, including Olympic Sports Centers and large bridges. Other earthmoving machinery such as excavators and loaders performed weakly, and sales of concrete machinery and other equipment continued to decline. Some industry insiders said that in the next 5-10 years, the performance of core component manufacturers in construction machinery is expected to be better than that of host manufacturers, and their development in the field of hydraulic components may open a new journey.