On April 27, Shaanxi Construction Machinery Co., Ltd. released its 2016 annual report as a listed company. In 2016, the company's total operating revenue was 1.375 billion yuan, an increase of 96.16% over the same period in 2015; the net profit attributable to shareholders of the listed company was 82.2 million yuan, an increase of 1250% over the same period in 2015; and earnings per share reached 0.129 yuan, an increase of 646% over the same period in 2015.

The main businesses of Shaanxi Construction Machinery Co., Ltd. include two major segments: construction machinery manufacturing and construction machinery leasing. They mainly cover the research and development, production and sales of construction machinery, building machinery, metal structure products and related accessories; metal structure installation engineering; leasing and maintenance of construction machinery and equipment; export of self-produced products; and import and export of raw and auxiliary materials, equipment and spare parts required by the enterprise. The main products include: asphalt concrete pavers, road rollers, milling machines, stabilized soil mixers, asphalt mixing plants and other equipment suitable for road construction; rotary drilling rigs suitable for foundation construction projects such as municipal construction, bridges and high-rise buildings; tower cranes suitable for housing construction; and various non-standard steel structure products.

In the construction machinery manufacturing segment, Shaanxi Construction Machinery Co., Ltd. mainly focuses on road construction machinery and lifting machinery as its leading products, ranking in the middle of the industry. Among them, the leading product, large asphalt concrete pavers, enjoys high visibility in China, with a market share of about 15% in 2016. The high-end tower cranes developed by the company have initially taken shape and achieved mass production and sales; the low- and medium-end tower cranes produced by its subsidiary Tiancheng Machinery have regional competitive advantages in Southwest China and are exported to Southeast Asian countries; and its subsidiary Construction Steel Structure has a professional Grade I qualification for steel structure production and manufacturing and has strong competitiveness in Northwest China.

In the construction machinery leasing segment, Shaanxi Construction Machinery Co., Ltd. mainly has two businesses: construction machinery equipment leasing and lifting machinery equipment leasing. Among them, the construction machinery equipment leasing business, relying on the advantages of manufacturing enterprises, has basically completed the transformation and upgrading integrating equipment leasing, technical support and services, and road construction, and is a relatively well-known construction machinery equipment lessor in Western China. Its subsidiary Pangyuan Leasing is the world's largest lifting machinery lessor, with more than 20 branches and subsidiaries across the country, and has entered overseas markets such as the Philippines and Malaysia. It is the No. 1 brand in China's construction machinery leasing industry.

During the reporting period, the prosperity of the construction machinery industry improved somewhat, but the situation of sluggish sales, declining efficiency and shortage of funds has not changed, and the problems of structural overcapacity and insufficient effective demand remain prominent. Facing the severe and complex external economic environment and market competition risks, the company, guided by its development strategy, sized up the situation, made scientific decisions, and successfully achieved its annual established goals and tasks in adversity. In 2016, the company achieved annual equipment sales revenue of 301.5192 million yuan, an increase of 31.82% year on year. The market sales volume of its leading product, asphalt concrete pavers, rose slightly compared with the same period last year, with a market share of about 15%. Revenue from construction machinery equipment leasing business was 40.0077 million yuan, an increase of 25.27% year on year. Lifting machinery leasing business achieved annual revenue of 970.8415 million yuan, maintaining its position as the No. 1 domestic brand and No. 1 in market share.

Driven by the stable growth policies successively introduced by the state, the industry began to show signs of recovery in the second half of 2016, and this momentum may continue into the first half of 2017 due to time inertia. However, the "prudent and neutral" monetary policy, the task of deepening "deleveraging," and the uncertainty brought by changes in the international political landscape mean that the scale of money supply in 2017 will be significantly tightened. Therefore, the bottoming out and stabilization of the construction machinery industry, which relies on investment, remain highly uncertain. At the same time, with the successive introduction of national environmental protection policies, a large number of old and outdated equipment will be gradually phased out, and the replacement of existing stock will free up effective market space for the sale of new equipment. Changes in construction units toward asset-light operations and the continuous improvement and perfection of laws and regulations related to the leasing industry will also play a positive role in promoting the development of construction machinery equipment leasing. In comprehensive analysis, in 2017, the industry development environment facing the company will remain severe and complex, with both opportunities and challenges.