**Leasing in China's construction machinery industry is maturing

In 2010, as a model of credit sales, financial leasing has been increasingly matured in the Chinese construction machinery industry with its huge market potential, broad development prospects, and increasingly good market environment. Machinery companies pay attention. The originator of the financial leasing in China's construction machinery industry is the undisputed leader of non-Caterpillar. In 2004, Caterpillar established a financial leasing agency in Beijing and brought the construction machinery finance leasing business to the Chinese market for the first time. In 2010, the boom in China's construction machinery market also stimulated the rapid development of financial leasing business in China. Well-known construction machinery companies such as Sany, XCMG, Volvo, Yuchai, and Zhonglian performed well in the financing leasing industry.

Sanli Financial Leasing Group Establishes Auto Finance Company

In December 2010, Sany Automobile Finance Co., Ltd., newly established by Sany Group Co., Ltd., officially opened its doors. This is the only auto finance company in the domestic construction machinery industry and the second domestic Chinese auto finance company. Sany Heavy Industry President Xiang Wenbo said that auto finance is the highest profit rate in the manufacturing industry chain. Caterpillar, Manitowoc, Terex, and Komatsu construction machinery companies, their financial business Has accounted for more than half, while the domestic construction machinery industry financial services is still in its infancy. “At present, the provision of comprehensive financial services has become a direction for the development of construction machinery industry. There are millions of engineering machinery products and even tens of millions of them. Developing financial services is a market demand, and customers can effectively mitigate through long-term cooperation with financial companies. The financial pressure has pushed the expansion of construction machinery consumption, said Duan Dawei, vice president of Sany Group.

Zoomlion’s overseas sales of financial leasing exceeded 100 million yuan

Recently, Zoomlion’s financial leasing company signed four innovative financial agreements with five domestic financial institutions such as Bank of China. The signing of these four agreements shows the further broadening of external financing channels of Zoomlion Financial Leasing Company. On the evening of November 22nd, Zoomlion Financial Leasing Co., Ltd. signed on-site contracts with the American ACP company and the Russian RSS company.

At this point, Zoomlion Financial Leasing Co., Ltd. has accumulatively signed overseas contracts worth RMB 113 million. Zoomlion Heavy Industry Science and Technology Development Co., Ltd., after two years of "Made in China + China Finance" hand in hand to explore overseas, the rapid development of financial leasing business, not only equipment sales more than 10 billion yuan, but also to make some customers through Financing leases have achieved a geometric growth in capital accumulation, and have also increased the confidence of financial institutions in cooperation.

Xugong Leasing wins Top 10 Chinese Financing Leasing Companies in 2010

In December 2010, Xugong Leasing won the title of Top Ten Chinese Financing Leasing Companies in 2010 and was elected as a vice president unit, which reflects the recognition of Xugong's leasing development by the industry and society, and also places more hope on Xugong Leasing. In order to comprehensively, in-depthly and continuously enhance the XCMG Group's mainframe product financing sales and maximize the services of XCMG's financing sales platform, Xugong Leasing Company conducted a comprehensive and detailed analysis of the domestic construction machinery financing leasing market in order to realize manufacturing plants and leasing companies. The dealer's “three-way and win-win” financing business model has been heatedly discussed. Looking at the Xugong excavation machine and the cooperation of XCMG Technology, distributors, and Xugong’s early lease, the participants believe that the three parties’ cooperation model has basically taken shape. There has been steady growth. However, there are still some issues in cooperation that require the three parties to actively communicate and seek solutions.

Yuchai Heavy Industry (Tianjin) and Tianjin Yinde Finance Leasing Opened

On November 30, 2010, the opening ceremony of Yuchai Heavy Industry (Tianjin) Co., Ltd. and Tianjin Yinde Finance Leasing Co., Ltd. was held in Wuqing District, Tianjin. Yuchai Heavy Industry (Tianjin) Co., Ltd. and Tianjin Yinde Finance Leasing Co., Ltd. are important layouts for the unification of Yuchai Heavy Industry's national layout strategy. It is an important starting point for Yuchai to establish a service-oriented high-end market in China. Tianjin Yinde Financial Leasing Co., Ltd. is located in the Wuqi Development Zone Venture Capital Headquarters Base and plans to establish a financial leasing platform for the global market.

The Yuchai Heavy Industry Marketing Settlement Center and the financial leasing are all invested by Guangxi Yuchai Heavy Industry Co., Ltd. Among them, the marketing company plans to invest 2 billion yuan and register 100 million yuan; the financial leasing company plans to invest 25 million US dollars and register 10 million US dollars. It is estimated that in the next five years, the sales revenue of the two companies will be more than 15 billion yuan and the tax revenue will be more than 300 million yuan.

On October 27, 2010, the "Volvo Lease" signing ceremony was held in Xinjiang. The establishment of Xinjiang Dingyuan Equipment Leasing Co., Ltd. marked the formal entry into China of Volvo Construction Equipment Leasing business following the United States and Europe.

In 2010, China’s construction equipment market experienced unprecedented growth in sales, and the Western Development Policy has brought historic development opportunities to Xinjiang. During the massive infrastructure construction in Xinjiang, some large-scale projects such as railways, airports, reservoirs, highways, and underground shopping malls have been increasing year by year, and investors and construction parties are inconvenience in using large-scale construction equipment. There is no relevant leasing business in the local area. Buying equipment costs too much. The leasing business will better provide better and better services for the local infrastructure and promote the vigorous development of the western development.

Shandong Changlin: Open up a new channel for “finance leaseback” financing lease

In August 2010, Shandong Changlin Group signed an 80 million yuan financial leasing cooperation agreement with Xinjiang Great Wall Financial Leasing Co., Ltd., with its existing major production equipment and ancillary equipment, and a “sales leaseback lease” financing lease. 3 years. Through the signing of this financial leasing contract, Shandong Changlin Group fully utilized the existing production equipment for financing, effectively solved some of the funds needed to expand production, speeded up the expansion of the Group's industrial scale, and also opened up new opportunities for the Group. Financing channels.

Conclusion:

With the gradual increase in the weight of China's construction machinery in the world's construction machinery territory, sales resistance caused by the absence of financial services is gradually disappearing. China's construction machinery companies are making big strides toward "internationalization." According to industry insiders, as China’s large-scale equipment manufacturing industries such as construction machinery and shipbuilding continue to move overseas, the financial leasing market is surging. With financial tools to boost product sales, the development of service industries has become an important strategy for the development of China's construction machinery enterprises. As a major method of financial instruments, financial leasing has become one of the mainstream methods for sales of construction machinery. In the future, the development of China's construction machinery industry will inevitably play a more significant role in helping China’s construction machinery companies accelerate internationalization. "pace!