Focusing on ChinaFocusing on ChinaPresented By Presented By

Ms. Huang QunMs. Huang QunZOOMLION HEAVY INDUSTRY SCIENCE & TECHNOLOGY ZOOMLION HEAVY INDUSTRY SCIENCE & TECHNOLOGY

DEVELOPMENT CO., LTDDEVELOPMENT CO., LTD

On 12On 12thth May 2011 in London May 2011 in London

Focusing on ChinaFocusing on ChinaPresented By Presented By

Ms. Huang QunMs. Huang QunZOOMLION HEAVY INDUSTRY SCIENCE & TECHNOLOGY ZOOMLION HEAVY INDUSTRY SCIENCE & TECHNOLOGY

DEVELOPMENT CO., LTDDEVELOPMENT CO., LTD

On 12On 12thth May 2011 in London May 2011 in London

2

Overview of Global Tower of Global Tower Crane MarketMarket

Presentation of nowadays Chinese of nowadays Chinese Tower CraneTower Crane

Future Prospect of Chinese Tower Crane

3

Overview of Global Tower of Global Tower Crane MarketMarket

Presentation of nowadays Chinese of nowadays Chinese Tower CraneTower Crane

Future Prospect of Chinese Tower Crane

4

4380.2

3712.5

Billions of ＄

Source: AEM,HIS(Global Insight)

In 2009, global

construction output

fell by 11.5%.

After 2011, an

average annual

growth rate of 6.5%

is expected.

But the Asia-

Pacific region has

maintained an

average annual

growth of 7%.

Total Building Construction Around the World

5

Global Tower Crane Market SizeGlobal Tower Crane Market Size

sets

6

accelerated urbanization process

average annual 20.7% growth in real estate investment

Speed up the process of industrialization

Europe Rest of the WorldChina

Credit crisisSharp decline of

construction activities Over stock of new

equipments Lack of market

confidence No replacement of the

existing equipment

From 2008 to 2010

North America, Russia and Japan markets went down sharply

while Asia Pacific, Latin America, Middle East and North Africa markets emerged rising trend.

Rapid Growth Phase

Went done after 2008 Imbalanced Market Development

Global Tower Crane Market SizeGlobal Tower Crane Market Size

7

Tower Cranes Production and Demand by Area （ 2011）

Chinese barriers: production costs and prices, distribution network, local Authorities influence

European barriers: Advanced regulation, Service network, Customized production

The Japanese, Koreans, Us, Brazilian, Russian and Indian demand is served also by small local players

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Tower Cranes Production and Demand by Area （ 2015）

The Chinese Installed Production Capacity could serve an additional share of the worldwide demand

Europe could loose further production volumes, production facilities will move towards China

The RoW will stay flat to serve local and tailored demand

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Europe China

Crisis, Small market

Negative trend of

volumes

Strict regulations (CE, EN)

High service

requirements

Strong rental companies

Residual value of

products

Exceeding production

capacity

Huge Market

Still positive trend of

volumes

Huge production capacity

Low technological

requirements

Distribution system is a

barrier for non Chinese

Market Features and Drivers

10

Overview of Global Tower of Global Tower Crane MarketMarket

Presentation of nowadays Chinese of nowadays Chinese Tower CraneTower Crane

Future Prospect of Chinese Tower Crane

11

Powerful global sales network,

with coverage of:

China

Europe

America

Australia

South Asia

The Middle East, etc.

Perfect service system:

Localization of spare parts centers

Global Sales and Service Network

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Luffing

Product series:

Topkit

Luffing

Topless

Product range:

From 25tm to 5200tm

Product models:

>100 models

Service:

To provide customers with

comprehensive lifting solutions

Topkit

Topless

Product Serialization

13

Annual sales volume of tower crane: 100,000 sets

Tower crane manufacturer: More than 500 manufacturers.

Plant area: There are 10 manufacturers with plant area exceeding 120,000m2.

Tower crane manufacture base: The world biggest single tower crane manufacture base is situated in China.

The foreign tower crane manufacturers (including Potain) are flocking in China for establishment of manufacture plant.

Large Scale Manufacturing

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Welding robotWelding robot

Suspension Suspension chain coating chain coating

systemsystem

Modern plantModern plant

Production Modernization

Automated production line

Advanced product coating line: 500m suspension

chain coating system

Extensive adoption of welding robots

100% guarantee by tooling

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The Chinese tower crane manufacture supply

chain has been formed and is gradually getting

matured

Sufficient supply of raw materials, with the

quality level reaching international advanced

level

Rich supplier resources, with systematic supply

chain

Localization of products of foreign tower crane

manufacturers

Suppliers’ modern plant Delivery of steel materials Quality Assurance

Mature Supply Chain

Steel material comparison between Chinese standard and other foreign

standards

Chinese standard

DIN standard

ISO standardEN

standard

Q235 st37 Fe360 S235JR

Q255 st44 Fe430 -

Q275 st50 Fe490 S275

Q345 Fe510 E355 S355

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The design standards are always in line with western developed countries and

regions

Rich absorption from contents of ISO, DIN, and EN international standards

Internationalization of Standards

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Surging independent innovation capability of Chinese tower crane industry

Thoroughly escaped from the situation of heavily reliance on imported ultra-large tower cranes.

Independent innovation and intellectual property rights

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Industry foothold:

Independent innovation

International cooperation:

Proactively seeking extensive international cooperation.

Cooperation mode:

From pure technology introduction to all-round multiple sectors

Cooperation description:

Tower crane structure, mechanism, electric control, product certification, product service, etc.

Cooperation territory:

Worldwide

Cooperation Globalization

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Enterprise management: Extensive, not intensive

Manufacture capability: Uneven

Testing measures: Simple, but with blind spots

Product quality: To be further promoted

Design concept: Lack of systematic design roadmap

Deficiencies in Chinese Tower Crane Industry

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Overview of Global Tower of Global Tower Crane MarketMarket

Presentation of nowadays Chinese of nowadays Chinese Tower CraneTower Crane

Future Prospect of Chinese Tower Crane

21

China’s urbanization ratio: approximate 40.7% currently, which will take 25 years to reach the level of advanced

countries

Chinese real estate investment: Annual 20.7% growth is expected

Chinese tower crane market will bring about a boom period

Completed investment in real estate (100 million RMB)

Chinese Tower Crane Market Trend

State Information Center

New

ly added volume of tow

er crane (set)

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Export amount of Chinese tower crane (10,000 US$)

Export territory of tower crane: 144 countries and regions Average annual export amount: >328.33 million US$ Chinese tower crane products: Have become one of vital parts of world tower crane industry Expected economy recover: In 2012, we will have more opportunities

Outlook over Overseas Market

Data source: Customs trading data

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Last Decade:

We together witnessed the blooming market of Chinese tower cranes.

Next Decade :

China will proactively seek international high-end technology

cooperation and further hold a big say in international standards.

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