â— We expect the heavy-duty truck industry will resume its upward trend in the second half of 2009. It is expected that the demand for heavy-duty trucks will fall slightly by 5% in 2009, but the demand growth rate in the second half of 2009 and 2010 will be above 15%.
â— The degree of concentration of the diesel engine industry in China is relatively high, showing a trend of monopoly. The company's products are high-power, high-speed diesel engines. In 2007, the company's high-power diesel engines reached a market share of about 80% in the 15 ton (or above) heavy-duty automotive power supply market, with power supplies for 5 ton (and above) loaders. With a market share of about 78%, the company continues to maintain its leading position in the internal combustion engine industry in China.
â— The company's major customers in the heavy-duty automotive industry include Shaanxi Heavy Duty Truck, Chongqing Hongyan and Beiqi Foton, which have firm relationships with the company. The company still has great potential in the passenger car engine market and construction machinery engine market.
â— With the structural adjustment of heavy trucks, Shaanxi Zhongqi, the company's holding subsidiary, has a prominent position in the standard heavy truck market of over 15 tons, and will significantly benefit from the country's policy of expanding domestic demand and ensuring growth.
â— The holding subsidiary company Fast Gear has high technical barriers and scale barriers. It has a solid position in the heavy truck gearbox and gear industry, and forms a gold industrial chain with the company's headquarters engine and Shaanxi Zhongqi.
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