Reporter: How were CCCC Xizhu's asphalt mixing equipment sales in the first half of 2013? How did they change year on year? Which models dominated sales?

 

Li Shikun: In the first half of 2013, CCCC Xizhu's asphalt mixing equipment sales showed a steady trend, but were slightly down on the same period in 2012. The products that dominated sales were still mainly the 3000 and 4000 models, but models below the 3000 series also put in a strong market performance.

 

Reporter: In recent years, 3000 and 4000 asphalt mixing equipment have consistently held the mainstream position in the industry. Do you think the trend toward larger equipment will continue in the coming years? How do you view the prospects for small asphalt mixing equipment?

 

Li Shikun: At present, 3000 and 4000 asphalt mixing equipment are the main products in the mixing equipment market in terms of both product value and market demand. But in the future, the market for large complete sets of specialized equipment will gradually shrink, while the prospects for small and medium-sized asphalt mixing equipment used for maintenance, which is becoming more specialized, refined and diversified, appear much brighter. Such equipment will gradually win favor with users and will certainly occupy an important position in market share.

 

From January to June 2013, affected by the macroeconomic situation, demand for large asphalt mixing equipment fell noticeably, while the small and medium-sized market was relatively active. In addition, with the increase in export sales, its share of the total market rose. Domestic sales and exports of CCCC Xizhu's small asphalt mixing equipment each accounted for roughly half, so the prospects can be described as broad.

 

Reporter: In which areas do you think the main technological focus for China's asphalt mixing equipment will lie in the future?

 

Li Shikun: In the next 2-3 years, with changes in the national macroeconomic situation and the gradual completion of structural optimization in highway construction, the market environment for road construction and maintenance machinery will keep improving and technology will keep innovating. High-end intelligent green equipment will become the market focus. Energy-saving, consumption-reducing, emission-reducing, intelligent, information-based and highly reliable products will remain the focus and development goal of the industry's technological field.

 

Reporter: Has CCCC Xizhu recently launched any new equipment or new technologies? Please tell us about this.

 

Li Shikun: Recently launched new products include: a series of double-drum continuous mixing equipment, the JD5000 asphalt mixing equipment, the RX2000 milling machine and the XLS12 distributor truck.

 

Reporter: What position does asphalt recycling mixing equipment currently hold at CCCC Xizhu (in terms of share of sales volume and sales revenue)? At what stage is market acceptance of this equipment among users? What are your company's plans for market promotion and technology R&D of recycling equipment?

 

Li Shikun: Asphalt mixing equipment equipped with hot recycling systems currently holds a very important position in the company's sales volume. Among all mixing equipment sales, models from the 2000 series to the 4000 series are available with recycling, and there are also cases where previously sold mixing equipment has been retrofitted with hot recycling systems at users' request. At present, in response to market demand, the company has launched the JD5000 asphalt mixing equipment with hot recycling. As the country's resource reuse process continues to advance, I believe it will soon gain a place in the market.

 

As early as 2003, CCCC Xizhu cooperated with Germany's Benninghoven to develop the HGR150 plant-mix hot recycling equipment, which was installed on 3000 series mixing equipment to recycle old material and achieve environmental protection and energy savings. In 2008, it launched the CR2500 in-place cold recycling equipment; in 2009, it launched the CRS300 plant-mix cold recycling equipment; in 2010, it introduced the double-drum continuous asphalt mixture mixing equipment from the US company ASTEC, improving the quality and utilization rate of recycled material; and in 2012 it introduced ASTEC's warm-mix foaming device to produce warm-mix asphalt, thereby further improving the company's recycling equipment product series. This has continuously laid a new and solid foundation for the company's purpose of “green equipment, building a green life” and has continuously made new and greater contributions to the country's advocacy of “environmental protection and energy saving, resource reuse”.

 

Reporter: For China's asphalt mixing equipment industry, a market capacity of about 800-1,000 units per year severely limits the rapid development of companies. For this reason, major companies in the industry have been pursuing related diversification: either developing downstream products along the asphalt mixing equipment line, such as rollers, milling machines and pavers, or expanding deeper into concrete machinery, such as developing cement concrete mixing plants. So what are CCCC Xizhu's plans in its diversification process?

 

Li Shikun: CCCC Xizhu will continuously improve its technology R&D and innovation system and enhance its innovation capability. While staying rooted in its main business, it will gradually extend into technical fields such as municipal engineering construction machinery, road traffic maintenance machinery and railway construction machinery, and form scale advantages as soon as possible, so as to build the company into a “leading equipment supply and service provider for China's road construction and maintenance engineering” with strong technical strength, first-class after-sales service, and both scale and core competitiveness.