Amid the gratifying overall sales growth in the construction machinery market, as a leader among domestic construction machinery equipment manufacturers, Beijing CRRC Heavy Industry has consistently adhered to the "internationalization" strategy. Currently, the company's equipment has been exported to multiple countries and regions, successfully opening up markets in developed countries.
In 2017, Beijing CRRC Heavy Industry made new progress in international market development, showing a new situation of simultaneous improvement in markets, channels, and models. Among them, the "going out and integrating in" development strategy promoted the healthy development of the "Belt and Road," and positive progress was made in joint ventures and cooperation with Iran and Pakistan. In terms of specific products, Beijing CRRC Heavy Industry's TR series rotary drilling rigs have completed pile foundation construction in countries such as Iran and Malaysia. In addition, self-operated and cooperative exports achieved restorative growth in traditional markets such as Singapore, Russia, India, the Middle East, and Southeast Asia, and made breakthroughs in newly developed markets. As the dividends of the "Belt and Road" initiative became more prominent in 2017, Africa, Southeast Asia, Central Asia, South America, and other regions and countries became major export markets. With the increase in infrastructure projects in countries along the route, opportunities for our company's equipment to be exported to local users and Chinese engineering companies and to participate in overseas project construction have gradually increased. These infrastructure projects have a large demand for construction machinery equipment, and this year is no exception.
From the "Belt and Road" initiative to PPP projects, ultimately they are all infrastructure investments involving the construction machinery sector. This sector had poor operating conditions in the past few years, but now, on the one hand, supply-side reform is being used to cut overcapacity and improve supply-demand relationships; on the other hand, the "Belt and Road" initiative has generated substantial demand. In 2018, the overseas market situation for Beijing CRRC Heavy Industry will further improve.
However, at present, the equipment exported by Beijing CRRC Heavy Industry is mainly concentrated in countries along the 'Belt and Road,' where there are many infrastructure projects and a high demand for engineering vehicles. This broader context brings new opportunities for Beijing CRRC Heavy Industry Equipment to expand into overseas markets. The situation in 2018 will not be much different. Of course, unstable factors such as local conflicts will also affect exports to some extent. To use a cliché, opportunities and challenges coexist. In 2018, whether in terms of products or strength, Beijing CRRC Heavy Industry's exports will fully open a new pattern. With the "Belt and Road" initiative and the expansion of foreign trade, as well as the emergence of new trade formats and models, our company will go global through joint ventures and cooperation, integrate into more cooperation projects and construction projects, and gain higher international reputation and influence, which will support further improvement in the overseas market situation. We will also further improve, strengthen, and expand the solid and lasting partnerships established with enterprises and governments in countries and regions along the route, bring our advanced technology, management experience, and modern engineering construction experience in global operations to the project construction of the "Belt and Road," and work hand in hand with partners from all sides to build a better world together. In 2018, we will adhere to the 'going out' strategy, firmly seize the opportunities of the 'Belt and Road,' further expand international market advantages, deepen international cooperation, and build a new era of Beijing CRRC Heavy Industry.