Company development of Liugong Changzhou Excavator Co., Ltd.

In January 2006, the company established a wholly-owned subsidiary "Liuzhou Liugong Excavator Co., Ltd." in Liuzhou. Excavator sales increased from 1,394 units in 2006 to 3,081 units in 2009, an increase of The return on net assets increased by 121.02% from 8.4% in 2006 to 28.04% in 2009, an increase of 233.81%; sales revenue climbed from 555 million yuan in 2006 to 1.294 billion yuan in 2009, an increase of 133.15%. Per capita sales revenue has increased year by year, creating considerable economic benefits.

In May 2010, the company invested in the construction of Liugong's eastern base in Changzhou City, Jiangsu Province, and established a wholly-owned subsidiary "LiuGong Changzhou Excavator Co., Ltd.", located in Wujin High-tech Industrial Development Zone, Changzhou City, registered It has a capital of 280 million yuan, covers an area of ??600 acres, and has a construction area of ??about 110,000 square meters. Mainly engaged in series excavator product development, production, self-operated import and export, and supporting marketing and services. The company will be put into production in December 2010. Upon completion of the project, it will achieve a production capacity of 10,000 units and an estimated sales revenue of 4 billion yuan.