| 1. Event | | | | situation, to maintain a relatively stable price, and |
| 3 26 Liugong Released 2009 Annual Report, the | | | | because Steel Decline in raw material costs, etc., so |
| Company realized main business income of 10.183 | | | | that the profitability of the company's products show |
| billion yuan, up 9.87%; realized a total profit of 1.032 | | | | up in the situation, in which operating profit margin of |
| billion yuan, up 150.84 percent; net profit of 866 | | | | 22.04 earthwork machinery, increased 5.86 |
| million yuan, an increase of 154.58%. Fully diluted | | | | percentage points year on year, and other |
| earnings per share the company was 1.33 yuan, net | | | | engineering machinery and accessories operating |
| assets was 21.1%. Distribution plan as follows: 3.00 for | | | | profit margin of 16.52%, 1.23 percentage points year |
| every 10 shares in cash (including tax). | | | | on year increase. Inc. 2009 Sell Costs and |
| 2. Our analysis and determine | | | | administrative expenses were 615 million yuan and |
| 1) 2009 in Financial Crisis and our four trillion | | | | 4.34 billion yuan, rose by 2.8% and 11%, growth at a |
| investment plan and other relevant policies under the | | | | reasonable level. |
| double impact of domestic Construction Machinery | | | | 3) the next two years, the domestic infrastructure |
| Demand gradually picked up from the 2 quarter, | | | | and real estate development will remain rapid |
| mainly sub-sectors, Excavator , Rollers and cranes | | | | development period. From 2010, a quarter to see |
| industry grew 22.7%, 57.20%, 26.76%, but Loader | | | | market demand for construction machinery, |
| Industry fell 12.2%, 10.8% decline in the forklift | | | | excavators and other products are still better than |
| industry. Construction machinery exports dropped | | | | expected, which will increase the performance of the |
| very significantly, which loader, excavator industry, | | | | company is facing a more optimistic outlook. |
| export volume decreased by 37.8% year on year | | | | According to March 23 the company adopted the |
| and 70.2%. | | | | "Company from 2010 to 2015, the development of |
| Liugong 2009 sales reached 38,920 units all kinds of | | | | strategic planning." The company's strategic focus is |
| machine, an increase of 7%. The leading products of | | | | to establish the loaders, excavators and cranes three |
| which continue to set new loader sales, higher than | | | | core businesses of dominant position; the same time, |
| the industry average growth rate of 13 percent | | | | promote the forklift and the Bulldozer And other |
| domestic market share increased 2.7 percentage | | | | business development; and actively used equipment, |
| points to 22.6%, maintaining the industry first. | | | | leasing, re-emerging manufacturing and logistics |
| Excavator on sales up 16% market share of 3.5%, | | | | operations to form the ability to provide total |
| down 0.5 percentage points. Crane sales rose 62% | | | | solutions. 2010, the company's business objectives for |
| market share by 1.05 percentage points to 4.77%, | | | | the sales of 12 billion yuan. |
| the third in the industry. Roller sales up 80% market | | | | 3. Investment advice Liugong |
| share increase of 1.5 percentage points to 11.6% in | | | | We expect earnings per share in 2010 -2 011 years, |
| the third sector. Export business, the company in a | | | | were 1.59 yuan and 1.82 yuan, according to 15-18 |
| disadvantageous situation in the international market, | | | | times earnings, a reasonable valuation of the |
| increasing efforts to develop, although exports fell | | | | company in 2010 as 23.85-28.52 dollars to maintain |
| 11.7%, but well below the industry average decline; is | | | | the "recommended" investment rating. |
| worth mentioning that in Australia, North America, | | | | Liugong stock drivers: If the state has increased |
| and Africa regional market and achieved good | | | | infrastructure investment, or real estate investment |
| growth. | | | | better than expected, will support the company's |
| 2) 2009 Liugong sustained recovery in the market | | | | share price up. |