Affected by the fluctuation of the macro economy and the decline in downstream demand, the monthly production of the Chinese machine tool industry has continued to decline since the second half of 2011, and the growth rate has continued to decline. In January-March 2012, the output of gold-Cutting Machine tools was 180,200 units, a year-on-year decrease of 3.69%; the output of CNC machine tools was 44,800 units, a year-on-year decrease of 15.53%. Although the decrease in production volume has shrunk, the trend of declining industry demand has remained unchanged. In a more sluggish state. At the same time, due to the drop in raw material prices, the consolidated gross profit margin increased by 3.84 percentage points year-on-year.

The upgrading of industrial structure brought development opportunities, and the fierce market competition increased business challenges. China is the largest machine tool consumer market in the world, and the production and sales volume of machine tools also ranks first. However, the current industry is in a state of slump, and a high base makes it difficult to reproduce the high growth of the industry.

In the second half of the year, the industry is expected to resume growth. In the long run, the market will grow steadily. The transformation and upgrading of downstream enterprises will drive the upgrade of the machine tool industry structure. With the continuous optimization of the product structure of machine tool companies, they face greater opportunities for development. However, at the same time, the world's machine tool giants have re-arranged China, and the competition in the mid- to high-end products market will be fiercer, and the industry operations will face more challenges.