At present, most of the products produced by the forging machinery manufacturing enterprises can be categorized as sheet processing equipment, forging hammers, and general hydraulic presses, all of which belong to metal forming machine tools.

(1) Wide range of applications, strong downstream industry demand Metal forming machine tools are widely used in energy, transportation, automotive, machinery, metallurgy, shipbuilding, aviation, military, agricultural machinery, petroleum machinery, power generation and other industries.

At present, China is in the mid-industrialization period. It gradually shifts from solving shortages to building an economically strong country. The development of aerospace, automotive, marine, energy, transportation, metallurgy, petrochemical, building materials, light industrial appliances, and electronics is strong and constitutes a machine tool. Including the huge market demand for metal forming machine tools.

The consumption of metal forming machine tools in the automotive industry mainly includes CNC punch presses, CNC bending machines and complete sets of sheet metal processing equipment, which are used in the production of complete vehicle production lines and components. Some analysts believe that the automobile and related industries already account for about 40% of total machine tool consumption. According to the National Plan for the Adjustment and Revitalization of the Automobile Industry, the investment in the automotive industry from the “Eleventh Five-Year Plan” to “Thirteenth Five-Year Plan” will reach 1.5 trillion Yuan. If the average annual investment is 100 billion yuan, and the equipment accounts for 70% of the total, of which the machine tool accounts for 50% of the total, the auto industry will provide an annual market of about 35 billion yuan for machine tools.

Next, ships, rail transit (especially the body and locomotive manufacturing of high-speed trains), home appliance industry, steel shear distribution, sheet metal production, power transmission and transformation equipment manufacturing, agricultural machinery manufacturing, etc. There is a greater demand for machine tools.

(2) The industrial development space is huge In terms of industry scale, the output value of China's machine tool industry only accounts for about 3.6% of the total output value of the machinery industry, of which the production value of metal processing machine tools (including gold-cutting machine tools and forming machine tools) accounts for only about 2.5%. The output value of the German machine tool industry accounted for 6.1% of the total output value of the machinery industry. It can be seen that the machine tool industry at the core of the equipment manufacturing industry has not fully reflected its value in China, and there is still huge room for development in the future.

(3) CNC, import substitution and service deepening are the three driving forces of the industry The starting point for the current growth cycle of the machine tool industry in China is at the beginning of 2009, due to downstream automotive, marine, construction machinery, rail transportation, wind power and other energy equipment and general machinery. With the rapid growth, the machine tool industry experienced rapid growth for more than two years. Later, due to the slowdown of domestic fixed asset investment and the entry of some downstream industries into the capacity-digestion period, from the second half of 2011, the machine tool industry entered a period of steady growth from a period of rapid growth. From a long-term perspective, China's machine tool industry will continue to grow steadily under the impetus of the three forces of numerical control, import substitution, and service deepening.

(4) Industrial policy promotes the demand for high-speed, precision, and intelligent CNC machine tools. The “State Council’s Opinions on Accelerating the Rejuvenation of Equipment Manufacturing Industry” proposes 16 major technological equipment fields that will be developed in China in the future. Of these 16 areas, Most of the metal plates need to be processed. Therefore, the above-mentioned national equipment manufacturing industry has great demand for the issuer's main products, especially for high-speed, precision, and intelligent CNC machine tools. At the same time, large-scale, precision, high-speed numerical control equipment is also a key technology equipment industry supported by the country. In the structure of Hai'an forging machinery products, more than 80% are sheet metal processing machine tools, among which CNC plate processing machine tools are characterized by high speed, intelligence, precision, material saving, energy saving, integration, and automation, and are adapted to the downstream industries for equipment upgrading and import. Alternative demand trends.