[Great Wall Machinery Lu Ruiheng] 20260730 Excavator Used Machinery Expert Exchange Summary

English summary

# Used machinery export prosperity. The current period is a good window for used construction machinery exports. Annual national exports were less than 30,000 units before 2020, and after rapid growth from 2020, they have now exceeded 300,000 units. This year's export growth is close to 30%. # Price and profit situation. For new machines, both domestic and foreign OEMs are promoting price increases, with the core purpose of repairing the profitability pressure caused by previous price wars. The current price increase is essentially a return to a rational pricing system. For used machinery, per-unit profit for mini/small excavators is about RMB 1,000-2,000, for medium excavators about RMB 5,000-10,000, and for large excavators about RMB 10,000-20,000. The net profit margin for used machinery exports is about 10%-15%. # Residual value and circulation cycle. Mainstream export equipment typically has a lifespan of about 5 years, and the overall residual value of 5-year-old equipment is about 50% of the new machine price. Foreign brands such as Caterpillar and Komatsu have high recognition, with a 5-year residual value rate of 60%-70% or even higher, while domestic brands generally maintain around 50%. Eight years is the watershed between performance and major overhaul.