Donghai Securities: In November, the export sales volume of excavators and loaders continued to improve, and the entire year's construction machinery industry continued to recover.

Donghai Securities released a research report stating that with the gradual implementation of large-scale equipment update policies and real estate finance policies, the start of major water conservancy projects, and the recovery of domestic demand, the domestic engineering machinery industry is continuing to recover. On the overseas front, domestic companies are expanding their overseas pre-sales and after-sales networks, establishing local production capacity overseas, entering a period of accelerated globalization, and gradually increasing market penetration. Looking ahead, the engineering machinery industry is expected to continue to recover throughout the year. Focus on overseas deep layout, high brand recognition, comprehensive product matrix, efficient cost management, and strong research and development capabilities of leading companies. The main points of Donghai Securities are as follows: The China Construction Machinery Industry Association released sales statistics for major excavator and loader manufacturers in November 2025 Excavators: In November 2025, sales of various types of excavators totaled 20,027 units, a year-on-year increase of 13.9%, with domestic sales totaling 9,824 units, a year-on-year increase of 9.11%; export sales reached 10,185 units, an 18.8% increase. In November 2025, 19 electric excavators were sold. From January to November 2025, a total of 212,162 excavators were sold, a year-on-year increase of 16.7%; of which, domestic sales were 108,187 units, a year-on-year increase of 18.6%; export sales were 103,975 units, a year-on-year increase of 14.9%. Loaders: In November 2025, sales of various types of loaders reached 11,419 units, a year-on-year increase of 32.1%. Domestic sales totaled 5,671 units, a year-on-year increase of 29.4%; export sales were 5,748 units, a year-on-year increase of 34.8%. In November 2025, 2,935 electric loaders were sold. From January to November 2025, a total of 115,831 loaders were sold, a year-on-year increase of 17.2%; domestic sales were 61,039 units, a year-on-year increase of 22.5%; export sales were 54,792 units, a year-on-year increase of 14.9%. Excavator exports continue to improve Domestically, excavator sales increased by 16.7% year-on-year from January to November 2025, showing a strong recovery trend; in November, domestic sales increased by 9.11% year-on-year, with growth slowing down mainly due to the high base of sales recovery in November last year. Additionally, the drop in temperatures in the northern regions led to a decrease in production rates, but it did not change the overall trend of growth for the year. In the future, the government's continued promotion of urban renewal, renovation of old residential areas, increased investment in "two heavy" projects, and support for major water conservancy projects and high-standard farmland projects will gradually release demand and help boost the recovery of the domestic engineering machinery industry. The lifespan of excavators is around 8 years, and the previous peak in sales was from 2019-2022. With the government's continuous efforts to promote large-scale replacement of old equipment and subsidy policies, stimulating downstream demand for upgrades, the demand for excavators has entered a period of rational growth, and it is expected that domestic sales will continue to recover. On the overseas front, exports increased by 14.9% year-on-year from January to November 2025; in November, excavator exports increased by 18.8% year-on-year, with a widening growth rate overseas. In terms of export value of engineering machinery, from January to October 2025, China's total export value of engineering machinery trade reached $48.526 billion, a 12% increase year-on-year. Demand for infrastructure in emerging markets worldwide continued to grow, with exports to Africa increasing by 49.7%, Asia by 16.4%, Oceania by 15.6%, and Latin America by 12.0% from January to October 2025. Cost-effective and high-quality after-sales service of domestically produced equipment are favored, leading to a gradual increase in the global penetration rate of Chinese equipment. From January to October 2025, China's total export value of excavators reached $8.517 billion, a 26.19% increase compared to the same period in 2024. Significant growth in domestic and overseas sales of loaders In November 2025, domestic sales of loaders increased significantly by 29.4%, with domestic sales rapidly recovering, mainly benefiting from the start of major domestic projects such as Yaxi Hydroelectric Power Station and the new Qinghai-Tibet Railway, leading to a peak in demand for earth and stone, promoting an increase in domestic demand for loaders. In November 2025, overseas sales increased by 34.8% year-on-year, mainly due to the continuous growth in infrastructure demand in emerging markets around the world. In November 2025, 2,935 electric loaders were sold, with an electrification penetration rate of 25.70%. As the downstream applications of electric loaders gradually expand and their cost-effectiveness gains market recognition, the trend towards electrification is becoming more apparent. Sany Heavy Industry: Completion of African production base, continuous globalization On November 19, 2025, Sany Group's South Africa Industrial Park was completed in Johannesburg. The industrial park in South Africa integrates manufacturing, logistics, and talent centers, covering an area of 28,000 square meters and expected to produce 1,000 excavators annually, catering to the entire African market, furthering the company's globalization. Sany Group was one of the first Chinese companies to start global expansion in Africa, with equipment sales in Africa exceeding $3 billion and service networks covering all African countries. Risk warning: Risks related to trade frictions; slowdown in overseas demand; market competition risks; risks of policy outcomes falling short of expectations.