Forge Ahead on a New Journey with Determination

— 2023 New Year Address —

Li San Yim, Chairman of the Board of Directors of Lonking Holdings Limited

The return of spring marks a new beginning.

The year 2023 is approaching. On behalf of the Board of Directors of Lonking and also in my own name, I would like to express heartfelt gratitude and extend the best New Year wishes to all cadres and employees of Lonking and their families, the company’s agents, suppliers and users, officials of Party and government departments at all levels, and friends from all sectors of society.

Together, we have come through 2022, an extraordinary year.

In 2022, Lonking withstood the adverse effects of the global economic downturn and COVID-19 pandemic, and the test of the downturn in China’s engineering machinery industry. It was not easy, but Lonking endeavored to live up to the expectations. Making concerted efforts with all agents, Lonking became a leader in the market of loaders, the main product of the company. Besides, forklifts, other products such as excavators and road rollers also seized some share in the highly competitive market. In 2022, Lonking achieved remarkable results in the development of the international market, and its export value continued to grow significantly. The company’s products have gained fame and come to the fore in the international market. Lonking made every effort to consolidate the foundation for development, and comprehensively upgraded its technology research and development and quality control. The company launched a series of new products that meet China IV vehicle emission standards and European and American emission standards, and it won the Quality Award of Fujian Provincial Government. Lonking attaches great importance to the operation quality and tries to ensure that the agent channels are reliable and healthy. It recorded an operating cash flow of more than one billion yuan in 2022. At the end of the year, both the debt-to-asset ratio and the risk of accounts receivable of Lonking were the lowest in the industry. With abundant cash, the company had no bank loan.

What’s past is prologue. As we bid farewell to the old year, the year 2023 we are looking forward to is beckoning. Although the future is difficult to predict, we don’t feel confused.

We firmly believe in the power of times. In this era when engineering machinery enjoys bright prospects, China’s engineering machinery is climbing to the top of the world. We should seize the moment, believe in the great era, and believe in the power of China!

We firmly believe in the power of recovery. The impact of the downturn in the industry and the pandemic will diminish. Every cloud has a silver lining. As long as we work hard to consolidate the foundation, we will usher in an upturn.

We firmly believe in the power of Lonking. The company was the first to accurately predict the arrival of the downturn, and it fully prepared for all sectors of business and all aspects of work. Lonking and its agents are the healthiest and most stable teams, with a strong ability to resist external risks and the strength to work hard, refine their business, strive for every order, and make every endeavor to deeply participate in the competition.

We believe in the power of teamwork. Lonking has gathered a large number of people with various talents and lofty ideals from all over the world. It has been favored and recognized by users, supported by governments at all levels and people from all sectors of society, and helped by all agents and suppliers. This is a team that can ensure sustainable and high-quality development and a team that will act boldly and be able to win every battle.

Dear friends, let’s set out! In the New Year, let us take solid steps toward the light of hope, forge ahead on a new journey, and create a better future for Lonking!

Li San Yim said that for more than 20 years, Shandong Heavy Industry Group and Weichai Holding Group have always fully supported the development of Lonking in both the domestic and international markets, regardless of the rapid growth or downturn in the markets. They are the most trustworthy friends of Lonking. In the future, we will enter a new stage of comprehensively deepening strategic cooperation. In accordance with the principle of “labor division based on respective advantages, openness and transparency”, we will establish closer partnerships in more fields. I believe that the path to cooperation between the two sides will be broader and longer!

Chairman Tan Xuguang said that Weichai Holding Group and Lonking have been collaborating for over two decades. With mutual trust and benefit, the two developed together, and the partnership became a model for state-owned and private enterprise cooperation for win-win results. Win-win and shared development will become the mainstream of the industry. He noted that we should thoroughly put into practice the new development philosophy, further deepen all-around strategic cooperation, jointly participate in global competition, and play a leading role in the chain innovation and independent development of China’s construction machinery industry.

Before signing the agreement, Chairman Tan Xuguang and his delegation visited Lonking Shanghai Base. Participants included relevant leaders of Shandong Heavy Industry Group, Weichai Power, Shantui Construction Machinery, Strong Construction Machinery, Lovol Construction Machinery Group, and other enterprises. 

Mr. Zhong Jinnian, General Manager of Lonking (Jiangxi) Machinery Co., Ltd., delivered a speech at the ceremony. He warmly congratulated Lonking Jiangxi Base on the production of the first large-tonnage forklift, and expressed heartfelt thanks to the hard-working builders and all employees. He also introduced that the large-tonnage forklift project of the base is an increase in the capacity of Lonking Holdings Limited (“Lonking”), a supplement to meet the strong market demand for Lonking’s forklifts, and an important layout for Lonking’s future planning of forklifts. This project laid a solid foundation for the company to become larger and stronger in forklifts, fully complete goals in the five-year plan of Lonking Jiangxi Base and achieve an output value of more than five billion yuan.

Lonking’s forklifts feature a strong market demand and continuously high output. In the complicated and volatile international situation, Lonking’s forklifts keep growing steadily through continuous innovation and technological empowerment despite downward pressure on the economy.

With excellent performance, Lonking’s electric loaders have won high recognition and earned unanimous praise from users. Product delivery ceremonies are held one after another across the country.

The ZL50NC-E electric loader features powerful shoveling and efficient transportation. It is more economical than traditional fuel loaders and suitable for various working conditions.

This model has achieved major breakthroughs in mechanical digitization, electrification, energy conservation and intelligence. Characterized by “zero emission, zero pollution and low noise”, the model has such advantages as a higher operation speed, higher efficiency, higher flexibility and easier operation. Featuring low carbon emission, environmental protection, energy conservation and high efficiency, this green model has adapted to the development trend of the engineering machinery industry and made contributions to the targets of carbon peak and carbon neutrality.

Example of electric loaders

To win the green future with high quality

This meeting, co-organized by Lonking and its agents in Argentina, received strong support from the local government. The governor of Santa Fe personally attended the meeting to jointly promote Lonking’s products with its agents at all levels and major customers.

There were two exhibition areas on site, one indoor and the other outdoor, to display all series of Lonking’s products in an all-round way, including more than ten best-selling models such as loaders, excavators, forklifts and skid-steer loaders.

The outdoor exhibition area displayed the mini hydraulic excavator CDM6016 as well as medium-sized hydraulic excavators such as CDM6135, CDM6205 and CDM6225.

Some other wonderful activities were also held on the spot, including a new plant completion ceremony, an award ceremony for excellent agents, experience sharing, and a test drive. With a warm atmosphere, they won praise from customers. This meeting facilitated the signing of order forms with many potential customers, involving more than 100 sets of equipment of all types. Several customers expressed their intention to further deepen cooperation.

As one of the world’s top 50 engineering machinery manufacturers, Lonking has always adhered to the principle of the agency system overseas and continuously developed and established a better marketing network. After years of targeted efforts and through differentiated sales based on different working conditions in Argentina, Lonking’s brands and products have been highly recognized by local customers and have established a good reputation in the South American market.

The company has won trust from consumers and redefined the standard of logistics services through various time-sensitive products and services.

E-commerce logistics is characterized by high requirements on timeliness, high work intensity, and diversified cargo categories. The production and delivery of Lonking forklifts were under strict control for perfection to ensure the production efficiency of the storage center and help it deliver goods faster and better.

Lonking produces the best-quality products and provides the most efficient services at the minimum cost to allow users to recover the cost in the shortest time, continuously create value and gain the greatest rewards.

Being small, flexible and versatile, skid-steer loaders can work in narrow spaces and cope with various extreme conditions. They are more suitable for cabin cleaning compared with other mechanical equipment.

Over the years, Lonking has been deeply engaged in technological innovation and quality optimization of skid-steer loaders to meet the needs of the markets and customers. Sold in both domestic and foreign markets, the skid-steer loaders of Lonking were proven to have many advantages such as strong power, a wide view, convenient replacement of accessories and good cockpit airtightness.

Besides cabin cleaning, Lonking’s skid-steer loaders are also suitable for snow removal, milling, sweeping, tree removal, drilling, crushing, and cleaning and transportation. That is why they can be widely used in buildings, gardens, roads, snowfields, pastures and other scenarios. They can also serve as auxiliary equipment for large-scale engineering machinery.

Flexible, efficient, versatile and economical

Lonking’s skid-steer loaders will be your right hand

Adhering to the “user-centered” principle, Lonking thinks about and endeavors to meet the pressing spiritual and material needs of users and strives to help them improve efficiency and create wealth by continuously providing various high-quality products and efficient services.

Over the years, Lonking has maintained a long-term strategic cooperative relationship with this group. The forklifts delivered are three to ten tons each, with a perfect power matching system and high transmission efficiency. They are popular in the market for their good stability and low fuel consumption.

The iron and steel group has high requirements for forklift operation. According to the group’s application scenarios and working conditions, Lonking has provided professional solutions to material handling, further optimizing the group’s production and handling efficiency and improving operation safety. By offering high-quality, high-efficiency and cost-effective forklifts and related services, Lonking helps the group increase efficiency, reduce costs and continue efficient growth.

Since its establishment, Lonking has been pursuing high-quality and cost-effective products and services, improving product advantages, providing professional solutions for different customers, environments and scenarios, and creating value for all users!

At the beginning of the Year of the Tiger (2022), out of trust in the quality of Lonking products and the recognition of Lonking’s efficient after-sales service, the customer once again purchased Lonking equipment in batches, including the ZL50NC heavy-duty wheel loader, 30E underground wheel loader and excavator.

The mining of phosphate ores entails high-end equipment, which often needs to run in high-intensity working conditions for a long time. The customer’s recognition and continuous bulk purchase of Lonking products demonstrate the reliability, applicability and safety of Lonking equipment in high-intensity working conditions.

With focus on customer’s needs, Lonking has long been adhering to the customer-centric operating philosophy. By providing cost-effective products and high-quality services, and adhering to the principle of “quality first”, Lonking has maximized the value of the customer’s investment through continuous innovation.