Shangyou News:

How was the overall performance of the equipment manufacturing industry in the first quarter? What new breakthroughs have been achieved in advancing high-end and intelligent industrial development? What are the key priorities going forward? Thank you.

Zhang Yunming:

Thank you for your questions. I would like to invite Ms. Tao to answer them.

Tao Qing:

Thank you for your questions. Overall, the equipment manufacturing industry got off to a good start in the first quarter, marked by three characteristics: stable production, rising investment and robust exports. First, production growth has been stable. In the first quarter, the value added of the equipment manufacturing industry grew 6.2% year on year, contributing 19.4% to industrial growth. Second, investment in major industries has rebounded. In the first quarter, fixed asset investment in all five major sectors of the equipment manufacturing industry achieved positive growth. Railway, ship, aerospace and other transport equipment manufacturing grew 27.7% year on year, while general equipment manufacturing grew 12.5%. Third, exports have been a standout contributor. In the first quarter, exports of equipment manufacturing products in RMB terms grew 19.2% year on year, accounting for more than 60% of total export value.

Progress in the high-end and intelligent development of the equipment manufacturing industry can be summarized in three ways. First, innovative capabilities have continued to strengthen. The world's first invasive brain-computer interface medical device has been approved for market launch, filling a gap in global clinical practice. Domestically produced spot welding industrial robots have for the first time achieved mass deployment on automotive welding lines. The world's first medium-speed wire-cut EDM machine capable of five-axis simultaneous control has been successfully developed, significantly improving processing efficiency. Second, the number of high-end products has continued to increase. Among passenger vehicles priced above 500,000 yuan, sales of domestic brands rose 97% year on year, with a market share of 69.5%. The second domestically built large cruise ship, the Aida Huacheng, was successfully launched. The world's largest piling vessel, the Tie Jian Da Qiao Zhuang 1, was delivered, and the AS700 Xiangyun manned airship received 42 confirmed orders. Third, the level of intelligence has continued to improve. In the equipment manufacturing industry, 197 leading smart factories have been established, driving an average 48.4% reduction in product defect rates and a 22.3% improvement in production efficiency. From January to February, the penetration rate of new passenger cars with Level 2 combined driving assistance systems reached 69%, up 10 percentage points year on year. In other words, more than 69 out of every 100 newly sold passenger vehicles are equipped with L2 combined driving assistance systems.

Going forward, we will carry out the decisions and plans of the CPC Central Committee and the State Council, focusing on three key tasks. First, we will focus on top-level design. We will accelerate the formulation of sector-specific plans for intelligent connected NEVs and related fields under the 15th Five-Year Plan framework, and study and introduce guidelines to accelerate the innovative development of intelligent equipment. Second, we will focus on stable performance. We will implement a new round of work plans to stabilize growth in industries such as machinery, automobiles and power equipment, continue to promote equipment upgrades and automobile trade-ins, and work persistently to regulate industrial competition. Third, we will focus on tackling key challenges. We will continue to implement the action plan for high-quality development of key industrial chains in the equipment manufacturing industry, strengthen flagship product R&D and accelerate the application of research results. Thank you.