Over the past three years, the excavator market in mainland China has been very good, with many companies exceeding their annual sales plans. However, looking back five years ago, the excavator market was in a very difficult state, with a large number of equipment circulating in the market, basically reaching saturation, making it more difficult for companies to develop their existing businesses.

At this time, are you hoping to find an investment project with a relatively simple model and long-term stability? If so, I recommend aerial work platform leasing to you, and will introduce the market prospects, return on investment, and advantages of the leasing business in three aspects.

　First, let's analyze the data. In North America, there are more than 500,000 aerial work platforms, and more than 300,000 in Europe. These regions have developed aerial work platform leasing businesses for decades and are very mature. The Asia-Pacific region is still in the development stage. Japan and South Korea, which have the largest number of platforms, each have more than 50,000 units, while mainland China had around 45,000 units by the end of 2018. It is important to note Hong Kong, where aerial work platform leasing has developed for about 20 years, currently possessing around 12,000 units. Hong Kong, with an area of only 1000km2, has over 10,000 aerial work platforms. If the mainland China market develops, the number will be hundreds of thousands or even millions, showing its huge development potential.

　　Secondly, let's compare the growth rate. The annual growth rate in Europe and the United States is 3%, while the annual growth rate in mainland China over the past 3 years has been approximately 30%~40%, indicating that the aerial work platform market in mainland China is in a rapid development stage.

　　Next, let's look at the application areas. Many types of construction machinery, such as excavators and cranes, have single functions and narrow application areas. However, the applications of aerial work platforms are unlimited. They can be used in steel structure construction, indoor installation projects, and outdoor maintenance or painting of bridges. Essentially, they can be used anywhere workers need to operate at heights. Therefore, aerial work platform lessors are constantly discovering new applications and finding new customers.

　　Fourthly, from the perspective of return on investment, the operation of aerial work platform leasing is relatively simple, with a wide customer base, high and stable rental rates. If equipment is procured through various financing channels, high cash flow and high return on investment can be achieved. The main difference between aerial work platform leasing and the leasing of other construction machinery such as excavators and cranes is that it is a so-called "dry lease," meaning it is rented out without an operator, making personnel allocation and management very simple; aerial work platforms have a simple structure, requiring relatively few service personnel and lower technical skills, and the cost of daily maintenance and repair is also low.

　　If you are optimistic about the development of the aerial work platform leasing business, how should you choose a suitable brand to start with? My suggestion is to choose a brand with high local market share, brand recognition, and reputation. This will be of great help in the initial stages of business development. It is also necessary for the brand to have a stable and experienced team to help you start your business. Finally, it is necessary to determine whether the brand has a stable business policy for business development, which is extremely important for developing markets.

　　In addition to the above points, when determining the brand and preparing to start the leasing business, you should also consider the equipment's lifecycle cost, including all costs such as procurement, use, depreciation, used equipment sales, and maintenance, to calculate the return on investment.

　　Generally speaking, when calculating the return on investment, the first step is to calculate the revenue, which is the monthly rent of the equipment multiplied by the monthly rental rate, minus all operating costs, including maintenance, repair, labor, materials, and transportation, and then divided by the cost of purchasing the equipment, excluding vacancy. This is the actual return on investment. After analysis, it will be found that although some brands have very low purchase prices, after deducting maintenance, transportation, and other costs, the total cost or return rate is not the best. Therefore, care should be taken when choosing products.

　　Yunxiang Heavy Industry, as a leading brand in China's aerial work platform industry, is a leader among manufacturers of boom-type aerial work platforms, both in terms of its establishment (founded in 2007, one of the earliest companies in the industry focusing on aerial work platform manufacturing) and technological accumulation (R&D team from Zoomlion Institute's aerial work platform research and development). It is certain that Yunxiang Heavy Industry can provide customers who want to engage in leasing with full lifecycle solutions for equipment. From market information, project information, and experience sharing upon entering the market, to providing high-quality products, various financing channels during procurement, and complete after-sales service and training after equipment procurement, it assists customers in solving all difficulties encountered during operation.