XCMG Construction Machinery recently stated during an institutional survey that due to the impact of heavy rain in the south, the capacity utilization rate in late June slipped slightly, but the overall capacity utilization rate of all equipment increased slightly year-on-year in June. The company believes that there are already some positive signs of sales improvement in the industry, especially in the earthmoving machinery sector, which has achieved positive growth for several consecutive months. The trillion-yuan government bond issuance project and the "large-scale equipment renewal" policy may not have significant short-term changes, but will help the industry recover in the medium and long term. From a long-term perspective, the "two-step" strategy proposed by the government is still in the initial stage of the second step, and we should maintain an optimistic attitude toward the economy and have strong confidence in the construction machinery industry.