In the context of the machine tool industry, China's manufacturing sector is currently undergoing a significant transformation. The future of manufacturing technology will be heavily influenced by internet-based intelligent systems, which are expected to become the core direction for industrial development. Moreover, the modernization of the equipment manufacturing industry is closely tied to the financial sector, as it aims to drive real industrial transformation and upgrade. According to Guan Xiyou, chairman of Shenyang Machine Tool Group, the shift from traditional manufacturing to an industrial service provider model is essential. He emphasized that service-oriented business models are at the heart of this transition, and without the support of finance and network technologies, such a transformation would not be possible.
Financial leasing plays a crucial role in this transformation, as it allows for flexible rental arrangements based on usage time, offering tailored financial products that better meet customer needs. This innovative approach is seen as a key driver for the evolution of the physical industry. At the 2013 International Finance Lease Forum in Shanghai, Shenyang Machine Tool Group signed a strategic cooperation agreement with Agricultural Bank Financial Leasing Co., Ltd., signaling a new phase in the transformation of China’s equipment manufacturing industry.
The integration of "Industry + Finance + Informatization" has become a central theme in the current era of transformation. As the machine tool industry—often referred to as the "mother of industry"—has grown significantly, China has become the world's largest consumer of machine tools for over a decade. From 2002 to 2012, the market reached a peak of $26 billion in 2011, with Shenyang Machine Tool capturing a major share of the global market.
Since 2010, Shenyang Machine Tool has been actively transforming from a traditional manufacturer into an industrial service provider. However, this process has proven challenging, involving shifts in system, mindset, and technological upgrades. In China, the traditional business model across industries is no longer viable, and transformation is now a necessity. Cross-border integration and innovation have become critical, especially in the face of overcapacity and saturated markets. Innovation is not the sole responsibility of one company but requires collaboration between technology, finance, and customers.
Zhou Jianzhen, a senior executive at Bo Hou Strategy Management Technology Co., Ltd., highlighted that 2013 was a pivotal year for China's equipment manufacturing industry. As a key pillar of economic upgrading, the sector is entering a critical transition period. Strengthening service offerings and expanding globally are essential for smoothing the business cycle and reshaping financial structures. This is expected to define the industry's direction for the next 5–10 years.
Financial leasing is more than just a tool—it serves as a reliable path for manufacturers to move toward services, capture post-market profits, enhance company valuation, and improve pricing power. It also helps accelerate asset turnover and maintain credit ratings. Furthermore, financial leasing is vital for China’s equipment manufacturing industry to "go global," gain international competitiveness, and reduce trade friction.
According to international market experience, equipment manufacturers play a significant role in the financial leasing market, contributing over 50% directly as suppliers and technology owners. This makes them a key driving force in the sector. Successful transformation in China's equipment manufacturing industry could bring professional and competitive advantages to financial leasing companies as well.
Currently, China’s financial leasing market is moving toward specialization and internationalization. Strengthening partnerships with equipment manufacturers enhances the professional edge of the financial leasing industry. As Chinese manufacturers expand globally, this trend also supports the internationalization of financial leasing.
Gao Keqin, chairman of the Agricultural Bank of China, pointed out that both the manufacturing and financial sectors are undergoing transformation. The combination of these two industries represents the best fit for this change and is a path being actively explored. He emphasized that the interaction between the two sectors is driven by the financial demands generated through industrial upgrading. These demands not only serve as a foundation for collaboration but also act as a key driver for financial innovation.
From the perspective of transformation, both sides share common goals in expanding their target markets. As the equipment manufacturing industry evolves, there will be increased focus on end-users and marketing, leading to new financial demands. In customer marketing, industries and enterprises will need to provide financial support, particularly through leasing, resulting in a win-win scenario. The business model will undergo significant changes, giving rise to a new operational framework supported by products, financial services, and other related services.
Under this new model, companies will extend their operations in all directions, introducing new service dimensions such as logistics management, marketing strategies, technical support, R&D, manufacturing, remanufacturing, and the secondary market. These changes will also influence financial and capital management practices, where the financial industry or leasing companies will play a crucial role.
Gao Keqin further noted that under the new industrial model, large equity assets will emerge, potentially residing within enterprises or leasing companies. These assets should flow into leasing firms and then into the financial market, creating a smooth cycle of corporate, financial, and external assets.
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