普华永道——STK Draft Report_Total_021229_ver.ppt

6.1 Price projection BCT Price of the 28-ton BCT from the current key competitors (especially Xingma, Tangzhuan)* RMB 270,000 – 300,000 / vehicle Projected price of any new products in the market Benchmark* * Taking the mainstream prices of similar products from key competitors as the benchmarks ** Most of customers are listed cement companies in China, which are key customers of BCT. Average demand is more than 10 vehicles per year “The price for the new product should not exceed the mainstream price of the same type (capacity) vehicles in the market” -Sale rep from key competitor According to the competitors If the vehicle has more advanced technologies, we could consider of paying some premium for it, but it cannot exceed 15% of the average price in the market. -Summary based on interviews with key customers According to the customers** The most likely price for the JV’s products may be around RMB 270,000-345,000 / vehicle Source: Interviews with customers, competitors, dealers, experts etc. PwC Analysis 6.1 Price projection CMT Price of the 12 m3 CMT from key competitors (mainly Huajian)* About RMB 1 ,000,000 / vehicle The most likely price for the JV’s products may be RMB 800,000 –1,000,000 / vehicle Benchmark* * Taking the mainstream prices of similar products from key competitors as the benchmarks ** Most customers (mainly the mixing stations of key construction companies) are located in Shanghai and Beijing ( the main market for CMT) *** The main parts of the new CMT made by the JV may be purchased locally, so the price can be lower than that of Huajian “New product prices may have to fall between RMB 800,000-1,000,000 per vehicle. If the price is higher than RMB 1 million, there will be no market for it. If the imported parts can be exempted from tariffs, our price can be lowered to around RMB 700,000.” -Sale rep from key competitor According to the competitors Customers are reluctant to pay more for any new CMT regardless of the high-technologies.