RE: Some Analyst comments regarding todays newsChina is the place to be right now if you are a farming equipment manufacturer. Food is national priority in China and they are proud that they can product enough food to feed billions of people with their limited arable land. Hem is at the right place at the right time. I expect the sales to ramp up quickly if the OEM agreement in place with Foton Lovol and YTA give good volume and margin.
YTA is the biggest domestic manufacturer of farming tractors in China. Of course Chinese want to make everything themselves so one of the risk is that they will use their own GPS instead but my guess is that Hem must have some patents protection over there.
https://online.wsj.com/article/SB10001424052748703716904576133961987047574.html
The government just lifted the farming subsidies.
The State Council, China's highest administrative organ, issued a10-point plan pledging small amounts of cash to irrigate wheat fields,plant wheat and corn sprouts, and treat crop disease, as well as
a $180million fund to buy equipment and more than $1 billion fordrought-alleviation works. Beijing also said it would raise a symbolicminimum purchase price for rice by almost 40%.