After attending the Tianjin Mining Conference, we can clearly feel the intensification of market competition, especially the impact of a large number of low-cost equipment.

In my opinion, the market will gradually develop clearer stratification over time, with different price tiers catering to distinct customer segments. Following this logic, let's conduct a basic analysis of the current market landscape. I'll compare the differences between 300,000 yuan and 1.3 million yuan devices from six key aspects.

First of all, it is about the current analysis of the whole hydraulic core drilling machine market

A notable trend at the recently concluded Tianjin International Mining Conference was the dramatic surge in exhibitors of fully hydraulic core drilling rigs. The influx of numerous low-cost manufacturers brought a flood of budget-friendly equipment, creating market price chaos with staggering price gaps ranging from 300,000 to 1.3 million yuan. This development has severely disrupted the established market landscape.

This chaotic competition has indeed sparked concerns about 'bad money driving out good' in the short term—some customers might be lured by extremely low prices, overlooking the equipment's long-term reliability, overall usage costs, and value-creation potential. However, in the long run, any mature market will eventually evolve through the passage of time toward stratified demand.

Our core point: market sedimentation and customer stratification is an inevitable trend

Fierce market competition serves as the catalyst for market maturity. Drilling operations inherently exhibit diverse demands due to variations in application scenarios, exploration depth, geological conditions, and budgets. Similar to the automotive market which includes both economy vehicles and luxury SUVs, the core drilling rig market will inevitably undergo clear differentiation into:

Economy market (around 300,000 yuan level): to meet the needs of shallow hole, medium shallow hole, budget sensitive, and customers who do not require extreme efficiency and attendance rate.

Professional and high-end market (about 1.3 million level): serving core customers who pursue high efficiency and low comprehensive operating costs, and value long-term equipment value and after-sales support in deep hole and complex working conditions.

After the test of time and practice, these two markets will form their own boundaries and serve their own target customers well, so as to achieve coexistence and win-win.

Value analysis: Core differences between 300,000 and 1.3 million equipment

Customer stratification fundamentally stems from differences in the core value of equipment. Here is a brief comparison of six dimensions:

Dimension to Compare 

1. Power and hydraulic system compatibility 

The downhole equipment is mostly general or assembled parts, the system integration is low, there may be power waste or bottleneck, and the stability and responsiveness are generally. 

The core advantages of deep-hole equipment are mainly based on components from well-known brands (such as Rexroth, Cummins, Kawasaki Kubota, etc.), and deep matching and adjustment are carried out. The system has high efficiency, fast response, smooth and accurate power output, and provides strong guarantee for complex working conditions.

1. Design rationality 

The downhole equipment is mainly designed to meet the basic functions, with less ergonomic consideration, insufficient maintainability and convenience, and many small and medium problems may occur in long-term use. 

The deep hole equipment is the crystallization of years of experience. Based on a large number of field feedback iteration and optimization, the layout is scientific, easy to maintain, comfortable to operate, every detail is designed to improve work efficiency and reduce the labor intensity of operators.

1. Fuel consumption

Due to poor system matching and outdated engine technology, the fuel economy of submersible equipment is usually poor, and the fuel cost of long-term operation is high.

Deep-hole equipment is more efficient and energy-saving. We will equip advanced electric control engine and high-efficiency hydraulic system according to customer needs, which has lower fuel consumption under the same working load and more advantages in the cost per meter of drilling.

1. A problem with the cooling system 

The low-cost equipment has simple configuration and insufficient redundant heat dissipation capacity. When the temperature is high or the work is continuous and high intensity, the oil temperature is easy to be too high and the whole machine will "break down". 

High-end equipment will be more reliable. We will be equipped with a large capacity, high-performance heat dissipation system to ensure that the equipment can continue to operate steadily under extreme working conditions, so that the attendance rate is guaranteed.

1. after-sale service 

Low-cost equipment basically has no systematic service capability, slow response, spare parts supply is not guaranteed, equipment failure means a long waiting time for shutdown. 

Our core value is to provide rapid response, skilled professional service team and sufficient spare parts inventory, which can minimize customer downtime, which is an important part of the premium of high-end equipment.

1. Application Plan 

Low-cost equipment can usually only cope with standardized simple working conditions. 

We don't just sell equipment—we deliver comprehensive solutions. Our customized solutions address unique drilling techniques (e.g., wireline core sampling) and complex formations (e.g., fractured or hard rock), helping clients overcome technical and operational challenges.

To sum up, in the face of the current market turmoil, we will maintain strategic focus:

1. Clarify our position: We are not a shallow hole level battlefield. Our goal is to serve professional customers who require "the lowest total cost of ownership" and "the highest long-term return on investment".

2. Strengthen value communication: Shift the focus from "price" to "value", and make customers deeply understand the reliability, efficiency and low operating cost behind the high price through the clear comparison of the above six dimensions.

3. Deepen the market: Focus on deep holes, scientific drilling, overseas high-end projects and other fields with strict requirements on equipment performance, and build our own "moat".

4. Build customer retention: Turn existing customers into partners with excellent products and impeccable service. Customer word of mouth is our most powerful weapon against low-price impact.

The market frenzy is merely temporary. As challenges like project delays, high maintenance costs, and drilling accidents become apparent, clients will finally recognize the true value of professional equipment. We firmly believe that time is the ultimate touchstone. Through the natural maturation of the market, client demographics will clearly stratify, and the industry will regain rationality. At that point, those who steadfastly uphold quality, technology, and service will secure a healthier, more sustainable development space.