All mining machinery and equipment, such as mineral processing equipment products, including ball mill, crushing machines, magnetic separator, flotation machines have a certain life cycle. In the life cycle, there must be the procedure of market development, market expansion, market saturation, the market shrink and finally disappear.

Now is a rapidly developing era, whether technology or innovation. People's needs and requirements of any product has also been improved with the development of the times, people are looking for how to more effectively create their own best interests. Because of this, many industries have a very big development space for the upgrade, especially in mining equipment industry which developed rapidly, mining machinery and equipment should be able to continue to innovate and improve, so as to better foothold, bring the user the most needed products and equipment.

According to AGICO group market analysts said, the life cycle of a particular processing equipment model does not show equal situation. For ball mill, its life cycle is very long, some even up to 10 years. Only continue to create innovation on the basis of the original function, making the entire production line show a good momentum, and eventually accumulated to a qualitative leap. And ultimately achieve production capacity of the industry's contribution.

If the equipment manufacturing industry upgrades, research-and-development-oriented enterprises will benefit. We think that the comparative advantage of the labor cost in China machinery industry is disappearing, so the upgrade of equipment manufacturing industry is the only way to success. At present the r&d investment is only that of about 2 percent for the 204 listed enterprises in our country machinery industry. But according to the fact that In America the R&D fees reach 6 percent for the 245 listed mechanical enterprises, the research and development investment of China machinery industry is insufficient. Looking from the American development experience, if an enterprise increases its r&d investment dramatically, its business performance and the profit level will improve greatly in the next 5 to 10 years, and excess returns of these listed companies is also much higher than that companies with less investment.