Wire and cable industry polarization, the profit decline
"From the current overall status of wire and cable industry, along with the national infrastructure construction slowdown, and the gradual implementation of macroeconomic regulation and control, the adjustment of economic structure, the impact on China's wire and cable industry is obvious." Summary since 2014, the overall operation of China's wire and cable industry, Shanghai Electric Cable Research Institute chief engineer Mao Chuanqing told reporters "power system equipment".
In his view, although compared with the iron and steel, electrolytic aluminum, cement and other high energy consuming industries, the influence of wire and cable industry by smaller, but still not be alone. "It is expected that in 2014 the wire and cable industry growth to growth and the national economy was essentially flat, or maintain a slightly higher level." He stressed that, finally, industry growth will remain within the scope of much, will be directly affected by raw material prices.
The polarization, the profit decline
The operation characteristics of distinctive industry
According to public information, in 2013, the output value of the scale of China's wire and cable industry has more than 1.3 trillion yuan, to become the world's largest cable producer, while China has become the second largest after the car industry.
Compared with the huge output, another characteristic of Chinese wire and cable industry is the industry concentration is not high, facing the "big but not strong" embarrassing situation. It is understood, at present the wire and cable industry of state-owned and large scale enterprises around 5000, nearly 97% small and medium enterprises, large enterprises only 19, its products accounted for only 11.7% of the national market share. But in the USA, Japan and France, the main wire and cable manufacturers were occupied more than its domestic market share of 70%, 66%, 90%.
The development status of China's wire and cable industry survey since 2014, Mao Chuanqing summed up another characteristic of industry operation is: in the influence of national policy and financial policy, industry growth is uneven development.
"For large enterprises, because capital is in good condition, the order quantity is more, the current output value and yield have increased, in small enterprises, because suffer the effect of capital chain, plus the order decreases quickly, at present great survival pressure." Mao Chuanqing said, because the banks affected by the national financial policy, often choose to have the strength of large enterprises as clients, small and medium-sized enterprises because of funding pressures, since 2014 the survival pressure generally larger.
The latest annual report in the wire and cable industry listing Corporation, also confirmed his view. Baosheng science and technology innovation of Limited by Share Ltd in 2014 semi annual report shows, Chinese economic growth will continue to face downward pressure, so that the wire and cable industry brought about by the change of macro environment is facing new challenges. The first half of 2014, the operating income of 4895000000 yuan, a year-on-year increase of 7.73%, net profit of 43130000 yuan, a year-on-year growth of 3.44%.
However, as the domestic economic environment influence, the market competition increasing and other factors, the wire and cable industry of small and medium-sized enterprises sales due to reduced orders, life is not a bed of roses. According to the star cable Limited by Share Ltd disclosure 2014 semi annual report shows, due to the international and domestic economic growth is slow, cable trade market competition intensifies, reduced orders, part of the customer delay delivery orders, gross margin decline, resulting in the first half of the operating results unsatisfactory. The first half of 2014, the company achieved operating income of 250000000 yuan, than the same period in 2013 reduced 54%, a loss of 22000000 yuan, 180% year-on-year drop.
"In fact, in the wire and cable industry in addition to the polarization is more serious, most of the profits of enterprises have shrunk." Mao Chuanqing said, he stressed that the main reason for this phenomenon is the production cost of the enterprise and the commitment to social costs continue to increase, this makes the enterprise profit is further diluted.
Jiangsu Zhongchao cable Limited by Share Ltd (hereinafter referred to as the "super cable") the situation is more typical, due to asset impairment loss compared to the same period in 2013 increased by 50000000 yuan, an increase of 146.51%, while operating income over the same period last year to reduce 21000000 yuan, the company achieved in the first half of 2014 operating income growth of 24.08% at the same time, the profit decreased 19.85%.
The breakdown of electric wire and cable industry development since 2014 highlights, it is not difficult to find the industry also faces the power grid investment plan, increase clean energy scale continues to expand, and the accelerated urbanization and other favorable situation. According to public information, the State Grid in 2014 completed investment in fixed assets 403500000000 yuan, of which 381500000000 yuan investment in the power grid, held in 2014 of UHV AC working meeting, the deployment of UHV AC to accomplish "one vote in 2014, two building, four open" target.
At the same time, the development in China in 2014 introduced a number of policies to encourage continued support for clean energy, according to the National Energy Bureau released data show, 2014, plans to increase nuclear power installed capacity of 8640000 kW, an increase of 264%; installed PV capacity target from the original 12 GW increased to 14 GW.
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