At present, China can produce nearly 1,000 series of low-voltage electrical products with an output value of about 20 billion yuan. In 2011, the top exports of low-voltage electrical appliances were Guangdong's 2.67 billion U.S. dollars, Zhejiang 790 million U.S. dollars, and Shanghai's 630 million U.S. dollars, and the three added 79 percent of the total export volume of low-voltage electrical appliances.
In recent years, with the rapid development of electric power, petrochemical and other industries, it has provided a huge market opportunity for low-voltage electrical appliance manufacturing industry. A large number of private enterprises in Wenzhou have thus emerged. However, 90% of companies are still carrying out repeated low- produce. Due to the rapid growth of the number of its enterprises in a short period of time, resulting in a serious excess capacity of low-voltage electrical appliances in China, coupled with the large number of foreign low-voltage electrical manufacturers such as General Electric, China's low-voltage electrical market competition is also extremely tragic, serious imbalance in supply and demand, resulting in China's low-voltage electrical companies are in an uneasy turmoil.
Comparison of market competitor strengths. In the domestic appliance accessories low-voltage electrical appliance market, the state-owned enterprises' products still account for 60% to 70%. In other words, state-owned enterprises are still the main force. After 50 years of development, these companies have greatly improved their design and manufacturing capabilities. The products designed and manufactured by themselves can basically meet the needs of the national economy. However, it should also be noted that the manufacturing process of low-voltage electrical appliance enterprises in China is backward, and special processes are used. Less equipment, poor product reproducibility, and low reliability. The heavy burden on enterprises, coupled with the influence of defaulted loans, is a common problem for state-owned enterprises. The investment in technological reforms is too low, the product level is not high, and economies of scale and economic volume cannot be achieved.
There are two main competitors for state-owned enterprises: one is a joint venture, and the other is a private enterprise (or private company). The joint venture is usually foreign-funded out of technology and equipment, and the Chinese have factories and labor.
As one of the thermoplastic resins in the upstream industry of the low-voltage electrical appliance industry, PVC (polyvinyl chloride) and steel, wood, and cement are called four basic building materials, and PP, PE, ABS, and PS are also called five general-purpose resins and their output and consumption. The amount is in the first place. Widely used in the construction field of various types of profiles, pipe, and power systems, wire and cable, agricultural hose, medical blood transfusion equipment, medical gloves, etc. are all derived from PVC. It can be said that PVC is ubiquitous in the fields of production and life and is closely linked with the economic development.
At present, China has become the world's largest PVC producer and consumer. However, behind these two firsts, China's PVC production capacity has been nearly 2 times that of demand for 5 consecutive years. In other words, the average production capacity of PVC production enterprises is expected to be around 50%. Coupled with the continuous emergence of new and intensified real estate regulation, the winter of the PVC industry will continue. According to WIND statistics, based on the stock price of March 18, the market value of 13 chlor-alkali industry companies was 52.26 billion yuan. If the industry conditions continue to deteriorate, they are bound to damage all low-voltage electrical appliances in China has more than 50 years of history, 2000 Since then, China's low-voltage electrical appliances have made breakthrough progress. China's low-voltage electrical appliances also range from simple assembly to imitative manufacturing to independent design and development. Among them, the development of the coastal areas is relatively fast, especially in Wenzhou, the most prosperous, according to the amount of exports, Guangdong Province is far ahead.
At present, China can produce nearly 1,000 series of low-voltage electrical products with an output value of about 20 billion yuan. In 2011, the top exports of low-voltage electrical appliances were Guangdong's 2.67 billion U.S. dollars, Zhejiang 790 million U.S. dollars, and Shanghai's 630 million U.S. dollars, and the three added 79 percent of the total export volume of low-voltage electrical appliances.
In recent years, with the rapid development of electric power, petrochemical and other industries, it has provided a huge market opportunity for low-voltage electrical appliance manufacturing industry. A large number of private enterprises in Wenzhou have thus emerged. However, 90% of companies are still carrying out repeated low- produce. Due to the rapid growth of the number of its enterprises in a short period of time, resulting in a serious excess capacity of low-voltage electrical appliances in China, coupled with the large number of foreign low-voltage electrical manufacturers such as General Electric, China's low-voltage electrical market competition is also extremely tragic, serious imbalance in supply and demand, resulting in China's low-voltage electrical companies are in an uneasy turmoil.
In December 2011, Shanghai Electric's three subsidiaries launched a 100% equity transfer; two weeks later, Renmin Electric also followed suit to sell 100% of the People's Electrical Factory and 75% of Power Electronics Co., Ltd.; followed by Shanghai Schneider Electrical power automation company also listed 41% of the shares transferred. Looking around the world, the low-voltage electrical appliance industry is already an industry with high levels of international competition and marketization, and increasingly forms a competitive landscape in which co-existence of multinational companies and domestic domestic competitive enterprises.
However, China's low-voltage electrical companies still remain in the typical pyramid structure. Low-end low-voltage electrical companies with relatively low technology thresholds are clustering in China. The overall concentration of the industry is very low. Companies such as Schneider, Siemens, and ABB are typhoons. Only Delixi and other companies can enter the world stage.
According to the trend of national policies, China's low-voltage electrical market will be further developed, and its corporate structure will also be adjusted. The natural law of survival of the fittest will apply to any industry. We also expect that China will be able to come up with more opportunities in the near future. The giant of the world.
The low-voltage electrical appliance market is highly competitive, and China's low-voltage electrical manufacturing industry is facing a severe situation of oversupply. Due to the great development of electric power, petrochemical, construction and other industries, it has provided good opportunities for the development of low-voltage electrical appliances manufacturing industry, but the number of enterprises has increased too much, coupled with the fact that some foreign electrical companies face the huge market in China. With a surge, the intensity of competition has increased.
First, the market is very large. There are too many domestic low-voltage electrical appliance manufacturers. Some foreign companies have entered the domestic market and the competition is fierce.
Second, competition is not equal and quality may not be excellent. China is in the process of transition of the economic system. Various unequal competitions exist in the supply and marketing links. According to the laws of the market, good quality should be excellent, or products with good quality under the same price conditions should sell better, but the reality may not be the case.
Third, in the competition for products with high technological content, the original backbone enterprises (or key enterprises) still have a great advantage compared with private enterprises.
2. Comparison of market competitor strengths. In the domestic appliance accessories low-voltage electrical appliance market, the state-owned enterprises' products still account for 60% to 70%. In other words, state-owned enterprises are still the main force. After 50 years of development, these companies have greatly improved their design and manufacturing capabilities. The products designed and manufactured by themselves can basically meet the needs of the national economy. However, it should also be noted that the manufacturing process of low-voltage electrical appliance enterprises in China is backward, and special processes are used. Less equipment, poor product reproducibility, and low reliability. The heavy burden on enterprises, coupled with the influence of defaulted loans, is a common problem for state-owned enterprises. The investment in technological reforms is too low, the product level is not high, and economies of scale and economic volume cannot be achieved.
There are two main competitors for state-owned enterprises: one is a joint venture, and the other is a private enterprise (or private company). The joint venture is usually foreign-funded out of technology and equipment, and the Chinese have factories and labor. The starting point of the products is high, serialization, tooling and mold are good, and there is no heavy burden on the state-owned enterprises. It can be said that the economic strength and technical strength are relatively strong. Because the time for the establishment of the joint venture is still short and the scale is relatively small, the product price of the joint venture is high and does not prevail in the competition. China's private enterprises (private enterprises) have grown rapidly since 1985 and are now slowing down, but the rate of increase is still faster than other ownership systems. Initially, private enterprises engaged in low-voltage electrical appliances were small in size, and their product specifications were not large. In recent years, the scale of the economy has continued to expand and the economic benefits have become more pronounced. Some of these enterprises have reached the scale of large and medium-sized enterprises in the country. Their product costs are lower than those of state-owned enterprises, and their product prices have advantages. The business ideas are in line with the laws of market economy, and the sales system is powerful and effective, so their economic efficiency is lower than State-owned enterprises are high. The inadequacies of such enterprises are that the ability to design and manufacture tooling is not strong, the ability to develop new products is not strong, and the technical strength is relatively weak. However, such enterprises have the same potential as joint ventures.
3. The entry of large foreign companies. These companies have long history, good management, strong technical force, short product development cycle, and quick response to the market. After joining the WTO, many internationally advanced voltage electric appliances companies will also have to take a large part in the Chinese market. They may use joint ventures or sole proprietorship to use low-cost labor and raw materials in China for production, thereby reducing product costs. This is a serious challenge. At the same time, with the opening of the market, China's low-voltage electrical appliances will easily be able to obtain advanced international production and management techniques, and then take advantage of our geographical advantages to obtain new advantages.
With external pressure, we have forced our low-voltage electrical companies to introduce advanced production materials to create advanced productivity. Only in this way, can we improve the overall quality of our business and improve the overall competitiveness of China's low-voltage electrical industry.
As one of the thermoplastic resins in the upstream industry of the low-voltage electrical appliance industry, PVC (polyvinyl chloride) and steel, wood, and cement are called four basic building materials, and PP, PE, ABS, and PS are also called five general-purpose resins and their output and consumption. The amount is in the first place. Widely used in the construction field of various types of profiles, pipe, and power systems, wire and cable, agricultural hose, medical blood transfusion equipment, medical gloves, etc. are all derived from PVC. It can be said that PVC is ubiquitous in the fields of production and life and is closely linked with the economic development.
At present, China has become the world's largest PVC producer and consumer. However, behind these two firsts, China's PVC production capacity has been nearly 2 times that of demand for 5 consecutive years. In other words, the average production capacity of PVC production enterprises is expected to be around 50%. Coupled with the continuous emergence of new and intensified real estate regulation, the winter of the PVC industry will continue. According to WIND statistics, based on the stock price of March 18, the market value of 13 companies in the chlor-alkali industry was 52.26 billion yuan. If the industry conditions continue to deteriorate, they will inevitably lead to a loss of the entire market of PVC listed companies during the year or into the most difficult time of 2011. The PVC industry operating rate is only about 60%, while another analyst told reporters that the next 3-6 months may be the industry's most difficult moment. The successive disclosure of annual reports undoubtedly exposed the distress of the chlor-alkali industry. According to WIND, there are 13 listed companies belonging to the chlor-alkali industry in the two cities. Although the annual reports of 13 companies have not been fully disclosed, they have checked the information of these 13 companies and discovered that regardless of the overall profitability of the company during the year. However, for the PVC business, the destructive performance has become an indisputable fact.
Due to the sharp drop in product prices since the fourth quarter and the rise in raw materials such as calcium carbide during the same period, the profitability of the company's PVC business has been affected. This is a common denominator used by many companies to describe their own PVC business. Earlier, some analysts believe that this situation is difficult to change in the short term, and the next 3-6 months may be the industry's most difficult time.
However, this does not seem to be the real reason why the industry is sluggish. Cinda Securities analyst Guo Jingyao said in an interview with this reporter that for the PVC industry, the most serious problem is not the inversion of costs and selling prices, but a serious overcapacity: starting in 2007, the issue of overcapacity It has emerged that if this problem is not solved, it will be difficult for the industry to change.
It is clear that the collective depression of the PVC business has become the key word in the annual reports of the listed companies in the 13 chlor-alkali industries in which 4 ST companies in the industry have suffered losses. This is more evident in ST companies.
According to WIND, five of the listed companies in the chlor-alkali industry were listed as ST, and four of the five companies made predictions that the company had lost profits during the year, and the unspent *ST Taihua relied on the transfer subsidiary Shanxi Huaxu Chemical. 100% of the equity generated a revenue, and the government received a pre-relocation fee of 70 million yuan for the branch to achieve the protection.
Although the four loss-making ST companies have their own reasons, it is not difficult to see from them that the low prosperity of the PVC industry is an important reason.
ST Longlong’s performance forecast stated that due to the different levels of sales volume and prices of the company during the reporting period, especially in the second half of the year, the company’s profitability was seriously affected and the accumulated profit for the year was expected to be a loss, but the amount of loss was not disclosed; ST Mingke The performance forecast stated that the company's industrial structure adjustment was in the period of industrial transformation, and its performance was affected by this loss and the amount of losses was not disclosed. ST Nanhua said that the prices of main raw materials and electricity have continued to rise, and the cost of products has risen. Insufficient production start-up and sharp drop in the price of chlorine products led to a loss in 2011 results; ST Jinhua’s performance forecast stated that although the company’s main products, polyvinyl chloride resin and caustic soda production and operating income have increased by a certain extent compared to 2010 However, due to the large increase in the price of raw materials, the price of the main product PVC resin is low, especially since the fourth quarter, the sharp drop in the price of PVC resin has led to a large loss for the company in 2011.
In recent years, with the rapid development of electric power, petrochemical and other industries, it has provided a huge market opportunity for low-voltage electrical appliance manufacturing industry. A large number of private enterprises in Wenzhou have thus emerged. However, 90% of companies are still carrying out repeated low- produce. Due to the rapid growth of the number of its enterprises in a short period of time, resulting in a serious excess capacity of low-voltage electrical appliances in China, coupled with the large number of foreign low-voltage electrical manufacturers such as General Electric, China's low-voltage electrical market competition is also extremely tragic, serious imbalance in supply and demand, resulting in China's low-voltage electrical companies are in an uneasy turmoil.
Comparison of market competitor strengths. In the domestic appliance accessories low-voltage electrical appliance market, the state-owned enterprises' products still account for 60% to 70%. In other words, state-owned enterprises are still the main force. After 50 years of development, these companies have greatly improved their design and manufacturing capabilities. The products designed and manufactured by themselves can basically meet the needs of the national economy. However, it should also be noted that the manufacturing process of low-voltage electrical appliance enterprises in China is backward, and special processes are used. Less equipment, poor product reproducibility, and low reliability. The heavy burden on enterprises, coupled with the influence of defaulted loans, is a common problem for state-owned enterprises. The investment in technological reforms is too low, the product level is not high, and economies of scale and economic volume cannot be achieved.
There are two main competitors for state-owned enterprises: one is a joint venture, and the other is a private enterprise (or private company). The joint venture is usually foreign-funded out of technology and equipment, and the Chinese have factories and labor.
As one of the thermoplastic resins in the upstream industry of the low-voltage electrical appliance industry, PVC (polyvinyl chloride) and steel, wood, and cement are called four basic building materials, and PP, PE, ABS, and PS are also called five general-purpose resins and their output and consumption. The amount is in the first place. Widely used in the construction field of various types of profiles, pipe, and power systems, wire and cable, agricultural hose, medical blood transfusion equipment, medical gloves, etc. are all derived from PVC. It can be said that PVC is ubiquitous in the fields of production and life and is closely linked with the economic development.
At present, China has become the world's largest PVC producer and consumer. However, behind these two firsts, China's PVC production capacity has been nearly 2 times that of demand for 5 consecutive years. In other words, the average production capacity of PVC production enterprises is expected to be around 50%. Coupled with the continuous emergence of new and intensified real estate regulation, the winter of the PVC industry will continue. According to WIND statistics, based on the stock price of March 18, the market value of 13 chlor-alkali industry companies was 52.26 billion yuan. If the industry conditions continue to deteriorate, they are bound to damage all low-voltage electrical appliances in China has more than 50 years of history, 2000 Since then, China's low-voltage electrical appliances have made breakthrough progress. China's low-voltage electrical appliances also range from simple assembly to imitative manufacturing to independent design and development. Among them, the development of the coastal areas is relatively fast, especially in Wenzhou, the most prosperous, according to the amount of exports, Guangdong Province is far ahead.
At present, China can produce nearly 1,000 series of low-voltage electrical products with an output value of about 20 billion yuan. In 2011, the top exports of low-voltage electrical appliances were Guangdong's 2.67 billion U.S. dollars, Zhejiang 790 million U.S. dollars, and Shanghai's 630 million U.S. dollars, and the three added 79 percent of the total export volume of low-voltage electrical appliances.
In recent years, with the rapid development of electric power, petrochemical and other industries, it has provided a huge market opportunity for low-voltage electrical appliance manufacturing industry. A large number of private enterprises in Wenzhou have thus emerged. However, 90% of companies are still carrying out repeated low- produce. Due to the rapid growth of the number of its enterprises in a short period of time, resulting in a serious excess capacity of low-voltage electrical appliances in China, coupled with the large number of foreign low-voltage electrical manufacturers such as General Electric, China's low-voltage electrical market competition is also extremely tragic, serious imbalance in supply and demand, resulting in China's low-voltage electrical companies are in an uneasy turmoil.
In December 2011, Shanghai Electric's three subsidiaries launched a 100% equity transfer; two weeks later, Renmin Electric also followed suit to sell 100% of the People's Electrical Factory and 75% of Power Electronics Co., Ltd.; followed by Shanghai Schneider Electrical power automation company also listed 41% of the shares transferred. Looking around the world, the low-voltage electrical appliance industry is already an industry with high levels of international competition and marketization, and increasingly forms a competitive landscape in which co-existence of multinational companies and domestic domestic competitive enterprises.
However, China's low-voltage electrical companies still remain in the typical pyramid structure. Low-end low-voltage electrical companies with relatively low technology thresholds are clustering in China. The overall concentration of the industry is very low. Companies such as Schneider, Siemens, and ABB are typhoons. Only Delixi and other companies can enter the world stage.
According to the trend of national policies, China's low-voltage electrical market will be further developed, and its corporate structure will also be adjusted. The natural law of survival of the fittest will apply to any industry. We also expect that China will be able to come up with more opportunities in the near future. The giant of the world.
The low-voltage electrical appliance market is highly competitive, and China's low-voltage electrical manufacturing industry is facing a severe situation of oversupply. Due to the great development of electric power, petrochemical, construction and other industries, it has provided good opportunities for the development of low-voltage electrical appliances manufacturing industry, but the number of enterprises has increased too much, coupled with the fact that some foreign electrical companies face the huge market in China. With a surge, the intensity of competition has increased.
First, the market is very large. There are too many domestic low-voltage electrical appliance manufacturers. Some foreign companies have entered the domestic market and the competition is fierce.
Second, competition is not equal and quality may not be excellent. China is in the process of transition of the economic system. Various unequal competitions exist in the supply and marketing links. According to the laws of the market, good quality should be excellent, or products with good quality under the same price conditions should sell better, but the reality may not be the case.
Third, in the competition for products with high technological content, the original backbone enterprises (or key enterprises) still have a great advantage compared with private enterprises.
2. Comparison of market competitor strengths. In the domestic appliance accessories low-voltage electrical appliance market, the state-owned enterprises' products still account for 60% to 70%. In other words, state-owned enterprises are still the main force. After 50 years of development, these companies have greatly improved their design and manufacturing capabilities. The products designed and manufactured by themselves can basically meet the needs of the national economy. However, it should also be noted that the manufacturing process of low-voltage electrical appliance enterprises in China is backward, and special processes are used. Less equipment, poor product reproducibility, and low reliability. The heavy burden on enterprises, coupled with the influence of defaulted loans, is a common problem for state-owned enterprises. The investment in technological reforms is too low, the product level is not high, and economies of scale and economic volume cannot be achieved.
There are two main competitors for state-owned enterprises: one is a joint venture, and the other is a private enterprise (or private company). The joint venture is usually foreign-funded out of technology and equipment, and the Chinese have factories and labor. The starting point of the products is high, serialization, tooling and mold are good, and there is no heavy burden on the state-owned enterprises. It can be said that the economic strength and technical strength are relatively strong. Because the time for the establishment of the joint venture is still short and the scale is relatively small, the product price of the joint venture is high and does not prevail in the competition. China's private enterprises (private enterprises) have grown rapidly since 1985 and are now slowing down, but the rate of increase is still faster than other ownership systems. Initially, private enterprises engaged in low-voltage electrical appliances were small in size, and their product specifications were not large. In recent years, the scale of the economy has continued to expand and the economic benefits have become more pronounced. Some of these enterprises have reached the scale of large and medium-sized enterprises in the country. Their product costs are lower than those of state-owned enterprises, and their product prices have advantages. The business ideas are in line with the laws of market economy, and the sales system is powerful and effective, so their economic efficiency is lower than State-owned enterprises are high. The inadequacies of such enterprises are that the ability to design and manufacture tooling is not strong, the ability to develop new products is not strong, and the technical strength is relatively weak. However, such enterprises have the same potential as joint ventures.
3. The entry of large foreign companies. These companies have long history, good management, strong technical force, short product development cycle, and quick response to the market. After joining the WTO, many internationally advanced voltage electric appliances companies will also have to take a large part in the Chinese market. They may use joint ventures or sole proprietorship to use low-cost labor and raw materials in China for production, thereby reducing product costs. This is a serious challenge. At the same time, with the opening of the market, China's low-voltage electrical appliances will easily be able to obtain advanced international production and management techniques, and then take advantage of our geographical advantages to obtain new advantages.
With external pressure, we have forced our low-voltage electrical companies to introduce advanced production materials to create advanced productivity. Only in this way, can we improve the overall quality of our business and improve the overall competitiveness of China's low-voltage electrical industry.
As one of the thermoplastic resins in the upstream industry of the low-voltage electrical appliance industry, PVC (polyvinyl chloride) and steel, wood, and cement are called four basic building materials, and PP, PE, ABS, and PS are also called five general-purpose resins and their output and consumption. The amount is in the first place. Widely used in the construction field of various types of profiles, pipe, and power systems, wire and cable, agricultural hose, medical blood transfusion equipment, medical gloves, etc. are all derived from PVC. It can be said that PVC is ubiquitous in the fields of production and life and is closely linked with the economic development.
At present, China has become the world's largest PVC producer and consumer. However, behind these two firsts, China's PVC production capacity has been nearly 2 times that of demand for 5 consecutive years. In other words, the average production capacity of PVC production enterprises is expected to be around 50%. Coupled with the continuous emergence of new and intensified real estate regulation, the winter of the PVC industry will continue. According to WIND statistics, based on the stock price of March 18, the market value of 13 companies in the chlor-alkali industry was 52.26 billion yuan. If the industry conditions continue to deteriorate, they will inevitably lead to a loss of the entire market of PVC listed companies during the year or into the most difficult time of 2011. The PVC industry operating rate is only about 60%, while another analyst told reporters that the next 3-6 months may be the industry's most difficult moment. The successive disclosure of annual reports undoubtedly exposed the distress of the chlor-alkali industry. According to WIND, there are 13 listed companies belonging to the chlor-alkali industry in the two cities. Although the annual reports of 13 companies have not been fully disclosed, they have checked the information of these 13 companies and discovered that regardless of the overall profitability of the company during the year. However, for the PVC business, the destructive performance has become an indisputable fact.
Due to the sharp drop in product prices since the fourth quarter and the rise in raw materials such as calcium carbide during the same period, the profitability of the company's PVC business has been affected. This is a common denominator used by many companies to describe their own PVC business. Earlier, some analysts believe that this situation is difficult to change in the short term, and the next 3-6 months may be the industry's most difficult time.
However, this does not seem to be the real reason why the industry is sluggish. Cinda Securities analyst Guo Jingyao said in an interview with this reporter that for the PVC industry, the most serious problem is not the inversion of costs and selling prices, but a serious overcapacity: starting in 2007, the issue of overcapacity It has emerged that if this problem is not solved, it will be difficult for the industry to change.
It is clear that the collective depression of the PVC business has become the key word in the annual reports of the listed companies in the 13 chlor-alkali industries in which 4 ST companies in the industry have suffered losses. This is more evident in ST companies.
According to WIND, five of the listed companies in the chlor-alkali industry were listed as ST, and four of the five companies made predictions that the company had lost profits during the year, and the unspent *ST Taihua relied on the transfer subsidiary Shanxi Huaxu Chemical. 100% of the equity generated a revenue, and the government received a pre-relocation fee of 70 million yuan for the branch to achieve the protection.
Although the four loss-making ST companies have their own reasons, it is not difficult to see from them that the low prosperity of the PVC industry is an important reason.
ST Longlong’s performance forecast stated that due to the different levels of sales volume and prices of the company during the reporting period, especially in the second half of the year, the company’s profitability was seriously affected and the accumulated profit for the year was expected to be a loss, but the amount of loss was not disclosed; ST Mingke The performance forecast stated that the company's industrial structure adjustment was in the period of industrial transformation, and its performance was affected by this loss and the amount of losses was not disclosed. ST Nanhua said that the prices of main raw materials and electricity have continued to rise, and the cost of products has risen. Insufficient production start-up and sharp drop in the price of chlorine products led to a loss in 2011 results; ST Jinhua’s performance forecast stated that although the company’s main products, polyvinyl chloride resin and caustic soda production and operating income have increased by a certain extent compared to 2010 However, due to the large increase in the price of raw materials, the price of the main product PVC resin is low, especially since the fourth quarter, the sharp drop in the price of PVC resin has led to a large loss for the company in 2011.
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