The situation of the heavy machinery industry under the sluggish market

In the domestic market, as the investment benefits brought about by the super-saturation of the entire basic industrial sector continue to decline, the demand for equipment in the heavy industry, such as non-ferrous metals, building materials, and electric power, has been severely reduced, and the investment enthusiasm in the industry has declined. , Newly-built and technical reform projects are reduced simultaneously. The application of emerging industries such as new energy is still at a stage of development in China.

In the international market, the current environment for global economic development is very complicated. The world economy has become increasingly prominent in the fierce adjustments and changes in the process of incompatibility, imbalance, incoordination and unsustainability. The situation, new issues, and new conflicts have caused the world economy to be full of uncertainty in the process of recovery. This uncertainty will inevitably affect the investment enthusiasm, resulting in reduced demand.

In the face of such internal and external markets and industrial environments, the five major listed companies in the domestic heavy machinery industry, China Heavy Duty, Heavy Duty, CITIC Heavy Industry, Taiyuan Heavy Industry, and Dalian Heavy Industry, were affected to varying degrees last year. The data released by the top five companies can already explain the problem. All five of these companies are state-owned enterprises, of which China’s heavy and heavy reloads are central enterprises that are regulated by the State Council’s SASAC.

Although the size of the market has shown a gradual increase, companies generally feel that domestic demand has dropped significantly in the past year, with a large increase in accounts receivable, a decline in the overall growth rate of production and sales, and a decline in profit margins. It is understood that nearly a quarter of the companies in the industry have suffered losses.

For the judgment of the market outlook, Huang Wei, deputy director of the National Energy Administration, believes that according to the current domestic energy situation, heavy machinery companies must also prepare for hardship. The relevant personages of China National Machinery Industry Federation believe that the whole industry needs to enhance the sense of crisis and prepare for a “tight day”, and consciously promote product innovation and accelerate structural adjustment.

Industry sources pointed out that this year, the overall situation of domestic heavy machinery and equipment manufacturing industry is still severe. At present, the domestic R & D investment in the high-end manufacturing sector is insufficient, the technology reserves are not enough, and the domestic and foreign market changes cannot wait to eliminate the constraints.

In fact, with the continuous expansion of industrial scale, rapid development of new and high technologies, and the growing international competition, equipment manufacturing industry will inevitably face a period of strategic transformation in the adjustment of industrial structure and the transformation of industrial patterns. The degree of understanding of this process and operational capabilities may determine the future state of survival of the company.

Get out of the woods

A top Chinese executive stated that this year it is necessary to break the “chain” of traditional thinking, make breakthroughs in transformation and upgrading, and make every effort to ensure no losses.

Two heavy equipment launched in the listed less than a year that launched a 5.072 billion yuan private placement plan, but because of the market "circumstances" questioned, eventually overdue miscarriage.

Taiyuan Heavy Industry plans to issue a short-term financing bill of RMB 1 billion after it has posted an earnings loss. The funds raised from this part of the short-term financing bills will be used to replace some of the bank's borrowings.

Obviously, for most companies in the "Big Five", "blood transfusion" is not only a stage but a continuous process. However, from the perspective of market performance, "blood transfusion" does not keep the company healthy. Instead, it causes the company to have serious psychological dependence and even inertia.

In the face of the downturn in the securities market, on the one hand, companies are trying to solve the difficulties of capital, on the other hand, they are also turning their attention to internal cost reduction and efficiency gains. Recently, the two heavy reloads formally launched the annual activities of the team to reduce costs and increase efficiency. This activity is seen as an important support measure to complete this year's business objectives.

In launching new products to stimulate the market, several companies have acted. Last year, the "giant heavy-duty forging operation equipment" jointly developed by China First and Shanghai Jiaotong University was successfully developed. The forgings of the sealed chamber of coolant pump for double reload Fuqing nuclear power project also passed the joint inspection by users. Its mechanical properties, crystal grain size and other indicators fully met the technical requirements. The one-off qualification marked the successful development of the largest nuclear power copper-containing steel forgings in China. . CITIC Heavy Industries successfully developed the world's largest gear box.

In addition, efforts to expand the international market and actively promote the internationalization strategy have become an important means for the “five major” enterprises to respond to the weak state of the domestic market.

The mode of operation determines the future

The "12th Five-Year Plan for Machinery Industry Development" issued by the China Federation of Machinery Industry suggests that during the "12th Five-Year Plan" period, the machinery industry will focus on five key areas and implement five development strategies. The five key areas are: high-end equipment products, emerging industry equipment, people's livelihood machinery equipment, key basic products, basic processes and technologies. The five development strategies are: high-end, innovation-driven, strengthened foundation, integration, and green.

It should be said that the development mode of most of the state-owned enterprises in the heavy machinery industry is mainly based on investment expansion to follow the demand arising from investment. In the past 10 years, through the implementation of IPO, large-scale technological transformation of heavy machinery companies has become quite common. Affected by the market downturn, the current operating rate is relatively low, resulting in a lot of waste of resources. The short-term “prosperity” effect brought by “4 trillion yuan” has enabled enterprises to stimulate production capacity more strongly, resulting in a serious excess of production capacity, a high asset-liability ratio, and a low total investment contribution rate. Low investment efficiency. The industry’s assessment of this is that, under the existing mechanism, state-owned enterprises still cannot escape the fate of relying on national policies and investment in fixed assets.

In fact, the hardware level of the domestic five major heavy machine companies is not inferior to those of well-known foreign companies. However, in terms of software investment, there is a huge gap in the ability to provide customers with system solutions. When a powerful "processing shop" is faced with a change of market and has no use, and can not receive processing fees, companies will be unable to do anything.

At present, the technical and social environment on which the equipment manufacturing industry depends and customer needs are undergoing profound changes. Throughout the entire industrial process integrity project, the user’s focus is not on individual parts of the project, but whether the overall project function is satisfied. demand. In the industrial field, professional system services have become a consumer trend, which requires companies to provide users with complete solutions, from the host provider to the complete set of service providers.