China's industrial transformation and upgrading must accelerate

How to better understand the current industrial economic situation in China? In the context of the “breaking eight” growth rate in the first half of the year, can the industrial economy in the second half of the year be further stabilized and even warmed up? A few days ago, the China Economics Industry Climate Index Research Center focused on relevant topics and conducted in-depth research and interviews on index research sites. The survey results show that under the background of slowing domestic and international market demand, the operating difficulties of some industrial enterprises in China have increased, and the profitability of many industries has declined significantly. The development of the industry faces many difficulties. However, with the implementation of various policies and measures for the country's steady growth, restructuring, and expansion of domestic demand, the momentum of sustained and steady growth of the macro economy will gradually increase, and the moderate warming of industrial enterprises will gradually emerge.

Many industrial economic highlights

Since the beginning of this year, China's industrial enterprises have worked hard to overcome the adverse effects of weakening external demand and weak domestic demand. From January to August, the added value of industrial enterprises above designated size maintained a growth rate of 10.1% year-on-year, and the growth rate of industrial production showed signs of slowing down. . The added value of industrial enterprises above designated size increased by 9.3%, 9.6%, 9.5%, 9.2% and 8.9% respectively in the five months, 4, 5, 6, 7, and 8 months, without significant fluctuations.

Judging from the feedback from the research sites of the China Economics Industry Index, at present, although various industries are faced with different situations and difficult situations, as various industrial enterprises insist on putting steady growth at the forefront, and insisting on restructuring and promoting transformation, Therefore, it also shows a lot of development highlights.

Shanghai Baosteel, one of the leading companies in the steel industry, continues to maintain its leading position in the industry competition by accelerating the transformation of its business from steel to materials, manufacturing to services, and from China to the world. Under the unfavorable situation that steel faced losses in the whole industry, Baosteel realized a total profit increase of 82%.

In Shandong Yankuang Group, faced with the weak domestic demand, the ups and downs of coal prices at home and abroad, and the high coal stocks in the whole society, the company started from both ends of production and sales, and scientifically controlled the coal production in the production process, insisting on marketing links. Let profit not let the market, price adjustment does not sell off, and implement the "optimization of coal, increase power, stabilize electricity and coal" variety optimization strategy, adhere to "win by quality, improve quality and price" and "quantity price linkage, distance concessions, strategic reciprocity The price adjustment strategy achieved a year-on-year increase of 18% in output and an increase of 22.53% in operating income. Coal production and operating income both reached record highs, achieving overall market share and cash flow stability.

As the "leader" of the washing machine industry, Little Swan actively adjusts its business strategy, no longer pursues scale expansion, and pays more attention to the quality and efficiency of the company's operations. In the first half of this year, Little Swan Washing Machine achieved a significant increase in the gross profit of export sales under the circumstances of a sharp decline in domestic sales.

In the chemical industry, in accordance with the guidelines of “service first line, understanding the first line, guiding the first line, and supervising the front line”, Sinofert will carry out in-depth agrochemical services as a way to consolidate the business foundation and resolve the operational pressure. Since the beginning of this year, the production and operation rate of compound fertilizer in the whole industry has dropped from 40% to 50% last year to around 20%. Sinochem Fertilizer still achieved sales of 9.05 million tons, an increase of 8% year-on-year; realized sales income of 22.5 billion yuan. It increased by 22% year-on-year.

In the first half of this year, the downward trend in the profit of the entire machinery industry has not been effectively improved. However, from the feedback of the China Economic and Industrial Index, the performance of mechanical products with independent intellectual property rights and core competitiveness in the market is still very eye-catching. In the first half of the year, Weichai Power Co., Ltd.'s operating income decreased by 26.1% year-on-year. The net profit attributable to shareholders of listed companies decreased by 45.8% year-on-year. However, the company's independent research and development of intellectual property rights of the Blue Engine WP5 and WP7 engines sold 2,708 units. The growth rate was 78.4%, including 2,382 passenger car market, an increase of 227.3% year-on-year.

It can be seen that under the background of slowing macroeconomic growth, can enterprises accelerate the pace of transformation and upgrading in areas such as technological innovation, service innovation, business model innovation, and development strategy innovation, and whether they can smoothly cope with the external situation? Important role.

Overcapacity becomes the main bottleneck

In the first half of this year, due to the turmoil in the global financial market, the intensification of the European debt crisis, and the domestic macro-control policies and other factors, China's GDP growth rate has broken through eight for the first time in three years. The slowdown in macroeconomic growth has further highlighted the development difficulties of many industrial enterprises in China.

According to the China Iron and Steel Association's survey of its member companies (accounting for 82% of China's total steel production), from January to July this year, all steel companies realized a total profit of only 710 million yuan; in July, the steel company's net loss It reached 1.984 billion yuan.

In fact, not only steel companies are plagued by overcapacity problems, but coal, fertilizer and other industries are also suffering from overcapacity problems.

Against the background of relatively weak market demand, due to the concentration and rapid release of coal production capacity and the impact of international coal price fluctuations, China's domestic coal supply has maintained a relatively fast growth trend, resulting in a situation in which the imbalance between coal supply and demand is becoming more and more serious. Inventories began to increase, and Qinhuangdao Port even had a situation of “full coal”.

The oversupply of production capacity is also the main pressure currently facing the fertilizer industry. The reporter learned that since the first half of this year, the price of urea has dropped from 2,550 yuan per ton to the current 1950 yuan, forming the longest and most declining price drop in the past.

Feng Mingwei, general manager of Sinochem Fertilizer Co., Ltd. told reporters that the oversupply situation of nitrogen fertilizer, phosphate fertilizer and compound fertilizer capacity will exist for a long time, and new capacity under construction will be released one after another, which will further aggravate the situation of oversupply. Under the situation that the downstream demand is not prosperous and the fertilizer export is very uncertain, the domestic market has the risk of continuing to slump and continue to decline.

In addition, the results of the survey also show that due to the current lack of independent innovation capability of many industrial enterprises in China and the long-term low-end of the international industrial value chain, this has further increased the development difficulties of industrial enterprises.

Transformation and development

The China Economics Industry Climate Index released in the second quarter of 2012 released at the end of July this year shows that China's industrial economy will show a moderate warming trend in the second half of this year.

The recent interviews with reporters at the China Economics Industry Climate Index Enterprise Research Center also show that entrepreneurs have a certain understanding and judgment on the current economic situation and have not lost confidence in the future.

Xu Lejiang, chairman of Baosteel Group, said that the meager profit stage is a must-have and must suffer in the process of upgrading the steel industry in China. Never seen, the speed of transformation of steel companies will determine the success or failure of enterprises. Wang Xin, chairman of Yankuang Group, said that the current situation of the coal industry is indeed not optimistic, but judging from the current situation, although the coal industry is still in a bottom-up state in the second half of the year, the overall development situation will be better than the first half. The relevant person in charge of Weichai Power said that in the second half of this year, the state increased its investment in fixed assets, railways, electric power, new energy and water conservancy. With the restart of a number of major infrastructure projects, the main products demand of the machinery industry in the second half of the year The situation will gradually improve.

Entrepreneurs' mentality of not being paralyzed and not panicking about the future economic situation has made people more determined based on good expectations for the future. Based on these good expectations, many industry companies have also accelerated the pace of transformation and upgrading, and strive to make a difference in the current unfavorable situation and actively respond to the challenges.

Baosteel Co., Ltd. has determined the strategy of coordinated development of the steel industry and related diversified industries, actively exerting the synergistic support function of the diversified industries on the steel industry, creating the competitive advantage of the steel industry's industrial chain, strengthening the external market expansion and value creation capabilities of diversified industries, and improving relevant The rate at which the industry contributes to the company's resistance to economic fluctuations.

In response to the current decline in coal demand growth, coal prices have fallen, and the market supply exceeds demand is obviously unfavorable. Yankuang Group and 13 other coal companies have jointly initiated the industry to strictly abide by relevant national laws and regulations, strengthen self-discipline, and not violate regulations. It is not illegal to produce, not super-capacity production, consciously to legally produce, operate according to law, and maintain normal coal production and operation order. It is necessary to strengthen monitoring and early warning of the coal market, organize production according to market demand, reasonably control the total amount of coal production, and jointly maintain the stability of the coal market.

Weichai Power proposes to further increase research and development efforts, and do a good job in innovation of key products such as third-generation heavy trucks, AMT and passenger transmissions, as well as mass market promotion of national IV products, and strive to achieve new breakthroughs.

Relevant experts said that the world economy has entered a new adjustment cycle. In the short term, industrial enterprises should grasp the two markets and insist on domestic demand as the main driving force for economic growth. In the medium and long term, industrial enterprises should accelerate the pace of transformation, strive to improve their own strength, seize the opportunity to further increase the intensity of technological transformation, accelerate the creation of core competitiveness, pay more attention to the quality of products, pay more attention to cultivating well-known brands in the market. Look for new opportunities.