In October 2008, China's power generation equipment completed a production of 9,633,600 kilowatts, a year-on-year decrease of 27%. In the third quarter of 2008, the growth rate of export volume of small and medium-sized motor industry decreased by 22.1 percentage points, product inventory increased by 22.1 percentage points, and new orders in the fourth quarter decreased by more than 30%. Some enterprises have stopped production and closed down. So far, the power tool industry has reduced production and sales by 50% and profits by 35%.
However, the difficult period is also the best period for adjustment. On December 8, Xing Yujiu, executive vice president of China Electrical Equipment Industry Association, said that by the end of next year, it will be a process of adjustment and adaptation. Now is a good time for enterprises to adjust their product mix.
Cold current strikes
There are fewer bidding projects this year, and it is obvious that the market demand is decreasing. The insiders of a power station boiler enterprise are worried, the difficulty of signing a new contract is increasing, the uncertainty of the order is increasing, and the account recovery situation is not optimistic.
Since 2008, the power station boiler industry has generally faced increased project risks, rapid inventory growth, and a significant increase in accounts receivable. Among the new orders of some enterprises, only about 30% of the contract projects have obtained the roads of the National Development and Reform Commission, and 70% have not been explicitly approved. According to incomplete statistics, as of the end of September, the total amount of accounts receivable in the industry had reached 15.8 billion yuan; in the first three quarters, industry profits fell 21% year-on-year.
Since some of the raw materials and key components required for power generation equipment are mostly imported and the price has remained high, the delay in the implementation of some thermal power projects has delayed the contract in the company, and the overseas engineering projects have been affected by the appreciation of the renminbi, resulting in increasing exchange losses. The industry has felt a chill.
This is not the hardest hit. At present, the situation of small and medium-sized motors, power tools, low-voltage electrical appliances, industrial boilers, etc., which are large in size and relatively low in technical content, is quite serious. Xing Yujiu said that the financial crisis has had a major impact on the export of the electrical industry, and some export-oriented enterprises bear the brunt.
According to the statistics of 53 key enterprises of China Small and Medium Electric Branch of China Industrial Electrical Appliances Association, in the third quarter of 2008, the growth rate of export volume of the industry decreased by 22.1 percentage points; the inventory of products increased by 22.1 percentage points; the accounts receivable of the industry increased sharply, as of the end of September, year-on-year. It rose by 37.2%. At the same time, new orders in the fourth quarter decreased by more than 30%, and some enterprises have stopped production and closed down. It is understood that the cancellation amount of a company has reached 15 million euros.
The overall export of the power tool industry reached more than 90%. Although the industry's export tax rebate increased by 8.1% in 2008, the situation is still not optimistic. Zhang Chuanfu, secretary-general of the Power Tools Branch, said that in the fourth quarter of 2008, production and sales were reduced by 50%, profits were reduced by 35%, and stocks increased significantly. A company with 2,000 employees plans to complete sales of 500 million yuan in 2008, but as the products are not sold, the number of inventories has reached 800,000. For example, at 200 yuan per unit, the company has a capital of 160 million yuan.
Up to now, many companies have not implemented orders in the first quarter of next year, and the industry is expected to reduce export orders by more than 30% next year. An enterprise with an annual sales income of 900 million yuan has now closed down due to the break of the capital chain and the reduction of orders.
As the current export tax rebate rate of the lead-acid battery industry is still zero, export companies have lost money across the board. It is understood that since 2007, 30% of enterprises have stopped production, and 50% of enterprises plan to migrate to countries such as India and Vietnam. Because the industry is labor intensive, most companies stop production, cut production, and lose jobs.
Xu Shanji, secretary-general of the Industrial Boiler Branch of China Electrical Equipment Industry Association, said that the current sales revenue of the industrial boiler industry has also declined, and some enterprises have experienced customer withdrawal. In addition, the output growth of individual products in the lighting industry slowed down in October, with the growth rate of incandescent bulbs, tungsten halogen lamps and metal halide lamps decreasing by more than 50%.
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