Analysis of economic operation of coated abrasive industry in 2014

Abstract In 2014, China's economy has entered a new normality from high-speed growth to medium-high-speed growth. The coated abrasive industry has also undergone new changes. Due to the weakening of downstream demand, the tight capital of enterprises and other factors, the production and operation situation facing the industry is still grim, but the industry enterprises...
In 2014, China's economy has entered a new normal of transition from high-speed growth to medium-high-speed growth. The coated abrasive industry has also undergone new changes. Due to the weakening of downstream demand and the tight capital of enterprises, the production and operation situation faced by the industry is still grim, but industrial enterprises have made new progress in transformation and upgrading, energy conservation and emission reduction, and the overall economic operation has maintained steady growth.

I. Overall situation of the industry operation (score statistics)
1. Production situation, output growth rate increased slightly
According to the statistics of enterprises above designated size, the sales revenue of coated abrasive products in 2014 was 5.687 billion yuan, up 3.73% year-on-year; the output was 482 million square meters, up 3.06% year-on-year; the output value was 5.947 billion yuan, up 1.36% year-on-year; 12.33 yuan, the same reduction of 1.43%. The export delivery value was 647 million yuan, a year-on-year decrease of 4.24%.
(1) A total of 35 coated abrasives with a production capacity of more than 1 million square meters. There are 14 over 10 million square meters, and the total output of these 14 households reached 3,812,181 square meters, accounting for 82.56% of all statistical output.
The output of 30 manufacturing enterprises was 457 million square meters, an increase of 3% year-on-year. The output of 19 enterprises increased, and the output of 11 enterprises decreased. The top three productions are: Hubei Yuli, Jiangsu Fengmang, Jiangsu Mitsubishi. The top three production growth: Jiangsu Baolun Abrasives, Xuchang Yinxing Nano, Tianjin Nanjing Grinding.
The output of 13 products enterprises was 25.246 million square meters, an increase of 6% year-on-year. The output of 9 enterprises increased, and the output of 4 enterprises decreased. The top three productions are: Sichuan Gurui, Linyi Sanchao, and Anhui Brothers. The top three production growth: Dalian Wei Kete, Linyi Sanchao, Dongguan Yuda.
(2) 24 of the coated abrasives with an output value of more than 50 million yuan. There are 16 companies with more than 100 million yuan, and the total output value of these 16 companies is 4,791,985,500 yuan, accounting for 82.70% of the total statistical output value.
The output value of manufacturing enterprises was 5.189 billion yuan, a year-on-year increase of 1.15%. The output value of 18 enterprises increased, and the output of 12 enterprises decreased. The top three values ​​of total output value and sand cloth production value are: Jiangsu Mitsubishi, Hubei Yuli, Jiangsu Fengmang. The top three production values ​​of sandpaper are: Dongguan Golden Sun, Zibo Sisha Taishan, and Jiangsu Fengmang. The top three output growth: Jiangsu Baolun Abrasives Co., Ltd., Xuchang Yinxing Nano, Dongguan Golden Sun.
The output value of product enterprises was 758 million yuan, a year-on-year decrease of 0.96%. The output value of 5 enterprises increased, and the output value of 8 enterprises decreased. The top three output values ​​are: Sichuan Gurui, Anhui Brothers, and Linyi Sanchao. The top three output growth: Dongguan Yuda, Zhongshan Jinyueda, Linyi Sanchao.
(3) Sand sheet: The output was 247 million square meters, up 4.66% year-on-year; the output value was 1.575 billion yuan, up 5.6% year-on-year, of which paper-based products were 1.416 billion yuan, accounting for 89.9% of the total. Among the manufacturing companies participating in the statistics, there are six companies with an output value of more than 100 million yuan. The top three names of sand sheet production: Hubei Yuli, Zibo Sisha Taishan Division, Changzhou Jinniu. The top three names of sheet-like sandpaper are: Zibo Sisha Taishan, Hubei Yuli, Changzhou Jinniu. The top three names of sheet-like sand cloth are: Hubei Yuli, Jiangsu Fengmang, and Beijing Dongsheng.
(4) Sand volume: The output was 187 million square meters, a decrease of 0.11% year-on-year; the output value was 3.056 billion yuan, a year-on-year increase of 0.39%, of which the abrasive cloth volume was 2.693 billion yuan, accounting for 88.12% of the total. Among the manufacturing enterprises participating in the statistics, there are 7 companies with an output value of more than 100 million yuan. The top three and the top three of the abrasive cloth rolls are: Jiangsu Mitsubishi Abrasives Co., Ltd., Hubei Yuli Abrasive Belt Co., Ltd., Jiangsu Fengman Composite Materials Technology Group Co., Ltd. The top three production values ​​of sandpaper rolls are Jiangsu Fengmang, Dongguan Golden Sun and Hangzhou Sida.
(5) There are 2 belts, sand discs, special-shaped products and other products exceeding 100 million yuan, with a total output value of 604 million yuan, accounting for 45.90% of the total output value of abrasive belts, sand discs, shaped products and other products. They are: Gutai Industrial Co., Ltd., Santai County, Sichuan Province, and Baota Abrasives Factory, Tongcheng County, Hubei Province.

2. Industrial concentration and industrial distribution (manufacturing companies)
The top ten enterprises in the industry output value of 3.738 billion yuan, accounting for 62.85% of the total output value.
Eight enterprises in Jiangsu completed a total output value of 2.078 billion yuan, a year-on-year increase of 2.8%, accounting for 34.94% of the total output value;
Five enterprises in Hubei completed a total output value of 1.191 billion yuan, a year-on-year increase of 3.61%, accounting for 20.03% of the total output value;
Seven enterprises in Henan completed a total output value of 609 million yuan, a year-on-year decrease of 0.94%, accounting for 10.25% of the total output value;
The three enterprises in Guangdong completed a total output value of 518 million yuan, a year-on-year decrease of 5.3%, accounting for 8.7% of the total output value;
The three enterprises in Shandong completed a total output value of 508 million yuan, a year-on-year increase of 4.39%, accounting for 8.54% of the total output value.

3. Operational quality
In 2014, the total cost of sales of industrial enterprises increased by 3.64%, management expenses increased by 6.07%, financial expenses decreased by 1.44%, total assets and liabilities ratio was 7.99%, which was at a low level; enterprises realized a total profit of 515 million yuan, a year-on-year decrease. 0.45%; sales profit rate 9.05%, down 0.38% year-on-year; output value profit margin was 8.39%, down 0.42 percentage points year-on-year, profitability decreased slightly year-on-year but no loss-making enterprises were better than previous years.

Second, the main problems facing the industry.
1. Market demand growth slows further
China's economy is actively decelerating under the new normal, in order to achieve deep-level structural reforms. With the continuous deepening of national macro-control, the investment growth rate of most applied fields in coated abrasives is also slowing down, the operation of enterprises and Capital pressures are also increasing, and industry companies must pay attention.
From the perspective of the international market, the economy of developed economies is improving, but the pace of recovery is not fast enough, international trade frictions continue, and various trade protectionism is increasing. China's coated abrasives enterprises are facing increasing competition pressure from major exporters of coated abrasives such as the United States, Germany, Japan, South Korea and Turkey, and the price advantage is gradually being lost.

2. Enterprise costs continue to increase
The cost of imported raw materials caused by the depreciation of the exchange rate continues to increase, especially the increase in the labor cost of enterprises, which also increases the production and operation costs of enterprises. With the rapid growth of environmental costs year by year, environmental factors have also become the cause of determining the survival of enterprises.

3, the industry management level is low, the phenomenon of poor product quality stability is still quite common
Compared with imported products, the quality of domestic coated abrasives is poor, the standards are not uniform, and there is no advanced testing means, which restricts the application of domestic coated abrasives in high-end manufacturing.

4. Insufficient innovation ability in the industry
The industry adapts to the market and affects the market. This is related to China's coated abrasive industry in the primary market development stage. Most enterprises are in the production positioning of low-end products, relying solely on increasing production, product convergence, fierce competition, and profitability. The level is lower. Although there have been many new products in the industry in recent years, there are not many originality of autonomy. Most of them are tracking similar foreign products, and the basic and systematic research on coated abrasives is not enough. The investment in product innovation and technology has not formed the core competitiveness of products, and cannot play a leading role in the international and domestic markets. It has always played a passive role in the international market. Enterprises generally survive in the vicious circle of homogeneous competition and low-price competition. Enterprises that are able to adapt to market changes and adjust their product mix and management strategies in a timely manner are generally better off than those that stick to the rules.

Third, recommendations and countermeasures
In the face of the new normal of economic development and the new environment for industrial development, enterprises and associations must change their concepts, raise awareness, find methods, and implement them to seize the commanding heights of a new round of industrial competition.

1. Increase scientific and technological innovation and promote product upgrades
According to the "Made in China 2025" plan, there is a big gap between the application of coated abrasives in high-end manufacturing in China and the world's advanced level. This requires the industry to increase the intensity of technological innovation; The level of automation; the development of advanced production, process technology and other means to ensure product performance uniformity, stability, batch consistency, and promote the overall upgrade of product performance, thereby achieving a growth mode of product quality and technology content from rough growth relying on scale expansion The transformation will meet China's demand for high-performance coated abrasives in key national development areas such as aviation, aerospace, marine engineering and rail transit.

2. Strengthen the construction of public technology platforms and lead the development of the industry with standards
Based on the new abrasive belt grinding test machine, a relatively complete industry public technology service platform will be gradually established. Support product testing, management consulting, technical patent services, marketing, SME financing guarantees, etc.; provide technical promotion, information consultation, quality testing, staff training and other services for SMEs in the industry; promote the standard system for coated abrasives The soundness and drafting of relevant standards emphasizes the leading role of standards. Strengthening the publicity and implementation of existing standards is not only an industry, but also a fair competition environment for enterprises that are law-abiding, and promotes the healthy and sustainable development of the industry.

3. Strengthen resource conservation and improve clean production level
The development of the modern coated abrasive industry must be based on resource conservation and environmental friendliness. For the development of the industry, we must keep a clear understanding. At present, most coated abrasives manufacturers in China still have shortcomings in the treatment of waste water, waste gas and waste materials, and the harmless treatment after application of coated abrasive tools is blank. There is also an urgent need to promote cleaner production throughout the industry. The key to achieving clean production in the industry is to strengthen industry management and carry out environmental certification.

4. Strengthen personnel training and improve management level
The development of any industry is inseparable from professional technical and managerial talent. China's coated abrasive industry has developed to this day, the talent problem has become a key factor restricting the development of industry and enterprises. The quality of employees directly affects the quality of business operations and the quality of business management. Strengthening the professional skills training of practitioners and the professional level of management personnel is a common task of the industry and enterprises. This year, the association will cooperate in this work with relevant institutions.

5. Pay attention to the new opportunities brought by the “Belt and Road” for the industry
China’s lead in establishing and proposing, the Asian Infrastructure Investment Bank and the “Belt and Road” strategy will be a major policy dividend for China in the next decade. With the “Belt and Road” strategy entering the implementation stage, the trend of investment downturn may be reversed, and the fourth investment boom of the Chinese economy may soon kick off. How to give full play to the advantages of China's coated abrasive products, and to lay out the "One Belt, One Road" strategy as early as possible, should attract the attention of the industry.

6. Let Internet + become a booster for industry development
In response to Premier Li Keqiang’s action plan on Internet+, he changed his mind and changed the role of the Internet from “tool” to his own “engine”. Actively participate in the construction of information technology in the industry, train and introduce Internet talents, make full use of e-commerce means, find out their own advantages and carry out differentiated operations; withdraw from price competition, and formulate overall solutions for downstream small industries, such as office furniture Sanding scheme, complete set of grinding schemes for circuit boards, etc., and vigorously promoted and implemented.

Fourth, 2015 expectations
Based on the analysis of major economic data and situation in various industries and industries in the country, it is expected that the downward pressure on the economy will further increase in 2015. However, with the further reform of the economic system, especially the reform of the investment and financing system and the implementation of the regional development strategy, investment growth is expected to accelerate, and infrastructure investment and service investment will accelerate. At the same time, after several years of structural adjustment, domestic and foreign machine tool enterprises have gradually adapted to the changes in market demand structure, and the ability to tap potential market demand has been greatly enhanced. Therefore, the main economic indicators such as export volume, sales revenue and profit are expected to maintain a small increase in 2015.

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