How to deal with the market winter compressor enterprises
Release Date: 2015-05-29 Source: China Air Compressor Network View: 200
Core Tip: Under the new normal, China's economy is shifting from high-speed growth to medium-high growth, equipment manufacturing enterprises are facing a reduction in demand in the external market and their own transformation and upgrading brought about by the double challenge. State-owned large-scale equipment manufacturing enterprises how to cope with the new challenges, through the market winter!
Under the "new normal", China's economy is shifting from high-speed growth to medium-high growth, equipment manufacturing enterprises are facing a reduction in demand in the external market and their own transformation and upgrading of the double challenge. State-owned large-scale equipment manufacturing enterprises how to deal with new challenges, through the "market winter"? Shenyang Blower Group Co., Ltd. Chairman Su Yongqiang that, in the face of the decline in orders, the capital chain is becoming increasingly tense situation, Shen Drum Group is comprehensively accelerate the pace of reform and innovation, through the transformation of the development mode, new product research and development, expanding exports, "Troika" to drive the Group's operations and development, to explore a "cold" in the winter of "winter". "Winter" in the "spring" road.
Order decline, capital constraints, equipment manufacturing enterprises feel the "cold winter".
Since 2015, as the economic growth rate continues to slow down, many enterprises, especially industrial enterprises income, profits by a greater impact. Data show that in January-February 2015, the national industrial value added above designated size grew by 6.8% year-on-year in real terms, down 1.8 percentage points compared with the same period last year, the national industrial enterprises above designated size realized a total profit of 745.24 billion yuan, a year-on-year decline of 4.2%. As a pillar industry of the national economy, the equipment manufacturing industry in the economic "new normal" by the impact of the more obvious. As an important equipment manufacturing enterprises, Shen Drum Group has a deep feeling.
"Affected by overcapacity, weak investment and other factors, the recent decline in demand for business orders is very strong. 2015 quarter our orders fell by 19.8%." Su Yongqiang, chairman of Shen Drum Group, said, "Payback slipped by 27.7% in the first quarter, and sales revenue slipped by 5.15%."
In addition to Shen Drum Group, other equipment manufacturing enterprises are also generally faced with shrinking revenues or profits in the market "winter". Data show that the listed company shaangu power in 2014 to achieve operating income of 4.86 billion yuan, a year-on-year decline of 22.7%, attributable to shareholders of the listed company's net profit of 524 million yuan, a year-on-year decline of 42.8%; Hangzhou Oxygen shares in 2014 to achieve net profit attributable to shareholders of the listed company of 135 million yuan, a year-on-year decrease of 41.93%, and for three consecutive years of decline; Hangzhou steam turbine 2014 to achieve operating income of 3.72 billion yuan, a year-on-year decline of 5.15%. Operating income of 3.72 billion yuan, a year-on-year decline of 26.5%; to achieve net profit attributable to shareholders of the parent company of 350 million yuan, a year-on-year decline of 46.18%, a decline of nearly 50%, and two consecutive years of decline.
Reduced demand, shrinking profits, so that equipment manufacturing enterprises in the spring still feel a burst of coolness. In addition, the operating costs of enterprises have been high. "Labor costs are too high, we are state-owned enterprises, bear social responsibility, even if the situation is difficult, we can not layoffs, can not cut salaries, plus the interest on bank loans and other financial costs, the enterprise is facing a lot of capital and cost pressure." Su Yongqiang said.
In addition to state-owned enterprises such as Shen Drum Group, small, medium and large enterprises seem to be generally facing the pressure of rising labor costs. Ji Wei, chairman and general manager of Jintongling, said at the company's 2014 annual results briefing that the company's labor costs and expenses rose faster in 2014, and there was a certain impact on the production and profitability of the company's high-end products.
Accelerate transformation, strengthen R & D, increase exports to innovation-driven development
Despite the many difficulties faced by the business development, Shen Drum Group insists on finding breakthroughs in difficulties, and has found a sustainable way of business development for the enterprise through a number of initiatives such as transformation and development, strengthening innovation and research and development, and increasing product exports.
Explore the innovation of business model, from traditional equipment manufacturers to new manufacturing service providers.
Shen Drum Group has been seeking transformation since 2008, and the group's service enterprises now include customer service company, automatic control company, measurement and control technology company, northern computer company, transportation company, import and export company and Hong Kong branch.
"Our customer service company has established a product full life cycle service strategy, responsible for spare parts, overhaul and maintenance, unit installation, unit upgrading and transformation, maintenance services, remote online monitoring and fault diagnosis and analysis, one-stop service turnkey projects, overseas services, as well as service and technical consulting services and other 10 areas of service; automatic control company last year's sales revenues reached 500 million;. The remote service center has been remodeled and was just unveiled on March 27th. These seven companies realized a total income of 1.66 billion yuan last year, realizing a profit of 290 million yuan, accounting for 78% of the group's annual profit, the effect of transformation is still relatively obvious." Su Yongqiang said.
Strengthen the investment in research and development, and constantly realize technological innovation and breakthrough.
Despite the increasing pressure of Shen Drum Group's operations in recent years, its product development and technological innovation has not stopped.In 2014, Shen Drum Group's investment in research and development accounted for 5.4% of its sales revenue.
"Last year we completed a total of 157 scientific research projects, won 28 scientific and technological awards, and 43 patents, which is also historically* high, including 23 invention patents, which is the sum of the past five years. We have also set up a lot of scientific research projects in the next 5 years, and plan to invest at least more than 2 billion to do R&D. During the 13th Five-Year Plan, we have also planned more than 200 major projects." Su Yongqiang said, "The market always favors those who are prepared, and with this belief, we have increased our scientific research efforts and plan to invest more than 300 million more this year to build a test bed."
"The more the economy declines, the more we have to strengthen research and development, even if the loans and liabilities are high, the enterprise can not put the research and development fall." Shen Drum Group's business development concept of saving for a rainy day, let the market see its full of "positive energy" development potential.
Convert the playing field, expand exports to overseas markets for business opportunities.
In recent years, Shen Drum Group to increase product exports, and actively explore overseas markets, has realized overseas sales of various types of turbomachinery, pumps and reciprocating compressors, mainly exported to India and the Middle East and other countries and regions.
In 2014, Shen Drum Group integrated the international business department, formulated the overseas development strategy and objectives - with compressor as the core and pump as the auxiliary, gathering resources and focusing on the promotion. in April 2014, it also held a seminar on advanced turbomachinery in Iran to promote China*s advanced turbomachinery equipment to Iran, which has strongly expanded the Middle East market. .
"Last year we exported 33 sets of compressors, a 2.7-fold increase in exports, and in the first two months of this year exports increased by 85.5%. To a certain extent, it makes up for the bad situation of the decline of domestic orders." Su Yongqiang said, "Therefore, in 2015, we intend to set up offices in the Middle East, South America and Russia to increase exports."
According to reports, Shen Drum Group plans to base on the indirect export strategy of borrowing ships to the sea in the short term, expand strategic partners, and work closely with large domestic enterprises to develop overseas markets, and take this as an opportunity to promote independent exports as a leading strategy in the medium and long term. In the future, Shen Drum will gradually shift the focus of development to the international market, the establishment of Asia-Pacific, South America, the Middle East and other market centers, and gradually increase the international market share, and strive to achieve exports of 5-7 billion U.S. dollars before 2020.