The development of the electrical industry ushered in the "fighting era"

The decline in profits has intensified and even losses have been a topic that the electrical industry cannot avoid.

Over the years, China’s electrical industry has maintained a high-speed growth trend and a number of large and medium-sized enterprises have emerged. However, with the rising prices of raw materials, labor, and financing costs, electric companies have generally experienced a serious decline in profits.

The data shows that in 2011, the profit rate of profit margin and cost of main business income in the electrical industry was lower than that in the same period of 2010, and the total profit realized in the first 10 months decreased by 12 percentage points compared with the increase in the same period of 2010.

As of January 5, 2012, some listed companies for electrical equipment have clearly stated that their 2011 performance has been declining, among which there are many large companies such as ST Aji, Tuoli Xineng and China Xidian. From the information disclosed by listed companies, the direct causes of the decline in business performance or loss are mainly due to factors such as slowing demand, fierce competition and rising costs.

The decrease in the growth rate of industry profits is based on the increase in the production cost of enterprises, but the sales price of products cannot be increased accordingly. Siyuan Electric, China West Power and Goldwind all expressed that the market competition based on product price competition continued, coupled with insufficient market demand and slower growth of the industry, which ultimately led to a drop in the market price of products.

At present, the primary equipment at the transmission and distribution end, under the high raw material and labor costs, the sharp increase in financial expenses and the oversupply of the industry, the revenue and profits continue to decline; the sub-sectors of the new energy industry are in a decentralized situation: With growth, intensified industry competition and increased financing costs, the company's performance has generally shown a declining trend; the photovoltaic industry is still in a downward trend in profitability, and the international market risks are increasing day by day; at the time of nuclear power review and restart, it is still necessary to observe...

Given the fact that the economy at home and abroad is not yet clear, this profit downturn that began in 2011 will be more apparent in 2012, especially in some sub-sectors with overcapacity.

As the old saying goes, there are clouds: the poor will change, the change will pass, and the pass will be long. Saying goodbye to the ever-expanding scale, the electrical industry needs to move from savage growth to intensive cultivation. This requires a large number of exceptionally robust entrepreneurs to lead the industry on this road. In 2012, he was in the era of “Plunging Down” and mastered the technical trends in the development of the industry, and continuously improved his own design and development capabilities. With technical innovation, service innovation, and quality improvement, it will be the only pinnacle of electric equipment companies fighting the market.