A brief analysis of the economic operation of the building materials machinery industry in the first half of 2021
In the first half of 2021, facing the complex and changeable domestic and foreign environment, the building materials machinery industry earnestly implemented the decisions and deployments of the Party Central Committee and the State Council. Economic performance continued to recover, major economic indicators increased significantly, and product output increased rapidly, but the epidemic continued Influenced by factors such as repetition and rising raw material costs, the slow progress of projects, the decline in accounts receivable turnover, the increase in finished product inventories, and the decline in exports of key products, the future development of the industry still faces many uncertainties.
1. The economic operation of the industry
1. The growth rate of main business income has rebounded
According to statistics from the National Bureau of Statistics, from January to June, 448 building materials and machinery enterprises above designated size achieved a total of 37.391 billion yuan in main business income, a year-on-year increase of 17.90%, and a growth rate of 8.10 percentage points over the same period of the previous year. An increase of 19.25% over the same period, an average increase of 9.20% over the two years. It can be seen from the trend of growth rate in Figure 1 that the industry’s main business income grew by more than 17% in the first half of the year, but the growth rate showed a trend of declining month by month and stabilizing. By June, the growth rate had dropped by 28.2 percentage points from the beginning of the year.
2. The total profit has achieved rapid growth
From January to June this year, the industry achieved a total profit of 1.747 billion yuan, an increase of 161.90% year-on-year, an increase of 228.50 percentage points year-on-year, an increase of 14.56% year-on-year, and an average growth rate of 7.03% over the two years. From the growth trend in Figure 2, the total profit growth rate fell rapidly from March to May, and the growth rate rebounded in June, an increase of 48.68 percentage points from May. The sales profit margin was 4.67%, an increase of 2.57 percentage points from the same period last year, and a decrease of 0.2 percentage points from the same period in 2019.
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3. The loss of enterprises has increased and the amount of losses has decreased
From the perspective of industry losses, as of the end of June this year, the number of loss-making enterprises in the industry was 96, an increase of 5 over the same period of the previous year. The number of loss-making enterprises was 21.43%, an increase of 1.12 percentage points from the same period last year; the cumulative loss of loss-making enterprises was 267 million yuan (see Figure 3), a decrease of 468 million yuan from the same period last year, a year-on-year decrease of 63.62%.
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4. High inventory of accounts receivable and products
From the perspective of capital occupation, from January to June, the net accounts receivable reached 19.516 billion yuan, an increase of 16.50% over the same period of the previous year, and the growth rate was 21.59 percentage points lower than the same period of the previous year; accounts receivable accounted for the main business The income ratio was 52.19%, a decrease of 0.11 percentage points from the same period last year; the account receivable turnover rate was 4.1 times, lower than the same period last year (4.4 times). From January to June, the industry's inventory of finished products was 3.721 billion yuan, a year-on-year increase of 10.38%, and the growth rate was 17.43 percentage points lower than the same period last year. The total industry debt was 71.156 billion yuan, an increase of 20.263 billion yuan over the same period of the previous year, and a year-on-year increase of 39.82%.
5. Substantial increase in output of cement equipment
According to statistics from the National Bureau of Statistics, from January to June 2021, the cumulative output of special cement equipment nationwide was 214,300 tons, a year-on-year increase of 31.18%, and the growth rate was 38.76 percentage points higher than the same period last year; the two-year average growth rate was 0.52%, an increase The rate is 1.01 percentage points higher than the same period in 2019. Among them, the output of cement equipment was 33,200 tons in June, a year-on-year increase of 5.87%. From the growth trend (see Figure 4), it can be seen that the output growth rate in the first half of the year rose first and then fell, reaching 41.78% in March. The growth rate in the past three months has been between 30% and 40%, and the growth rate from January to June is higher than that from January to June. From January to May, it decreased by 5.85 percentage points.
The output of more than 90% of the provinces across the country has achieved year-on-year growth.
The provinces where the cumulative output of special cement equipment exceeds 10,000 tons are Hebei, Jiangsu, Henan, and Hubei.
The output of Sichuan Province turned from a positive growth of the previous year to a negative growth, a year-on-year decrease of 20.51%, and the growth rate was 41.20 percentage points lower than the same period last year.
The output of Hebei, Shanghai, Jiangsu, Zhejiang, Shandong, and Henan all turned from the negative growth of the previous year to the positive growth. Among them, the output of Jiangsu Province reached 120,253 tons (56.12%), a year-on-year increase of 31.58%, and a year-on-year growth rate of 34.76. Percentage points; Hebei’s output was 24,816 tons, a year-on-year increase of 81.88%, and the growth rate was 115.74 percentage points higher than the same period last year.
Compared with the same period of the previous year, the output of Tianjin, Hubei, Guangdong, and Guangxi maintained positive growth. Among them, the output of Hubei exceeded 10,000 tons, which turned from a single-digit growth of the previous year to a double-digit growth, with a growth rate of 15.10%; Tianjin's output 8,778 tons, an increase of 18.42% year-on-year, and the growth rate was 12.48 percentage points lower than the same period last year.
6. The import and export of building materials and machinery related products decreased year-on-year
In the first half of 2021, according to the analysis of customs statistics, the total import and export volume of 45 categories of products related to building materials and machinery was US$4.161 billion, a year-on-year increase of 5.92% to a year-on-year decrease of 7.10%. The total import value was US$986 million, down 16.72% year-on-year, and the rate of decline expanded 7.81 percentage points from the same period last year; the total export value was US$3.174 billion, down 3.64% year-on-year, and the growth rate was 16.15 percentage points lower than the same period last year; the trade surplus was 21.88%. Billion US dollars, an increase of 3.70% year-on-year, but the growth rate dropped by 25.92 percentage points from the same period last year. The import and export of building materials machinery products are as follows: the export value of cement rotary kiln (84178030) was US$2.1931 million, a year-on-year decrease of 72.87%, and the decline was 5.39% higher than the same period of the previous year; the export value of limestone decomposing furnace (84178040) was US$4.5407 million, a significant year-on-year An increase of 781.52%. The trade deficit of glass cold processing grinding or polishing machine tools (84642010) decreased, and the value of imports and exports increased by -2.62% and 10.92% year-on-year respectively; the import and export value of glass cutting machines (84649011) decreased by 20.08% year-on-year, and the value of exports increased by 68.46% year-on-year. The total import value decreased by 33.01% year-on-year; the continuous glass bending furnace (84752911) trade deficit narrowed, exports increased significantly (1040.69%), and the import value fell 22.14% year-on-year; the glass fiber drawing machine (84752912) import growth rate was much higher Due to the growth rate of exports, the trade deficit expanded by US$18,892,600 over the same period last year, and the value of imports and exports increased by 274.57% year-on-year. The export value of grinding or polishing machine tools for mineral materials such as stone (84642090) increased by 77.07% year-on-year, 46.1% higher than the import value; toothed roller type solid mineral crushing or grinding machine (84742010), ball milling type solid mineral The import and export value of crushing or grinding machines (84742020) has gotten rid of the negative growth trend in the same period of the previous year. The export value has increased by 17.98% and 31.48% year-on-year, while the import value has decreased by 28.10% and 49.39% year-on-year; solid mineral rollers The export value of compression molding machine (84748010) has turned from a negative growth of the previous year to a positive growth, and both the import and export value have achieved a growth rate of more than 50%.
7. The development of key enterprises in the industry gradually recovered
According to the statistics in the first half of the year, the production and sales of key enterprises in the industry were relatively stable, with a production-sales ratio of 92.97%, but the export delivery value of products increased significantly, and the sales profit rate (3.30%) was at a relatively low level. According to statistics of the 20 key industry-related enterprises, the total industrial output value and industrial sales output value in the first half of the year increased by 13.77% and 8.74% year-on-year, respectively, and the export delivery value increased by 60.80% year-on-year; the main business income decreased by 9.85% year-on-year, and the total profit increased by 10.51 year-on-year. %. Among them, 90% of the total industrial output value of enterprises achieved a year-on-year positive growth; 75% of the enterprises’ main business income increased year-on-year, and 35% of the total corporate profits achieved a positive growth; 3 loss-making companies, 15% of the company’s loss; accounts receivable year-on-year An increase of 3.04%, the growth rate is much higher than the main business income.
2. Problems in the economic operation of the industry
Benefit growth is still not optimistic. From the perspective of major economic indicators, the two-year average growth rate (9.20%, 7.03%) of the industry's main business revenue and total profit was higher than the growth rate of the same period in the first half of 2019, indicating that the recovery of major economic indicators has reached the level before the epidemic. However, from a month-to-month perspective, the growth rate of main business revenue in the first half of this year has declined rapidly from the high level at the beginning of the year, and the growth rate of total profits has declined from the first quarter, and there will be greater pressure on the growth of benefits in the later period. Business operating costs have increased significantly. Since the beginning of this year, affected by the increase in the price of raw materials such as steel, the procurement cost of enterprises has increased significantly, and the profit margin has been further compressed. It is difficult for enterprises to absorb the factors of increasing expenditures and reducing profits by increasing product prices or other cost-reducing and efficiency-increasing measures in a short period of time; labor costs ( Salaries, social security, welfare benefits, etc.) are operating at a high level; corporate financing costs are generally high, and it is difficult to obtain sufficient financial support. The characteristics of insufficient working capital are prominent. The return of funds is not satisfactory, the industry's accounts receivable growth rate is relatively high, and the account receivable turnover rate decreased by 0.3 times compared with the same period of the previous year; especially for engineering projects, the prepayment ratio of some projects is low, and the advance payment cycle of funds The contradiction of shortage of funds is obvious; some companies take up cash when purchasing raw materials, occupying a lot of funds, and enterprises are under great pressure on operation. The expansion of overseas markets is limited. The current epidemic is still spreading around the world, leading to restrictions on overseas market promotion. Overseas orders have been significantly reduced, and orders for some companies have decreased by about 40%; overseas implementation of projects has slowed down due to the advancement of equipment transportation and on-site technical services. The industry generally faces the challenge of lack of talent. With the implementation of the industry's green, low-carbon, digital, and intelligent transformation and upgrading, there is an increasing demand for talents. However, according to the company’s report, the current difficulties in recruiting and employing employees are widespread. There is a shortage of skilled workers and technical personnel in the industry, the difficulty in introducing high-end compound talents, coupled with the serious aging of employees and the high mobility of employees, how to attract them? Talent, human use, and training have become common problems that plague the development of enterprises.
3. Development prediction
Since the beginning of this year, as the global epidemic situation has improved, the world economy has gradually recovered, and at the same time it has shown obvious characteristics of imbalance. my country’s economy has maintained a momentum of rapid growth, showing a trend of stabilizing and improving. The continued implementation of relevant policies and measures such as tax reduction and fee reduction, encouragement of innovation, and financial support will drive the industry’s economy to stabilize and improve. This year is the first year of the "14th Five-Year Plan" period. The building materials industry has achieved significant growth in fixed asset investment. At the same time, digital transformation of the industry and green and low-carbon industries have provided new growth engines for the development of the building materials machinery industry under the background of the epidemic. Market expectations have continued to improve, but It is worth noting that there are still great uncertainties in the external environment. The foundation for the recovery of the international market is not yet solid. The epidemic has caused international market projects to continue to be postponed or terminated. In addition, the prices of raw materials have continued to rise since the beginning of this year. On the whole, the downward pressure on the economic operation of the industry in the second half of the year is still relatively large, and the whole year is expected to show a development trend of high before and low afterwards.
