The hottest profitability is generally declining,

The profitability is generally declining, and the domestic machine tool industry urgently needs high-end breakthrough. Editor's note: Listed Companies in the machine tool industry have successively released the financial reports for the first half of 2008. Despite the strong market demand and the continuous flow of orders, the operating revenue of the company has increased to varying degrees. However, behind the gorgeous production and sales figures, the production and operation of enterprises are facing great pressure, as shown by the practice in some regions of Zhejiang Province

listed companies in the machine tool industry have successively released the financial reports for the first half of 2008. According to these semi annual reports, China industry news found that under the strong market demand, the business orders of enterprises were endless, and the operating revenue of the company increased to varying degrees

however, behind the gorgeous production and sales figures, the production and operation of enterprises are facing great pressure. Due to the impact of many adverse factors such as rising costs, the profit space of products is constantly compressed

increased cost pressure and decreased profitability

external factors such as the rising price of raw materials such as steel, the appreciation of the RMB, and the moderately tight monetary policy implemented by the state have brought great pressure and uncertainty to the production and operation of machine tool enterprises. In terms of gross profit margin, domestic machine tool enterprises have decreased to a certain extent compared with the same period last year

as a manufacturer of experimental machines and other instruments, Shenyang Machine Jinan Shijin is also committed to breaking through many difficulties. As a leading enterprise in the domestic machine tool industry, it is also a listed machine tool company that issued the company's semi annual report at the latest. On August 27, Shenyang machine tool released its semi annual report. The interim report shows that in the first half of the year, affected by macroeconomic and other factors, the company's overall profitability was poor, with an operating revenue of 2.858 billion yuan, an increase of 9.19% year-on-year; The company's main gross profit margin was 15.85%, a year-on-year decrease of 1.23 percentage points, of which the CNC machine tool decreased significantly, a year-on-year decrease of 4.87 percentage points

the interim report of Qinchuan development also exposed the same problem. Although the company's operating revenue and operating profit increased to varying degrees, the gross profit margin of machine tools, as the company's main products, decreased by 1.28 percentage points over the same period last year

it is understood that in the first half of the year, the gross profit rate of machine tool products of Kunming Machine Tool reached 37.88%, up 5.59 percentage points year-on-year. According to the report, due to the long production cycle of machine tool products, the impact of the rise in raw material prices in the first half of 2008 on the gross profit margin of products will gradually appear in the second half of 2008 and next year. From this point of view, the profitability of Kunming Machine tool has also been affected

as early as the beginning of the year, many machine tool enterprises said that the rise in raw material prices had little impact on them, and said that the company would self absorb the pressure caused by the rise in raw material prices by adjusting product structure, strengthening energy conservation and consumption reduction, and using brand effect. But in reality, the effect is not ideal

various measures to deal with cost pressure

due to the rise in the prices of raw materials, coal, electricity and other energy, resulting in reduced profits, machine tool enterprises have strengthened cost management and taken various measures to reduce costs, so as to maintain stable sales and improve revenue

in the face of rising costs, the fastest response of enterprises is to raise product prices, but this measure will not immediately achieve significant results

Shenyang Machine Tool reported that in response to the rise in raw material prices and labor costs, the company raised the prices of some products. Due to the manufacturing cycle, the effect of price increase was not reflected in the first half of the year, and the gross profit margin of machine tools is expected to rise in the second half of the year

due to the impact of rising steel prices on costs, Qinghai Huading company also made price adjustments of different ranges when signing new orders. The company said that due to the long delivery time of machine tool products, the hedging effect will not appear until 2009

it is also understood that Yunnan machine tool, Qinchuan group, East China CNC and other enterprises have raised prices of products to varying degrees to cope with higher and higher production costs

it is worth noting that as a machine tool enterprise just listed this year, the performance of East China CNC in the first half of the year was particularly eye-catching. From January to June, the equity and assets of the graphite resource company were injected into the listed company when conditions were available, and the company achieved an operating income of 198 million yuan, an increase of 30.72% over the same period of the previous year; The operating profit was 21.67 million yuan, an increase of 112.34% over the same period last year; As the main business of the company, the gross profit margin of CNC machine tool sales averaged 30.4%, up 1.91 percentage points year-on-year

it is also understood that as early as the beginning of the year, East China CNC responded to other adverse factors such as cost pressure by increasing the reserves of raw materials such as castings, signing long-term supply contracts with major suppliers, designing machine tool weight reduction, and focusing on selling products with higher gross margins

in addition to the above measures, due to the continuous rise in casting prices caused by the rise in steel prices, East China CNC began to extend the industrial chain upward in order to reduce business risks. On August 19, East China CNC announced that it plans to invest in holding Hongjiu forging and casting company, which will help enhance the profitability of the company and improve its market competitiveness

product upgrading to expand market share

it is understood that the demand for ordinary machine tools and economic CNC machine tools has begun to decline, and as a standardized product, its profitability and bargaining power will inevitably be greatly reduced. At present, the products of domestic machine tool enterprises are mainly concentrated in the range of medium and low-grade machine tools, so raising product prices can only hedge the losses caused by rising costs in the short term, not a long-term solution

by analyzing the structure of imported machine tools in recent years, it will be found that the import volume of machining centers, grinders, special machining machines and lathes accounts for more than 50% of the total metal machining machine tools, and high-end and large machine tools are still the hot spots of demand. Wu Bailin, the director general of China Machine Tool Association, said a few days ago that the demand for medium and high-end CNC machine tools began to increase significantly

in the face of this kind of shape, it is not only the main engine that we are doing our best. Domestic machine tool enterprises must adjust the product structure. Improve the level of product grade through independent innovation, so as to seize the market share of imported high-end machine tools and improve the domestic market share of domestic machine tools. When the added value of the product itself rises, its bargaining power and selling price will be improved

it is understood that in the second half of this year, a number of CNC, efficient and large-scale new products developed by Qinchuan have been successively introduced to the market. The yk7230 CNC high-efficiency worm gear grinding machine, yk73200 large-scale CNC forming gear grinding machine, vtm260 gantry composite machining center, vt350nc vertical lathe and other heavy-duty machine tools that the company focuses on developing will be trial produced in the second half of the year. These new products that adapt to the market and reflect the characteristics of "precision, composite, special and large" are urgently needed equipment for China's oil, wind power, shipbuilding and energy industries, It will become the focus of the company's next marketing work

according to the current development direction of the machine tool industry, Kunming Machine tool has stripped off non main businesses with poor profitability, so as to focus on the R & D and manufacturing of machine tools. Kunming Machine Tool said that the technology center will make full use of social resources, take the path of industry university research and international cooperation, complete the construction of R & D platform as soon as possible, and strengthen the development of new products

East China CNC has been committed to manufacturing high-end CNC machine tools. General manager Tang Shixian said that the company's main goal is to gradually replace imported large-scale precision CNC machine tools. At present, East China CNC is stepping up the work of its CNC gantry machine tool technical transformation project. It is expected that the project will reach production ahead of schedule by the end of 2009, and the output value after the project reaches production is expected to reach 350million yuan