Machine tool industry: increase production is difficult to increase income

In the first half of the year, China's machine tool industry completed sales of 267.3 billion yuan, an increase of 41.7%. This is a set of data sufficient for the excitement of industry colleagues. 2010 can be said to be the year in which China's machine tool industry develops rapidly. The total industrial output value of the year was 553.68 billion yuan, an increase of 40.6% year-on-year.

However, from the mid-year report of the listed company of machine tools, although many companies have increased operating income, most of the net profits have shown a downward trend.

The profit level was not satisfactory. Shenyang Machine Tool achieved an operating income of RMB 5.172 billion in the first half of 2011, an increase of 18.61% year-on-year; net profit attributable to the parent company was RMB 91.67 million, a decrease of 43.47% year-on-year.

Kunming Machine Tool Co., Ltd., a subsidiary of Shenyang Machine Tool Group, completed operating income of 755 million yuan in the first half of the year, a year-on-year increase of 14.15%; operating profit of 94.04 million yuan, a year-on-year decrease of 15.02%.

Although the performance is similar, there are differences in the causes. Shenyang Machine Tool announced that the company’s profit in the first half of the year was significantly lower than the same period of last year, mainly due to the substantial reduction in government subsidy income during the current period, resulting in a year-on-year decline in net profit. After deducting abnormal profits and losses, the net profit attributable to the shareholders of the listed company was 78.64 million yuan, an increase of 108% over the same period of last year, indicating that the company's business has a good trend.

In addition, the high management cost of Shenyang machine tools is also another factor that erodes profits. Although the company’s period cost rate was 17.48% in the first half of the year, which was lower than the 20.3% at the end of the previous year, it was still at a relatively high level in the industry.

Kunming Machine Tool Co., Ltd. said that the decline in sales of floor milling and boring machines has caused the company's operating income growth to lag behind the industry average. In the first half of the year, the company’s operating income increased by 14.15%, of which ordinary horizontal boring mills increased 29.87% year-on-year, and floor-type milled boring machines saw a year-on-year decrease of 21.27%. This way, it can be said that the proportion of traditional products increased, and the gross profit was higher. The unsatisfactory sales volume of floor milling and boring machines caused the company's overall gross profit to decline, which affected the company's profit margin.

The performance of East China CNC is somewhat similar to that of Kunming Machine Tool. In the first half of the year, East China Numerical Control Corporation realized operating income of 325 million yuan, an increase of 0.10% year-on-year; operating profit of 0.335 billion yuan, a year-on-year decrease of 45.43%.

According to the announcement, the proportion of sales of small and medium-sized machine tool products increased from January to June 2011, and the sales proportion of large-scale machine tool products declined. The average gross profit of small and medium-sized machine tool products was lower than that of large-scale machine tool products, resulting in a decrease in gross operating profit as compared with the same period last year. The scale of operations has been expanding year by year, resulting in a large year-on-year increase in expenses such as financial expenses. At the same time, Weihai Huadong Heavy Equipment Co., Ltd., a wholly-owned subsidiary of the company, was in the preparatory period. Its holding subsidiary Weihai Huadong Heavy Industry Co., Ltd. was in early stage of production and suffered a large loss, which affected the efficiency of the consolidated accounting statements.

Over the past two years, thanks to the development of high-speed rail, the performance of East China CNC has been very hard. However, due to the impact of current policies on high-speed rail equipment, Huadong CNC only sold 1 high-speed CNC gantry machine tool in the first half of the year, compared with sales of 6 units in the same period last year, which resulted in a decrease in sales revenue of 62.52 million yuan and a decrease in profits of approximately 25 million yuan. Although the performance of Shenyang machine tool data is normal, Shenyang Machinery Machine Tool Co., Ltd. emphasized in the announcement that the revenue contribution from CNC machine tools has continued to increase this year, accounting for 64% of machine tool revenue. The revenue of CNC machine tools has increased substantially, reaching 3.039 billion yuan, a year-on-year increase of 20.55%. The income from ordinary lathes and ordinary trampolines has increased slightly, with revenues of 753 million yuan and 456 million yuan respectively.

In addition, Shenyang Machine Tool Company is currently actively promoting the development of integrated, intelligent, and customized products, and advancing forward-looking technology research and development. In the near future, the company's products will focus on high reliability, intelligence, energy conservation, and environmental protection. Chemical, composite, precision. At present, the company has promoted the upgrading of products in accordance with the established guidelines, and has formed a pattern in which CNC machine tools represented by the new five categories are mainly products.

At the same time, the company's implementation of CNC machine tool components and vertical machining center industrialization projects will be put into operation. With the smooth production of CNC machine tools, it is expected that CNC machine tools will achieve faster development and will contribute to the company's revenue.

As a result of refining the market, the semi-annual report of Qin Chuan's development looks more beautiful.

Qinchuan Development Announcement stated that in the first half of the year, the company achieved an operating income of 834 million yuan, an increase of 24.89% year-on-year, and a net profit of 77.17 million yuan, a year-on-year increase of 38.61%.

The growth of net profit of the company faster than income growth is a major highlight of Qinchuan’s midyear report. This is precisely because the company's high-end gear grinding machines have entered a centralized delivery date.

In the first half of the year, Qinchuan Development’s machine tool business realized an operating income of 454 million yuan, an increase of 22.78% year-on-year; a gross profit margin of 36.15%, an increase of 3.93 percentage points over the same period of last year. In the context of rising labor costs and raw material costs, the increase in gross profit margin was mainly due to Large-scale delivery brings economies of scale, product structure changes, and more.

Due to the centralized delivery of gear grinding machines, the company's production capacity has brought greater pressure. According to the announcement, one of the current problems is that the delay in delivery of goods is more serious. Due to the significant increase in planned production, the complete set of parts and components for the supporting plant was tight from the front lane to the rear lane, and the assembly equipment of the main engine plant was insufficient, posing severe challenges to the company's production capacity. At the same time, due to factors such as product modification and upgrading, and the long supporting period for imported parts, the delay in the delivery of goods is relatively common. In the first half of the year, the delivery delay of the leading product grinders was basically 1 to 2 months.

Due to the slowdown in the growth of the automobile and construction machinery industry, the development of Qinchuan will affect the future sales of the company's gear grinding machine products. Therefore, on the one hand, the existing products are upgraded and upgraded, key technologies are improved on the gear grinding machine, and the accuracy and stability are improved. And grinding efficiency, further improve the cost performance, consolidate the traditional market, seize the high-end market, and strive to replace imports; on the other hand, push new gear grinding machine, gear hobbing machine and bevel gear grinding machine, blade grinding, vertical turning and milling compound machining center, etc. Major special products.

Similarly, due to the achievements made by Fain CNC in the construction of steel structures and large-scale sheet products, the company's operating income and operating profit also performed brilliantly.

In the first half of the year, Fain CNC achieved an operating income of 186 million yuan and an operating profit of 0.14 billion yuan, an increase of 30.27% and 24.60% respectively from the same period of last year.

The reason why such a good result is achieved is that the amount of large-scale CNC machine tool processing equipment delivered in the first half of the year has increased by a large margin compared with the same period of last year. The change in growth rate has been related to the increase in the amount of contracts on the one hand, and on the other hand to the number of equipment delivered in the same period of last year. Less is also a certain relationship.

In addition, as the company has increased the market development of auto equipment products, compared with the same period of last year, auto equipment products have seen a substantial increase.

It is precisely because the above products have a certain degree of growth in the market, making the company’s main product tower processing equipment still maintain a positive growth compared to the same period last year, but the sales of tower processing equipment declined. The situation still affected the overall growth rate of the company's operating income.

The merger and reorganization of the central semi-annual report on the expansion of CNC Central China has caused the attention of reporters. First, this is the first semi-annual report since the company's listing; Second, the company has suspended trading for two months in the first half of the year.

According to the announcement, the total operating income for the first half of the year was 2.02 billion yuan, a year-on-year increase of 22.95%; the net profit attributable to shareholders of listed companies was 166.602 million yuan, a year-on-year decrease of 39.91%; basic earnings per share was 0.16 yuan.

As for the decline in performance, the company said that the main reason was the company’s investment in R&D of high-end, mid-range CNC systems, the lack of funding for projects, and the increase in labor costs.

Huazhong Numerical Control Co., Ltd. stated that it has increased the investment in R&D of high-end and mid-range CNC systems and application of servo drive systems in the industrial control market, and the R&D expenses have increased by RMB 4,425,400, an increase of 81.93%. Most of the project funds were released before 2010, and funding for the National Treasury's “12th Five-Year Plan” project will be released after 2012, resulting in a decrease of RMB 7,476,300 in the first half of the year, a decrease of 50.78%. At the same time, due to the strengthening of the company's talent team and the marked increase in salaries in Wuhan in 2011, the labor cost has increased by 36.3% year-on-year.

The two-month suspension was due to the acquisition of Wuhan Dengqi Electromechanical Technology Co., Ltd. and Wuhan Huada New Motor Co., Ltd.

According to the statistics, Huada Motor was established in January 2003 and specializes in R&D, production and sales of motor businesses. It is indirectly controlled by the Industrial Group of Huazhong University of Science and Technology. Established in December 2001, Dengqi Electromechanical Co., Ltd. is engaged in the development, production, sales, and service of AC servo motors, AC servo inverter (spindle) motors and related complete sets of systems. Previously, Chen Jihong, chairman of Huazhong CNC, once stated that the company has developed and can integrate other companies. The company will do some vertical extensions in the upstream and downstream of the CNC system's industrial chain; at the same time, it will also use the Huazhong CNC system as the core technology platform to carry out horizontal expansion of some new industry sectors. For example, the CNC equipment technology will be expanded to other industries' mechanical equipment. Control aspects.

The reporter learned that the current set of CNC system includes three parts: numerical control device, servo setting and motor. Huazhong CNC can produce numerical control device and some servo settings, and the terminal motor must be purchased upstream.

In addition, on April 27, 2011, Huazhong CNC signed a "strategic cooperation agreement" with Qinchuan Machine Tool Co., Ltd. It is agreed that both parties will jointly invest in the capital increase and reorganization of Xi'an Qinchuan Numerical Control System Engineering Co., Ltd. According to the agreement, the company's main business scope after the reorganization is the development and production of medium-to-high-end numerical control systems and electromechanical integration products.

"We hope to compete with Siemens and Fanuc in the future and become a top-three player in the domestic high-end numerical control system." This is Chen Jihong's ideal for the reporter. According to him, in the domestic CNC system industry structure, Huazhong CNC does not have an advantage in terms of low-grade quantity, but its mid-range production capacity is 10 to 20 times more than that of other enterprises, with an annual production capacity of about 5,000 units, and represented by “Huazhong 8 Type”. The high-end system has also entered the promotion stage.

However, as the self-sufficiency ratio of domestic high-end systems is less than 10%, 90% of production capacity depends on imports. Even if it is a mid-range CNC system, the share of domestic CNC systems is not optimistic. It can be said that the domestic high-end numerical control system has been basically monopolized by giants such as Japanese Fanuc companies and Germany's Siemens.

Cai Bang, an analyst at Debang Securities Machinery Industry, believes that on the one hand, internationally-produced CNC machine tools such as Siemens and Fanuc may expand their Chinese CNC system's competitive advantage by opening up restrictions on Chinese imports. On the other hand, Huazhong CNC has a relatively low awareness of domestic brands, and it will face major obstacles if it wants to break through the high-end CNC system in China.