Special cable market or cited multiple parties competing

According to a report released recently by a domestic authoritative organization, the profit margin of China's special cable industry products has averaged about 20% in the past three years. In 2013, the total profit of special cable enterprises above designated size in China was about 12 billion yuan. The agency predicts that this figure will reach 47.273 billion yuan in 2017.

In just 4 years, the total annual profit of special cables may increase by nearly 35.3 billion yuan, an increase of approximately 300%. According to the reporter, compared with special cables, the entire cable industry is currently in a predicament of low profits. Zhang Rongji, Director of the Equipment and Equipment Division of the Ministry of Industry and Information Technology, pointed out at the second China (Wuhu) Wire & Cable Expo and Product Quality Summit that the average profit rate in the domestic cable industry was only around 3% to 4%.

To some extent, the low profit of ordinary cables drags the industry behind. In this regard, Jiang Xipei, chairman of the Board of Directors of Far East Holding Group Co., Ltd., said in an interview that: "At present, ordinary cables have no profit. It is very gratifying for enterprises of a certain size to be able to maintain capital."

Long-term low profits increasingly reduce the company's living space. The reality is forcing the transformation of the enterprise, as Wu Changshun, director of the National Wire and Cable Quality Supervision and Inspection Center puts it: “Under the fierce competition in the current market, the wire and cable industry can only get out of the difficulties by innovation and transformation.” It is no longer a matter of producing ordinary cables. In turn, the development of special cables is an innovative and transformative strategy for companies.

Zhang Zuwu, the county governor of Wuwei County People's Government of Anhui Province, emphasized at the Second China (Wuhu) Wire & Cable Expo and Product Quality Summit that Wuwei is a special cable industry base and should make a fuss about “special”. In recent years, Wuwei County Party Committee and County Government has been committed to guiding enterprises to adjust product structure and guide enterprises to produce "high, new, and special" new products.

Han Huifu, deputy chief engineer of Anhui New Yate Cable Group Co., Ltd., also believes that low-end ordinary cable products have entered the era of low profit, and special cables with an average profit rate of 20% to 30% will be the only way for cable companies in Wuwei County to break through. .

"In the past three years, the funds invested by the company for scientific research have increased year after year, reaching 26.07 million yuan last year, accounting for 3.1% of sales revenue. Today, special cable products represented by wind energy cables have accounted for about 60% of the company's product structure, not only high profit margins. And supply is in short supply.” For the company’s selection of special cables, Cheng Bin, chief engineer of Anhui Huaneng Cable Group, was very satisfied.

According to Ding Shanhua, chairman of Jiangsu Shangshang Cable Group, the key to the transformation and upgrading of the wire and cable industry is to improve its internal strength. It is necessary to develop high-end materials, develop high-end products, and seize the commanding heights of cable technologies to form a “differentiation of products”. It is understood that over the years has been committed to nuclear cable research and development, production, last year, its own research and development of third-generation nuclear AP1000 shell cable to fill the gap in the world nuclear power industry.

Mo Ping's deputy general manager and secretary of the board of directors Xu Ping said in an interview with reporters recently that the positioning of Moen Electric has become the main research and development base of China's special wire and cable, and has become the leader of China's special cable manufacturing technology, changing China's major special cables. Depends on the import situation.

Chen Zhijian, president of Shanghai Yongjin Cable Group, will become the leading product of the group. The success of this special cable product has been successfully introduced to the market, which signifies the success of Shanghai Yongjin's transformation from low value-added traditional cable to high value-added fire-resistant cable.

According to the reporter, Jiangsu Tongguang Electronic Cable Co., Ltd. is not the industry leader in terms of scale and influence, but its long-term strategy of special cable research and development has made it a unique landscape in the domestic cable industry. Data from Wind (Shanghai Wonderful Information Technology Co., Ltd.) database shows that in the first three quarters of 2013, the average gross margin of Tongguang cable products reached 25.04%, and its main product OPGW (optical fiber composite overhead ground wire) and aerospace high temperature resistance The gross margin of the cable is as high as 40.22% and 40.99% respectively.

The road to transformation and upgrading of the wire and cable industry did not endure. The increase in total profits in excess of 35 billion yuan in four years, a nearly threefold increase, indicates that special cables will become a crucial link on this road. In the future, the special cable field will soon become a market in which companies, institutions and other companies will chase after each other.