Recently, the fierce competition in China's electric market has shocked people in and outside the industry.
On March 29th, China Xidian, a benchmarking company in China's power transmission and distribution market, announced its 2010 annual performance report. In 2010, it achieved operating income of 12.9 billion yuan, a year-on-year decrease of 7.86%, and a net profit attributable to listed companies of 640 million yuan, a decrease of 44.6% year-on-year. Cruel competition in the market has made China Westpower eclipsed by investors.
On March 14, ABB, the world's largest power transmission and distribution supplier, released its 2010 performance in China. ABB's electricity business orders in China fell by 19% in 2010, mainly because of the rapid decline in power transmission business. The ABB power business, which has made great strides in the Chinese market for decades, suffered an alarming deterioration in 2010.
On March 30th, another benchmark company, TBEA, in the Chinese power transmission and distribution market announced the 2010 annual report which was lower than expected but had bright spots. TBEA realized operating revenue of RMB17.77 billion in 2010, a year-on-year increase of 20.44%, and net profit attributable to shareholders of listed companies was RMB1.611 billion, an increase of 5.41% year-on-year. The wire and cable gross margin of the transformer products, which accounted for 80% of the company's business, fell, and the profit also fell slightly compared to 2009.
Against this background, the deputies of the National People's Congress and the general manager of the TBEA Heng Yanmin conducted a special survey on the overcapacity of transformers and wires and cables. Yan Yanmin pointed out in the research report that the domestic transformer 500 kV, 220 kV, 110 kV and below has a total capacity of about 3 billion kVA, and the market's annual demand currently does not exceed 1.3 billion kVA. The consequences of over one-time excess production capacity exceed market demand, leading to increasingly fierce market competition. The overcapacity problem of the cable industry in low-end products is also prominent. In particular, regardless of the fact that the production capacity of the cross-linked cables has been seriously excessive in various places, a large number of vertical tower production lines have been introduced, resulting in repeated construction, waste of funds, and idle production capacity. . At the same time, high-end products such as ultra-high-voltage cables and special-purpose cables have insufficient capacity, resulting in the import of most products or raw materials.
In this regard, Yan Yanmin suggested that the intensity of supervision by government departments needs to be strengthened. Enterprises need to vigorously promote the optimization and upgrading of key areas such as power generation equipment, power transmission and transformation equipment, and power distribution equipment, and increase their own intellectual property rights and independent brand products. (In particular, high-tech, high-value-added products) in the proportion of export products, we must actively develop modern manufacturing service industry, extend to both ends of the industrial chain, to achieve the adjustment of the industrial structure, the general contracting of the project and the "turnkey" approach Promote the export of the complete project.
As a representative of the National People's Congress, the proposal of Yan Yanmin will have a positive effect on the sustained and healthy development of the Chinese electrical market. However, the development strategy of Schneider Electric, a global energy efficiency management specialist, may be more valuable to electric companies in the new era.
On February 17, Schneider Electric disclosed its 2010 results. In 2010, Schneider Electric's sales increased by 24% year-on-year (organic growth rate was 9.3%), reached a record high of 19.58 billion euros, net profit reached 1.72 billion euros, an increase of 109%, and R&D investment reached 818 million euros, accounting for sales. 4.2%.
In the recent interview, Cao Yu, the head of distribution and energy division of Schneider Electric's vice president of China, introduced the strategy of Schneider Electric's Blue Ocean. Schneider Electric's biggest change in recent years has been a new position, becoming a global energy efficiency management expert. Focusing on new goals and directions, Schneider Electric expands its business areas through mergers and acquisitions and its own research and development, and provides application solutions for various industries. The proportion of solution business in company revenue will increase. Only in this way can we jump out of the increasingly fierce competition in the Red Sea.
On March 29th, China Xidian, a benchmarking company in China's power transmission and distribution market, announced its 2010 annual performance report. In 2010, it achieved operating income of 12.9 billion yuan, a year-on-year decrease of 7.86%, and a net profit attributable to listed companies of 640 million yuan, a decrease of 44.6% year-on-year. Cruel competition in the market has made China Westpower eclipsed by investors.
On March 14, ABB, the world's largest power transmission and distribution supplier, released its 2010 performance in China. ABB's electricity business orders in China fell by 19% in 2010, mainly because of the rapid decline in power transmission business. The ABB power business, which has made great strides in the Chinese market for decades, suffered an alarming deterioration in 2010.
On March 30th, another benchmark company, TBEA, in the Chinese power transmission and distribution market announced the 2010 annual report which was lower than expected but had bright spots. TBEA realized operating revenue of RMB17.77 billion in 2010, a year-on-year increase of 20.44%, and net profit attributable to shareholders of listed companies was RMB1.611 billion, an increase of 5.41% year-on-year. The wire and cable gross margin of the transformer products, which accounted for 80% of the company's business, fell, and the profit also fell slightly compared to 2009.
Against this background, the deputies of the National People's Congress and the general manager of the TBEA Heng Yanmin conducted a special survey on the overcapacity of transformers and wires and cables. Yan Yanmin pointed out in the research report that the domestic transformer 500 kV, 220 kV, 110 kV and below has a total capacity of about 3 billion kVA, and the market's annual demand currently does not exceed 1.3 billion kVA. The consequences of over one-time excess production capacity exceed market demand, leading to increasingly fierce market competition. The overcapacity problem of the cable industry in low-end products is also prominent. In particular, regardless of the fact that the production capacity of the cross-linked cables has been seriously excessive in various places, a large number of vertical tower production lines have been introduced, resulting in repeated construction, waste of funds, and idle production capacity. . At the same time, high-end products such as ultra-high-voltage cables and special-purpose cables have insufficient capacity, resulting in the import of most products or raw materials.
In this regard, Yan Yanmin suggested that the intensity of supervision by government departments needs to be strengthened. Enterprises need to vigorously promote the optimization and upgrading of key areas such as power generation equipment, power transmission and transformation equipment, and power distribution equipment, and increase their own intellectual property rights and independent brand products. (In particular, high-tech, high-value-added products) in the proportion of export products, we must actively develop modern manufacturing service industry, extend to both ends of the industrial chain, to achieve the adjustment of the industrial structure, the general contracting of the project and the "turnkey" approach Promote the export of the complete project.
As a representative of the National People's Congress, the proposal of Yan Yanmin will have a positive effect on the sustained and healthy development of the Chinese electrical market. However, the development strategy of Schneider Electric, a global energy efficiency management specialist, may be more valuable to electric companies in the new era.
On February 17, Schneider Electric disclosed its 2010 results. In 2010, Schneider Electric's sales increased by 24% year-on-year (organic growth rate was 9.3%), reached a record high of 19.58 billion euros, net profit reached 1.72 billion euros, an increase of 109%, and R&D investment reached 818 million euros, accounting for sales. 4.2%.
In the recent interview, Cao Yu, the head of distribution and energy division of Schneider Electric's vice president of China, introduced the strategy of Schneider Electric's Blue Ocean. Schneider Electric's biggest change in recent years has been a new position, becoming a global energy efficiency management expert. Focusing on new goals and directions, Schneider Electric expands its business areas through mergers and acquisitions and its own research and development, and provides application solutions for various industries. The proportion of solution business in company revenue will increase. Only in this way can we jump out of the increasingly fierce competition in the Red Sea.
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