At present, the unpredictable financial crisis triggered by the US subprime mortgage crisis has caused fierce turmoil in international and domestic financial markets. The stock market, the ** market, the ** market, and the insurance market have all suffered from severe shocks. Due to the close linkage between the domestic glass market and the international glass market, the glass industry is clearly unable to stay alone in this financial crisis. The impact and challenges brought by this storm to the development of the glass industry in China cannot be ignored.
One of the challenges is the declining growth rate The financial crisis has led to a decline in the prosperity of the glass industry. At present, under the dual effects of cyclical economic adjustment and the impact of the financial crisis, the glass industry as a whole has accelerated its decline. In 2008, the production of flat glass was approximately 570 million weight boxes, an increase of approximately 5.1% year-on-year. This is the first time in the past 10 years, glass output growth slipped to single digits for the first time. According to the statistics of the China Building Materials Federation Information Department and the China Building Glass and Industrial Glass Association, the national glass production growth trend in 2009 was more pronounced. Glass production in Hebei, Shandong, Henan, Guangdong and Zhejiang declined. Henan glass production slowed down.
The second challenge is the reduction in demand The major reason for the deceleration in the growth of China's glass production in 2008 was the reduction in market demand. In recent years, the three major engines that drove the glass industry—real estate, automobile industry, and exports—have experienced significant declines due to the impact of the international financial crisis, and this has led to the simultaneous response of the glass industry. In March of this year, 60 key glass companies in China produced 31.26 million weight boxes of float glass, and from January to March, they produced 93.09 million weight boxes of float glass. Compared with the same period in 2008, cumulative production decreased by 7.12%. The provinces with the largest accumulated production volume are 16.64 million weight cases in Hebei Province, 10.25 million weight cases in Shandong Province, 10.21 million weight cases in Jiangsu Province, 9.88 million weight cases in Guangdong Province, and 8.95 million weight cases in Zhejiang Province.
The third challenge is that the price decline and the glass industry are closely related to the real estate industry is close to the winter, the glass market is also in a depression. In the current financial crisis, China’s glass market also experienced a decline in the price of glass and the international market as the exchange rate and the international financial market fluctuate. After September of last year, the price of glass in Shandong dropped, and glass prices in the province continued to decline in October. After the price of flat glass dropped to the lowest point in recent years in the fourth quarter of 2008, the current overall price remains at the bottom.
The fourth challenge is the shortage of funds. The financial crisis has led to a significant increase in corporate inventory and capital risks. Since the beginning of this year, the glass production and sales rate has dropped, inventory has increased, and the increase in inventory has taken up 20% of the funds. Although flat glass sales rebounded in October and the inventory at the end of the month decreased from the previous month, it still increased by 11.09 million weight boxes compared to the same month of last year, which was mainly due to the backlog of ordinary float glass. The status quo of market sales is still not optimistic for the flat glass industry with excess ordinary float glass production capacity. The liquidity contraction brought about by the financial turmoil has affected the ability of some companies to pay. With regard to the withdrawal of funds, after the glass products were exported, affected by the crisis, it was difficult for the purchaser's funds to be withdrawn on time, and the overdue debts and repayments from abroad increased, affecting the returns of some export-oriented glass companies. According to the survey, due to the financial crisis, some glass companies have increased capital risks due to inventory and other factors.
The fifth challenge is export impediments. The financial crisis has caused major export shocks. The major impact on China's glass industry is mainly export-oriented enterprises. The global financial crisis caused by the financial turmoil in the United States has led to the shrinking of the demand of various countries in the world and has directly affected the export of glass products in China. As an export-oriented economy in China, its main export markets are the United States and the European Union. At present, the financial turmoil has hit the real economy of the European Union. The US economy is also slipping to the brink of recession. The trade surplus between China and the United States has dropped drastically. It has caused some impact on the export of glass products from our glass companies. Some glass export companies complain endlessly. The financial crisis has led to fewer orders and many companies are underemployed. In recent years, some glass companies in China have gone to the world. Although the assets of these enterprises in foreign countries are not large compared with the total assets of the enterprises themselves, the financial crisis has caused the loss of China's overseas glass companies to a large proportion. Assets in the financial crisis Gradually shrink under the effect.
The sixth challenge is that the difficult financial storm has further deteriorated the operating environment of glass companies, making them increasingly difficult to survive. As a whole, the production price of equipment, raw materials, auxiliary materials, logistics costs, and manpower costs involved in the production and operation of glass companies has risen sharply, making the company’s production costs linger and the company’s profits. It is constantly eroded. After September last year, it was hit harder by the financial turmoil. At the end of March this year, more than 40 float glass production lines in China had ceased production. Some small factories that rely on large companies to transfer orders or provide support for large plants are even more difficult to sustain their business, and some have even shut down. The double squeeze of rising costs and sluggish product prices led to a significant drop in the profit rate of glass companies and increased losses. The glass industry began to lose money from the profit of early last year to the fourth quarter of last year, and it has not lost money until now.
The financial turmoil provides opportunities for the development of China's glass industry. However, it must be noted that the challenges brought by the US financial crisis to China's glass industry also provide a rare opportunity for the development of China's glass industry.
One of the opportunities is the consolidation of the global financial crisis resulting from the consolidation of the industry, resulting in lower valuations for companies and providing domestic companies with relatively inadequate resources reserves the opportunity to integrate resources through mergers and acquisitions and complete international expansion. From the perspective of the glass industry, scale, liquidity, and diversification will reappear, and companies with a high degree of diversification and large-scale companies will have more channels for external issues, and small companies will no doubt be eliminated. . The glass industry will increasingly show the advantages of mass production. The crisis is also a good opportunity to integrate the glass industry.
The second opportunity is that the policies are beneficial to all policies adopted by the country to help the United States in the financial turmoil, such as tax cuts, corruption, encouragement of exports, and expansion of consumption, which will bring advantages to glass companies. In particular, the investment of 100 billion yuan to be arranged by the country to further expand domestic demand is directed toward the construction of affordable housing projects, rural livelihood projects and agricultural infrastructure, infrastructure construction of railways, highways, and airports, education, health and other public utilities, and ecology. Environmental construction has accelerated the independent innovation and structural adjustment of enterprises, as well as the restoration and reconstruction of earthquake-stricken areas. What's more important is the 4 trillion economic stimulus plan, which will be used to restore and rebuild earthquake-hit areas, rural livelihood projects, rural infrastructure, ecological environment, and affordable housing projects. The major investments in these countries will drive China's glass market to China. The development of the glass industry has played a huge role in promoting.
Future market countermeasures Choose confidence, overcome difficulties, overcome crisis and strengthen confidence is a powerful weapon to deal with the current world economic turmoil and financial crisis. Enterprises must rely on confidence to stabilize market expectations and rely on confidence to tide over difficulties. The once-in-a-century financial crisis puts forward higher requirements for corporate leaders. Instead of thinking in terms of conventional thinking, we must clearly grasp market changes and carefully plan development strategies. At present, we must pay particular attention to the four key factors of raw materials, technology, market and finance.
Reduce production insured prices, speed up sales, and return funds The building materials industry, like the real estate industry, is an industry that relies heavily on funds. Many small and medium-sized enterprises operate in the form of bank lending. Once 'Yingen' is tightened, it will inevitably affect these companies. Cash flow. At present, 'reducing production, insuring price, and accelerating sales' have become the common choice of many glass companies. Some large-scale glass companies have introduced limited production measures. More and more small and medium-sized glass companies can't stand the pressure to stop production. In view of the fact that glass prices have fallen, some companies have set the lowest price and restricted the sales price of glass in order to obtain good benefits. It is necessary to strengthen the withdrawal and flow of funds. Export-oriented glass companies should pay attention to the prevention of foreign exchange export risk. According to the other party's credit status, do the corresponding export credit insurance; to new customers to pay the money and delivery. Glass companies in the domestic market must also guard against the risk of capital withdrawals, and must prevent the precipitation of capital and accelerate the flow.
Unswervingly 'going out' and actively seeking blank points 'going out' have become an inevitable choice for companies to seek better development in response to the financial crisis. Although the financial crisis will not hurt the current industry. However, if the mechanism of short-term credit in the United States cannot be started soon, the consumption of the United States will continue to shrink, which will have a major impact on China's export market. This storm made it possible for our glass companies to 'go out' better. Because the rapid decline in the value of global companies provides an important opportunity for acquisitions, creating conditions for strengthening internal management and reducing costs. At the same time, after the storm's baptism, the real value of overseas assets will gradually show up. At this time, our overseas investment may be worth the money, which brings opportunities for powerful glass companies in China.
Encourage the reorganization of advantageous companies and mergers and acquisitions. The disadvantages of corporate restructuring will not only save the disadvantaged companies, but also enlarge and strengthen the advantageous enterprises. Mergers and acquisitions have a great relationship with the glass market. The lower the glass market is, the more favorable it is for mergers and acquisitions, and the merger and reorganization of the company becomes a hot spot in the industry, which can accelerate the reshuffling and integration of the market.
Adjust the structure, continue to innovate At present, China's glass deep processing rate is only 30%, while the world average of about 55%, developed countries reach 65% to 85%. The value-added rate after processing is 2.5 times that of the original film in China and 5 times that in the developed countries. Therefore, there is a large gap between deep processing rate and processing depth. All of these provide glass companies with a vast market space. Especially for safety glass and energy-saving glass, the annual growth rate is more than 30%. The financial turmoil has brought new opportunities for China's glass industry structural adjustment. Therefore, to cope with the better development of the financial crisis, it is necessary to adjust the industrial structure, save energy and reduce emissions, and eliminate high-polluting and high-consumption enterprises.
One of the challenges is the declining growth rate The financial crisis has led to a decline in the prosperity of the glass industry. At present, under the dual effects of cyclical economic adjustment and the impact of the financial crisis, the glass industry as a whole has accelerated its decline. In 2008, the production of flat glass was approximately 570 million weight boxes, an increase of approximately 5.1% year-on-year. This is the first time in the past 10 years, glass output growth slipped to single digits for the first time. According to the statistics of the China Building Materials Federation Information Department and the China Building Glass and Industrial Glass Association, the national glass production growth trend in 2009 was more pronounced. Glass production in Hebei, Shandong, Henan, Guangdong and Zhejiang declined. Henan glass production slowed down.
The second challenge is the reduction in demand The major reason for the deceleration in the growth of China's glass production in 2008 was the reduction in market demand. In recent years, the three major engines that drove the glass industry—real estate, automobile industry, and exports—have experienced significant declines due to the impact of the international financial crisis, and this has led to the simultaneous response of the glass industry. In March of this year, 60 key glass companies in China produced 31.26 million weight boxes of float glass, and from January to March, they produced 93.09 million weight boxes of float glass. Compared with the same period in 2008, cumulative production decreased by 7.12%. The provinces with the largest accumulated production volume are 16.64 million weight cases in Hebei Province, 10.25 million weight cases in Shandong Province, 10.21 million weight cases in Jiangsu Province, 9.88 million weight cases in Guangdong Province, and 8.95 million weight cases in Zhejiang Province.
The third challenge is that the price decline and the glass industry are closely related to the real estate industry is close to the winter, the glass market is also in a depression. In the current financial crisis, China’s glass market also experienced a decline in the price of glass and the international market as the exchange rate and the international financial market fluctuate. After September of last year, the price of glass in Shandong dropped, and glass prices in the province continued to decline in October. After the price of flat glass dropped to the lowest point in recent years in the fourth quarter of 2008, the current overall price remains at the bottom.
The fourth challenge is the shortage of funds. The financial crisis has led to a significant increase in corporate inventory and capital risks. Since the beginning of this year, the glass production and sales rate has dropped, inventory has increased, and the increase in inventory has taken up 20% of the funds. Although flat glass sales rebounded in October and the inventory at the end of the month decreased from the previous month, it still increased by 11.09 million weight boxes compared to the same month of last year, which was mainly due to the backlog of ordinary float glass. The status quo of market sales is still not optimistic for the flat glass industry with excess ordinary float glass production capacity. The liquidity contraction brought about by the financial turmoil has affected the ability of some companies to pay. With regard to the withdrawal of funds, after the glass products were exported, affected by the crisis, it was difficult for the purchaser's funds to be withdrawn on time, and the overdue debts and repayments from abroad increased, affecting the returns of some export-oriented glass companies. According to the survey, due to the financial crisis, some glass companies have increased capital risks due to inventory and other factors.
The fifth challenge is export impediments. The financial crisis has caused major export shocks. The major impact on China's glass industry is mainly export-oriented enterprises. The global financial crisis caused by the financial turmoil in the United States has led to the shrinking of the demand of various countries in the world and has directly affected the export of glass products in China. As an export-oriented economy in China, its main export markets are the United States and the European Union. At present, the financial turmoil has hit the real economy of the European Union. The US economy is also slipping to the brink of recession. The trade surplus between China and the United States has dropped drastically. It has caused some impact on the export of glass products from our glass companies. Some glass export companies complain endlessly. The financial crisis has led to fewer orders and many companies are underemployed. In recent years, some glass companies in China have gone to the world. Although the assets of these enterprises in foreign countries are not large compared with the total assets of the enterprises themselves, the financial crisis has caused the loss of China's overseas glass companies to a large proportion. Assets in the financial crisis Gradually shrink under the effect.
The sixth challenge is that the difficult financial storm has further deteriorated the operating environment of glass companies, making them increasingly difficult to survive. As a whole, the production price of equipment, raw materials, auxiliary materials, logistics costs, and manpower costs involved in the production and operation of glass companies has risen sharply, making the company’s production costs linger and the company’s profits. It is constantly eroded. After September last year, it was hit harder by the financial turmoil. At the end of March this year, more than 40 float glass production lines in China had ceased production. Some small factories that rely on large companies to transfer orders or provide support for large plants are even more difficult to sustain their business, and some have even shut down. The double squeeze of rising costs and sluggish product prices led to a significant drop in the profit rate of glass companies and increased losses. The glass industry began to lose money from the profit of early last year to the fourth quarter of last year, and it has not lost money until now.
The financial turmoil provides opportunities for the development of China's glass industry. However, it must be noted that the challenges brought by the US financial crisis to China's glass industry also provide a rare opportunity for the development of China's glass industry.
One of the opportunities is the consolidation of the global financial crisis resulting from the consolidation of the industry, resulting in lower valuations for companies and providing domestic companies with relatively inadequate resources reserves the opportunity to integrate resources through mergers and acquisitions and complete international expansion. From the perspective of the glass industry, scale, liquidity, and diversification will reappear, and companies with a high degree of diversification and large-scale companies will have more channels for external issues, and small companies will no doubt be eliminated. . The glass industry will increasingly show the advantages of mass production. The crisis is also a good opportunity to integrate the glass industry.
The second opportunity is that the policies are beneficial to all policies adopted by the country to help the United States in the financial turmoil, such as tax cuts, corruption, encouragement of exports, and expansion of consumption, which will bring advantages to glass companies. In particular, the investment of 100 billion yuan to be arranged by the country to further expand domestic demand is directed toward the construction of affordable housing projects, rural livelihood projects and agricultural infrastructure, infrastructure construction of railways, highways, and airports, education, health and other public utilities, and ecology. Environmental construction has accelerated the independent innovation and structural adjustment of enterprises, as well as the restoration and reconstruction of earthquake-stricken areas. What's more important is the 4 trillion economic stimulus plan, which will be used to restore and rebuild earthquake-hit areas, rural livelihood projects, rural infrastructure, ecological environment, and affordable housing projects. The major investments in these countries will drive China's glass market to China. The development of the glass industry has played a huge role in promoting.
Future market countermeasures Choose confidence, overcome difficulties, overcome crisis and strengthen confidence is a powerful weapon to deal with the current world economic turmoil and financial crisis. Enterprises must rely on confidence to stabilize market expectations and rely on confidence to tide over difficulties. The once-in-a-century financial crisis puts forward higher requirements for corporate leaders. Instead of thinking in terms of conventional thinking, we must clearly grasp market changes and carefully plan development strategies. At present, we must pay particular attention to the four key factors of raw materials, technology, market and finance.
Reduce production insured prices, speed up sales, and return funds The building materials industry, like the real estate industry, is an industry that relies heavily on funds. Many small and medium-sized enterprises operate in the form of bank lending. Once 'Yingen' is tightened, it will inevitably affect these companies. Cash flow. At present, 'reducing production, insuring price, and accelerating sales' have become the common choice of many glass companies. Some large-scale glass companies have introduced limited production measures. More and more small and medium-sized glass companies can't stand the pressure to stop production. In view of the fact that glass prices have fallen, some companies have set the lowest price and restricted the sales price of glass in order to obtain good benefits. It is necessary to strengthen the withdrawal and flow of funds. Export-oriented glass companies should pay attention to the prevention of foreign exchange export risk. According to the other party's credit status, do the corresponding export credit insurance; to new customers to pay the money and delivery. Glass companies in the domestic market must also guard against the risk of capital withdrawals, and must prevent the precipitation of capital and accelerate the flow.
Unswervingly 'going out' and actively seeking blank points 'going out' have become an inevitable choice for companies to seek better development in response to the financial crisis. Although the financial crisis will not hurt the current industry. However, if the mechanism of short-term credit in the United States cannot be started soon, the consumption of the United States will continue to shrink, which will have a major impact on China's export market. This storm made it possible for our glass companies to 'go out' better. Because the rapid decline in the value of global companies provides an important opportunity for acquisitions, creating conditions for strengthening internal management and reducing costs. At the same time, after the storm's baptism, the real value of overseas assets will gradually show up. At this time, our overseas investment may be worth the money, which brings opportunities for powerful glass companies in China.
Encourage the reorganization of advantageous companies and mergers and acquisitions. The disadvantages of corporate restructuring will not only save the disadvantaged companies, but also enlarge and strengthen the advantageous enterprises. Mergers and acquisitions have a great relationship with the glass market. The lower the glass market is, the more favorable it is for mergers and acquisitions, and the merger and reorganization of the company becomes a hot spot in the industry, which can accelerate the reshuffling and integration of the market.
Adjust the structure, continue to innovate At present, China's glass deep processing rate is only 30%, while the world average of about 55%, developed countries reach 65% to 85%. The value-added rate after processing is 2.5 times that of the original film in China and 5 times that in the developed countries. Therefore, there is a large gap between deep processing rate and processing depth. All of these provide glass companies with a vast market space. Especially for safety glass and energy-saving glass, the annual growth rate is more than 30%. The financial turmoil has brought new opportunities for China's glass industry structural adjustment. Therefore, to cope with the better development of the financial crisis, it is necessary to adjust the industrial structure, save energy and reduce emissions, and eliminate high-polluting and high-consumption enterprises.
Production line aluminum profiles
Shandong Huajian Aluminium Group Co., Ltd. , http://www.sdaluminumprofiles.com