Machine tool companies sigh: "only 6 points of profit"

Last year, the total industrial output value of China's machine tool industry reached 553.68 billion yuan, a year-on-year increase of 40.6%. However, while sales increased substantially, it did not bring real money to related companies. At this point, the exhibitors of the "12th China (Shenzhen) International Machinery Manufacturing Industry Exhibition 2011" have a deep understanding. "Competition is vicious." Xu Shixin, head of the first division of the business department of Xinwu Machinery Trading Co., Ltd. said. Xu Shixin believes that domestic manufacturers are accustomed to lowering prices in order to seize the market, regardless of profits, which is very different from the foreign environment. "If the price is too low in foreign countries, it is better not to sell, but also to ensure prices and profits." In addition, he believes that domestic Bidding, no one can win above the countertop, mainly reflected under the countertop. Xinwu Machinery is a Taiwan-funded enterprise, mainly dealing with products such as electric discharge machines from Mitsubishi Electric. Hangzhou Shijia Precision Machinery Co., Ltd. Guangzhou Office Shen Shirong said that many raw materials were in the price increase last year, but the price of machine tools has also decreased, because everyone is fighting the market, "only 6 points of profit." The competition in the machine tool industry is fierce and is more clearly reflected in the annual reports of listed companies. Shenyang Machine Tool's sales revenue in 2010 was 8.047 billion yuan, a year-on-year increase of 35%; net profit was 142 million yuan, a year-on-year increase of 428%, but only government subsidies amounted to 150 million yuan. East China CNC sales increased by 17%, while net profit decreased by 19%. Kunming Machine Tool achieved a year-on-year increase in operating income of 14%, while net profit fell by 29%. Due to the increasingly fierce market competition, especially the new competitors, the average price of Kunming machine tool floor raft series products decreased by 18% year-on-year, the price of squat products decreased by 4%, and the average cost of basic materials increased by about 20%. Gross profit margin decreased by 6.91 percentage points. This phenomenon of increasing income without increasing profits was more unusual in the machinery industry last year. Last year, many engineering machinery and automobile industry listed companies' net profit and sales revenue increased significantly. However, there are exceptions for companies. Peng Hongfu, chairman of Shenzhen Xingfuxiang Technology Co., Ltd., said that last year, the company's sales increased rapidly, reaching 150 million yuan, and the gross profit margin was 40%. The reason for maintaining high gross profit margin is the high technical content. The company's centerless grinding machine is in China. Without competitors, it does not occupy a disadvantage in competition with foreign counterparts. In order to improve technology, Peng Hongfu introduced many senior R&D personnel from Taiwan. It is reported that Xingfuxiang Company is preparing to invest 520 million yuan in the expansion of Danzhai County, Guizhou Province. Peng Hongfu believes that the sales market and technical personnel are not a problem. "The key lies in management. Freight costs do not account for a large proportion of machine tool costs. Technicians can achieve this through training." For the phenomenon that domestic enterprises only earn numbers and do not make money, he believes that The problem is management.  

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