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Home - News - Exploring the new coordinate of repairing enterprise value under the low-profit market environment

Exploring the new coordinate of repairing enterprise value under the low-profit market environment

April 13, 2021


On October 28, 2020, the China Construction Machinery Marketing and Aftermarket Conference was held in Hefei, Anhui. This conference brought together extremely influential people in the construction machinery industry, built a high-level communication platform, and focused on the theme "Exploring New Value Coordinates". In the face of the industry's upcoming new start and new choices next year, a feast of thought was dedicated.


At the invitation and recommendation of the leaders of the Maintenance and Remanufacturing Branch of the China Construction Machinery Industry Association, Mr. Feng Gang, a post-marketing expert, a partner of Jiezhijia Information Technology Co., Ltd., and the initiator of the Construction Machinery Maintenance Alliance, brought the title " "Exploring the New Coordinates of Repairing Enterprise Value in a Low-Profit


Market Environment" is a special topic sharing for the aftermarket.

Views on the development of the industry next year: cautious optimism

On the whole, I think the external environment for the development of the construction machinery industry is positive; due to the impact of the new crown epidemic, in the three carriages driving the economy this year, "investment" may have become the most important "investment" in maintaining the stable operation of the national economy. carriage". At the beginning of this year, around February 12, I expected that the government's investment stimulus would continue to increase, including real estate, infrastructure, mining, etc. in the picture; the contribution rate of investment to GDP may rise from 31.2 in 19 % Increased to more than 50% this year. Our construction machinery industry is an investment-driven industry, so I am optimistic about the development of the industry in the past year, but considering the epidemic and other factors, overall, my view on the future development of the industry is "cautiously optimistic." "At least until June next year.​

The industry as a whole enters a low-profit stage

It should be said that our entire construction machinery industry companies are currently in a low-profit state. As the OEM just said, we will look at second-hand mobile phones. Second-hand car dealers have not had a good time in recent years. In the past few years, the sales of second mobile phones were at least 10% The above profits have fallen below 5% this year. Many car dealers no longer pursue profit margins, but put turnover rate first in their operations. For example, an excavator that sells for 1 million yuan now earns a maximum of 50,000 yuan, and an excavator that sells for two or three million yuan sometimes even makes a few thousand yuan. Some car dealers have also reduced their operating costs through layoffs or deregistration of the company.

Let’s look at the suppliers again. It should be said that the suppliers have been relatively good in recent years, but with the continuous decline in the sales price of new machines, the OEMs are also constantly lowering the prices of suppliers in order to cope with and partially offset the sales of new machines. The price has fallen sharply.

Finally, our equipment customers, what is the status quo of equipment customers? Customers are also faced with pressures such as reduced shift fees, equipment renewal due to environmental protection, difficulty in finding jobs, short working periods, difficulty in repayment, and low-price competition among peers. Therefore, the entire industry, from upstream to downstream, has basically been operating at a low profit level.