Albany, NY -- (ReleaseWire) -- 04/16/2014 -- At present, China’s domestic industrial automation enterprises still lag behind foreign counterparts in technology, brand, product range and other aspects. However, domestic enterprises have certain advantages in cost, price, distribution channels, market segments expanding, personalized services and so on. In 2013, the market share of Chinese companies has not exceeded 30%, therefore the potential for them to substitute foreign brands is enormous.
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In the first half of 2013, China has 797 small-sized automation enterprises above designated size, accounting for 81.7% of the total number of enterprises in the industry, and 152 mid-sized automation enterprises, accounting for 15.6%, and 26 large enterprises, representing 2.7%.
Jiangsu is the province with the largest number of enterprises which is 342. In the first half of 2013, the total assets of China’s industrial automation enterprises above designated size are RMB 212 billion, increasing 14.9% year on year. The top five provinces/cities by assets are Jiangsu, Beijing, Zhejiang, Shanghai and Guangdong.
Global and China Industrial Automation Industry Report, 2013-2015 sheds light on the operation and development plans of domestic and foreign enterprises based on an analysis and forecast of the global and Chinese industrial automation industry trend.
Siemens is the world’s largest industrial automation company; its automation business covers factory automation equipment and process automation equipment, its service areas include energy, industry, construction and health care industries. In FY2013, Siemens achieved revenue of EUR 75.9 billion, down 2% year on year and net income of EUR 4.41 billion, up 3% year on year.
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Although annual report shows that net income of Siemens has increased in FY2013, its industrial automation business performance was not satisfactory, the revenue from which is declining year after year due to weak demand and rising costs. Hence, Siemens decided to enrich its product line and increase investment in information technology and software businesses which have higher profit margin and reduce the output of low-margin products such as photovoltaic inverters.
Shenzhen Inovance Technology Co., Ltd (stock code: 300124) is China’s most powerful local automation company with the most extensive range of services. Its clients cover metallurgy, coal, water, chemical, municipal, electricity and other fields.
In the first half of 2013, the traditional industrial control market rallied, increase of demand for elevators and injection molding machines which are the advantages of the company has driven its revenue growth. Benefited from industrial policies, new energy vehicle motor controllers and photovoltaic inverters gradually open up the market. The company has significantly enhanced performance, making revenue of RMB 702 million in the first half of 2013, increasing 32.8% compared to the same period in 2012 and net income of RMB 227 million, increasing 58.2%.
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Global and China Agricultural Machinery Industry Report, 2013-2014
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Tractors and harvesting machinery are the most important agricultural machinery products in China, with annual output of 2.25 million units and 1.114 million units in 2012 separately, far higher than those of other countries and regions. Currently, China’s tractor product structure has shown significant differentiation: large and medium-sized tractors grow steadily, while small tractors decline gradually and even experienced a double-digit decrease in 2012.
Among China’s three major crops, wheat has basically realized mechanization, while corn and rice lag far behind, especially the harvesting of corn and sowing of rice. In view of this, China has increased the subsidies and investment in these two areas, the mechanization of corn harvesting soared from 6.8% in 2007 to 42.8% in 2012, and is expected to surpass 48% in 2013; correspondingly, the mechanization of rice transplanting increased from 11% to 31.7%, and is estimated to reach 35.0% in 2013.
China Condiment Industry Report, 2013-2015
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Chinese condiment mainly refers to soy sauce, vinegar and similar products, monosodium glutamate (MSG), etc.. In 2008-2012 Chinese condiment industry revenue grew at a CAGR of 17%, of which, soy sauce and vinegar sector as the main driving force grew at a CAGR of 23%.
Benefiting from the household consumption upgrade as well as the rapid development of catering industry and food production, the Chinese condiment industry prior to 2015 is expected to maintain a growth rate of above 20%. In 2013 Chinese condiment (including only soy sauce, vinegar and the like, MSG) industry revenue climbed 21.8% YoY to RMB131.19 billion.
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