Problems and risks
1. The market is huge, and the demand for new machines is limited
According to the statistics of the Construction Machinery Association, as of the end of 2012, the total amount of major equipment for construction machinery was approximately 5.61 million to 6.08 million, which was far higher than the actual market demand. Due to the large amount of market holdings, the idle rate of construction machinery around the country is high, and the amount of excess digestion is the first choice, followed by the purchase of new machine equipment. Therefore, compared with the past, the investment in infrastructure investment has drastically reduced the sales of new machine sales for construction machinery. This is the overall significant increase in downstream infrastructure investment since 2013, but the main reason for the sluggish demand for new purchases of construction machinery.
2. Sales of large-scale construction machinery are sluggish, share ratio declines, and the profitability of the industry shrinks significantly
Since 2013, a notable change in the construction machinery market has been the relatively strong sales of small construction machinery, the significant decline in the sales of medium-sized construction machinery and the weak sales of large-scale construction machinery. According to the data compiled by the Construction Machinery Industry Association, from January to September of the 13th year, the total sales volume of the excavators was 88,363 units, a year-on-year decrease of 7.9%. Among them, sales of 13052 units were less than 6 tons, an increase of 36.4% over the same period of last year; 22-tons were 23443 units, down 6.2% year-on-year; 10-20 tons were 12,079 units, up 16.7% year-on-year; 20-30 tons were 29,716 units, down 15.8% year-on-year; 30 to 40 tons of 8088 units, a year-on-year drop of 37.3%; more than 40 tons of 1985 units, a year-on-year decrease of 57.4%. It can be seen that sales of excavators below 6 tons have increased significantly, with sales below 10 tons accounting for more than 40%; sales above 30 tons account for only 11.4%, and sales of expensive excavators over 40 tons have fallen by nearly 60% year-on-year. .
Due to the increase in the sales of small construction machinery with low prices and low gross profit margin, the sales of large construction machinery with high prices and high gross profit margin accounted for a decline, and the industry’s profitability space decreased significantly. From January to August, the total profit of construction machinery industry decreased by 17.0% year-on-year; the profit rate of main business income fell to 6.5%, which was a decrease of 1.2 percentage points from the same period of last year. From January to September, the total profit of the 13 large-scale enterprise groups that the Association focused on was significantly reduced by 40.5% year-on-year, operating profit margin was reduced to 4.9%, profitability has been reduced to a historical position, scale efficiency has been greatly weakened, and the industry may face an increase in revenue in the future. Increase profits. 3. Credit sales methods are common, and the scale of accounts receivable has been continuously expanding Since the construction machinery industry entered the development period, credit sales methods have generally been used to promote sales. However, this type of sales model brings with it an increase in accounts receivable, and the risk of payment collection continues to increase. According to the data from the Construction Machinery Association, in 2012, the average default rate of customers in the construction machinery industry reached 25% to 30%, and the butterfly effect was being transmitted from the real economy to sellers, financial leasing companies and banks. The survey shows that some bank engineering machinery mortgage overdue rate of 15%, some companies overdue rate of more than 20%, financial lease overdue rate is higher