2009 is an extraordinary year for most Chinese companies. During the year, our Chinese economy experienced a bottoming out, showing a general trend of low and high. So for our powder metallurgy parts industry, as the products are mainly for the various mainframe industries, as the boom index of the mainframe industry rebounds, the operation status of our powder metallurgy parts production enterprises in 2009 also showed a low, high and gradually The trend of recovery.
According to the communication of our China Powder Metallurgy Business Network and a number of domestic powder metallurgy parts manufacturing enterprises (including large, medium and small powder metallurgy enterprises), the conclusions are as follows:
1. In 2009, the development of most powder metallurgy parts manufacturing enterprises in China can be divided into three stages:
1. Before July 2009, the production and operation of most enterprises in China's powder metallurgy industry were not optimistic. Compared with the same period in 2008, orders were significantly reduced, enterprises were underemployed, and profits fell sharply.
2. From July to October 2009, with the recovery of China's economy, orders from our powder metallurgy parts industry have gradually increased, but the orders for tens of thousands of parts and parts are still very small, and many orders are only a few. Thousands and a hundred, which makes our company's development costs, mold costs, and labor and equipment costs rise a lot, and the profit decline is obvious.
3. From October to December 2009, following the further recovery of China's economy and the partial recovery of international market exports, the production and operation status of most powder metallurgy parts manufacturers in China have greatly improved, and some have even recovered to the level before the financial crisis. The company's output and profits have returned to a relatively normal level.
Second, most of the powder metallurgy parts production enterprises in 2009, the annual output value and profits and 2008 ratio have declined: the main reason is that before August 2008, China's powder metallurgy parts production enterprises are developing very well, only from 8 Since the beginning of the month, due to the impact of the international financial crisis, the reduction of the demand for our powder metallurgy parts in the mainframe industry has gradually emerged. Relatively speaking, the industry economic situation in the first half of 2009 is not optimistic, but it will only gradually recover from the second half of the year.
Third, in 2009, there were also a few powder metallurgy parts manufacturing enterprises in China, which had a very good development trend throughout the year, and both had an increase of more than 20% compared with 2008. After investigation, our China Powder Metallurgy Business Network found that the products of such enterprises are often mainly supplied to the domestic automobile host industry. In 2009, when the cumulative production and sales of China's automobiles exceeded 13 million units, and the year-on-year growth was the highest in the calendar year, the production and sales of such powder metallurgy enterprises mainly for the automotive industry also reached a record high.
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