On the 19th, Sichuan Star Cable Co., Ltd. announced that the company plans to issue the first phase of short-term financing bills in 2012, and its prospectus analyzes the wire and cable industry in which the company is located.

The wire and cable industry is an important supporting industry for my country's economic construction and is widely used in various fields of the national economy. Wire and cable provide infrastructure for the power industry and the communication industry, occupying a quarter of the output value of China's electrical industry. It is the second largest industry in the machinery industry after the automobile industry, and occupies an important position in the national economy. In recent years, the sustained and rapid development of my country's economy, the advancement of urbanization, and the construction of major projects such as large-scale power stations, west-to-east power transmission, and power grid transformation all indicate that the wire and cable industry has a long boom cycle. It will maintain a high growth rate.

1. Development status of the global cable industry

As the global cable market matures, the growth rate of the world's wire and cable manufacturing industry has slowed down. The average growth rate of global cable production from 2003 to 2007 was 5.30%. This data dropped to 1.20% in 2008 and -7.70% in 2009. . (Data source "2010 China Wire and Cable Industry Conference Report Collection") In the economic structure of developed countries, due to the gradual decline and transfer of the proportion of the manufacturing industry, the increasingly perfect infrastructure and the relatively slow economic growth, a decline in demand and a high degree of industrial competition have formed. market structure. However, the demand for cables in rapidly developing emerging economies such as China and India is rapidly increasing with the development of the economy. Judging from the technical development trend of the world cable industry, the current development direction is: large capacity, ultra-high voltage, oil-free, short-circuit resistance, high reliability, and maintenance-free. At present, the cross-linked cables of various voltage levels have gradually replaced the traditional oil-filled paper insulated power cables, and the application of high-voltage and ultra-high-voltage cross-linked cables is becoming more and more extensive. Europe, the United States and Japan currently have higher and higher requirements for the cables used, and it is strictly forbidden to use or import non-environmentally friendly cables. With the promulgation of the EU RoHS directive, the large-scale adoption of eco-friendly wires and cables has become a global trend. In recent years, due to the rapid economic growth of emerging Asian countries, the world's wire and cable production centers have shifted to Asia, driving the rapid development of wire and cable industries in China, India, Vietnam, the Philippines, and Egypt in the Middle East. Due to European unification and relatively low manufacturing costs, the wire and cable industry has grown rapidly.

2. The development status of China's wire and cable

The wire and cable manufacturing industry has the largest output value among more than 20 sub-sectors of the electrical and electrical industry, accounting for a quarter of the output value. The development of China's wire and cable industry presents two characteristics: in general, the overall scale of the wire and cable industry is growing; in terms of structural subdivision, the proportion of power cables in the wire and cable industry continues to increase, and the market space for power cables is still relatively high. optimism. With the rapid development and continuous expansion of China's electric power, petroleum, chemical, urban rail transit, automobile and shipbuilding industries, especially the accelerated transformation of power grids and the successive construction of UHV projects, the scale of the wire and cable industry has grown rapidly. From 2006 to 2010 The average annual growth rate is 27.62%, far exceeding the GDP growth rate. The total industrial output value of the wire and cable manufacturing industry has risen from 413.161 billion yuan in 2006 to over 925.5 billion yuan in 2010. my country has become the country with the largest wire and cable manufacturing scale and the largest market consumption scale in the world.

In recent years, the proportion of the total industrial output value of my country's wire and cable manufacturing industry in GDP has increased year by year. It exceeded 2% in 2007. In 2009, it was affected by the international financial crisis. Its status in the national economy is becoming more and more important.

The number of wire and cable enterprises in my country is large and small, and the industry concentration is low. Its performance is as follows: there are more than 9,000 large and small enterprises in China's wire and cable industry; in 2010, among the 4,765 wire and cable enterprises above designated size (5 million and above), 29 large enterprises have only 14% of the market share. This highly fragmented pattern not only makes it difficult to obtain economies of scale, but also exacerbates excess production capacity and excessive competition in the market.

The regional distribution of enterprises in my country's wire and cable industry is also very obvious, mainly concentrated in East China, Central China and North China, while the central and western regions have a smaller proportion. Among them, the cable industry in East China is the most prominent, occupying half of the industry, and has relatively obvious advantages in terms of scale, strength and income efficiency.

The capital structure of my country's wire and cable industry is increasingly diversified, the status of state-owned and state-controlled enterprises in the industry has weakened, and the proportion of private and foreign investment has increased significantly. In the field of medium and low voltage wire and cable production, domestic private enterprises have become the leading force in the industry. According to the statistical results in 2010, the share of output value of privately held enterprises in the wire and cable industry is 69%, the number of enterprises is 75%, the proportion of employees is 55%, and the proportion of profits and taxes is 71%. Large-scale projects using wires and cables generally use bidding to determine suppliers. Large foreign cable companies are still in a favorable position in some industry competition due to their technical advantages. At the same time, private enterprises rely on technological innovation, cost advantages and flexible mechanisms. The gradual increase in market share and the growing strength of the private economy have promoted the market-oriented operation mechanism in the industry.

In the product structure of the domestic wire and cable industry, power cables, electrical equipment wires and cables, and winding wires account for the main part, and are mainly used in major fields such as electric power, communication, construction, transportation, automobiles, ships, and household appliances. Among the major categories of wire and cable products in my country, which are characterized by the amount of conductors, the amount of copper used in power cables, electrical equipment wires and cables, and winding wires accounts for 89.00% of the total amount of copper used in the industry, and the amount of copper used in communication cables and other products is relatively low.