There are signs that although China has become the world's largest cable producer, plays an irreplaceable role in the global wire and cable industry, but with the increase of production cost, arrears accounts receivable increased risk at present industry production value, sales volume, net profit decline for enterprises with further increase.

"From the beginning of 2012 to the first half of 2013, China's wire and cable industry showed the features of" three slippery and three increase ". Wu Shimin, Deputy Secretary General of wire and cable branch of China Electrical Industry Association, has made a deep analysis of the current development of China's wire and cable industry at the recent 2013 China wire and cable industry conference.

He said that at present, China's wire and cable enterprise production scale, the scale of sales, net profit decline significantly, the profitability of the business development, reduce the weakness; at the same time, the enterprise also appeared in production costs, the cost of three, arrears accounts receivable growth, the enterprise funds face pressure increases, increases the risk of.

In fact, with the new development of electric power industry, data communication industry, urban rail transit industry, aerospace industry and shipbuilding industry, the demand for wire and cable is increasing. "2012-2016 years' analysis report on the macro investment environment and industry development trend of the wire and cable industry in the past 2012-2016 years" shows that during the "12th Five-Year" period, the acceleration of China's railway construction will bring huge demand for the market of locomotive cables, communications and signal cables.

Moreover, in the next 5 years, with the implementation of West to East power transmission and power grid transformation and the gradual development of urbanization, the market capacity of China's wire and cable will grow at a rate of 8%~9%.

However, the further increase of market demand did not make the development of enterprises improve, but it was due to overcapacity and tight capital turnover. Some small and medium-sized enterprises were facing difficulties in stopping production and being on the verge of bankruptcy.

According to the official data of the National Bureau of statistics, as of April 2013, the profit rate of domestic cable manufacturers is 4.15%, and the actual profit margins of many cable enterprises have been reduced to 3%, far below the level of 5.54% in 2012.

In response, Wu Shimin also agreed that he said that the economy of wire and cable industry had been greatly affected. Although the overall growth trend could be maintained, the overall growth rate narrowed. The growth rate began to slide from the past two digits to enter (or approach) the growth interval of digits.

The data showed that in the 1-12 month of 2012, the industrial added value of the cable industry increased by 12.4% over the same period. As of August 2013, the cumulative growth of the data has fallen to 9.9%. At the same time, at the same time, the number, the loss surface and the loss of the loss enterprises in the industry continue to spread and increase. As of December 2012, the number of industry losses of 467 enterprises, the loss continues to expand, up to 12%; the total loss of 2 billion 70 million yuan, down 390 million yuan; as of July 2013, the number of trade deficit enterprises further increased to 664, the loss amounted to 16.8%, the total loss of 2 billion 20 million yuan.

At the same time, Wu Shimin also pointed out that as of July 2013, the total cost of the industry increased by 12.1% compared with the same period last year, of which business expenses increased by 6.5%, management fees increased by 15.6%, financial expenses increased by 3.5%, and three expenses increased by 9.9%.

In the opinion of the experts in the industry, the multiple reasons have caused the above situation. First of all, China's wire and cable industry concentration is low, more than 95% of the enterprises in the industry are small and medium-sized enterprises, in the bidding process, their price competition in the main line, and continuously improve product quality control ability is weak, the market competitiveness is not strong; secondly, the independent innovation ability of small and medium enterprises lack, most enterprises weak technological base, lack of professional personnel, product homogeneity serious; moreover, the customer payment is not reasonable, plus the price of raw materials, makes a lot of corporate liquidity greatly diminished, the financial management more difficult.

In the face of the market demand that has already opened, how to seize this rare market opportunity has become an important issue in front of every wire and cable enterprise. In this regard, Wu Shimin said the industry to take advantage of market opportunity, really encouraged by the integration of assets, integration of excellent assets; two is to encourage enterprises to carry out technological innovation, improve product quality, promote technological upgrading of products and improve the industrial chain; three is to promote the use of products, the protection of national industry.

He stressed that the current cable industry overcapacity is repeatedly stressed in a number of industries for five years in the planning, but also the cause of the formation of industry vicious spiral competition, "now further highlights the overcapacity problem, in some areas (such as high voltage cable) or even the long-term excess. To resolve the problem of overcapacity in the cable industry need to limit policy serious industry executive, on energy consumption and green manufacturing industry set up barriers to entry and dynamic adjustment, forced the elimination of backward production capacity, while the long-term product quality or quality is not in place, illegal enterprises forced out of the market."