Overview of the ceramic industry and focus on home furnishing hot spots.
Hello everyone! Today is April 10, 2022. Welcome to this week’s "China Ceramics Daily·Weekly Hot Comments".
For ceramic people in Foshan, what happened this week can be said to be a change of circumstances, which is hard to accept: during the Qingming Festival holiday that just passed, many people may have been out and about admiring flowers and lamenting that life is still beautiful; but just A few days have passed, and I believe many people have gone through several rounds of nucleic acid tests. At this moment, they are staring at the "Guangdong Province" on their mobile phones to see if the results of the latest nucleic acid test have come out.
After reading this, everyone must have guessed that the new coronavirus epidemic will be indispensable in today's hot comments.
01 Where will ceramic people go during the epidemic?
On the afternoon of April 8, the property management parties of Huaxia Ceramics Expo City, China Ceramics Headquarters Base, Ceramic Sea International, and Green Island Plaza in Nanzhuang Town all followed the requirements of their superiors. The territory is under closed management with only one channel remaining, and a 24-hour nucleic acid test is required before entry.
On the evening of April 8, the nucleic acid testing site in Huaxia Taobo City, Nanzhuang Town opened an additional night session. The specific testing time is 18:00-20:00. The test subjects are the permanent residents of Nanzhuang who have not participated in the nucleic acid test on that day (except those who have been vaccinated within 48 hours).
Source: Huaxia Ceramics Network
Commentary:
Not to mention other industries, just look at the direct impact of this round of COVID-19 on the ceramic industry? Just take a look at Foshan, which is known as the "Pottery Capital of Southern China" and the "Citer Capital of China" and has Nanzhuang, the "No. 1 Ceramic Town in China".Got it. The following content is collected and compiled from the WeChat public account "Foshan Release":
On April 6, our city discovered asymptomatic infections among truck drivers (who came to Foshan from other provinces) and their related personnel in key places; on April 7, our city found out that truck drivers (who came to Foshan from other provinces) and their related people were infected. Two new cases of asymptomatic infections were discovered during the investigation of personnel in key places; from 18:00 on April 7 to 24:00 on April 8, 5 new cases of asymptomatic infections were found in our city, and they were key personnel related to positive cases of truck drivers from other provinces.
Starting from April 8, temporary control measures will be implemented in some areas of Nanzhuang Town. Closed control area: Hanliang Lane, Dongcun Village, implementing the management measures of "area closure, staying at home, and door-to-door services"; controlled area: south of Kuiqi West Road, east of Chanxi Avenue, and west of Nanzhuang Avenue In the residential area, the management measures of "no people leaving the area, taking things at staggered peaks, and strictly prohibiting gathering" are implemented; prevention area: south of Kuiqi West Road, east of Chanxi Avenue, west of Dongping River Embankment, and north of the east extension of Nanzhuang Avenue , in areas other than sealed and controlled areas, management measures to "strengthen social control, strictly limit the gathering of people, and prevent people from leaving unless necessary" are implemented.
Starting from April 8, temporary control measures will be implemented in some areas of Xiqiao Town. Blockade areas: Yuelong Waterfront Garden Dongmenggang, Youle Xiaoming Milk Tea Shop on Runli Liyuan Baiye Avenue, Xiangchuan Yuecheng Fast Food downstairs in Yuelong Waterfront Garden, Room 104, No. 22, Yuantou, Zhutang Village, Hegang. Implement the management measures of "area closure, stay at home, door-to-door services"; control areas: Buildings 5, 6, and 8 of Yuelong Waterfront Garden, No. 22 Yuantou, Zhutang Village, Hegang, Shop Mala No. 4, Jinyide Commercial Plaza For scalding beef offal, the management measures of "no people leaving the area, picking up items at staggered peak hours, and strictly prohibiting gatherings" are implemented; the prevention areas: Hegang Zhutang Village and Yuelong Waterfront Garden Community implement "strengthening social control and strictly restricting gatherings of people. "People should not leave unless necessary" management measures.
Since April 9, the city’s singing and dancing entertainment venues (KTV), bars, Internet cafes, chess and card rooms, mahjong parlors, amusement game halls, script killing, escape rooms, foot massage and other places have suspended operations; the city’s agricultural trade (fair trade) ) Markets, restaurants, pharmacies, wholesale markets, shopping malls and supermarkets, hotels (guesthouses), tourist attractions, cinemas, gyms, gymnasiums, swimming pools, libraries, theaters, beauty salons and other places must strictly implement temperature measurement, itinerary card checking, and site sweeps Prevention and control measures such as maintaining a distance of 1 meter and wearing masks.
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You don’t have to go to entertainment venues, you don’t have to have dinner together, but it’s impossible for ceramic people to stop and not “move bricks”. The family has to be supported, and the mortgage has to be paid, right? !
So far, ceramic people, who are an important part of the residents of Nanzhuang Town, have participated in five rounds of large-scale nucleic acid testing. At the same time, the China Ceramics ExpoCeramic industry bases with relatively dense ceramic brands, such as China City and China Ceramics Headquarters Base, have strengthened personnel entry and exit controls, requiring entrants to hold a 24-hour nucleic acid negative certificate. Zhongtaojun learned that many ceramic companies’ employees with yellow codes are not allowed to go to the office to work.
As for whether employees with yellow codes who are not allowed to work in the office will be idle at home without wages or work from home and receive wages, it depends on the one hand how strong the humanitarian spirit and social responsibility of the ceramic company they work for, and on the other hand it depends on Because of how rich the family background of these ceramic enterprises is.
However, no one is immune to the epidemic. We need to look at the problem from another perspective. At this time, it is not only ordinary ceramic workers who are migrant workers who feel the pressure, but also the owners and executives of ceramic companies, especially the owners and executives of small and medium-sized ceramic companies that have been in deep trouble in the past two years or so. The pressure is even greater.
According to industry media reports, since mid-March, production and sales in large ceramic production areas such as Zibo in Shandong, Faku in Liaoning, Jinjiang in Fujian, Gaoan in Jiangxi, Fengcheng in Jiangxi, Zhaoqing in Guangdong, and Jiajiang in Sichuan have been affected by the epidemic. Faced with challenges and problems such as workers not being able to come to work, raw materials not being transported, and ceramic tiles not being shipped out, some companies in production areas such as Jiangxi, Hubei, and Sichuan saw sales decline by 30%-50% month-on-month in April.
If the epidemic continues to worsen and epidemic prevention continues to be stepped up, Foshan, as the highland of China's ceramic industry, will face a worse situation than other ceramic production areas. Once this happens, the bosses and senior executives of ceramic companies will naturally bear the brunt, and ordinary ceramic people will also be greatly affected.
Therefore, ceramic people must strictly abide by the government's epidemic prevention regulations, and at the same time, they must be considerate of each other - bosses and senior executives understand the hardships of ordinary employees, and ordinary employees understand the hardships of bosses and senior executives. Only by working together can ceramic people overcome difficulties together.
02 The real estate market is unlikely to improve in the short term< /p>
Ceramic companies and dealers must work harder
From January to March 2022, the average sales of the TOP100 real estate companies was 16.26 billion yuan, a year-on-year decrease of 47.2%; among them, 2 real estate companies had sales exceeding 100 billion yuan, which was 16.26 billion yuan compared with last year. There were 3 less companies in the same period; there were 46 real estate companies with over 10 billion yuan, 30 less than the same period last year. The average equity sales of the TOP100 real estate companies is 119.5 yuan, and the average attributable sales area was 851,000 square meters, a year-on-year decrease of 47.6% and 48.1% respectively.
During the same period, leading real estate companies frequently reported negative news: Evergrande on January 3; R&F on January 6; Sunac on January 19; Zhenrong on February 18; Sunshine City on March 18; 3 On March 25, Blu-ray Development; on March 27, SRE Group; on March 28, Sunac China; on March 29, Jianye Group...
On January 17, the National Development and Reform Commission issued a document proposing to promote the healthy development of housing consumption, strengthen anticipatory guidance, explore new development models, support the commercial housing market to better meet the reasonable housing needs of home buyers, and implement city-specific policies to promote a virtuous cycle and healthy development of the real estate industry. .
On March 4, the China Banking and Insurance Regulatory Commission issued a document proposing to meet the reasonable credit needs of new citizens for home purchase, reasonably determine the standards for first-home mortgage loans for new citizens who meet the conditions for home purchase, and improve the convenience of borrowing and repayment.
On March 5, the State Council's "Government Work Report" set the tone: continue to ensure the people's housing needs, adhere to the positioning that houses are for living in, not for speculation, explore new development models, insist on both renting and purchasing, and accelerate the development of long-term development. In the rental market, we will promote the construction of affordable housing, support the commercial housing market to better meet the reasonable housing needs of home buyers, stabilize land prices, house prices, and expectations, and implement city-specific policies to promote a virtuous cycle and healthy development of the real estate industry.
On March 16, the Financial Affairs Committee of the State Council held a special meeting and emphasized that it is necessary to effectively revive the economy in the first quarter, monetary policy must be proactive, and new loans must maintain moderate growth. Regarding real estate companies, it is necessary to promptly study and propose effective and effective risk prevention and response plans, and propose supporting measures for transitioning to a new development model. Relevant departments must earnestly shoulder their responsibilities, actively introduce policies that are beneficial to the market, and prudently introduce contractionary policies.
Immediately afterwards, five ministries and commissions including the central bank, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange, and Ministry of Finance quickly expressed their stance and released a strong signal of "stabilizing real estate." Among them, the relevant person in charge of the Ministry of Finance said in an interview that the real estate tax reform pilot was carried out in accordance with the authorization of the Standing Committee of the National People's Congress. Some cities have carried out surveys and preliminary studies. However, taking into account all aspects of the situation, there is no need to expand the real estate tax this year. conditions for tax reform pilot cities.
Source: China Housing Industry Association
Commentary:
Although relevant central ministries and commissions have made intensive statements on the real estate industry since the beginning of the year and released strong confidence in maintaining stability, it can basically be judged based on the real estate situation in the first quarter of 2022:
The real estate market is unlikely to improve in the short term. Whether the market decline can be reversed, whether market confidence in lower-tier cities can be restored, and whether policy bailouts can bring new increments are all unknown for the time being.
Therefore, the home building materials industry, including building ceramics, which can be said to exist dependent on the real estate industry, will not be much better.
But we can still firmly believe that: in view of the important role and significance of real estate to China's economy, the fundamental purpose of the country's macro-control of the real estate industry is not to suppress its development, but to stabilize land prices, house prices, and expectations. The "three stability" goals are to meet the people's needs for a better life.
At the same time, we are pleased to see that many leading companies have begun to attach importance to improving their "delivery capabilities" and "service capabilities."
This is both a challenge and an opportunity for ceramic companies and dealers who are suppliers to real estate companies - only by working hard on products and services can they adapt to real estate companies and improve their "delivery power" and "service power" ” requirements, thereby standing out in the fierce competition in the real estate decoration channel.
03 Dow Technologies plans to increase its investment in Griffin by RMB 600 million
Introducing BYD and other strategic shareholders
Dow Technology announced on the evening of April 8 that it plans to increase investment in Griffin, the operating platform of the company's carbon materials business segment, by the company and the employee stock ownership platform, and to introduce BYD and others Strategic shareholder, plans to increase capital by RMB 600 million. Among them, BYD will increase its investment in Griffin by 100 million yuan through cash contribution from its own funds, and subscribe for Griffin's new investment.The registered capital is 15.6 million yuan. After the completion of this capital increase, Griffin will still be a controlled subsidiary within the scope of the company's consolidated statements.
Source: Securities Times
Commentary:
In fact, increasing the capital of Griffin by 600 million yuan and introducing strategic shareholders such as BYD is not the first step for Dow Technology to lay out the new energy field. Since 2015, Dow Technology, which originally belonged to the ceramic industry, has gradually formed a new material industry layout of "new energy materials + ceramic materials" after completing the acquisitions of Hongrui New Materials, Guangdong Jiana and Qingdao Haoxin.
In 2014, Dow Technology’s revenue was 447 million yuan, a year-on-year increase of 39.94%, and its net profit was 72 million yuan, a year-on-year increase of 19.99%. The revenue structure that year was 155 million yuan for ceramic ink, 151 million yuan for full-throw printing glaze, and 151 million yuan for basic printing glaze. Glaze 081 million yuan, others 59 million yuan.
After initially forming a "two-wheel drive" business pattern of ceramic glazed materials and new energy materials in 2017, its revenue increased to 1.696 billion yuan, a year-on-year increase of 110.99%, and its net profit was 152 million yuan, a year-on-year increase of 50.40%. The revenue structure is ceramic ink 433 million yuan, full throw printing glaze 244 million yuan, basic glaze 164 million yuan, cobalt salt 379 million yuan, ternary precursor 309 million yuan, conductive agent 113 million yuan, and others 54 million yuan.
In 2018, Dow Technology’s revenue reached 3.544 billion yuan, a year-on-year increase of 109%, and its net profit reached 220 million yuan, a year-on-year increase of 44.66%. Among them, the revenue of new energy materials was 2.171 billion yuan, accounting for 61.26% of the total revenue, surpassing ceramic glazed materials for the first time.
Dow Technology's "2021 Performance Express Announcement" shows that its profit in 2021 will be 495 million yuan-605 million yuan, a year-on-year increase of 717.96%-899.73%.
Based on Dow Technology’s revenue of 4.602 billion in the first three quarters of 2021, it is very likely that its revenue in 2021 will exceed 6 billion yuan.
Some ceramic people believe that it is just around the corner that a tens of billions enterprise will appear again in the ceramic industry, and they are proud of it.
But some ceramic people have different views on this: Even if Dow Technology’s revenue in 2021 will beAlready exceeding 10 billion, it cannot be said that this is the development result of the ceramic industry. After all, its performance comes more from new energy materials; moreover, in a strict sense, Daoshi Technology is not a real ceramic company, but only an upstream company of ceramic companies. .
Zhongtaojun believes that it is an excellent thing that Dow Technology has opened up a new track across borders and achieved great success, and it has provided useful reference for ceramic companies to cross-border new tracks and achieve diversified operations.
Whether it is a black cat or a white cat, it is a good cat if it catches mice; whether it is a ceramic business or a new cross-border business, making money is a good business.
