Economic performance of Chinese machinery industry in the first half of 2020 at a glance

In early 2020, the sudden onset of the new coronary pneumonia epidemic on the normal operation of China's economy and society has a significant impact, but also on the development of machinery industry to bring unprecedented impact. Since March, in the party central committee, the state council to promote the epidemic prevention and control and economic and social development work under the deployment of government departments promptly introduced tax reduction, help enterprises to help enterprises, stable employment and other policy measures, machinery industry enterprises actively fight the epidemic, speed up the resumption of work and production. Especially after entering the second quarter, the production and operation order basically returned to normal, the industry economic operation indicators are obviously stabilized.

Outlook for the second half of the year, with the gradual release of macroeconomic policy effects, machinery industry demand market will continue to recover, the operating environment continues to improve. But due to the overseas epidemic there is still greater instability and uncertainty, the international economic and trade situation is increasingly severe and complex, machinery industry is still facing greater downward pressure.

First, the first half of the machinery industry operating profile.

Affected by the epidemic, the beginning of the mechanical industrial production operation suffered a huge impact, 1-2 months the main economic indicators fell, began to stabilize in March, into the second quarter after the stabilization of the trend of better clearer.

(A) value added decline significantly narrowed

The National Bureau of Statistics data show that in the first half of the machinery industry value added fell 1.5% year-on-year, significantly narrower than the first quarter of 17.5 percentage points, 0.2, 0.1 percentage points lower than the same period of the national industry and manufacturing sector. June month value added of the machinery industry grew 9% year-on-year, higher than the same period of the national industry and manufacturing sector 4.2 and 3.9 percentage points.

The first half of the machinery industry is mainly involved in the five national economy industry categories, special equipment manufacturing value added has achieved positive growth, up 2.9%; general equipment manufacturing, automobile manufacturing, electrical machinery and equipment manufacturing and instrumentation manufacturing value added fell by 2.3%, 3.1%, 0.3% and 0.7% year-on-year, down 14.9, 22.9, 12.6 and 15.4 percentage points narrower than in the first quarter. 12.6 and 15.4 percentage points from the first quarter.

(II) Gradual recovery of production of major products

At the beginning of the year by the epidemic caused by the impact of the postponement of resumption of work, the mechanical industry focus on monitoring the production of 120 kinds of major products fell sharply, 1-2 months only 2 kinds of product production growth. Since then, with the continued advancement of the resumption of work and production, the production of enterprises gradually recovered, and the number of key monitored products to achieve output growth in the increasing number of products. In the first half of the year, there are 36 kinds of products production growth, accounting for 30%; production decline in products still have 84 kinds, accounting for 70%. From the data of the month, 4, 5, 6 consecutive three months of monthly output growth of more than 75 kinds of products.

The overall market situation for the main products of the machinery industry was as follows: the market for investment products recovered a little faster than expected! The recovery of the consumer products market was slower than expected. Specifically: first, thanks to infrastructure investment and energy construction related to the recovery and start of the project, construction machinery, power generation equipment production and sales of faster growth. Excavators, loaders, compaction machinery and concrete machinery in the first half of the construction machinery products such as overall growth in output, excavators and concrete machinery production increased by more than 20%; Association statistics for May, June excavator sales growth of more than 60%. Power generation equipment production in the first half of the year increased by 16.71%, including hydroelectric generator sets and wind turbine production increased by 136.86% and 78.82% respectively, and gas turbines increased by 41.09%. Second, the production of some agricultural products faster recovery, the first half of the large tractor production increased by 33.51%, medium tractor production increased by 4.54%, cotton processing machinery increased by 34.78%. Third, with the new infrastructure, people's livelihood infrastructure construction and intelligent manufacturing-related products production rebounded in the first half of the optical cable production growth of 6.25%, solid waste disposal equipment production growth of 61.25%, industrial robotics growth of 10.31%, industrial automatic regulation instrumentation and control system growth of 0.64%. Fourth, automobile production and sales continue to stabilize, the association statistics in the first half of automobile production and sales were completed 10.112 million units and 10.257 million units, down 16.8% and 16.9% year-on-year, the decline is significantly narrower than the beginning of the year. Fifth, passenger cars rebounded slowly, consumer products representative of passenger cars in the first half of the production and sales fell by 22.5% and 22.4% year-on-year, affected by the slow recovery of the consumer market, passenger car production and sales growth compared with the previous few months, although significantly narrowed, but still did not reach the ideal state.

(iii) The main economic indicators stabilized significantly

Mechanical industry in the first half of the cumulative operating income of 9.55 trillion yuan, down 4.94%, a continuation of the stabilization trend since March, down 19.17 percentage points narrower than the first quarter; cumulative total profits of 552.52 billion yuan, down 7.09%, also a continuation of the stabilization trend since March, down 49.49 percentage points narrower than the first quarter; business The revenue margin was 5.79 percent. Compared with the national industry, the first half of the machinery industry operating income and total profit decline than the national industry narrowed 0.23 and 5.76 percentage points, operating income margin of 0.35 percentage points higher.

(iv) The main sub-industry recovery is still unbalanced

The first half of the mechanical industry non-automotive industry operating income fell 2.98% year-on-year, the decline is less than the overall level of the machinery industry, and narrower than the first quarter of 16.91 percentage points; Among them, agricultural machinery, internal combustion engines, construction machinery, robotics and intelligent manufacturing 4 sub-industry operating income year-on-year growth. Non-automotive industry total profit year-on-year by the quarter down 39.98% for the first half of the year growth of 2.11%, 9.2 percentage points higher than the overall level of the machinery industry; Among them, agricultural machinery, internal combustion engines, construction machinery, instruments and meters, heavy mining, machine tools, machinery basic parts, food packaging, robotics and intelligent manufacturing 9 sub-industry total profit growth.

Automobile industry operating income in the first half of the year fell 8.1% year-on-year, total profits fell 20.23%, two indicators of the decline in the beginning of the year, although significantly narrower, but still lower than the overall level of the machinery industry.

(V) Foreign trade declined year-on-year

Customs data show that in the first half of the year, the machinery industry accumulated a total import and export volume of 344.2 billion U.S. dollars, down 7.84% year-on-year. Among them, imports were $138.6 billion, down 8.54 percent year-on-year; exports were $205.6 billion, down 7.37 percent year-on-year. Compared with the first quarter, the total import and export declined by 1.99 percentage points, import declined by 1.58 percentage points, and export declined by 4.44 percentage points. In the first half of the year, the machinery industry accumulated a trade surplus of 67 billion U.S. dollars.