Experts believe that many Chinese hardware mold companies are currently facing challenges, including limited funding and a lack of strong brand recognition. In response, these firms are expected to invest more in management improvements and technological upgrades, aiming to increase the share of high-end products in their portfolios. They are also setting up domestic sales departments to better tap into the growing local market.
Looking ahead, analysts anticipate a significant rise in the profits of Chinese industrial companies over the next few months. Following the recovery of the world's second-largest economy, the fourth quarter of last year saw a rebound in industrial profits, signaling a positive trend for the sector.
Data from December 2022 showed that the total profit of large-scale industrial enterprises in China rose by 17.3% year-on-year to 895.2 billion yuan (US$144 billion), marking the third consecutive month of double-digit growth. However, this comes after eight months of declining profits in 2022, which created uncertainty among investors and led the government to implement looser monetary policies and boost infrastructure spending to stimulate growth.
According to the leader of the China Manufacturing Champions League, "We expect an average profit growth of 30% for industrial companies in 2023, with the highest growth rate likely occurring in the third quarter." The anticipated improvement is attributed to increased infrastructure and real estate investment, modestly rising export demand, falling raw material prices, and a low base from 2022. This would mark a strong recovery compared to the 5.3% growth recorded in 2022.
While the Chinese economy grew by 7.8% in 2022—the lowest in 13 years—economic activity rebounded sharply in the final quarter, helping industrial profits escape negative territory. “We expect the economic rebound to continue at least through the first half of 2023, and the profitability of mold and die industry companies should follow suit,†experts say.
Despite the overall improvement in industrial profits, some sectors remain under pressure due to overcapacity and slow industry growth. Out of the 41 industries surveyed by the National Bureau of Statistics, 29 reported profit increases. However, steel producers saw a 37% drop in profits, while chemical companies' earnings fell by 6%. On the other hand, power generation companies experienced a 69% surge in profits, and mold manufacturing companies saw gains of over 20%, with food processing companies also rising nearly 21%.
State-owned and state-controlled enterprises saw their profits decline by 5.1% in 2022, reaching 1.42 trillion yuan. Even though China's economic growth hit its lowest level in 13 years, it still contributed roughly one-third of the global economic growth of 3.2%.Micro diaphragm pump,industrial pump,liquid transfer pump,diaphragm water pump,Gas diaphragm pump
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