Overview of the ceramic industry and focus on home furnishing hot spots.
Hello everyone! I am Zhongtao Jun. Welcome to this week's "Zhongtao Daily·Weekly Comments".
Let us take a look at the hot spots that Zhongtaojun is paying attention to in the last week or so of the first quarter of 2022——
The annual reports of real estate companies are dense and "difficult to give birth"
3 companies have confirmed that trading will be suspended from April 1st
As of now, there are at least China Evergrande, Shimao Group, Sunac China, Xinli Holdings, Kaisa Group, Ronshine China, Modern Land, Fantasia Holdings, R&F Properties, More than a dozen real estate companies, including Sunshine 100 China, Powerlong Real Estate, China Aoyuan, and Xiangsheng Holdings Group, announced that they would postpone the release of their annual reports. Among them, six companies including Kaisa Group, China Aoyuan, Sunshine 100 China, Sunac China, Modern Land, and Fantasia Holdings have clearly or are expected to suspend trading from April 1.
Source: Sino-Singapore Jingwei
Comments:
When this industry is in turmoil, I believe listed real estate companies know better than anyone how important it is to submit "exam papers" on time. But even so, delays in issuing annual reports are still common. More than 20 real estate companies have announced postponements of annual reports. The reasons for the postponement are various - the epidemic has affected the audit process, the deterioration of liquidity has made audits complicated, and the company has temporarily changed its auditors. The main financial personnel resigned, etc. Most of the real estate companies that release their annual reports as scheduled choose March 30 and 31 to do so——Because this can distract the market's attention and prevent public opinion from focusing all its firepower on one company.
Although listed real estate companies are not the whole of the real estate industry, it can at least be seen that the real estate industry is indeed in a bad situation. Economist Ren Zeping and his team wrote an article stating that the current real estate situation is more depressed than in 2008 and is the worst in the past 20 years. The data is proof:
In March, the number and area of commercial housing sales in 30 large and medium-sized cities were both -48.5% year-on-year, a halved decline.
From January to February, the land purchase area and land transaction price were -42.3% and -26.7% respectively, down 26.8 and 29.5 percentage points respectively from the same period in 2021; the amount of land acquired by the top 100 real estate companies decreased compared with the same period last year 62.7%.
From January to February, real estate development companies had 2,514.3 billion yuan of funds in place, a year-on-year decrease of 17.7%. Among them, domestic loans were 410.5 billion yuan, a decrease of 21.1% year-on-year; foreign capital utilization was 700 million yuan, a decrease of 27.4%; self-raised funds were 775.7 billion yuan, a decrease of 6.2%; deposits and advances received were 802.7 billion yuan, a decrease of 27.0%; personal mortgage loans were 4,124 billion, down 16.9%.
According to statistics, more than 60% of the top 50 private real estate companies have experienced severe cash flow constraints, or even defaulted on their public market debt. Upstream and downstream suppliers have begun to only accept cash transactions.
……
As the largest pillar industry of the national economy, the largest source of revenue for local governments, the most important wealth of residents, and the largest risk exposure of banks, the real estate industry has a huge impact on all aspects. As the source of the home building materials and decoration industry, the impact of the real estate industry on the ceramic tile market is self-evident.
The fundamentals of the industry are like this. Ceramic people should not fantasize about the "gold, three, silver and four" decoration peak season, "the most beautiful April day in the world" and other beautiful days.
For a long period of time in the future, many ceramic companies must fight on three fronts. On the one hand, they must work hard to do a good job in "dual carbon and dual control", and on the other hand, they must flexibly respond to the rising prices of natural gas, oil, and raw and auxiliary packaging materials. , on the other hand, we must be careful to avoid stepping on the hidden "mines" of the real estate market. This may become the new normal in the ceramics industry.
There are 24 ceramic companies in Jiangxi, Fujian and Guangxi undergoing technical renovation of their production lines
Three ceramic companies invested 4.3 billion yuan to build 12 new lines
According to incomplete statistics from Tao Chengjun, since 2022, at least 24 ceramic companies across the country are preparing to upgrade their production lines or increase production through technical reforms, such as Marco Polo’s Jiangxi Hemei Ceramics, Jiangxi Aesthetic Ceramics, Jingdezhen Oceano, Jiujiang Nobel, etc. In addition, a total of 8 new production line projects of ceramic companies in Guangdong, Jiangxi, Fujian and other places have passed the investment filing online approval, which involves the construction of smart ceramic home industrial parks, the production of special high-performance ceramic plates, antique exterior wall tiles, floor paving stones, ceramic curtain walls, etc. . Among them, Marco Polo's three ceramic companies, Jiangxi Jiamei Ceramics, Fengcheng Dongpeng, and Jiangxi Nobel New Materials, have a total investment of more than 4.3 billion yuan and will build 12 new lines.
Source: Taocheng Daily
Comments:
This passage is excerpted from a report published by Taocheng Daily’s WeChat public account a few days ago. Yesterday, the Ceramic Industry News WeChat public account also published an article about the expansion of ceramic enterprises, "On April 1, Xinruihong Enterprise Group Greely Ceramics has a daily production capacity of 35,000 square meters of green intelligent high-end 750×1500mm The ignition and commissioning ceremony of the large slab line was grandly held. "According to statistics, four ceramic companies in Jiangxi, namely Nobel, Jiamei, Hemei and Fengcheng Dongpeng, will add 12 new lines, with a total investment of more than 4.3 billion yuan. Laili Ceramics' investment in new large-board lines and technical transformation lines such as Augute, Geshiqi and Obama. Under the current severe situation of the ceramics industry, the new investment in Jiangxi production areas this year may exceed 5 billion."
Commodity prices are rising one after another, real estate booms are happening one after another, and the new crown epidemic at home and abroad continues to recur... At this moment, which is called the "darkest moment" of the ceramic industry, why is there still a serious shortage of production capacity in the entire industry? There is a surplus, but on the other side there is the strange phenomenon of ceramic companies constantly expanding production and capacity? This issue needs to be looked at from different angles. Ceramics companies have different backgrounds and purposes for expanding production and capacity, which can basically be summarized into three situations.
One situation is that some high-quality ceramic companies, especially leading ceramic companies, take advantage of the trend to expand. In recent years, due to the rapid increase in their market share, the original production capacity cannot meet the market demand, or they are still optimistic about the development of slate, so they have expanded new lines or transformed production lines through mergers and acquisitions to expand production capacity.
Another situation is that some ceramic companies replace old and new production capacity in order to adapt to market changes. Since some old production lines cannot adapt to the production requirements of new products needed by the market, they choose to build new production lines or renovate and upgrade old production lines to rearrange or optimize the product structure.
There is also a situation where some ceramic companies are forced to adjust their production lines due to pressure from environmental protection. In the context of increasingly stringent environmental protection policies, especially when "dual carbon and dual control" has become a national policy, because some old production lines do not meet environmental protection requirements, they can only upgrade and renovate old production lines, or simply build factories in other places.
No matter what the situation is, the expansion of production and capacity should move closer to green, automation and intelligence. Otherwise, it will not only fail to meet the requirements of the national "dual carbon and dual control" policy, but also have no market competitiveness. .
"Foshan Standard" products can be returned within seven days without any reason
On March 22, the Foshan Municipal Administration for Market Regulation issued a notice on the issuance of the "Foshan Standard Products Consumer Rights and Interests Protection Fund Management Measures" to accelerate the construction of "high-quality products without A worry-free consumption environment. Foshan Standard Products has established a product evaluation index system from the six dimensions of standards, quality, innovation, efficiency, and social responsibility, and completed the first batch of Foshan standard product evaluations in the fields of ceramics, sanitary ware, and home appliances. The special funds set up by the Foshan Municipal Government include two parts: the seven-day no-reason return of Foshan standard products, advance funds for returns within the validity period of the Three Guarantees, and subsidies for enterprises to purchase Foshan standard product liability insurance. Through a series of measures, Foshan will build and implement the trinity of consumer rights protection measures of "seven days of no-reason returns, advance payment, and product liability insurance".
Source: Foshan Daily
Comments:
Compared with the difficulty of after-sales service for ceramic tiles, Foshan has launched a three-in-one consumer rights protection measure of "seven-day no-reason returns, advance payment, and product liability insurance" for Foshan's standard products, which is a significant event. On the one hand, for consumers, ceramic tiles can be returned without reason within seven days, and if the ceramic company that provides the products does not fulfill its main responsibility for refunds within the time limit, the management agency will advance funds from the Foshan Rongguan Fund. Carrying out advance payments was something that was simply unthinkable in the past. It can be called a milestone and huge progress. On the other hand, the ceramic tiles that are included in the Foshan standard product system are protected by such a policy, which will undoubtedly bring certain pressure to the ceramic tiles that are not in the Foshan standard product system or other production areas, making the market more dynamic.
However, Zhongtaojun believes that it is very important for the government to help ceramic companies protect the rights and interests of consumers after sales, and it is even more important for ceramic companies and their dealers to clearly tell consumers where the ceramic tiles they sell are produced before sales. . However, how many ceramic companies dare to do this? How many ceramic companies have the confidence to do this?
The common people are still far away from actually consuming ceramic tiles openly...
750×1500mm rock slab quickly became popular
Nearly 10 companies are in production in Sichuan
After the cooling of furniture slate, architectural decorative slate is now becoming an "Internet celebrity" product in Sichuan production areas. Up to now, more than 10 companies in Sichuan, including Guangle, Jintao, Jianxiang, Sophia, Jianhui, Jianyou, and Sifang, have/will soon produce architectural decorative slates. The main product specifications include 1200×2400, 800×2600, 900×2000, 900×1800, 750×1500, 600×1200, 800×800mm, etc. Among them, 750&time has the fastest sales growth and the largest number of production companies.s; 1500mm slate, but there are not many companies that have begun to produce architectural decorative slates with specifications of 900×1800mm and above.
Source: Pottery Information
Comments:
The popularity of 750×1500mm rock slabs used for architectural decorative rock slabs, does it mean that it is feasible for rock slabs to return to the ceramic tile channel?
Stone slabs come from the ceramic industry. Even if they cannot be completely regarded as an upgraded version of ceramic tiles, they must have a close relationship with ceramic tiles. The contradiction between the explosive growth of production capacity and the unsalable products and liquidated warehouses has put rock slabs into an embarrassing situation of being well-received but not popular. It has also created a problem for ceramic people who have followed the trend and devoted themselves to the development of rock slabs and want to use rock slabs to cross-border and rob the large home furnishing field. A basin of cold water. After the setback, slate still had to return to the ceramic tile channel and the arms of dealers.
Does this also prove the feasibility of ceramic tiles or ceramic tiles?
Will traditional tile dealers sell slate slabs that are very popular? Everything needs time to be tested.
