Industry dynamics of July 2023

Updated: Jul 31,2023 4:08 PM

1.The added value of strategic emerging industries accounted for over 13% of GDP, and the output value of national advanced manufacturing clusters exceeded RMB20 trillion


At the China-ASEAN Emerging Industries Forum, the relevant person in charge from the Ministry of Industry and Information Technology introduced that in 2022, the added value of strategic emerging industries such as new-generation information technology, high-end equipment and new energy vehicles accounted for more than 13% of GDP. In recent years, China has made great efforts to build a modern industrial system, and emerging industries have achieved rapid development.


The pace of industrial cluster construction has been accelerated, forming a number of advanced manufacturing and strategic emerging industrial clusters with national influence. Among them, there are 45 state-level advanced manufacturing clusters, and the output value of the clusters exceeded RMB20 trillion in 2022. There are 66 national strategic emerging industrial clusters in the first batch.


The new-generation information technology is developing rapidly. China has built a total of 2.84 million 5G base stations, and 5G applications have been integrated into 60 of 97 national economic categories. The size of artificial intelligence core industry has reached RMB500 billion, and the number of enterprises is nearly 4,000.


Advantageous industries are further consolidated and upgraded. In 2022, the annual output of industrial robots reached 443,000 sets, and the total newly installed capacity accounted for more than 50% of the world. Key components of clean energy equipment such as photovoltaic modules and wind turbines account for 70% of the global market share. The annual sales volume of new energy vehicles has reached more than 6.8 million units, ranking first in the world for eight consecutive years, and new energy vehicles have accounted for more than 1/4 of the total sales volume of new vehicles.


2.In the first half of this year, Nangang Terminal exported more than 150,000 vehicles, an increase of 186% year-on-year - China has jumped to become the largest automobile exporter


In the first half of this year, Shanghai Nangang Terminal exported more than 150,000 vehicles, an increase of 186% year-on-year. Since July, more than 20,000 vehicles have been exported, and the speed of automobile export has reached record highs.


According to the statistics of China Association of Automobile Manufacturers, China has jumped to become the largest automobile exporter in the world in the first half of this year. From Shanghai Nangang Terminal, automobile import and export trade has reached a new level in terms of quantity, ro-ro efficiency and covered routes.


In terms of routes, after the stable operation of Europe, New Zealand and other routes, Nangang Terminal opened a new direct route to North America in April, with exports covering Canada, the United States and other countries. In terms of traffic volume, there are 23 ro-ro ships with a single ship carrying more than 3,000 commercial vehicles, an increase of 176% over the same period of last year. It is normal for Nangang Terminal to be full of vehicles to be exported. In terms of efficiency, the average stay time of ro-ro ships at the Terminal has been shortened by more than 4 hours compared with the same period of last year.


In addition, the inbound and outbound distribution business of automobiles is newly added at the Terminal, and imported automobiles enter Yangshan Special Comprehensive Bonded Zone, and then are shipped overseas via Nangang Terminal. Up to now, Shanghai Nangang has collected and distributed more than 20,800 vehicles.


3.The big cycle of shipbuilding industry is coming: with the accelerated delivery of orders, listed shipbuilders are expected to meet the performance turnaround


Under the new cycle of shipbuilding industry, China's shipbuilding orders rank first in the world again. According to the data of the Ministry of Industry and Information Technology on July 12th, from January to June this year, China's shipbuilding completion, new orders and backlog orders accounted for 49.6%, 72.6% and 53.2% of the world total respectively in terms of deadweight tons, and 47.3%, 67.2% and 46.8% in terms of revised gross tons respectively, ranking first in the world.


From the production capacity clearing for many years to the recovery from 2020, the shipbuilding industry will usher in order delivery and initial performance fulfillment in the second half of 2023. According to the analysis of brokers, in the last cycle, the delivery time of newly signed ship orders ranges from one year to three years. It is expected that this round of delivery will start to accelerate redemption in 2023, and the performance of shipping enterprises is expected to gradually improve.


Although the shipbuilding industry ushered in a recovery cycle in 2020, the performance of most listed shipyards still lost money in the following two years. In 2021, five companies, including China Heavy Industry, China Shipbuilding, Guorui Technology, CSSC Defense and Zhongke Haixun, all suffered losses in net profit after deduction, and it still takes time for shipbuilding enterprises to improve their performance.


Clarkson data shows that since the beginning of this year, shipbuilding prices have continued to rise, and Clarkson Shipbuilding Price Index has risen for 13 consecutive weeks, up 3% from the beginning of 2023 and 33% from the beginning of 2021.


After 10 years of production capacity clearing, the utilization rate of active shipbuilding capacity in the world rose sharply year-on-year in 2021, reaching 93.9%. Most of the new orders received in 2022 in the world will be delivered after 2024, and the shipbuilding industry has shown tight production capacity.


Guangzhou Shipbuilding International ranks first in the world in terms of new orders for ro-ro ships, and most of them are LNG ships with high net profit. At present, it has undertaken 32 orders for 7000-9200 series ships, and its global market share has jumped to 25%, ranking first in the world in the automobile carrier market. Waigaoqiao Shipyard, the top five shipyards in China, is basically saturated.


The performance of shipbuilding enterprises has also shown a significant improvement trend. According to the data of China Shipbuilding Association, from January to May this year, 74 key monitoring shipbuilding enterprises achieved a cumulative income of 137.64 billion yuan, a year-on-year increase of 31.3%; Total profit was 4.64 billion yuan, turning losses into profits year on year. The profit rate of the industry is also improving simultaneously. From January to May 2023, the cumulative profit rate of China's shipbuilding industry reached 3.37%, up 3.76 percentage points year-on-year; In May this year, the monthly profit rate reached 5.85%, up 3.61 percentage points year-on-year.