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2015 is over. We are delighted to see that, despite the increasing downward pressure of the economy, the agricultural machinery industry is still doing well.
According to statistics, from January to November 2015, the main business income of Agricultural Machinery Enterprises above the scale of our country increased by 7.71%. The whole industry created 22.3 billion yuan of profits, an increase of 9.25% year on year. The profit growth rate was higher than the income growth rate. Compared with the same period in 2014 (2.67%), the profit growth of the industry increased by nearly 7 percentage points. Among 12 sub-industries of agricultural machinery industry, profits of 8 industries, such as tractors, have increased considerably.
Moreover, the profit growth rate of agricultural machinery industry is higher than that of other machinery industries. From January to November 2015, the profit of the national machinery industry increased by 1.18%, of which the profit of automobiles increased by - 2.6%, that of construction machinery by - 32.63% and that of internal combustion engines by - 17.34%. Why will the agricultural machinery industry, which has always been weak in profitability, perform better in 2015? Why can low-speed growth generate better operating profits?
In 2015, some common and advantageous factors of industrial enterprises'production had a positive impact on agricultural machinery industry. For example, the prices of steel, oil, rubber and other means of production continued to fall, reducing the manufacturing costs of enterprises; the central bank started to cut interest rates from November 2014, the benchmark interest rate of one-year loans of banks dropped from 6% to 4.35%, and the financial costs of enterprises fell. Interest expenditure of Agricultural Machinery Enterprises above the scale increased by 15.02% in November 2014, while that of interest expenditure increased by - 4.03% in May 2015 and 1.74% in November 2015.
Lower raw material prices and lower bank interest rates have different impacts on different industries. Agricultural machinery industry is a sunrise industry, with strong market demand, rising business prosperity index, good cash flow of enterprises, and relatively relaxed financing environment, which highlights the prying effect of interest lever.
External environment plays an important role in promoting health, and the industry's own physical fitness is fundamental. Agricultural machinery industry can achieve good benefits, the main reason is that the upgrading of the industry generates transformation, thick accumulation and thin hair bring progress, mainly reflected in the following aspects.
The proportion of large agricultural machinery products increased. According to the data of the National Bureau of Statistics, the output of small tractors dropped by 17.49% from 2015 to November, the output of medium tractors increased by 5.59%, and the output of large tractors with more than 100 horsepower increased by 30%. In 2012, the national output of large and medium-sized enterprises accounted for 20.75% of the total output, which increased to 33.15% in 2015. In 2015, the output value of tractor backbone enterprises increased by 10 percentage points more than the output growth; the products fed more than 6 kg/sec by wheat combine harvester exceeded 50%, and those fed less than 3 kg/sec basically withdrew from the market. In the third quarter of 2015, the net profit of tractor leading enterprise-tractor stock increased by 69.45% compared with the same period last year. Sales of new products such as synchronizer and power shift tractor increased significantly.
Intelligent manufacturing improves production efficiency. Since 2012, China Agricultural Machinery Industry Association has continuously promoted the upgrading of digital manufacturing and parts industry in the whole industry, which has received the response of enterprises. With three years of continuous investment, the equipment level and manufacturing capacity of the whole industry have been significantly improved. Advanced equipment has improved the manufacturing capacity and level of enterprises. In 2005, the average output value of Agricultural Machinery Enterprises above the scale reached 63.15 million yuan, and in 2015, the average output value reached 16.63 million yuan, with an annual growth rate of 16.3%.
The market price of agricultural machinery products is stable. Due to the strong market demand, in addition to hand tractors, small tractors under 25 horsepower, micro-tillers, simple seeders and other small agricultural machinery with excess capacity, the sale prices of most agricultural machinery products such as grain dryers, silage harvesters, precision seeders and so on remain stable. In principle, the quota of state subsidy for purchasing machinery should not exceed 30% of the average selling price of this product last year. The stability of state subsidy quota also reflects that the market price of most agricultural machinery products is stable in recent years.
The quality of products has been improved and the service cost has been reduced. In recent years, the consistency of product manufacturing has been significantly improved in the agricultural machinery industry through the improvement of equipment capability and management and control capability. In the past three years, complaints about the quality of agricultural machinery products and lawsuits caused by quality problems have been decreasing. The cost of product recall, excessive supply of spare parts and oversupply of three packages of personnel have been greatly reduced with the improvement of product quality.
The service ability of distributors has been improved. While the failure rate of manufacturer's products declines, the service ability of distributors is further improved, which makes it possible and trend to monopolize sales service, entrust distributors with after-sales service and normalize the supply of spare parts. This improves the quality and agility of after-sales service of agricultural machinery products, reduces the cost of after-sales service, and makes the system possible. Manufacturers make more profits. The improvement of dealers' operation ability, spare parts operation, machinery leasing, second-hand agricultural machinery replacement and other post market operations not only provide the profit-making ability for the sales enterprises, but also enhance the competitiveness of the host enterprises, and obtain more profits.
The pull of subsidy policy for purchasing machines. In 2015, the Ministry of Agriculture and the Ministry of Finance have achieved good results in the reform and perfection of the subsidy policy for agricultural machinery purchase, such as "promoting focus, reform and innovation, simplifying government and decentralizing power, and facilitating people's efficiency". Measures such as self-purchasing machines, opening subsidies, decoupling subsidies from catalogues of promotion, first purchasing machines and then subsidizing, have improved the efficiency of subsidies policy, enhanced the financial guarantee of enterprises, shortened the settlement cycle, reduced the cost of subsidies, and improved the profitability of manufacturing enterprises and sales enterprises. The speeding up of settlement of subsidized funds has accelerated the turnover of enterprises'funds, reduced the interest payable and increased the benefits.