At present, the domestic construction machinery agent group is the dominant force in the marketing and service channels of construction machinery. With the surge in sales of construction machinery, the price war of industry agents is getting worse and the living space of agents is further squeezed. According to China Construction Machinery Industry According to the survey data of the association, the average gross profit margin of construction machinery agent groups in 2020 is 8.7%, and the average net profit margin is only 0.7%. The survival status of industry agents is worrying.
Construction machinery industry revenue exceeded 700 billion yuan
According to the China Construction Machinery Industry Association, the construction machinery industry has experienced in-depth market adjustments from 2011 to 2015. Since 2016, thanks to the country’s increased investment in infrastructure construction, the construction machinery industry has shown a growth trend for four consecutive years. In the year, the industry-wide operating income once again crossed the 500 billion yuan platform, and reached 668.1 billion yuan in 2019, an increase of 12% year-on-year, a record high;
In 2020, the operating income of key enterprises in the construction machinery industry will be approximately 469.4 billion yuan, an increase of 29% over the previous year. The industry's operating income exceeded 700 billion yuan, a year-on-year increase of more than 10%. Various economic and technical indicators determined in the "13th Five-Year Plan" of the industry have basically been completed, achieving a perfect ending.
Chart 1: 2016-2020 China's construction machinery industry revenue (unit: 100 million yuan, %)
The industry is dominated by medium and large agents
The agent group is the mainstream marketing channel of China's construction machinery industry, contributing about 80% of market sales to the market. According to the survey data of China Construction Machinery Industry Association, in 2020, large agents with sales of more than 1 billion yuan accounted for 7.3% of the agent group, and medium and large agents with sales between 100 million and 1 billion yuan accounted for 7.3% of the agent group. To 58.4% of the agent group, small and medium-sized agents with sales of less than 100 million yuan accounted for 34.3% of the agent group.
Industry agents average gross profit margin 8.7%
In 2020, agents with a gross profit of less than 5 million yuan accounted for 55.5% of the agent group, and agents with a gross profit of less than 1 million yuan accounted for 22.5% of the agent group; agents at the provincial level In the business group, agents with a gross profit of between 5 million and 10 million yuan accounted for 20.5% of the agent group, and agents with a gross profit of between 10 million and 50 million yuan accounted for 17.4 of the agent group. %, high-profit agents with a gross profit of more than 50 million yuan account for 6.6% of the agent group. Converted into a gross profit index, the average gross profit rate of the surveyed agent group is 8.7%, and the highest value is 16.8%.
Chart 3: Distribution of gross profit of China's construction machinery agents in 2020 (unit: %)
From the perspective of net profit, the survival status of the agent group is worrying. Agents with negative profits accounted for 26.9% of the agent group, and the area of loss in the agent group gradually expanded; agents with a net profit of between 0 and 3 million yuan accounted for 33.6% of the agent group, and the net profit Agents between 3 million and 10 million yuan accounted for 29.4% of the agent group, and agents with a net profit of more than 10 million yuan accounted for 10.1% of the agent group.
Converted into a net interest rate indicator, the average net interest rate of the surveyed agent group is 0.7%, and the lowest value is -22.2%. The worries about the profitability of agents are largely due to price wars.
Chart 4: Net profit distribution of China's construction machinery agents in 2020 (unit: %)
Machine sales business contributes the main income
In 2020, the sales of the whole machine will contribute an average of 70.5% of the operating income and 64% of the profit of the agent group; the sales of accessories will contribute an average of 10.2% of the operating income and 19.9% of the profit of the agent group; the warranty service will contribute to the agents. The group’s average revenue is 6.0% and the profit is 9.1%; the sales of second mobile phones contribute to the agent group’s average 4.8% of the operating revenue and -1.0% of the profit; the operating lease contributes to the agent group’s average 4.0% of the operating revenue and 3.9% % Of profits; out-of-warranty services and other maintenance services contribute to the agent group's average operating income of 3.8% and 3.2% of profit; financial services and other businesses contribute to the agent group's average of 0.7% of operating income and 0.9% of profit .
As the main body of the marketing channel, the agent group is still in the upward phase in the Chinese construction machinery market, and the completion of new machine sales business indicators is the primary task. And based on this, the sales of complete machines is not only the most important business of the agent group, but also the primary strategic starting point of the manufacturer group. Therefore, it is also the main business form of the current development stage of China's construction machinery industry and the most important source of income and profit. .
Chart 5: The revenue and profit contributed by various businesses of China's construction machinery agents in 2020 (unit: %)
Industry development trend analysis
During the "14th Five-Year Plan" period, the construction machinery industry should continue to promote the high-quality development of the construction machinery industry, which will promote the sustained and steady development of the Chinese construction machinery circulation market. The agent group responds to market pressures and challenges, seizes market opportunities, and continues to make in-depth adjustments. Innovation and development.
In the future, for the industry agent groups, on the one hand, they must deal with the vicious competition that gradually exceeds the bottom line, and on the other hand, they must seek development and transformation while trying to survive. From paying attention to the changes in the external environment, they must pay more attention to the changes in the external environment. Return to itself, enhance its soft power and long-term competitiveness, gradually implement strategic transformation and business model upgrades, and focus on the real needs of customers to achieve the upgrade and innovation of service models.
The above data and analysis sources refer to the "Market Demand Forecast and Investment Strategic Planning Analysis Report for China's Construction Machinery Manufacturing Industry" issued by the Qianzhan Industry Research Institute. At the same time, the Qianzhan Industry Research Institute provides industrial big data, industrial planning, industry declaration, industrial park planning, and industry Solutions for investment promotion, IPO fundraising and investment feasibility studies.
