Analysis of the operation of China's printing industry in the first half of 2018
Printing is one of the four great inventions in ancient China. It is the representative of the wisdom of the working people in China. Its contribution to human civilization is immeasurable. As far as cultural concepts are concerned, printing is a way of expressing and inheriting people's ideas. It is an important component of Chinese culture. However, in recent years, with the development of society and the emergence of various innovative technologies, the printing industry has undergone tremendous changes. The practical difficulties of overcapacity, low-price competition, and profit dilution are all in front of the printing industry. Some of the printing and packaging entrepreneurs lacked confidence, and simply closed their hands and closed their doors. Some old printing and packaging companies gradually disappeared.
In recent years, the number of companies in China's printing and recording media reproduction industry has fluctuated. In 2013, it was only 4,321, and in 2017 it reached 5,693, 223 more than in 2016. In the first half of 2018, there were 5,624 companies in the printing and recording media industry.
It is worth noting that the total number of losses and losses of companies in the printing and recording media reproduction industry is increasing. In 2014, the number of loss-making enterprises in the printing and recording media replication industry exceeded 500, and it surged to 1,037 in the first half of 2018. The total loss was from 1.833 billion yuan in 2013 to 20.83 billion yuan in the first half of 21018.
It is reported that in 2013, the industry's loss was only 11.2%, and in the first half of 2018, it was as high as 18.4%, and the amount of losses also soared. It is expected that the number of industrial enterprises will decrease in the second half of 2018, and the number of loss-making enterprises and the amount of losses will further increase.
Statistics on the number and total losses of enterprises in China's printing industry in 2013-2018
Source: China Business Research Institute Database
According to the monitoring data of the China Industrial Research Institute, in 2017, China's printing and recording media replication industry achieved a revenue of 800 billion yuan from the main business, which was 890 billion yuan, a year-on-year increase of 6.5%, ending the continuous decline in growth rate. The growth rate increased by 2 percentage points compared with the previous year. In the first half of 2018, the trend of 2017 continued, and the growth rate of main business income increased. The main business income was 342.9 billion yuan, a year-on-year increase of 6.7%. It is expected that the printing and recording media copy of the owner's business revenue will increase slightly in the second half of 2018, and the main business revenue for the year will exceed 350 billion yuan.
Source: China Business Research Institute Database
In terms of total profit, the printing and recording media reproduction industry showed a trend of recovery. In 2016, the total profit of the printing industry decreased by 4.5%. In 2017, profits increased substantially, and the total profit of the printing and recording media reproduction industry reached 55.87 billion yuan, up 6.9% year-on-year. In 2018, the total profit of printing and recording media reproduction industry was 20.83 billion yuan, a year-on-year increase of 5.3%. It is estimated that the total profit for the year will exceed 60 billion yuan.
Source: China Business Research Institute Database
In recent years, the profitability of China's printing and recording media replication industry has continued to decline. In 2016, China's printing industry gross profit margin fell to 15.1%, and rose slightly in 2017, with an increase of 15.3%, an increase of 0.2 percentage points over the previous year. Gross profit fell to 14.8% in 2018. Due to environmental protection policies, the gross profit of printing and recording media reproduction industry is expected to remain at around 14% in 2018.
Source: China National Institute of Commerce, China Business Research Institute
However, the printing industry did not increase its revenue, and its profit margin continued to fall. In 2013, the printing industry's profit was 7.9%. In 2017, it fell below 7%, only 6.8%, down 0.2 percentage points from the previous year. In the first half of 2018, the profit margin fell to 6%. If the industry continues to maintain an extensive development model, it is expected that the industry profit margin will fall below 6% in 2018.
Source: China National Institute of Commerce, China Business Research Institute
At present, in addition to digitalization and intelligence, the development of green environmental protection has become a key word in the development of today's printing industry. After the rapid development in previous years, the problem of overcapacity and homogenization competition in China's printing industry has become increasingly prominent, and environmental protection has become an important factor restricting the transformation of industrial power. Therefore, the development of green environmental protection has become an industry consensus. The implementation of green environmental printing is undoubtedly the strategy of the printing industry to actively adapt to the transformation and upgrading of the industry and seek greater development. At present, many enterprises have begun to change the extensive development model, implement green energy conservation and environmental protection development, and let environmental printing technology gradually become the dominant direction.