China Transformer Industry Report, 2006-2007 ..

China has grown to be the world's third largest electrical electronics market as well as the market with fastest growth. During the period of 2000-2005, the nationwide power shortage not only resulted in the great progress of domestic power industry but also directly stimulated the demands for power equipments thanks to the dramatic increase of investment in power. In the first half of 2006, driven by the strong market demands, the production value of transformer industry has rose 19% and the sales rate has improved month by month since early 2006. The average sales rate of the first five months rose to 96.49%.

The profit of transformer industry still maintains a high level and shows a slight growth from 2005. According to the statistics of 6 listed transformer enterprises, the average profit margin was 23% in the first half of 2006, up by 2.1% from the year earlier.

The installing capacity reached about 638 million KW by the end of 2006 but the growth rate will slow down after the year of 2007. Fortunately, the extremely depressive market demands happened in 2001 will not come again for the growth of newly-increased installing capacity will no doubt lead to a sharp rise in the demands of power-generating equipments. Currently, the ratio of power-generating equipment to transmission & transformation equipment is 1:12 (around 1:8/1:9 in previous two years), according to which, it is estimated the domestic transformer market capacity is approximately RMB 70 billion.

However, the cost of transformer industry is rising. Transformer industry is a competitive industry, so a slight overcapacity is helpful in market competition, but it seems that the supply-over-demand problem in production capacity is getting increasingly serious, which is reflected here by homogenous products, scattered resource supply and vicious market competition. For instance, for the power transformer enterprises alone, the number has already exceeded 1000 while their technology level is rather low. What’s more, they also fight with each other to capture resources and users, which result in a rise in product cost.

Generally speaking, the supply of transformer is far more than the demands worldwide. As China has such a huge transformer market and cheap & skilled labor force, plus the proviso on tendering and bidding for big projects as well as the favorable taxation policies, foreign-owned companies, driven by profit, have swarmed into China since the 1990s. Recently, foreign-owned companies have taken action for the merger and acquisition towards third-tier Chinese transformer enterprises and it is estimated that merger & reorganization wave in transformer industry will turn more and more violent in the future.

Contents

1 Development overview of transformer industry in 2006
1.1 Definition
1.2 Analysis of relevant industries
1.2.1 Power transmission & distribution and controlled equipment manufacturing industry
1.2.2 Power industry
1.3 Development overview of China machinery industry in 2006
1.4 Overview of China transformer manufacturing industry in 2006
1.5 Development overview of China transformer manufacturing industry in recent years

2 Development environments of China transformer market during 2006-2007
2.1 Policy environment
2.2 Economic environment
2.2.1 International economic environment
2.2.2 Domestic economic environment
2.3 Social environment
2.4 Technical environment
2.4.1 Development level of materials
2.4.2 Technology level of special-purpose equipments
2.4.3 Development level of process design
2.5 Upstream of transformer industry
2.5.1 Supply and demand of raw material of transformer during 2005-2006
2.5.2 Forecast of raw material trend during 2006-2007

3 Economic operation of China transformer industry during 2006-2007
3.1 Overall economic operation
3.1.1 Profit-making ability
3.1.2 Debt-paying ability
3.1.3 Operating performance
3.1.4 Development ability
3.2 Regional analysis
3.2.1 Regional production
3.2.2 Regional consumption
3.2.3 Competitive pattern and characteristics
3.2.4 Regional market potentials
3.3 Competitions among enterprises
3.3.1 Operation comparison among enterprises by scale
3.3.2 Operation comparison among enterprises by ownership
3.4 Sales of major products

4 Competition status of China transformer market during 2006-2007
4.1 Applications of transformers in China
4.1.1 Completion status of reliability index and development trend of transformer in 2006
4.1.2 Factors influencing the reliability index of transformer
4.1.3 Overall evaluation on quality of transformer
4.2 Competitive pattern of China transformer market
4.2.1 Market scale
4.2.2 Competitive pattern
4.3 Investment of multinationals in China
4.3.1 ABB
4.3.2 Siemens
4.3.3 AREVA
4.3.4 Toshiba
4.3.5 Schneider

5 Sub-products analysis of transformer industry during 2006-2007
5.1 UHV transformer products analysis
5.1.1 Characteristics and applications
5.1.2 Development status
5.1.3 Market prospect forecast
5.2 Development of distribution transformer
5.2.1 Brief introduction
5.2.2 Development status
5.2.3 Applications
5.3 Development of combined transformer
5.3.1 Production characteristics
5.3.2 Market prospect forecast
5.4 Development of dry-type transformer
5.5 Development of non-crystal alloy transformer
5.6 Development of electronic transformer
5.7 Development of mutual inductor

6 Development strategy of transformer industry during 2006-2007
6.1 SWOT analysis of China transformer industry
6.1.1 Advantages and disadvantages
6.1.2 Opportunities and risks
6.2 Competitiveness contrast of Chinese and foreign enterprises
6.2.1 R&D
6.2.2 Production
6.2.3 Sales
6.3 Gap in major product technology with abroad
6.3.1 Technology gap
6.3.2 Causes
6.4 Development trend of product technology
6.4.1 Development trend of overseas new technology
6.4.2 Development trend of domestic new technology
6.5 Strategies of transformer industry
6.5.1 Overall development strategy
6.5.2 Development strategy of raw material
6.5.3 Brand strategy

7 Import and export of transformer industry during 2006-2007
7.1 Overview of import and export
7.2 Analysis of import and export
7.2.1 Structural characteristics of import and export products
7.2.2 Characteristics of enterprises and regions for import and export
7.2.3 Countries of import & export and trade forms
7.3 Strategies of import and export
7.3.1 Development forecast
7.3.2 Suggestions on key export regions

8 Major domestic enterprises of transformer industry
8.1 Xinjiang Tebian Electric Apparatus Stock Co., Ltd
8.1.1 Operating performance
8.1.2 Leading products
8.1.3 Development strategy
8.1.4 Advantages and disadvantages
8.2 XJ Group Corporation
8.2.1 Operating performance
8.2.2 Leading products
8.2.3 Development strategy
8.2.4 Advantages and disadvantages
8.3 Baoding Tianwei Group Co., Ltd
8.3.1 Operating performance
8.3.2 Leading products
8.3.3 Development strategy
8.3.4 Advantages and disadvantage
8.4 Gungdong Shunde Special Transformer Works
8.4.1 Operating performance
8.4.2 Leading products
8.4.3 Development strategy
8.4.4 Advantages and disadvantages
8.5 Xian XD Transformer Co., Ltd
8.5.1 Operating performance
8.5.2 Leading products
8.5.3 Development strategy
8.5.4 Advantages and disadvantages
8.6 Qingdao Transformer Group Co., Ltd
8.6.1 Operating performance
8.6.2 Leading products
8.6.3 Development strategy
8.6.4 Advantages and disadvantages
8.7 Hangzhou Qianjiang Electric Group Co., Ltd
8.7.1 Operating performance
8.7.2 Leading products
8.7.3 Development strategy
8.7.4 Advantages and disadvantages
8.8 Shandong Modern Dachi Electric Co., Ltd
8.8.1 Operating performance
8.8.2 Leading products
8.8.3 Development strategy
8.8.4 Advantages and disadvantages
8.9 Fuzhou Tianyu Electric Co., Ltd
8.9.1 Operating performance
8.9.2 Leading products
8.9.3 Development strategy
8.9.4 Advantages and disadvantages
8.10 Jiangsu Huapeng Transformer Co., Ltd
8.10.1 Operating performance
8.10.2 Leading products
8.10.3 Development strategy
8.10.4 Advantages and disadvantages

9 Development forecast and investment suggestions
9.1 Market demands environment
9.1.1 Rapidly growing China power industry
9.1.2 Emerging international power equipment market
9.1.3 Independent R&D ability
9.2 Market demands for products in 2007
9.2.1 Demand forecast of UHV transformer products
9.2.2 Demand forecast of dry-type transformer products
9.2.3 Demand forecast of electronic transformer
9.3 Development goals
9.3.1 Key technologies
9.3.2 Transformer
9.3.3 Mutual inductor
9.3.4 Shunt reactor
9.4 Development forecast during the 11th Five-Year Plan period (2006-2010)
9.4.1 The 11th Five-Year Plan for power industry
9.4.2 Market forecast
9.5 Suggestions on product development


Tables/Figures

Classification of power transmission & distribution and control equipment manufacturing industry
Economic statistics of China power transmission & distribution and control equipment manufacturing industry, 2006H1
Statistics of China grid construction in recent years
Growth rate of total industrial output value by industry, 2004-2006
Key data index of transformer manufacturing industry, 2006H1
Key financial results of transformer manufacturing industry, 2006H1
General situation of transformer manufacturing industry, 2003-2006H1
Major transformer (over 500KV) manufacturers in China
Ranking of China transformer industry by sales revenue, 2006H1
Investment pattern of ABB in the transformer field of China
Regional distribution of transformer manufacturing industry, 2006H1
Financial results of transformer manufacturers by ownership, 2006H1
Classification of dry-type transformer
Technology introduction profile of mutual inductor of China
Import and export of transformer, rectifier and inductor products of China, 2006H1
Custom tariff list of transformer, rectifier and inductor products of China, 2006
Characteristics of export regions of transformer manufacturing industry, 2006H1
Characteristics of export trade form of transformer manufacturing industry, 2006H1
Characteristics of export countries of transformer manufacturing industry, 2006H1
Characteristics of import regions of transformer manufacturing industry, 2006H1
Characteristics of import trade form of transformer manufacturing industry, 2006H1
Characteristics of import countries of transformer manufacturing industry, 2006H1
Distribution of China’s transformer manufacturers by scale
Economic situation of China’s transformer manufacturers by scale
Top 10 transformer enterprises in total industrial output value, sales revenue and profit, 2006H1
Top 10 transformer enterprises in total industrial output value (current price), 2006H1
Sales revenue and gross profit of transformer enterprises, 2006H1
Employment of large-scale transformer enterprises, 2006H1
Production value of new products of transformer enterprises, 2006H1
Statistics and forecast of power generation capacity and installing capacity, 2001-2020
Composition of power generation capacity, 2000-2020
Composition of installing capacity, 2000-2020
Key cross-region power transmission projects by SGCC, 2006-2010
Demand forecast of transformer in China during the 11th Five-Year Plan period
Demand forecast of mutual inductor in China during the 11th Five-Year Plan period
Sales of transformer manufacturing industry, 2003-2006H1
Profit of transformer manufacturing industry, 2003-2006H1
Assets of transformer manufacturing industry, 2003-2006H1
Market scale of transformer, rectifier and inductor in China
Competitive pattern of China transformer industry, 2006H1
Transformer product structure in China
Exported transformer product structure in China, 2006H1
Export regions distribution of China transformer manufacturing industry