Forecast of Development Trend of Low-voltage Electrical Appliance Market in China

In December 2011, Shanghai Electric's three subsidiaries - Shanghai Electric Ceramics Factory Co., Ltd., Shanghai Electric Transmission & Distribution Engineering Co., Ltd., and Shanghai Electric Power Transmission & Distribution Test Center Co., Ltd., were transferred from the 100% stake and sold people for half a month. 100% of the shares of the electrical plant and 75% of the shares of Power Electronics Co., Ltd., and a few days later it transferred a 41% stake in Shanghai-based Schneider Electric Power Automation. The analysis shows that due to the impact of the overall economic situation, the global low-voltage electrical appliance pattern may change drastically in 2012.

In the business direction, the joint venture will aim to meet the needs of the smart grid's next-generation power system and energy conservation and environmental protection, focusing on the development of UHV equipment, magnetic column level gauges for new energy access, energy storage devices and their control systems, and electric New industries such as automotive power batteries and charging and discharging systems. Therefore, the main business of the new company is essentially an integration within the system. The traditional power transmission equipment products and many smart grid and new energy application equipments to be implemented will substantially involve in the construction of smart grids, and after being applied practically, it will help Shanghai Electric's new products quickly gain market expansion.

It is understood that most of the companies sold by Shanghai Electric are transmission and transformation electronics companies, and the glass tube level meter business focuses on large and medium-sized power transformers, wind power converters, high and low voltage fuses, general contracting for transmission and distribution projects, and general equipment sets. aspect. In the case of Shanghai Electric, it will be based on this to collect and collect high-quality clean energy equipment manufacturing assets within the entire group. This series of transfer is due to June 10, 2011, Shanghai Electric and Shanghai Electric Power Company signed a joint venture contract, the two sides jointly funded the establishment of a joint venture company with a registered capital of 2 billion yuan, each of the two sides accounted for 50% of the equity.

In the global context, the low-voltage electrical appliance industry is an industry with full international competition and a high degree of marketization of liquid level gauges, forming a competitive pattern in which co-existence of multinational companies and domestic domestic competitive enterprises. Recalling that in the past, the market structure of low-voltage electrical appliances in China presented a typical pyramidal shape, and the market demand for low-end products with relatively low technical thresholds was huge, attracting many market participants, but the market competition was fierce and the overall industry concentration was not high. After foreign competitors stepped into the Chinese market, they used the method of cooperation with domestic production companies to seek for complementary strengths, continuously penetrated the domestic and foreign markets through multiple production lines and multiple channels, and also aggravated market competition. Looking forward to 2012, under the highly competitive pattern, leading enterprises with technological and scale advantages will be in a favorable position, and it is hoped that the industry concentration will be enhanced through mergers and reorganizations.