Recently, the six departments including the Ministry of Industry and Information Technology and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued opinions. In order to change the overall level of China's wire and cable product quality, the competent authorities will implement an industry withdrawal mechanism and order the unqualified enterprises to withdraw in a timely manner. At the same time, they will also control the source of production. New capacity.

People in the industry believe that the above measures will lead to a smaller number of potential market entrants, which will ensure a reasonable profit margin for the industry and directly benefit leading companies.

The quality issue has caused the competent authorities to pay attention to the development of decades. The domestic wire and cable industry has completed the original accumulation from scratch and from small to large, and has become a major cable manufacturing country and exporter. At the same time, however, some enterprises have not been aware of their responsibility for fulfilling product quality, and they have become more prominent in their quality of dishonesty and violations of law, such as cutting corners and making counterfeit goods, making counterfeit sales, and selling counterfeit goods.

According to statistics from statistical agencies and industry associations, poor quality cables pose a great threat to the safety of construction projects. At present, two-thirds of all fire accidents in the country are related to cable quality problems.

In order to guide the cable industry to complete the transition from big to strong, recently, the General Administration of Quality Supervision, Inspection and Quarantine and the Ministry of Industry and Information Technology jointly held the national wire and cable product quality improvement work conference in Wuwei County, Wuhu City, Anhui Province.

At the same time, AQSIQ and the Ministry of Industry and Information Technology, China Machinery Industry Federation, China Electricity Council, State Grid Corporation of China, and China Southern Power Grid Co., Ltd. have jointly issued the "Guidance Opinion on Promoting Quality Improvement of Wire and Cable Products."

The unqualified production enterprises will be retired from the requirements of the comments, control the new production capacity from the source of production, and refrain from issuing certification for those that do not meet the industrial policy requirements and do not meet the production license and mandatory product certification requirements.

At the same time, the competent authorities will also implement an industry exit mechanism to revoke enterprises’ production licenses and mandatory product certifications and order enterprises to exit the wire and cable industry for production enterprises that no longer meet industrial policy requirements, have outstanding product quality problems, or cause quality accidents. .

In this regard, the industry believes that the above measures will lead to a small number of existing participants in the market, to ensure the reasonable profitability of the industry.

In order to purify the growth environment of outstanding companies, the two major power grid companies have also taken relevant measures this year and have already had a positive impact on the performance of the listed companies.

Xin Pu, deputy director of the China Southern Power Grid Materials Department, said that China Southern Power Grid has established a large supplier base, and the evaluation of suppliers is divided into two aspects, one is the evaluation of soft qualifications, that is, a variety of qualifications , performance, business license, etc.; on the other hand, is the supplier's production capacity, on-site evaluation, and product control management system and implementation.

As the two major power grid companies increased their demand for cable quality, the price war phenomenon eased, and the profitability of leading companies has improved. Among them, the comprehensive gross profit rate of the super three-quarters of China Super Cable increased by 2.82 percentage points to 17.73%. Tian Lei, an investment consultant of Tianxiang, believes that the increase in gross profit margin of cable companies is directly related to the bidding method of State Grid.

For the above changes, the comments further require that the bidding model of the cable buyer should be perfected, the quotation cost analysis plan should be encouraged, the bid price evaluation should be implemented, and the relevant technical specifications and design requirements of the cable should be included in the contract text to supervise.

The above measures are directly beneficial to leading companies with quality advantages. Among listed companies, Wanma Cable is a large-scale enterprise specializing in R&D, production and sales of power cables. It has now developed into a backbone enterprise integrating R&D, production, sales and after-sales service of domestic wire and cable.