With our coverage of eight sub-sector machinery industry in the 58 listed companies focused on a sample of machinery industry in 2009 reported data for analysis.

 Machinery Industry Center Daily News economic profile. First half of 2009, our machinery industry statistics, 58 listed companies achieved a total sales income of 121.3 billion yuan, net profit of 9.05 billion yuan, down 8.9% and 20%.

 Statistics of eight sub-sectors, the top three revenue-scale engineering machinery industry, logistics, machinery industry and railway equipment industry, the three listed companies in the industry sector is the most representative; net income ranks among the top scale Three mechanical engineering, logistics machinery, shipbuilding industry.

 Mechanical comparison of various sub-sectors Center Daily News. Heavy machinery in the first half revenue and net profit growth of 27% and 34%, the best performance, mainly because a long period of heavy machinery orders, boom of the delay; income does not increase profits for the two sub-sectors of railway equipment and ships, although the income However, a substantial decline in net profit growth of 21% and 41%; in addition to other heavy machinery, the smallest decline in net profit in engineering machinery industry, in the first half net profit fell 12%.

 Fluctuations in product mix optimization is the performance of the stabilizer. Data show that in the first half gross margin increased by sub-industry heavy machinery, logistics, machinery and machine tools industry, construction machinery essentially flat year over year gross margin. The main reason is not because the gross margin increased a dramatic decline in prices of raw materials, machinery industry as the economy slipped, product prices following the reduction in raw material prices made a gross profit margin increase is mainly due to product mix changes.

 Machinery industry net profit fell 17%, but 49% sequential increase in a single quarter net profit to rebound sharply.

 Benefit from the recovery in the second quarter of the domestic machinery industry, shipbuilding industry, in addition to export-oriented industries and the logistics machinery fell outside the ring, and the remaining sub-sectors have achieved substantial growth in net profit chain, they are: the machine tool industry (138%), Construction Machinery (135%) , the railway equipment industry (91%).

 Impairment losses / profits increase. Machinery industry in 2009 in the first half impairment losses / profits increased by 2.7 percentage points, mainly because of steel to bring inventory to market prices, you can determine inventory to market a high inventory of raw materials more expensive company in the first half, for example, the set Group prices for steel, the 216 million additional provision for inventory to market, asset impairment losses / profits increased by 15 percentage points.

 Little change in the second quarter inventory. Compared to 08 at the end of the inventory decline is clear that the shipbuilding industry, logistics machinery. First half of the listed companies more cautious approach to inventory, to absorb higher prices of raw materials inventory, accelerating asset turnover based.

 Receivables turnover slightly worse in the same period last year. Machinery industry in 2009 in the first half receivables / income of 48%, compared to nearly 10 percent last year, engineering machinery, machine tools, basic parts and components industry increased significantly, indicating that overall demand in the first half of weak machinery industry, enterprises, increase sales efforts, but the back section lower.

 Solvency of listed companies has not deteriorated, in 2009 the balance machinery industry rate during the first half last year, 63.1% to 60.5%.

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Best Buy wholly owned five-star news, PR China from Best Buy sent the media an e-mail: “Best Buy Five Star Group has received the remaining shares, wholly owned Five Star.”

Sources at that time, the two sides had agreed to the pricing scheme is: Best Buy in February 21, 2009 to pay about 185 million U.S. dollars in cash.

With the initial acquisition three years ago, compared to the low profile seems a lot of Best Buy. That year, for the completion of this acquisition, Best Buy has frequently visited the world’s top central and local governments of Jiangsu, finally in June 2006 to 184 million U.S. dollars acquisition of 75% stake in Five Star. Sources said that as early as the original signed agreement, both sides have talked about the issue will release the remaining shares, that Best Buy will be the sole control of the final Five Star.

This with Best Buy to enter Canada through a similar. In 2001, it acquired Canada

Home Appliances

Retailer FutureShop, have already been questioned, but four years later it reached 30% market share.

“Does not scale, only a single store selling efforts to increase profit. Therefore, whether to go high-end promoting or pushing its own brand Ye Hao, Best Buy are trying to break through under the current size disadvantage. But the overall performance far from the competition, open more Best Buy stores are not always recognize the ultimate dream. “

This is only many domestic media and industry experts to challenge the move in China, Best Buy, the tip of the iceberg.

Best Buy Five Star

acquisition, a time of many by the Chinese media and many experts questioned the reasons behind what is it? But no matter how high voices of doubt, we have to believe that Best Buy could not make a trading loss, and this sale is at Best Buy after the first five-star investment, re-produced under a wholly-owned acquisitions. So, the industry attracted many voices of doubt it is because it? Perhaps people on Best Buy’s “Chinese overtly” do not agree, perhaps the development of our Best Buy misread the path.

Rational thinking on the no rational competition

Has been developing in China, Best Buy, the slow and weak forces, not only repeatedly mentioned by the media, have become dismissive of the reasons for its competitors.

Suning

Electric Sun Weimin, president, once said that they have not time to consider Best Buy, because the other stores in China, too few, only “cat.”

States United States

Sun, vice president of a small group also believes that Best Buy only from the formal transplant operations in North America model, but limited the number and regional distribution of stores, they simply can not compete GOME.

Proved that this view is not raved. Best Buy into China from the first day until today, Best Buy stores in China to reach the number seven. While on six months ago, Best Buy’s China, “the second store” also has been in a difficult labor conditions. These figures and the Best Buy story twists and turns of China is to let the industry in general question the behavior of the reason Best Buy, and even Best Buy to become the industry’s assertions miss the rapid development in China’s prime-time direct incentive.

However, there is the internal Who better than the Best Buy own solution in which the shamisen it deep?

First of all, since Best Buy had 75% controlling stake in Five Star, after, although in name became as family members, but in fact is not how Best Buy Five Star is regrettable. On the one hand, Best Buy consumer electronics chain in China, the market still remains a new army, on a lot of things to read, not to feel; other hand, the Five Star business also continues to be dominated by veteran Wang Jianguo and the core management of the hands of indeed affect the whole body, therefore, can only be patient with Best Buy. So we see that in the Five Star, Best Buy in addition to import the Management Information System, to do some research and training in addition to, and not as much as the two companies do not sing a song with the centripetal force.