Recently, the state introduced a series of financial policies (the end of the article has a detailed explanation), these policies on our bearing industry is a big plus!
As the boss of the bearing industry, you may want to ask: ‘What is the relationship between these policies and me?’ Don’t worry, listen to me slowly.
| One, the cost of financing down, profit margins large
The central bank governor said, to reduce the reserve requirement ratio and policy interest rates. What does this mean? Simply put, that is, the interest rate on bank loans to be reduced. For our business bearings, this is:
Save money: less interest on loans, the cost is low, profits naturally go up. For example, if a bearing factory loan 10 million a year, the interest rate fell by 1%, you can save 100,000 a year.
R & D investment: save money can be used to engage in R & D, improve product quality, seize the market opportunity. For example, a bearing factory through R & D investment, successfully developed a new type of low-noise bearings, and quickly occupied the high-end market.
Expand production: with low-cost financial support, expand production lines to meet the demand for more orders. For example, last year, a large bearing enterprise through low-cost financing, two new production lines, production capacity increased by 30%.
|| Second, mergers and acquisitions, industry reshuffle
General Administration of Financial Supervision to active mergers and acquisitions and restructuring market. This means for our bearing industry:
Integration of resources: through mergers and acquisitions, you can integrate upstream and downstream resources to form an industrial chain advantage. For example, a bearing factory has achieved a stable supply of raw materials and reduced costs by merging and acquiring upstream steel suppliers.
Technology upgrading: M&A can quickly obtain advanced technology and enhance the competitiveness of its own products. For example, a bearing company has increased its production efficiency by 20% through M&A of a company with advanced manufacturing technology.
Market expansion: Through M&A, it can quickly enter new markets and expand its business scope. For example, a bearing factory has successfully entered the European market through M&A of an overseas company, and its sales have increased by 50 per cent.
|| III. Stable stock market and more convenient financing
The chairman of the Securities and Futures Commission (SFC) said that it is necessary to support the stable development of the stock market. This is good news for our listed companies in the bearing industry:
Market Value Enhancement: By repurchasing shares and other means, the market value of the company can be enhanced and investor confidence can be strengthened. For example, a bearing listed company through the repurchase of shares, market value increased by 15%, attracting more investors’ attention.
Financing channels: when the stock market is stable, financing is easier, and funds can be raised by means such as issuing additional shares. For example, last year, a listed company of bearings successfully raised 500 million yuan of funds for expanding production and R&D by issuing additional shares.
Incentive mechanism: equity incentives and other means can improve the enthusiasm of employees and promote the development of the company. For example, a bearing company to implement the equity incentive scheme, the staff’s motivation to work increased by 30%, and productivity has also increased.
|| IV. Preventing Risks, Strengthening Supervision, and Promoting Development
The General Administration of Financial Supervision to promote risk prevention, strong supervision and development tasks in an integrated manner. This is for our bearing industry:
Controllable risk: financial risk is small, our business environment is more stable. For example, in recent years, due to the strengthening of financial regulation, the bearing industry’s non-performing loan ratio fell by 2%, and business operations are more robust.
Regulatory transparency: regulatory policy is clear, we can better plan for the future. For example, the new regulatory policy has clarified the environmental requirements of the bearing industry, and enterprises can do environmental protection transformation in advance to avoid future risks.
Service to the real economy: the implementation of financial policies, will more effectively support the development of our bearing industry. For example, the state launched the small and medium-sized enterprise loan support policy, so that many small and medium-sized bearing enterprises to obtain the much-needed financial support, the development of faster.
The financial policies introduced by the state, for our bearing industry, is a rare opportunity for development.
As the boss of the bearing industry, we should seize this opportunity to promote the enterprise to achieve high-quality development by reducing costs, increasing research and development, expanding scale and integrating resources.
(Source: Kirin Machinery Editor)