Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd is a direct supervisory company controlled by Xinjiang Uygur Autonomous Region State Asset Supervision and Administration Commission, mainly engaged in research and development as well as production, sales and distribution of explosives equipment for civil use (industrial explosives, detonators, cable type of fire products); In addition, it provides clients with blast engineering solutions and other related services.
During the "Eleventh Five Year Plan" period, horizontal mergers and acquisitions of the company's civilian industrial explosives industry have made significant progress. The company will continue to integrate civilian explosives circulation companies in Xinjiang
Over the next 5 to 8 years, Xuefeng Technology (Group) will leverage regional advantages and the listed financing platform to focus on the core business of civilian explosion and actively develop five core businesses: production and sale of industrial explosives civil use, blasting, circulation and logistics services, health and pension businesses, and related resources businesses.
Keywords : Research ， Competitiveness ， Strategy ， Advantages
Introduction
Xinjiang Xuefeng Technology (Group) Co., Ltd. was founded in 1958 as a chemical plant at the Xinjiang Coal Mine. It is a direct supervision company controlled by the State Asset Supervision and Administration Commission of Xinjiang Uygur Autonomous Region. The registered capital of the company is 247 million RMB. There are 17 subsidiaries (including 4 manufacturing companies, 1 armed guard escort company, 3 blasting companies, 9 circulation companies) and 4 equity companies. At the end of 2013, the company's total assets amounted to RMB 1,471 million and 3,140 employees were employed.
The "Xuefeng" brand and "Sanling" brand products are "Famous Xinjiang Brands". The company obtained the qualification to export self-operated explosive products for civilian use. Some products and production lines are exported to Central Asia and neighboring countries. It is the largest civilian explosives production company in Xinjiang and is also the business group that owns a comprehensive industrial chain of domestic civil explosives industry.
The company's annual production capacity is 85,000 tons of packed explosives, 23,000 tons of mixed explosives, 52 million detonators, 12 million meters of detonating cords, and 50 million meters of plastic detonating tubes. In 2013, the market share of industrial explosives in Xinjiang was 46.2%, while the market share of industrial detonators was 85% and that of industrial ropes was 95%.
Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd is located in western China, in Urumqi city of XingJiang province. Before 1958 it was known as a chemical factory for coal mines, in 2001 it was restructured into a company wholly owned by the state, then in 2007 it was reconstituted as a limited liability company, and in December 2011 it was restructured in your whole as a corporation. They have developed many complex projects and it has changed in various ways, such as factory, limited liability company, corporation, and so on. In 2015, it was listed on the Shanghai Stock Exchange with the common code: 603227. Until today, it has been around for 60 years.
It is mainly engaged in the research, development, production, sales and distribution of explosive equipment for civilian use (industrial explosives, detonators, cable type of fire products); as well as providing customers with blast engineering solutions and other related services.
The production of industrial explosives, detonators and other products are widely used in infrastructure construction, mineral resource development and other areas of economic construction, known as the "energy industry, the foundation of basic industries". It has successfully contributed to Xinjiang's economic development and social stability.
However, it faces the severe environment of market competition. The next few years will be the most difficult stage of the civilian explosion industry, therefore, on the basis of continuing to focus on safe production, market development, quality improvement, cost reduction and improvement. of efficiency, the company will improve internal management, will improve the level of business management, will increase the competitiveness of companies and will seek further development in increasingly fierce market competition. Therefore, it requires actively promoting the extension of the industrial chain of the civil explosives industry, speeding up the process of integration of civil explosives services,increase investment in service integration and increase the proportion of the service industry in the company's overall business, providing high safety, high efficiency and low cost to the mine.
A comprehensive solution would be to use the listing platform, actively participate in the reorganization and integration of the civilian explosion industry, achieve complementary companies and improve the overall strength of the company.
1.1
FIGURE: Organizational chart of Departmentalization by functions:
Flowchart Xinjiang Xuefeng Technology
2.1 Level of concentration
The company is mainly engaged in research and development, production, sales (circulation), transportation of civil explosives such as industrial explosives, industrial detonators, industrial cables and other industrial explosives, in addition to providing customers with general solutions for the engineering of blasting and other related services. The company's main products include emulsion explosives, expanded ammonium nitrate explosives, industrial electrical detonators, detonating tube detonators and industrial detonating cords, plastic detonating tubes, etc.
2.2 Degree of maturity
Due to mounting pressure from the downturn in the macroeconomy, the civilian explosives industry faces unprecedented challenges: overall demand for civilian explosives is declining, prices are liberalized, overcapacity has ended, corporate profit margins are shrinking and survival pressures are increasing. The downdraft of the explosion industry for civil use is related to mining, transportation, water conservation, electric power, construction and other fields, especially in the field of basic industries and major infrastructure constructions to big scale. With the implementation of the national policy, the policy of investment in internal infrastructure will be gradually implemented,This will constitute a solid support for the future development of the civil explosives industry. Despite opportunities and challenges coexisting, Xuefeng Technology is the largest civilian explosives company in the region. We must seize the opportunity to timely adjust the product structure and the industrial structure, extend the industrial chain, accelerate the integration process of explosive explosions for civilian use and promote technological progress through companies. A series of measures, such as deep integration between companies, strives to further strengthen the competitiveness of companies.Xuefeng Technology is the largest civilian explosives company in the region. We must seize the opportunity to timely adjust the product structure and the industrial structure, extend the industrial chain, accelerate the integration process of explosive explosions for civilian use and promote technological progress through companies. A series of measures, such as deep integration between companies, strives to further strengthen the competitiveness of companies.Xuefeng Technology is the largest civilian explosives company in the region. We must seize the opportunity to adjust the product structure and the industrial structure in a timely manner, extend the industrial chain, accelerate the process of integrating explosive explosions for civilian use, and promote technological progress through companies. A series of measures, such as deep integration between companies, strives to further strengthen the competitiveness of companies.As deep integration between companies, it strives to further strengthen the competitiveness of companies.As deep integration between companies, it strives to further strengthen the competitiveness of companies.
2.3 FCE
Currently, Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd is one of the most integrated companies in the integrated industry and explosives industrial production chain in the country, with a clear competitive advantage when it comes to:
- Advantage of the area
The company is located in the Xinjiang region, where mineral resources are abundant and infrastructure construction needs to be developed. Xinjiang occupies a crucial position in the national strategy. It is currently located in the central area of the "Belt and Road" and faces the central axis of Asia and international cooperation. Button and construction concept development. Xinjiang's administrative area represents 17.06% of the country's total land area, with a border line of more than 5,600 kilometers, which represents a quarter of China's land border: it borders eight neighboring countries, with 15 national ports and 12 ports at the provincial level. It has the geographical advantages of East and West and is oriented towards Central Asia. As Xinjiang leader company,The company can make full use of the national "Belt and Road" policy, play the role of Xinjiang to open the bridgehead to the west, and use the advantages of products, technological advantages and capital advantages of the company. In addition, actively explore the Central Asian market so that sales of the company's products take place in Central Asia as a large-scale company that integrates scientific research, production, sales, and distribution of civilian explosives. and blasting services. In addition, the company provides high-quality mine integration for customers in Central Asia. In addition, service, with unique conditions.Play the role of Xinjiang to open the bridgehead to the west and use the advantages of products, technological advantages and capital advantages of the company. In addition, actively explore the Central Asian market so that sales of the company's products take place in Central Asia as a large-scale company that integrates scientific research, production, sales and distribution of civilian explosives and blasting services. In addition, the company provides high-quality mine integration for customers in Central Asia. In addition, service, with unique conditions.Play the role of Xinjiang to open the bridgehead to the west and use the advantages of products, technological advantages and capital advantages of the company. In addition, actively explore the Central Asian market so that sales of the company's products take place in Central Asia as a large-scale company that integrates scientific research, production, sales, and distribution of civilian explosives. and blasting services. In addition, the company provides high-quality mine integration for customers in Central Asia. In addition, service, with unique conditions.actively explore the Central Asian market so that sales of the company's products take place in Central Asia as a large-scale company that integrates scientific research, production, sales, distribution of civilian explosives and blasting services. In addition, the company provides high-quality mine integration for customers in Central Asia. In addition, service, with unique conditions.actively explore the Central Asian market so that sales of the company's products take place in Central Asia as a large-scale company that integrates scientific research, production, sales, distribution of civilian explosives and blasting services. In addition, the company provides high-quality mine integration for customers in Central Asia. In addition, service, with unique conditions.
- Advantages of the explosion of civil use and the integration of the service
With a strong technical research and development capacity, the company has a provincial engineering technology center, a strong technical research and development talent team, and research and development experience.
The company has 3 fixed production points, 1 wholly-owned circulation company, 9 Circulation company, a stock circulation company, with a complete network of sales and service of civil explosive products. In addition, it has a logistics distribution network and a professional explosives transport company, with a wide radiation area; and it also has a professional flyer.
The company has a management and construction team with extensive experience, high quality and solid professional skills. It also has explosives in mixed vehicles and the corresponding ground stations, which can provide mixed explosives and distribution for customers, especially for owners of large and medium-sized mines, as well as a comprehensive drilling and blasting service for companies.
- Talent Advantage
In the years of production management and business practice, the company has assembled a group of professional technical personnel, such as automatic chemical, mechanical and electronic control, blasting equipment and technology, safety engineering and mining environment, and has formed a Stable core technical team with rich theoretical knowledge and practical experience. The professional talent team has become the company's greatest competitive advantage for the development of the company and laid the foundations for the long-term sustainable development of the company.
- Technological and research and development advantages
The company has a first-class technology research and development team. Technical achievements have reached a national level, thanks to long-term cooperation and exchanges with recognized national companies, well-known institutions of higher education and research institutes, which vigorously carry out research and technology development projects, which at their Instead, they accelerate the transformation of scientific and technological achievements into real productivity.
Currently, he has 41 patents, including 9 invention patents and 32 utility model patents. The company uses the "Xinjiang Civil Explosive Equipment Engineering Technology Research Center" as a platform to carry out research and development, promotion and introduction of open technology and services to enable enterprises. In addition, the level of automation and smart production has greatly improved.
- Driving benefits
As one of the long established companies in the national explosion industry, the company has accumulated extensive experience in managing civil explosives companies. Adhering to the entrepreneurial spirit of "integrity, entrepreneurship, pragmatism and innovation", they create satisfying services for clients and provide abundant benefits to shareholders.
Return provides a platform for employees to develop and fulfill their social responsibilities. Through summary and refinement, the company has formed a unique business philosophy and corporate culture, effectively promoting the sustainable development of the company, through the centralized control mode.
The management system and process allow maximum advantage to be taken of the general advantage, internal resources are optimized and the level of management of the company is improved through computerization.
2.4 Five competitive forces
Faced with the global economic crisis, the pressure for the decline of national industries is great; Investment in the construction of national infrastructure has been reduced and the production capacity of the coal, metal mining, steel and cement industries has been excessively exceeded, and the demand for explosions for civilian use has continued to decrease, especially the price of explosions for civilian use. Open, the market is liberalized, resulting in fiercer market competition, and the profit margin of the civilian explosives industry is shrinking.
Rivals
The concentration of the civilian explosives industry is low, the scale is growing steadily, and the companies' exit cost is relatively high. However, due to strict industry control, there is basically no interregional competition, and the products and services between companies are quite different. Overall, the threats to internal competition are small, but with the advancement of mergers and acquisitions, competition between large business groups will intensify, including cross-regional competition.
The concentration of the industry is low and the scale of the company is small. Currently, the national production license capacity for industrial explosives and detonators is approximately 4.8 million tons and 4 billion, respectively. The top 20 companies in the industry have an annual production value of over 400 million yuan, totaling a total production value of 13.96 trillion yuan, accounting for 43.3% of the industry's GDP.
Industry growth slowed. In 2017, the growth rate of the main economic indicators of production companies slowed down markedly. The total production value for the whole year was 33.93 billion yuan, a year-on-year increase of 2.9%, the cumulative sales value was 34.15 billion yuan, a year-on-year increase of 3.9%, the value of total production and the value of total sales. The increase was slightly higher than in 2016.
The threat of transregional competition is small. Due to the influence of fragmentation of industrial policies and restrictions on the transport conditions of industrial explosive products, the sales market of various manufacturers of industrial explosives is generally limited to a specific area. There is a small phenomenon of interregional competition and there is practically no company. The threat of competition.
Industry exit costs are higher. Taking the 12,000 ton colloidal emulsion production line as an example, the equipment purchase cost in total investment represents approximately 35%, investment in other fixed assets represents approximately 60%, and the initial working capital is 5%, and investment in fixed assets represents a high proportion. Furthermore, the civilian explosives industry in terms of industry ratings and market channels is also high. The civilian explosives industry generally adopts a mode of production that is set by sales, and the cost of inventory is low.
Products and services are highly differentiated, due to the different business concepts, different companies have great contrasts in the types of transport products and services.
Potential competitors
The threat from potential competitors is small, due to its high-risk characteristics, the civilian explosives industry has been strictly controlled by the state for its production, sales and use, and market segmentation and local protection are serious.. In the general overcapacity of the industry, the competent authorities do not in principle add authorized capacity, but implement dynamic adjustment policies, resolutely eliminate backward production capacity, optimize product structure and accelerate product upgrades. The probability of new competitors is very small. Survival of the fittest in the industry is an inevitable trend.
There are low barriers to entry, a high requirement for control and difficult access to distribution channels.
Substitutes
This item is not a threat to this company. The quality and price of the company's product are very good. There are still no better quality substitute products in the field of XingJiang province. There is no threat of substitutes.
Providers
The power of the supplier force has little influence. The price of explosive products for civil uses is regulated and ammonium nitrate companies have some bargaining power. However, due to the rapid expansion of production capacity in recent years and the difficulty of the breakup of ammonium nitrate companies, the threat from suppliers is relatively small.
Ammonium nitrate is the most important raw material for industrial explosives, since it represents around 40-50% of its production cost (around 900 tons of ammonium nitrate per ton of industrial explosives). However, since the price of products in the civil explosives industry is stipulated by the State and there is no cost transfer capacity, the price trend of ammonium nitrate will directly affect the level of profits of the industry.
Ammonium nitrate is mainly used in two aspects: first, it is used in industry, mainly for the manufacture of explosives, and also for the production of chromatography reagents, refrigerants, nitrogen oxide absorbers, and the like. The second use is for agriculture, and it is divided into two aspects: it is applied directly to farmland for chemical fertilizers or it is used as a nitrogen source for the production of compound fertilizers. The civil explosives industry is not the main development market for ammonium nitrate companies, and ammonium nitrate companies are more inclined to ammonium nitrate compound fertilizer for tobacco.
Graph - The five main suppliers of production points of the company's fixed production line
Unit: 10,000 yuan
| Year | Seller Name | Value | Operating cost ratio |
| 2017 | 新疆 新化 化肥 有限 责任 公司 | 5,436.49 | 9.46% |
| 新疆 金 圣 胡杨 化工 有限公司 | 1,494.71 | 2.60% | |
| 乌鲁木齐 市 永 利达 塑胶 制品 有限公司 | 889.08 | 1.55% | |
| 新疆 方正 化工 轻工 有限 责任 公司 | 679.29 | 1.18% | |
| 北京 华辰 同创 贸易 有限公司 | 656.66 | 1.14% | |
| total | 9,156.23 | 15.93% | |
| 2016 | 新疆 新化 化肥 有限 责任 公司 | 6,558.14 | 9.58% |
| 新疆 金 圣 胡杨 化工 有限公司 | 1,289.01 | 1.88% | |
| 乌鲁木齐 市 永 利达 塑胶 制品 有限公司 | 1,077.35 | 1.57% | |
| 中国 石油 天然气 股份有限公司 新疆 分公司 | 933.67 | 1.36% | |
| 新疆 方正 化工 轻工 有限 责任 公司 | 809.38 | 1.18% | |
| total | 10,667.55 | 15.59% | |
| 2015 | 新疆 新化 化肥 有限公司 | 7,262.43 | 11.08% |
| 新疆 方正 化 轻 有限 责任 公司 | 1,064.84 | 1.62% | |
| 新疆 金 圣 胡杨 化工 有限公司 | 1,052.22 | 1.61% | |
| 乌鲁木齐 市 永 利达 塑胶 制品 有限公司 | 1,051.78 | 1.60% | |
| 北京 瑞仁达 化工 有限公司 | 830.26 | 1.27% | |
| total | 11,261.53 | 17.18% |
Customers or comparators
The power of client strength has little influence. The company does not have a sales ratio of more than 50% for individual customers. The downstream market for the civilian explosives industry has ample room for growth and the market environment is complex and varied. However, due to the price control of explosive products for civil uses, the negotiation space is limited, considering the mine. The blasting company has the ability to integrate forward, and the threat to the civilian explosives industry will increase in the future.
Graph - sales of the five main clients of the company.
| Year | Name of clients | Sale value （RMB） | Proportion of operating income （%） |
| 2017 | 哈密 地区 德盛 民用 爆破 器材 有限公司 | 109,809,149.71 | 12.08 |
| 神 华 新疆 能源 有限 责任 公司 | 88,229,563.45 | 9.70 | |
| 富蕴 县 民用 爆破 器材 专卖 有限 责任 公司 | 57,472,679.90 | 6.32 | |
| 新疆 环 疆 民用 爆炸 物品 经营 有限公司 | 39,307,654.75 | 4.32 | |
| 新疆 天池 能源 有限公司 | 38,955,241.00 | 4.28 | |
| Total | 333,774,288.81 | 36.71 | |
| 2016 | 哈密 地区 德盛 民用 爆破 器材 有限公司 | 100,555,570.57 | 9.49 |
| 神 华 新疆 能源 有限 责任 公司 | 79,832,265.78 | 7.54 | |
| 新疆 广汇 新 能源 有限公司 | 57,029,124.83 | 5.38 | |
| 新疆 环 疆 民用 爆炸 物品 经营 有限公司 | 49,967,376.15 | 4.72 | |
| 新疆 黑山 露天矿 有限公司 | 47,796,443.59 | 4.51 | |
| Total | 335,180,780.92 | 31.64 | |
| 2015 | 哈密 地区 德盛 民用 爆破 器材 有限公司 | 130,977,037.71 | 12.30 |
| 新疆 广汇 新 能源 有限公司 | 86,406,707.09 | 8.12 | |
| 新疆 天池 能源 有限公司 | 64,168,434.16 | 6.03 | |
| 新疆 环 疆 民用 爆炸 物品 经营 有限公司 | 55,318,332.87 | 5.20 | |
| 富蕴 县 民用 爆破 器材 有限 责任 公司 | 53,394,814.18 | 5.02 | |
| Total | 390,265,326.01 | 36.66 |
In summary, competition among existing companies in the national civilian explosives industry is less threatening, but there is a tendency to gradually increase; providers have weaker bargaining power and less threat; customers have a forward integration trend, and the threat will gradually increase.
The barriers to entry to the industry will be higher and higher and there is no threat of alternatives. Therefore, from the perspective of the national civil explosives industry competition structure, the current industry is very attractive, it is worth entering and expanding the market. The main boost comes from heightened competition in the industry caused by mergers and acquisitions, as well as intermediary customers.
3.1 strengths
- Brand Advantages .
The company is one of the state-owned companies, with unique policy advantages, location advantages, and resource advantages. It is the province's largest civilian explosives production company and one of the groups of companies with full industrial chain integration in the national civilian explosions industry.
The company produces detonators, explosives, cables and other products with complete product specifications and reasonable structure, which are basically applicable to all kinds of mineral development and blasting services for the main companies in the province, and earn the trust of the users. The basic engineering and construction requirements under special environmental conditions have laid the foundations for the company to continue expanding and strengthening the provincial market.
- Technical advantages.
Intellectual property rights and independent patents: The company has obtained 27 effective patent rights, including 5 invention patents and 22 utility models; Using the company's proprietary technology to produce detonators has greatly improved safety and stable quality.
Transformation of scientific and technological achievements: The company has achieved 4 technical achievements: XFZB series automatic industrial explosives packaging machine, which uses boiler combustion gas to treat DDNP (dinitrodiazophenol) wastewater, chemical sensitization to low temperature of the explosive emulsion production line, modification of the charging process, continuous expansion of the expanded explosives production line, automatic transformation and two-dimensional code information management system for industrial explosives.
Technological innovation and sustainable development: the company focuses on new products, new processes, new equipment and new technologies related to blasting services. It cooperates with Nanjing University of Science and Technology, Changsha Mining and Metallurgy Research Institute, Xinjiang University and other research institutes for a long time. In addition, it establishes a technology research and development center, responsible for technology research and development.
- Talent Advantage
The company has 680 professionals and technicians and 1,460 trained. Among the professional and technical staff, 30 senior titles, 96 intermediate titles and 144 junior titles, among the qualified talents, 13 senior technicians, 68 technicians, 270 senior workers and 82 intermediate workers. There are 240 workers and 663 security staff members, including 42 senior workers, 16 intermediate students, and 23 junior students. By expanding talent recruitment channels and improving internal talent training and selection mechanism, the company is doing its utmost to form a talented team with excellent quality, outstanding ability, reasonable structure and moderate scale to meet the needs of the company development.
- Advantage of industry chain:
The company has four fixed point production companies, twelve holding companies and four stock companies (including mixed explosives production companies, underground mixed explosives production companies, sales companies, blasting companies, etc.), which basically have formed a set. The relatively complete industrial chain of development, production, transportation, and blasting services for civilian explosive equipment has laid the foundation for further development of the company.
- Market advantage:
the company has a large market share and a high market share. The market share of industrial explosives in the province is 46.7%, the market share of industrial detonators is 85% and the market share of industrial cables is 95%. Total coverage of the province's market.
3.2 Weaknesses
- Insufficient production capacity:
The implementation of the national western development strategy, the increase in infrastructure construction in Xinjiang and the development of mine construction have become the fastest growing areas for explosives products for civilian use.
Currently, the company has a capacity of 90,000 tons of explosives, 52 million detonators and 12 million meters of detonating industrial cords. The plastic detonation tube is 50 million meters. One of the bottlenecks in the company's current development is that it has low production capacity and can no longer meet the growing market demand. In view of this, mainland Chinese civilian explosives companies have successively entered Xinjiang, which has generated economic benefits for the company. Growth is limited. Thus,Expanding the production capacity of companies through the application and introduction of production capacity is an essential requirement to carry out the development of companies and the growth of interests.
- The blasting business is relatively weak.
Today, the company's blasting business is primarily based on "drill and blast." The profit model is relatively simple, the industrial chain is short, and the gross profit margin of the blasting business is relatively low. The company will use capital, technology and talents to grow the blasting industry. Invest and fine-tune the blasting business model to form a comprehensive 'drill, blast, dig and transport' service-oriented industry.
- The talent structure is not reasonable.
Except fire engineering graduates, other professionals and technical personnel still cannot meet the needs of the company such as mechanical equipment maintenance, design and development personnel, marketing administration, law, economics and other personnel.
Compared to industry companies, there is a certain gap: high-end talents such as investment and management are lacking, which are suitable for the development of company cluster, and talents cannot keep up with the rapid development of the company. The performance evaluation is imperfect, the teamwork awareness of the staff is weak and the motivation for the work is insufficient, which is not conducive to the rapid development of the company under the existing commercial pattern of production, blasting, circulation and accompaniment.
4.1 opportunity is
1) Environmental opportunities. With the implementation of the national strategy for the development of the western region, the gradual implementation of specific measures for aid to Xinjiang, West-East Coal Transportation, West-East Power Transmission and the chemical coal industry, provides a golden opportunity for Xinjiang's economic development by leaps and bounds, especially in Xinjiang. Investment in infrastructure construction, such as transportation and water conservation and mine construction and energy development projects, has increased.
This infrastructure and the construction of the project are in high demand for civil explosives products, which provides ample space for the development of the civil explosives industry in Xinjiang. It provides a great opportunity for company development.
From the perspective of the provincial market, it is estimated that at the end of the "Thirteenth Five-Year Plan", the demand for explosives in the province will be around 400,000 tons / year, the detonators will be 60 million rounds / year and the types of cable will be more than 80 million meters / year.
2) Industry policy encourages the development of mixed on-site explosives and integrated business models. From the perspective of trends of international application and the orientation of national policies, mixed explosives in place have become the main methods of production and use of industrial explosives. In recent years, after the formation and saturation of traditional fixed production capacity, mixed explosives on site developed rapidly in the province and became a new highlight of the adjustment of the industry product structure and the transformation of the service model.
The “Twelfth Five-Year Plan” of the national explosions industry proposes that the advanced development model of “integration of scientific research services, production, sales and blasting” can achieve a close integration of scientific research production and market services, and improve and improve the services of explosive civilian companies for the development of the national economy. "Function and level have become the primary direction of development for our national blast industry." The Group has vigorously developed on-site combined blasting and engineering blasting services based on the advantages of existing blasting service infrastructure, in line with the industry development direction and development trend.
3) The industry will continue to increase the intensity of mergers and acquisitions. With the further implementation of the industry's "Twelfth Five-Year Plan", it will be increasingly difficult for group companies to expand their markets.
During the period of the "Eleventh Five-Year Plan", the integration of the civil explosives industry achieved great results. The number of civilian explosives production companies was adjusted from 421 to 146, and sales companies were adjusted from 173 to 523. The Security Production Division was launched in September 2011.
The "Twelfth Five-Year Development Plan for the Civilian Explosives Industry" proposes that the development objectives include:
- «Improve industrial concentration and focus on cultivating 3 to 5 leading companies with independent innovation capacity and international competitiveness in the life cycle of civil explosives products.
- "We will build 20 key companies with independent service capabilities in all regions and in all regions, which will lead to the blasting industry to achieve advanced development."
4) The financial credit is loose. The national economy has shown a downward trend. The central bank has frequently issued a policy of "reducing interest rate cuts", highlighting the central bank's strong intention to avoid falling economic inertia and promoting the recovery of the growth rate, which will have a great impact on the economic situation in the second half and next year. Taking advantage of current financial cost opportunities and implementing mergers and acquisitions before the market recovers will significantly reduce the cost of mergers and acquisitions.
4.2 To claws
1) Competition in the market has intensified after the opening of the industry. In Xinjiang, a conglomerate of foreign headquarters has developed with excess production capacity, which has become a threat, mainly in the field of mixed explosives due to excess production capacity in the Xinjiang civil explosions market., because the increasing pressure on local companies in the province is increasing. This competition is mainly reflected in the market competition between mixed explosives on site and conventional products.
2) The costs of mergers and acquisitions are at a high level. In the "XI Five-Year Program", the State encouraged mergers of the civil explosives industries. However, company acquisitions and mergers are often not in accordance with the acquisition of the net asset value, but according to the market value of the acquisition, the offer ratio is generally around 1, Four. In addition, the current industry mergers and acquisitions people are very enthusiastic, as there is a gradual market opening, capital advantages, technology, industry influence and the reputation of the company's civil explosives business. However, the expansion of the market poses a great threat.
3) Competition between the producing companies of the region. For conventional products, given that the competent departments of the civil explosives industry in the autonomous region have been using the regional supply method to manage the civil explosives market in the province, the competition of civil explosives production companies in the region is reflected in the differences in the product structure of production companies. At present, we do not have the provincial origin grain products, the origin grain market is mainly occupied by Xinjiang Tianhe company.
5 General business development ideas
5.1 General development ideas
Over the next 5 to 8 years, Xuefeng Technology Group will leverage regional advantages and the listed financing platform to focus on the core business of civil explosives and actively develop five core businesses: production and sale of civil explosives products, blasting, circulation and logistics services. Also, businesses, health and pension businesses, and related resource businesses.
Likewise, it will take the new path of industrialization with a high technological content, with a good economic benefit, low consumption of resources and less environmental pollution: which will seek modernization in integration at scale, specialization, technology and modernization at the end of the "Twelfth Five-Year Plan ».
The company has grown into a national first-class large-scale civilian explosives business group. Some premises are to adhere to the concept of scientific development as a guide, comprehensively and conscientiously implement the spirit of the party's "18th National Congress" and the Xinjiang Central Economic Labor Conference, in the spirit of the 8th Party Congress of the Autonomous Region and the 4th Committee of the Party Committee of the Autonomous Region (Expanded).
In addition, present the objective of "two and a half", in accordance with the general deployment of the Commission for the Supervision and Administration of State Assets of the autonomous region, taking full advantage of the favorable opportunity of industrial development and industrial aid of the country, guided by market and national policies, with economic efficiency as the central and institutional mechanism.
Innovation is the driving force to further emancipate the mind, accelerate the transformation of development mode, seize the opportunity of historical development, actively explore the capital market and achieve advanced development.
5.2 Strategic D escription
Take advantage of the opportunity of relocation and technological transformation of production areas as an opportunity to increase approved production capacity, gradually phase out production lines of obsolete products, and actively develop new products and materials with safety, environmental protection, energy saving, low consumption and excellent performance, and consolidate the cornerstone of the production and sale of explosive products for civilian use. At the same time, encourage the timely and multi-channel introduction of strategic investors to provide financial support for strategic implementation.
6.
6.1 Blasting Business Expansion Strategy
Based on the production of explosive products for civil uses and increased investment in the blasting business, combined with the sales network of subsidiary companies and branches and the production of mixed explosives on site, a variety of Cooperative blasting service network forms throughout Xinjiang territory to fully participate in blasting market competition. Thus, comprehensively promote the development of blasting services.
6.2 Industry chain extension strategy
The civilian explosions industry engages in the production of raw materials from upstream companies to reduce comprehensive cost and control third-party risks, transform economic development mode, actively develop downstream industries, implement integrated research service mode scientific, production, distribution and blasting services, and make the most of the resources of Xinjiang province.
For many years, Feng Company has provided the innate advantages of civil use explosive products for mining companies in Xinjiang, and actively entered into related resource industries, and then used existing resources to develop comprehensive use of mineral products. and deep processing industries.
6.3 Merger and restructuring strategy
During the "Eleventh Five Year Plan" period, horizontal mergers and acquisitions of the company's civilian explosives industry have made significant progress. The company will continue to integrate civilian explosives circulation companies in Xinjiang, and further expand the Group's sales and service network in the civilian explosives market in Xinjiang to ensure the Group's presence in Xinjiang. The dominant position in the domestic market for explosive products is achieved by striving to irradiate the Central Asian market.
6.4 Development strategy of the foreign trade market
The market potential of civilian explosives equipment production, sales and blasting services in Central Asia is enormous, it is another market resource for the future development of the company and it is also a bridge for the company to achieve international operations.. The company has the right to operate in foreign trade, and has a unique geographical location and a good market base, laying the foundation for further development of the foreign trade market for explosive products for civilian use. The company will also develop other foreign trade businesses based on foreign trade of explosive equipment for civil uses and will provide a new development space for the development of the foreign trade market strategy.
conclusion
In the next 5 to 8 years, through exploration, capital transfer and other means, exploration and mining rights will be obtained, to intervene in the mineral resources industry and then use existing resources to support comprehensive use of mineral products and deep processing industries.
During the period of the “Twelfth Five-Year Plan”, the Group initially intervened in the industry of these resources.
During the period of the “Twelfth Five-Year Plan”, based on the experience acquired by the “Twelfth Five-year” mining development, the Group will implement the development on an industrial scale and take advantage of industrial advantages in accordance with the requirements at scale and intensification, and you will achieve economies of scale.
Bibliography
Kang Ling Jiang, Hongyun (2012): "21st Century Universities and Colleges Economic Management Planning Textbooks". People's Posts and Telecommunications Publishing House. Beijing.
The 2017 Annual Report of Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd., 2018
Xinjiang Xuefeng Technology (Group) Co., Ltd. 2017 Annual General Meeting
Financial Strategy and Financial Policy of the Business Group, Zhang Yanbo, 2002
www.jianshu.com/p/1a622430d2f4?utm_campaign=maleskine&utm_content=note
www.esdict.cn/dicts/es/minorista
www.wikipedia.com
References
RMB is the abbreviation for the renminbi, which in simplified Chinese is 人民币. It literally means "currency of the people" and its code is CNY. It is currently the legal tender of the People's Republic of China and is issued by the Chinese People's Bank. It is also known as "yuan".
The Xinjiang Xuefeng Technology (Group) Co., Ltd website:
Xinjiang Xuefeng Technology (Group) Co., Ltd. 2017 Annual General Meeting
The 2017 Annual Report of Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd., 2018
The 2017 Annual Report of Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd., 2018
www.wikipedia.com
