According to the statistics of 296 major enterprises in the hydraulic, hydraulic, pneumatic, and sealing industries by the China Hydraulic and Pneumatic Seal Industry Association, from January to May, the sales profit margin of the entire industry was 9.44%, the production and sales rate was 97.38%, the production and demand were well connected, and the market continued to be strong. Among them, the total industrial output value reached 6.151 billion yuan, an increase of 32.54% compared to the same period last year; The industrial sales output value reached 5.99 billion yuan, an increase of 34.74% compared to the same period last year; Achieved sales revenue of 540 million yuan, an increase of 31.07% compared to the same period last year. In addition, 52 out of 296 enterprises suffered losses, with a loss rate of 17.56%. The 296 enterprises achieved a profit of 551.63 million yuan by offsetting their profits and losses, a year-on-year increase of 45.30%. Among 296 enterprises, 83 have a profit of over 1 million yuan, and 23 have a profit of over 5 million yuan.

In the context of the continuous improvement of the industry situation, industry experts also remind enterprises to calmly analyze the situation in the second half of the year, pay attention to and be alert to several major issues that affect the development of the industry:

The nationwide power rationing is still expanding, which has a significant impact on enterprise production.

According to reports, the provinces and cities in China that are restricted by movies have expanded from the original Yangtze River Delta and Pearl River Delta regions to 24 provinces, cities, and autonomous regions, and it is difficult to solve in the short term. As production tasks continue to grow, enterprises should strengthen internal management, take all measures, fully utilize equipment capabilities, and minimize the impact of restrictions.

The impact of national macroeconomic regulation on enterprise production is evident.

The macroeconomic control measures taken by the government to curb the phenomenon of overheated investment in some industries have led to a reduction, postponement, and even cancellation of orders by host factories. Especially for hydraulic component enterprises that support the metallurgical industry, they have reported that the most significant impact has reached 50% of the task volume. In addition, there are hydraulic component factories that provide support for the forklift industry. They have reported a significant decrease in order volume from April to May, and their production and efficiency for the whole year may remain the same as in 2003.

Foreign manufacturers are increasing their investment and mergers and acquisitions efforts.

After world-renowned liquid and gas seal manufacturers have invested and established factories in China, these enterprises have now increased their investment and acquisition efforts and speed, and some projects are being intensively negotiated. This trend should attract the attention of enterprises, as it is both a challenge and an opportunity.

We should make strategic development plans and guard against disorderly competition.

In the current favorable situation, enterprises must have a long-term vision and make strategic development plans. In the first half of the year, some companies, due to their full workload, even experienced the phenomenon of customers waiting for goods at their doorstep. Therefore, they focused mainly on equipment and manpower, and neglected management, which affected product quality. This situation must be avoided in the future. In addition, some enterprises are vigorously building new factories and expanding production scale, and should be cautious of the resulting equipment overcapacity or low-level redundant construction.