Corporate innovation hinders the transformation of overhead cables

Recently, the cable companies listed through optical cable released a semi-annual report, in the first half of the operating income of 3.87 billion yuan, compared to the same period last year increased by 3.45%, net profit of only 14.3 million yuan, compared to the same period last year declined sharply 51.03%. This is mainly due to the decline in operating profit and government subsidies, compared with the same period last year by a large margin resulting in a decrease.

Announcements, due to a substantial decline in government subsidies over the same period last year, the first half of this year, the optical cable business income was only 1910000 yuan, compared with the same period last year decreased by 88.8%. In addition, the cost of sales of 3898.6 million yuan, compared with the same period last year increased by 22.84%, the main reason is aluminum alloy cable sales strengthen marketing, so marketing costs, advertising costs, and engineering service fees increased compared to the same period last year.

Secondly, the new marketing personnel leads to more travel expenses increased over the previous year. In addition, the same subject received government subsidies over the same period last year, a substantial decline in other reasons, through optical cable business cash flow of -8816 million, a decrease of 4083.6% over the same period last year.

Last year, aerial cable industry development is unreasonable, not coordination problem is very prominent, downward pressure on the contradiction between the relative surplus of economic growth and productivity, production and operating costs rise, and the lack of innovation, resulting in domestic aerial cable companies generally started rate insufficient and excess production capacity, and even once caused a collapse of the industry.

In addition, analysts believe that the aerial cable industry is raw material dependent and is a very heavy industry, especially since copper dependence has not changed in many years. But it is well known that copper prices are high, coupled with the cable industry's special contract issues, resulting in copper whether it is the price or price, the production of aerial cable companies is unfavorable. This year, the aerial cable industry market competition is still fierce, and the number of listed cable companies decline in the industry.

Far east holding group Jiang Xipei, chairman of the board of directors will have called for the capability of independent innovation of enterprises lack severely limit the aerial cable industry transformation, leading the industry products homogenization, vicious competition is still very serious. To crack the development dilemma, on the one hand, the government should take effective and strict control measures, but also create a fair environment for the innovation and development of private enterprises.

On the other hand, in the realization of transformation and development, enterprises must not only rely on government policy support, but also carry out independent innovation, aerial cable enterprises especially listed cable prices have to bear the responsibility of enterprise, industry, and social responsibility.