China's wind power bearing industry continues to develop steadily

In the domestic wind power bearings have a strong first-mover advantage and superior competitiveness. The wind turbine bearing business has a low degree of correlation with the macro economy, benefiting from the national sustainable development strategy and wind power support policies.

The wind power industry's production and sales continue to rise. Tianma is the leading company in the domestic wind power bearing industry. It is one of the four wind turbine manufacturers and the main bearing supplier of Dongfeng and Goldwind, the leading wind power machine manufacturer in China.

The gross profit rate of wind power bearings gradually stabilized With the stabilization and maturity of domestic wind power bearing production technology and the improvement of production efficiency, the monopoly position of foreign manufacturers was broken. In 2009, the price of wind power bearings (pitch, yaw bearing) was The decrease in gross profit margin has been reduced to a reasonable level of about 40%, and gradually stabilized in the first quarter of 2010. With the stabilization of the supply relationship and industrial structure of domestic wind power bearings, the gross profit level of wind power bearings will decline in the future. Limited, gross margin will tend to be stable.

Railway bearing began to recover due to the impact of the financial crisis and the impact of the Ministry of Railways railway passenger renewal plan, the purchase of railway bearings in 2009 fell rapidly, dropping 70% in the first half; recovering in the second half, a decline of 50% throughout the year . In 2010, the number of tenders for railway freight train bearings in the railway sector has resumed. It is expected that the number of tenders for railway freight car bearings in the railway sector will increase by about 40% in 2010 and reach 70% in the peak period of 2008. Sales revenue will reach 300 million.

The smooth transition of the machine tool business and the steady development of the company's acquisition of Qizhong CNC led to a more secure acceptance and transformation of the CNC production and operation. The transition period was smooth and orderly, and the current production and operating efficiency was steadily improving. The industry leading position of the lathe business is solid, and it is expected that the sales revenue will be 1.8 billion in 2010, making an important contribution to the company's performance.