Development Status of 1. Boiler Market

1.1 Boiler Market Overview

A boiler is a device that heats water or other fluids to a certain temperature or pressure, and its output steam or hot water can be used for industrial production, civil heating, power generation and other purposes. According to the scope and function of boilers, boilers can be divided into two categories: industrial boilers and civil boilers. Industrial boilers are mainly used in the production process of chemical, pharmaceutical, paper, textile, food, metallurgy and other industries, and civil boilers are mainly used for urban heating, domestic water and so on.

According to the structure and working principle of the boiler, the boiler can be divided into circulating fluidized bed boiler, electric boiler, steam boiler, vacuum boiler, organic heat carrier boiler and other types. According to the energy source and use of the boiler, the boiler can be divided into gas boiler, oil boiler, electric boiler, biomass boiler and other types.

1.2 boiler market size

According to data from the Champ Consulting Group, 2018Year to 2020In 2012, affected by the national energy conservation and emission reduction policy, China's industrial boiler production showed a downward trend, from 2018Year of 44.5Ten thousand tons of steam dropped to 202038.9 of the yearTen thousand tons of steam, down 12.6 percent year-on-year.. Among them, 2019Year and 2020Industrial production activities were severely disrupted by the outbreak of new crown pneumonia, resulting in a decline in demand for industrial boilers.2021With China's economic recovery and industrial restructuring, the industrial boiler market began to pick up.In 2022, China's industrial boiler market will maintain a steady growth trend, with annual output reaching36.5Ten thousand tons of steam, year-on-year growth11%; Champ Consulting Group Forecast2023The annual output will reach40Ten thousand tons of steam, year-on-year growth9.6%。

On the other hand, the scale of China's civil boiler market has also shown a steady growth trend. According to data from the Champ Consulting Group, 2018Year to 2020In, China's civil boiler sales from 2018Year of 120010,000 units increased to 2020Year of 1400million units, with an average annual growth rate of 8.2 percent. Among them, 2020As a result of the epidemic, the growth rate of domestic boiler sales slowed to only 6.1 percent in 2012.。2021Since the beginning of the year, with the acceleration of China's urbanization process and the improvement of residents' living standards, the market demand for civil boilers has rebounded.In 2022, China's civil boiler market will continue to maintain a high growth rate, with annual sales reaching1650Ten thousand units, year-on-year growth10%; expected2023Annual sales will reach1800Ten thousand units, year-on-year growth9.1%。

On the whole, the scale of China's boiler market shows a steady upward trend,2022Year reached211.5Billion yuan, year-on-year growth10.5%, is expected2023Year-round will reach233.8Billion yuan, year-on-year growth10.6%。

1.3 boiler market demand

China's boiler market demand is mainly affected by the following factors:

（1) National Policy Factors

National policy is one of the important factors affecting the boiler market demand. In recent years, the Chinese government has issued a series of policies and measures on energy conservation and emission reduction, carbon neutralization, and new energy development, which put forward higher requirements for the boiler industry. For example, the "Implementation Plan for Carbon Peak in the Industrial Sector" puts forward a timetable and roadmap for carbon peak in the industrial sector, and clarifies key tasks such as energy-saving transformation of industrial boilers (kilns), clean energy substitution, and utilization of surplus energy and surplus pressure; The "Action Plan for Accelerating the Development of Green and Low-Carbon Innovation of Power Equipment" puts forward goals and measures such as accelerating the promotion and application of high-efficiency and energy-saving power equipment, and energy-saving power equipment, and clean transformation; the "Guiding Opinions on Promoting the High-quality Development of Natural Gas" puts forward measures such as accelerating the construction of natural gas infrastructure and promoting natural gas to replace traditional energy in industries and urban heating.

These policies have had a positive impact on the boiler market demand. On the one hand, they have promoted the demand for boiler products with high efficiency, energy saving, low emission, clean and environmental protection, such as circulating fluidized bed boilers, electric boilers, biomass boilers, etc.; on the other hand, they have also promoted the elimination and upgrading of traditional energy boilers, such as gas boilers and oil boilers.

（2) Factors of economic situation

The economic situation is one of the important factors affecting the boiler market demand. In recent years, my country's economy has maintained a steady and positive development trend, industrial production and urban construction have continued to expand, and the demand for boilers has also increased. According to data from the Champ Consulting Group,2021years ago11In the last month, China's industrial added value increased year-on-year.9.8%, in which11Month-on-month growth7.4%；2021years ago10In the last month, China's fixed asset investment increased year-on-year.8.9%, in which urban fixed asset investment increased year-on-year.8.6%。

（3) Energy structure factors

Energy structure is one of the important factors affecting the boiler market demand. In recent years, my country's energy structure has undergone significant changes, the proportion of clean energy has continued to increase, and the proportion of traditional energy has gradually decreased. According to data from the Champ Consulting Group,2022China's clean energy consumption accounted for 25.9 of the total primary energy consumption.than 2015.Annual 7.7 increaseNon-fossil energy consumption accounts for 17.7 percent of total primary energy consumption.than 2015.Annual 6.2 increaseNatural gas consumption accounts for 8.2 percent of total primary energy consumption.than 2015.Annual 1.5 increasepercentage points; while coal consumption accounts for 56.2 percent of total primary energy consumption.than 2015.Annual decline 10.1percentage point.

These changes have had a profound impact on the market demand for boilers. On the one hand, they have promoted the development of clean energy boilers, such as electric boilers and biomass boilers; on the other hand, they have also promoted the technical transformation and structural optimization of traditional energy boilers, such as improving the efficiency and safety of gas boilers and oil boilers.

（42) Environmental protection factors

Environmental protection is one of the important factors affecting the boiler market demand. In recent years, the Chinese government has increased its efforts in environmental pollution control and ecological civilization construction, and issued a series of laws, regulations and standards on air pollution prevention, water pollution prevention, and solid waste management. For example, "Air Pollution Prevention and Control Law", "Water Pollution Prevention and Control Law", "Solid Waste Pollution Environmental Prevention and Control Law", etc.; "Air Pollution Prevention and Control Action Plan", "Water Pollution Prevention and Control Action Plan", "Solid Waste Management Action Plan", etc.; "Boiler Air Pollutant Emission Standards", "Boiler Water Pollutant Emission Standards", "Boiler Solid Waste Management Regulations", etc.

These laws, regulations and standards have had a positive impact on the boiler market demand. On the one hand, they have promoted the demand for low-emission, environmentally friendly boiler products, such as circulating fluidized bed boilers, electric boilers, biomass boilers, etc.; on the other hand, they have also promoted The elimination and upgrading of traditional energy boilers, such as gas-fired boilers and oil boilers.

In summary, China's boiler market demand presents the following characteristics:

The demand for industrial boilers is mainly to replace and transform, while the demand for civil boilers is mainly to add and update;

The demand for clean energy boilers is growing rapidly, and the demand for traditional energy boilers is growing slowly;

Boiler products with high efficiency, energy saving, low emission and environmental protection are favored by the market, and boiler products with low efficiency and pollution are eliminated by the market.

2. boiler market competition analysis

2.1 boiler market competition pattern

China's boiler market competition pattern presents the following characteristics:

Fierce competition in the boiler market, a large number of enterprises, product structure diversity;

Boiler market concentration is low, the share of leading enterprises in the industry is not high, and the share of small and medium-sized enterprises is high;

The boiler market competition is diversified, and enterprises compete not only in terms of price, quality and service, but also in terms of technology, brand and channel;

The trend of competition in the boiler market is improving, and a win-win situation has gradually formed among enterprises, and the overall level of the industry has been continuously improved.

According to data from the Champ Consulting Group,2022In 2010, the sales revenue of the top ten enterprises in China's industrial boiler market accounted for 28.4 of the total sales revenue of the industrial boiler market.Among them, Harbin Boiler Co., Ltd. still topped the list, accounting for 5.4 percent of the total.The sales revenue of the top ten enterprises in China's civil boiler market accounts for 37.2 of the total sales revenue of the civil boiler market.Among them, Guangdong Midea Refrigeration Equipment Co., Ltd. continued to lead the way, accounting for 9.1 percent of the total.。

Introduction of Major Enterprises in 2.2 Boiler Market

（1) Harbin Boiler Co., Ltd.

Harbin Boiler Co., Ltd. (hereinafter referred to as Harbin Boiler) is China's largest power plant boiler manufacturer, established in1954Headquartered in Harbin, Heilongjiang Province. Harbin Boiler Unit is mainly engaged in the research and development, design, manufacture, installation and service of power station boilers, industrial boilers, nuclear power equipment, environmental protection equipment and other products. Harbin Boiler has the largest power plant boiler research and development center and manufacturing base in China, and its products cover the range50MWTo1000MWVarious types and specifications of power station boilers, including circulating fluidized bed boilers, ultra-supercritical boilers, supercritical boilers, etc. Harbin pot shares enjoy a high reputation in the domestic and foreign markets, and its products have been exported to India, Vietnam, Indonesia, Thailand and other countries and regions.

according to its 2022Annual ReportThe company 2022.Annual operating income of 92.3billion, up 3.8 percent year-on-year; realized net profit of 3.5billion, up 12.9 percent year-on-year. according to its 2023Annual Quarterly Report, the company2023Realized operating income in the first quarter23.7Billion yuan, year-on-year growth10.6%; realized net profit0.9Billion yuan, year-on-year growth29%. It can be seen that Harbin pot stocks have maintained a stable growth trend in the past two years.

（2) Guangdong Midea Refrigeration Equipment Co., Ltd.

Guangdong Midea Refrigeration Equipment Co., Ltd. (hereinafter referred to as Midea Refrigeration) is a subsidiary of Midea Group specializing in civil boiler products.2003The headquarters is located in Foshan City, Guangdong Province. Midea Refrigeration is mainly engaged in the research and development, production and sales of wall-mounted gas boilers, wall-mounted electric boilers, floor heating special boilers and other products. Midea Refrigeration has the leading boiler technology and production line in China, and its products have the characteristics of high efficiency, energy saving, safety, reliability, intelligence and comfort. Midea Refrigeration occupies a high share in the domestic market, and its products have covered all provinces and cities across the country, and have been exported to Russia, Iran, Turkey and other countries and regions.

According to Midea Group's annual report，2022In 2012, Midea Refrigeration continued to maintain steady growth, with operating income of 29.9billion, up 12.8 percent year-on-yearNet profit of 2.4billion, up 14.3 percent year-on-year。2023In the first quarter of 2012, Midea Refrigeration achieved operating income of 7.6billion, up 13.2 percent year-on-yearNet profit of 0.6billion, up 14.6 percent year-on-year。

（3) Other companies

In addition to Harbin Boiler Unit and Midea Refrigeration, there are many other outstanding enterprises in China's boiler market, such:

Dongfang Electric Group Co., Ltd.: is one of the largest power equipment manufacturers in China, established in1993The headquarters is located in Shanghai. Dongfang Electric is mainly engaged in the research and development, design, manufacture, installation and service of thermal power generation equipment, hydropower generation equipment, nuclear power equipment and other products. Dongfang Electric has strong competitiveness in the field of industrial boilers, and its products include circulating fluidized bed boilers, waste heat boilers, waste incineration boilers, etc.

Zhejiang Valin Iron and Steel Co., Ltd.: is one of the largest private iron and steel enterprises in China, founded in1992Headquartered in Hangzhou, Zhejiang Province. Valin Steel is principally engaged in the production and sale of steel and its deep-processed products. Valin Steel has strong competitiveness in the field of civil boilers. Its products include wall-mounted gas boilers, wall-mounted electric boilers, and special boilers for floor heating.

Jiangsu Shagang Group Co., Ltd.: is one of the largest private steel enterprises in China, established in1978The headquarters is located in Zhangjiagang City, Jiangsu Province. Shagang Group is mainly engaged in the production and sale of steel and its deep-processed products. Shagang Group has strong competitiveness in the field of industrial boilers, and its products include circulating fluidized bed boilers, waste heat boilers, waste incineration boilers, etc.

Future Development Trend and Suggestions of 3. Boiler Market

According to the analysis of Shangpu Consulting Group, China's boiler market will show the following trends in the future:

The boiler market size will continue to grow steadily and is expected2023The end of the year will reach233.8Billions of dollars;

Boiler market demand will be more diversified and personalized, customers on the boiler performance, quality, service and other aspects of the requirements will be higher;

Boiler market competition will be more intense and changeable, enterprises will be in technological innovation, brand building, channel development and other aspects of more intense competition;

The boiler market pattern will be more optimized and coordinated, industry-leading companies will further consolidate and expand market share, and small and medium-sized enterprises will enhance their own strength through cooperation and integration.

In response to the above trends, the Shangpu Consulting Group makes the following recommendations:

Strengthen technological innovation and enhance product competitiveness. Technological innovation is the core driving force of the boiler industry. Enterprises should continue to invest capital and manpower to develop new products that meet market demand and national policies, such as high-efficiency, energy-saving, low-emission, clean and environmentally friendly boiler products, and intelligent, networked, and digital Boiler products improve product performance, quality, safety and comfort.

Strengthen brand building and enhance corporate image. Brand building is the core competitiveness of the boiler industry. Enterprises should establish a good corporate image and product image through advertising, public relations activities, social responsibility, etc., to enhance the visibility and reputation of enterprises, and enhance customer trust and loyalty.

Strengthen channel expansion and improve market coverage. Channel expansion is the core strategy of the boiler industry. Enterprises should expand domestic and foreign markets and increase market share and revenue by establishing their own sales network, cooperating with distributors, and alliances with other industries. At the same time, enterprises should increase customer satisfaction and stickiness by providing high-quality pre-sales, in-sales and after-sales services.

Strengthen win-win cooperation and improve the level of the industry. Win-win cooperation is the core concept of the boiler industry. Enterprises should achieve complementary advantages and common development through cooperation and exchange, resource sharing and technology complementarity with other enterprises in the same industry or across industries. At the same time, enterprises should communicate and cooperate closely with government departments, industry associations, scientific research institutions, etc., to promote industry standards and healthy development.