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Is the industry in a downturn?
Author：Editor：adminHits：161 Date：2025-07-21
Question: Kaishan Co., Ltd. reported a profit of 44.18 million yuan in the first half of the year, a decrease of nearly 70% compared to the same period last year. Is it due to an industry downturn? Or is there something else going on?
On August 23rd, Kaishan Co., Ltd. released its semi-annual report. The company's total operating revenue was 726 million yuan, a decrease of 28.89% compared to the same period last year; the net profit attributable to shareholders of the listed company was 44.18 million yuan, a decrease of 68.45% compared to the same period last year. Kaishan Co., Ltd. stated that the screw machinery products had a 3.98 percentage point decrease in gross profit margin due to structural changes and market competition, resulting in a 4.30 percentage point decrease in the company's overall gross profit margin.
Answer: Profits are largely achieved through efforts. After all, by acquiring LMF, Keshan has gained access to the medium and high voltage market in China and the military industry, which will benefit greatly. Additionally, by acquiring geothermal resources in Eastern Europe and Southeast Asia, Keshan's implementation of renewable energy and new energy strategies may have a significant impact. Of course, the general downward trend in mining machinery and general machinery will definitely have a negative impact on its business operations and profits. Moreover, the fact that some enterprises have experienced逆勢增長 (counter-trend growth) is not necessarily a good thing. We outsiders can just wait and see. Time will tell everything.
Question 2: Why are air compressors getting cheaper and cheaper?
Answer: Profits are largely achieved through efforts. After all, by acquiring LMF, Keshan has gained access to the medium and high voltage market in China and the military industry, which will benefit greatly. Additionally, by acquiring geothermal resources in Eastern Europe and Southeast Asia, Keshan's implementation of renewable energy and new energy strategies may have a significant impact. Of course, the general downward trend in mining machinery and general machinery will definitely have a negative impact on its business operations and profits. Moreover, the fact that some enterprises have experienced逆勢增長 (counter-trend growth) is not necessarily a good thing. We outsiders can just wait and see. Time will tell everything.Question 2: Why are air compressors getting cheaper and cheaper?1. China's CPI is rising every year, but the prices of air compressors are falling. Is it because our industry is not doing well? If industries such as real estate, food, and raw materials are all increasing in price, would these industries be better off?
2. How can air compressors maintain reasonable profits and develop steadily?
Answer 2: There are certain products in the market, such as televisions, whose functions and quality are getting better and better while their prices are getting lower and lower; there are also certain products, such as agricultural products, whose quality remains unchanged but whose prices keep rising. Compressed air machines are somewhat similar to the former, while post-processing leans more towards the latter. Taking the adsorption dryer in the post-processing process as an example, the fourth-generation machine is almost twice as expensive as the previous generation, but the operating costs have almost halved. Such products precisely fall into the category of equipment with low investment but high operating costs, creating a huge price gap. Therefore, the price of the product should be carefully analyzed within the context of the entire life cycle cost. Unfortunately, the Chinese people are still not aware of or do not understand this scientific pricing method. I hope that the compressed air machine and post-processing industries in China will have not only Mercedes-Benz, BMW, and Audi but also Chery, Xiaoli, and Otto. Of course, there should also be a range of intermediate products. However, sometimes when purchasing or bidding, people ask Audi and Otto to quote together, hoping to use the money of Otto to buy Audi; and there are also those who aim to win the bid with the lowest price, reasoning that both cars can run on the highway.
Answer 2: There are certain products in the market, such as televisions, whose functions and quality are getting better and better while their prices are getting lower and lower; there are also certain products, such as agricultural products, whose quality remains unchanged but whose prices keep rising. Compressed air machines are somewhat similar to the former, while post-processing leans more towards the latter. Taking the adsorption dryer in the post-processing process as an example, the fourth-generation machine is almost twice as expensive as the previous generation, but the operating costs have almost halved. Such products precisely fall into the category of equipment with low investment but high operating costs, creating a huge price gap. Therefore, the price of the product should be carefully analyzed within the context of the entire life cycle cost. Unfortunately, the Chinese people are still not aware of or do not understand this scientific pricing method. I hope that the compressed air machine and post-processing industries in China will have not only Mercedes-Benz, BMW, and Audi but also Chery, Xiaoli, and Otto. Of course, there should also be a range of intermediate products. However, sometimes when purchasing or bidding, people ask Audi and Otto to quote together, hoping to use the money of Otto to buy Audi; and there are also those who aim to win the bid with the lowest price, reasoning that both cars can run on the highway.