Hardware products are auxiliary and accessory products commonly used in daily life and industrial production. They generally refer to metal products and can be divided into tool hardware, construction hardware, daily hardware, etc. They are products of a high degree of integration of traditional manufacturing and modern technology.
The hardware manufacturing industry is an important part of my country’s light industry, serving all key aspects of life and production. It plays a positive role in improving people’s living standards and quality of life, meeting domestic and foreign market demands, absorbing labor employment, and accelerating the pace of industrialization and urbanization.
The upstream of the industrial chain of the hardware industry is mainly the raw material mining and processing industry, including steel, aluminum and alloy industries; the downstream is mainly for the decoration of new houses, secondary decoration of existing houses, the furniture industry, decoration industry, real estate industry and end consumers who need to purchase furniture and hardware accessories.
In terms of the upstream industry, crude steel is an important raw material for hardware. In recent years, crude steel production has generally shown an upward trend, but it will decline in 2021. my country’s crude steel production that year was 1,032.78 million tons.
With the rapid development of my country’s economy and the continuous breakthroughs in high and new technologies in the aluminum processing industry, my country’s aluminum smelting and processing industry has developed rapidly.
From 2017 to 2021, my country’s aluminum production has shown a fluctuating growth trend. As of 2021, my country’s aluminum production is 61.052 million tons, a year-on-year increase of 5.6%.
At the same time, my country’s output and consumption of aluminum processing materials have also increased significantly. From 2017 to 2021, my country’s output of aluminum processing materials has increased year by year. As of 2021, the output will reach 44.7 million tons, a year-on-year increase of 6.2%.
In the midstream industry, benefiting from favorable policies, my country’s hardware manufacturing industry is developing well and can effectively meet the expanding domestic and foreign market demand.
Data show that in 2019, the turnover of China’s hardware retail market was 5.65 billion yuan, a year-on-year decrease of 21%; in 2020, the turnover of China’s hardware wholesale market was 90.15 billion yuan, a year-on-year increase of 9.6%; in 2021, the turnover of my country’s hardware retail market will reach 5.95 billion yuan.
At present, the hardware industry cluster shows the characteristics of a complete industrial chain, distinctive industrial characteristics, and high regional branding. my country’s industry enterprises include Jianlang Hardware, Haiou Housing, etc.
Kin Long Hardware is a leading company in my country’s hardware industry. Judging from its hardware operating income from 2019 to 2021, driven by policy guidance, the revenue of this business has increased. In 2021, Kin Long Hardware’s revenue from this business was 8.714 billion yuan.
However, due to the impact of repeated epidemics, the real estate industry and the macro environment, downstream customer demand has decreased, and the gross profit margin of this business has shown a downward trend. In 2021, the gross profit margin of Kin Long Hardware’s business will be 35.4%.
In terms of downstream industries, the output scale of my country’s furniture products has shown a volatile trend in recent years. In 2017, the national furniture output was 910 million pieces. In the following years, the output first increased and then decreased.
In 2021, with the recovery of the national furniture industry, China’s cumulative furniture output reached 1.12 billion pieces, a year-on-year increase of 23.1%.
At the same time, the central government and various ministries and commissions frequently release signals to maintain stability, the policy bottom is gradually emerging, the credit environment continues to improve, some demand takes the opportunity to enter the market, and the scale of new home transactions continues to rebound. In 2021, my country’s commercial housing sales will be 18,193 billion yuan.
