The market demand potential is large, and the process of equipment localization is accelerated

Since 2022, under the influence of high international commodity prices and repeated outbreaks of the epidemic in many places, the domestic manufacturing industry has been impacted to a certain extent, but under the overall control of the State, China's manufacturing industry has shown a good trend of recovery. In 2022, the national industrial production above designated size will maintain a steady recovery, with the added value increasing by 3.6% over the previous year. Paper making equipment is a subdivision of the special equipment manufacturing industry, since 2022, the growth rate of the added value of China's special equipment manufacturing industry and the growth rate of industrial added value are basically consistent. From January to April 2022, affected by the rise in energy prices caused by the epidemic in many places and the Russia-Ukraine conflict, the operation of special equipment manufacturers was greatly impacted, and the growth rate of industry added value dropped to -5.5%, which is below the critical point. From May to June, with the package of policy measures to stabilize the economy, the resumption of work and production of enterprises accelerated, and the growth rate of added value of the special equipment manufacturing industry increased rapidly. From July to September, the state introduced a series of measures to promote the steady and healthy development of the industrial economy, and the growth rate of the special equipment manufacturing industry maintained stable growth. From October to December, external uncertainty rose, the manufacturing industry faced greater pressure, and the growth rate of the special equipment manufacturing industry continued to decline; Among them, in December, with the optimization and adjustment of epidemic prevention policies, the number of new coronavirus infections increased significantly, and the growth rate of special equipment manufacturing industry dropped to -0.5%, which fell below the critical point, and the industry production fell.

Industry operating income grew steadily. The paper industry is closely related to national life, and the market size of China's paper industry has grown steadily from 2018 to 2022. In 2020, due to the impact of the new coronavirus epidemic, the prosperity of the paper industry is overall at a low level, and the industry income fell by 2.67%. In 2021, the domestic economy will recover, and the operating income of the paper and paper products industry above designated size in China will increase by 15.32%, and the operating profit will increase by 7.03%. In 2022, the domestic economy was greatly affected by the epidemic, the future supply chain of the industry was hindered, and the operating income of the paper and paper products industry above scale slowed down, increasing by 0.4% year-on-year, which was 14.92 percentage points lower than that in 2021. In terms of profits, affected by the conflict between Russia and Ukraine, international energy prices have increased significantly, the production cost of the industry has increased, and the operating pressure of the industry is larger, and the operating profit of the paper and paper products industry above the scale is 62.1 billion yuan, down 29.80% year-on-year. Looking forward to 2023, with the acceleration of the landing rhythm of the "steady growth" policy, the vitality of market players is expected to be further stimulated, and industry revenue and profits are expected to rise.

The industry's independent innovation ability has been continuously strengthened, and the process of equipment localization has been accelerated

The paper industry is an important basic raw material industry closely related to the development of the national economy and social undertakings, and the consumption level of paper and paperboard is a sign to measure the level of modernization and civilization of a country. Papermaking equipment as an important market segment in the middle reaches of the papermaking industry, its technical level is related to the overall development level of the industry.

Papermaking equipment mainly includes crushing equipment, transmission equipment, wet pulp machine, extrusion machine, folding machine, crushing conveyor and baler. According to the process flow of pulp and paper making, paper making machinery can be divided into material preparation equipment, pulp equipment, paper machines and finishing processing machinery. Among them, the material preparation equipment is the equipment that pretreats and processes according to the requirements of the cooking or grinding process before cooking or grinding, which is divided into non-wood fiber material preparation equipment and wood fiber material preparation equipment, including grass cutter, reed cutter, peeling machine, chipper, etc. Pulping equipment is the equipment used in the process of separating plant raw materials into fibers, including digester, wood grinder, hot mill, pulp washing machine, pulp bleaching machine, beater and waste liquid recovery equipment. The complete equipment of the paper machine includes the flow box, the mesh department, the press department, the drying unit, the calendering machine, the paper winder, and the main engine such as the transmission department and the auxiliary system such as water, vacuum, lubrication and heat recovery.