China Glass Industry Report, 2006

China Glass Industry Report, 2006

Along with the ascending of industrial profit since 2003, glass industry became more attractive, surging up a new-round of investment from 2003 to 2005. Since the construction cycle of glass production line is around one year, newly-added production capacity would emerge between 2004 and 2006. This expansion of production capacity is mainly in South China and East China; most of production lines in the east China were constructed and start operations in 2004 while the release of production capacity in South China mainly happened in 2005. Guangdong is the province gathered the most newly-added production capacity in South China.

The concentration degree of flat glass production was further improved in 2005. There were only 4 flat glass manufacturers with annual output over 5 million weight cases in 2000 while the number reached 24 in 2005 with output accounting for 52.21% of the total. The annual output of 11 enterprises (groups) including Harun achieved more than ten millions weight cases, accounting for 49.05% of the total.

The national output of flat glass was 365.7 million weight cases in 2005, increasing by 17.12% compared to 2004. The sales revenue of whole industry reached RMB 30.2 billion with a yr-on-yr increase of 12.64%, but the cost rose by 28.23%, far higher than the income growth. The gross profit achieved RMB 879 million, decreased by 68.22% than 2004.

China imported flat glass of 26.389 million square meters in 2005 with import value up to 334.7849 million US dollars at average cost of 12.69 US dollars per square meter. Compared to 2004, the import amount decreased by 37.40%, import value increased by 68.37% and average import price rose by 2.97 US dollars per square meter. China exported flat glass of 185.394 million square meters in 2005 with export value reaching 454.7432 million US dollars at average cost of 2.45 US dollars per square meter. Compared to 2004, export amount increased by 38.45%, import value grew by 38.54% and average export price remained the same.

In 2006, China's glass industry was still confronted with many contradictions and pressures such as unbalance of supply and demand, restriction of resource environment and high price of raw material. During the 11th Five-plan period, we still see a wide space for development of ultra-thin, ultra-clear float glass, glass deep-processing and energy-saving glass.

The report date sourced from the National Bureau of Statistics, China Customs, Bureau of Statistics of Light Industry, Industrial associations and related industrial research institutions. Instead of the study and discussion of relevant technologies, this report brings forward the investment opportunities and development trend through analysis on production, product structure, import & export and operations of domestic key glass enterprises. It deserves to be referred by manufacturers who are prepared to enter China's glass market, import & export companies and investors.

1. Overall analysis on China's glass industry
1.1 Features of glass industry, 2005
1.1.1 Production capacity
1.1.2 Cost
1.1.3 Price
1.2 Supply and demand
1.2.1 Regional Distribution of production capacity
1.2.2 Analysis on key regions of new increased production capacity
1.2.3 Analysis on float glass manufacturers
1.2.4 Demands structure
1.3 Analysis on import and export
1.3.1 Export
1.3.2 Import
1.4 The 11th Five-year Plan and industrial development trend
1.4.1 Objects during the period of 10th Five-year Plan
1.4.2 Development prospect

2 Market structure and Profit analysis of China's glass industry
2.1 Market characteristics
2.1.1 Product structure
2.1.2 Merger and reorganization
2.2 Analysis on market competition and concentration degree
2.2.1 Market competition and development trend
2.2.2 Market concentration degree
2.3 Profit analysis
2.3.1 Profit
2.3.2 Pressure on price brought by heavy investments
2.3.3 Economic indicators of flat glass manufacturing

3 Analysis on segmented markets
3.1 Architectural glass
3.1.1 Status quo of consumption
3.1.2 Price trend
3.1.3 Development trend
3.2 Automotive glass
3.2.1 Production & sales and existing problems
3.2.2 Analysis on consumers
3.2.3 Influence of international trade on automotive glass market
3.3 Fiberglass
3.3.1 Demand features of fiberglass
3.3.2 Analysis on bottleneck of industrial development

4 Analysis on key enterprises and listed companies
4.1 Key enterprises
4.1.1 Luoyang Float Glass Group Co., Ltd
4.1.2 Fuyao Glass Industry Group Co., Ltd
4.1.3 Yaohua Pilkington Glass Company Ltd
4.2 Key listed companies
4.2.1 Financial report analysis, 2005
4.2.2 Financial report analysis, 1st half 2006

5 Analysis on investment opportunities and risks
5.1 Investment opportunities and suggestions
5.1.1 Development orientation of float glass
5.1.2 Further processing
5.1.3 New field
5.2 Risks of investment
5.2.1 Risks from the market
5.2.2 Risks from raw material
5.2.3 Risks from technology
5.2.4 Risks from policy and system

Number of domestic float-glass production line and production capacity growth, 2000-2005
Cost comparison of China's key glass enterprises, 2000-2005
Output of flat glass in China, 2000-2005
Regional Distribution of China's glass production capacity
Expansion of China's glass production capacity, 2004-2006
Proportion of glass production line types in Guangdong province
Output structure of flat glass according to production process
Production & sales of the national and key enterprises
Arithmetic average factory price of flat glass
Export value and increase of glass and glassware, 2000-2005
Import value of glass and glassware of China, 2000-2005
Fluctuation of output and growth rate of glass industry, 2002-2005
Sales profit margin of glass industry in recent years
Consumption of automotive glass, 2000-Jun 2006
Profit of listed companies in glass industry, 2005
Profit of listed companies in glass industry, 1st half 2006
Output of insulating glass in China
Statistics of float glass production line
Output growth of glass and glassware
Regional Output of flat glass
Rank of glass production & sales (by region), 2005