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CCID Consulting: UPS Market to Witness This Year’s Final Sprint

China's UPS market experienced a quite slow growth during the first three quarters this year, but a final sprint in the fourth quarter can still be expected.

In the first half year of 2012, China's domestic UPS market harvested a revenue of RMB 1.658 billion, up only 1.7% year-on-year,, much lower than the 11.0% growth rate of the same period of the previous year and obviously below market expectation. The growth further slowed in the third quarter of 2012, with a revenue of RMB 992 million and a year-on-year increase of 1.8%, far below the previous year’s 20.5%.

Different from the situation in the first half year of 2012, the growth rate of China’s industrial value added at the end of the third quarter bounced back to a certain degree. However, compared with that in the same period of 2011, the growth rate still declined by 4.6 percentage points. The investment in fixed assets in the first three quarters of 2012 (peasant households excluded) witness a nominal increase 20.5% on a year-on-year basis, 0.1 percentage points higher than that of the first half. In the third quarter of 2012, the proportion of investment in fixed assets in Northeastern China, Central China, Northwestern China and Southwestern China increased to a certain degree, while that in Northern China, Eastern China and Southern China declined to some extent. The investment in fixed assets of the financial industry still maintained a rapid growth among the industries that have great impacts on the UPS market, and that of the telecom industry has shown a trend of recovery compared with the first half. In the future, with relevant operators expected to further expand their investment in the 3G field. In the third quarter, the investment in fixed assets of the transportation industry was still less than that in the same period of 2011, but it increased on a quarterly basis, wherein the road transportation plays a decisive role.

In terms of quarterly sales in the UPS market, the sales in the third quarter of 2012 bounced back to a certain degree compared with that in the first two quarters, and with the market demand expected to recover to a certain degree, the sales growth rate may reach the annual peak of 5.4% in the fourth quarter. According to a preliminary estimation, a growth of 2.9% will be achieved in the year 2012.

Fig. 1 Quarterly Sales Revenue of China's UPS Market, 2011-2012 Unit: RMB 100 Million

Source: CCID Consulting, October 2012

With regard to the power range, in the third quarter of 2012, the products with a power range of 80-200KVA and of greater than 200KVA maintained a rapid growth in revenue, and the sales growth of products with the power range of 100KVA, 120KVA, 200KVA and 400KVA became a highlight. The application of high-power products expanded rapidly in the market.

In the third quarter of 2012, sales in the Southern China and Eastern China markets decreased at different levels compared with that of the same period of 2011, wherein the Southern China market continued to dip after the second quarter. The Central China, Northwestern China and Southwestern China managed to grow at a high rate and became a highlight in the third quarter.

Similar to the first half year of 2012, the UPS sales in the financial and energy industries continued to grow, wherein the growth in the financial industry is more noticeable. Although the sales revenue in the telecom and transportation industries was still declining, the declined slowed compared with that in the first half. This may be attributed to the governments' increasing demand for the telecom and transportation products and services.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi’an, Wuhan and Nanjing with over 300 professional consultants. The company’s business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No.1 consultancy for enterprise management, and the No. 1 branch for informatization consulting in China.

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