As autumn arrives in the northern hemisphere, Europe, which is at a higher latitude, has already felt the coolness of autumn. With limited natural gas supply and skyrocketing prices, Europeans have to seek other heating methods to cope with this year's cold winter, such as purchasing wood and coal. At the same time, a large number of Europeans have also turned their attention to China, a place with a relatively cold winter, but where most places do not have centralized heating equipment. Various heating equipment produced in China have become their new choice.
Any ripples in the international trade market are likely to be sniffed by keen capital. Recently, Rainbow Group (003023.SZ), a long-established small home appliance listed company, suddenly became popular. On September 22, the stock rose sharply in the morning and hit the daily limit again, achieving the second consecutive daily limit, closing at 23.84 yuan per share, a record high in the past year. In fact, in the past three months, the cumulative increase of Rainbow Group has exceeded 40%.
Rainbow Group's two consecutive boards The company responded
On the evening of the 22nd, Rainbow Group issued an announcement on abnormal stock trading fluctuations. The announcement stated that the company's recent operating conditions and internal and external operating environment have not changed significantly, and the company's production and operation are normal. The company's products are mainly household flexible heating appliances such as electric blankets and electric hand warmers, as well as household sanitary insecticides such as electric mosquito coils and electric mosquito coils. The products are mainly sold in the domestic market. In order to promote export business, the company has established an overseas market development department and service team to engage in product export business. This year, some electric blanket export orders have been obtained. The number of single orders is low and the overall amount is small, which has no substantial impact on the company's revenue.
According to information, Chengdu Rainbow Electric Appliance (Group) Co., Ltd. is an enterprise group that focuses on the research, development, production and sales of a series of household flexible heating appliances such as electric blankets and electric hand warmers, as well as a series of household sanitary insecticide products such as electric mosquito repellent liquid and insecticide aerosols. It is a leading enterprise in my country's electric blanket industry and a key backbone enterprise in the household sanitary insecticide industry.
Data from the China Household Electrical Appliances Association shows that while the export volume of most household appliances to Europe in 2022 was declining, categories such as air conditioners, electric water heaters, electric heaters, electric blankets, and hair dryers bucked the trend and grew, with cumulative export volumes from January to July being US$1.99 billion, US$130 million, US$490 million, US$33.4 million, and US$160 million, respectively. Among them, electric blankets took the lead with a growth rate of 97%.
According to the Securities Times, data from the General Administration of Customs also confirmed the surge in demand for electric blankets in Europe. In January this year, the monthly number of electric blankets imported from China by the 27 EU countries was 189,000, which increased to 521,000 in June and quickly climbed to 1.29 million in July, a month-on-month increase of nearly 150%.
On September 13, Rainbow Group said on the Shenzhen Stock Exchange Interactive: "At present, Europe is in the midst of an energy crisis. Electric blankets, as energy-saving and environmentally friendly products, will have certain opportunities. Since May, the company has obtained many export orders for electric blankets."
The hot sales of heating equipment in China come as Europe is about to face a new round of energy challenges in winter heating. As energy prices soar, unaffordable bills force consumers to find more energy-efficient means, and there are even reports that some European buyers have begun to stockpile firewood for winter heating as early as the summer, causing firewood prices to soar in many parts of Europe.
European importers are placing orders
According to CCTV Finance report on the 22nd, Cixi City, Ningbo, Zhejiang Province is one of the production bases of heaters in my country, and its export volume accounts for 30% of the country. In previous years, the peak season for export heater production ended around mid-September. This year, due to factors such as the Russian-Ukrainian conflict and the energy crisis, the use of natural gas in many European countries has been restricted, and the demand for various heaters has continued to increase. Many importers have temporarily added orders, bringing about a round of "order replenishment".
In Guanhaiwei Town, Cixi City, Ningbo, Zhejiang, a company is working overtime to produce a batch of portable household heaters. The company's head said that the customer of this batch of products is from Germany. The $1 million order signed at the beginning of the year has been shipped, but in August this year, the customer requested an additional order of $330,000.
It is understood that the company exported 1.5 million heaters last year, worth about 17.8 million US dollars. In the first eight months of this year, the company has exported 2 million heaters, worth about 22.8 million US dollars, an increase of nearly 30%.
Similar phenomena also occurred in other heater export companies. For example, a company in Xinpu Town, Cixi City exported about 160 million yuan worth of heaters last year and expects to export more than 200 million yuan this year, of which new orders from customers exceeded 20 million yuan.
Xu Songlie, general manager of an electrical appliance company in Cixi, Zhejiang, said, "Europe and the United States are our main markets, and the European market accounts for a relatively large proportion, accounting for about 70%-80%. Heaters of the same type currently account for the largest export volume in the entire market."
At present, there are more than 100 heater manufacturers in Cixi City, and the export volume accounts for 30% of the whole country. According to customs statistics, the export of heaters increased significantly in the first eight months of this year, among which the export to the EU increased by more than 50%.
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