Star cable market competition risk

At present, there are numerous wire and cable companies in China, and the market concentration in the industry is very low. The price war is the main competitive means, especially in the fields of medium and low-voltage Power Cables and ordinary cables. Although the proportion of special cables in the product structure of the company is relatively high, the proportion of the main business revenue during the reporting period was 87.55%, 82.89%, 86.17%, and 89.80% respectively. The technical content of special cables is relatively high, and the competition is relatively orderly. The company has high gross profit margins and its main customers are high-quality customers such as oil and petrochemical and power generation companies. However, as the technology advances and other companies gradually join, the special cable industry may face increasingly fierce competition, and the company may face fierce competition. pressure.