Layout green manufacturing to grasp the development opportunities in the next 20 years

China's traditional manufacturing industry is not sustainable. China's manufacturing industry has experienced rapid development over the past 30 years, but resource issues, energy issues and environmental issues have become the constraints of China's manufacturing industry. At present, China has become the world's largest consumer of steel, copper and iron ore, and the world’s second largest consumer of oil and aluminum. The electricity consumption of 21 mechanical and electrical products such as motors, transformers, fans, and pumps accounts for 70% of the country's electricity consumption. The annual coal consumption of power generation boilers and industrial boilers accounts for about 1/3 of the country's annual coal consumption. The internal combustion engine consumes more than 80% of the national fuel oil. General machinery power consumption accounts for about 30%-40% of the national electricity consumption. 70% of pollutant emissions originate from the manufacturing industry. Rapidly increasing resources and environmental consumption and increasing external dependence have affected the sustainable development of China's manufacturing industry.

Green manufacturing breaks through the constraints of energy, resources, and the environment and provides support and guarantee for the long-term stable development of China's machinery manufacturing industry. We believe that in the next 20 years, the biggest development trend of the machinery industry is green manufacturing.

Green manufacturing can realize the efficient and clean recycling of resources and energy, minimize the impact on the environment, ensure the effective supply and effective use of China's modernization process and high-end equipment manufacturing, and is an important way to establish a resource-saving and environment-friendly society.

We believe that investment opportunities in green manufacturing are mainly found in the five characteristics of green manufacturing: 1. Mechanical energy-saving: the use of energy-saving equipment to achieve energy saving; 2. Intelligent use of intelligent equipment, change the way of manufacturing machinery, ease energy and the environment The bottleneck of the machinery manufacturing industry; 3, green production process: to improve the manufacturing process, to minimize the production process of waste, reduce the production process of pollutant emissions; 4, green design: the use of green design and life cycle assessment methods; 5, green Remanufacturing: Recycling, Remanufacturing, and Reuse; Recycling;

We focus on promising listed companies with strong R&D capabilities and first-mover advantages in energy conservation, intelligence, and remanufacturing. In the short-to-medium term, we believe that there are certain investment opportunities for the energy-saving and intelligentization of machinery. We focus on Kaishan Stock, robots, and CNC. At the same time, we are optimistic about remanufacturing in green manufacturing in the medium to long term.