There are only more than 700 Panda Fireworks related enterprises in the hometown of fireworks in a dilemma

category:Finance
 There are only more than 700 Panda Fireworks related enterprises in the hometown of fireworks in a dilemma


New registered enterprises continue to decline

Tianyan data shows that by 2019, there are more than 1.12 million enterprises covering fireworks and firecrackers. In recent two years, the number of newly registered fireworks and firecrackers enterprises has continued to decline, with 78000 newly registered enterprises in 2018 and 69000 newly registered enterprises in 2019.

The number of fireworks and firecrackers enterprises registered in Shanghai is the largest, more than 170000, followed by Jiangsu Province, 96000, and Hunan Province, 84900. From the perspective of registered capital, fireworks and firecrackers enterprises are small and medium-sized enterprises, and nearly 80% of them have registered capital of less than 1 million yuan.

In terms of the time of establishment, the number of enterprises that have been established for 5 to 10 years is the largest, accounting for 29% of the total number of enterprises. The second is the enterprises established for one to five years, accounting for 28% of the total number of enterprises. The proportion of enterprises within one year is only 6%.

It is worth mentioning that in Liuyang, the hometown of fireworks, there are only 774 existing and operating fireworks and firecrackers enterprises. In 2014, 140 newly added registered enterprises reached a historical peak. Since 2015, the number of newly added registered enterprises has declined precipitously every year, and only dozens of newly added registered enterprises every year.

Although the number of newly registered fireworks and firecrackers enterprises in Liuyang has decreased dramatically in recent years, the output value of fireworks in the hometown of fireworks has not been cool. According to the data, the output value of Liuyang fireworks industry cluster was less than 300 million yuan in 1990. By 2018, the total output value of Liuyang fireworks industry cluster had reached 24.6 billion yuan, accounting for 18% of the citys total output value.

The decline of fireworks industry caused by many factors

As far as fireworks industry is concerned, the hidden danger of high hanging head and increasingly strict environmental protection supervision are always two obstacles.

On December 4, 2019, 13 people died and 13 people were injured in an explosion in the packaging area of Shixia work area of Liuyang Bixi fireworks manufacturing Co., Ltd. On December 5, Liuyang City shut down the production of fireworks and firecrackers in the city, and carried out major investigation and rectification of potential safety hazards.

At present, fireworks and firecrackers are banned in nearly 700 cities nationwide. Recently, Luoyang and Tianjin successively issued the relevant notice of banning fireworks in the city, and Jinan, Weifang, Hangzhou, Wenzhou and other places also issued the regulations of banning fireworks in some areas.

Chen Duan believes that under the dual pressure of potential safety hazards and environmental protection upgrading, the decline of fireworks industry has been irreparable. In recent years, with more and more cities forbidding fireworks and firecrackers, the value of the Year custom symbol formed by the binding with festivals and events is also declining.

The fireworks industry does not have an advantage in terms of business model. It belongs to a highly situational single consumption. The peak period of consumption is only limited to festivals and celebrations. It is not related to the concept of improving user stickiness, improving user operation in the whole life cycle to improve customer unit price and repurchase rate emphasized by the modern business model. Chen Duan added.

In addition, consumer iteration is also one of the reasons for fireworks are easy to cool. Setting off fireworks is a traditional Chinese custom. This kind of folk custom originated in ancient times. The effects of fireworks such as light, sound, color, shape and smoke were associated with festivals and celebrations before the rise of electronic media. They have special aesthetic, ritual and experience values. But after the rise of electronic media, fireworks tend to decline.

As the new generation of digital Aborigines have more cultural and entertainment consumption channels, scenes and product choices, their interest in fireworks will naturally be scattered. Chen Duan believes that the fireworks industry lacks market support from the supply side to the demand side, and is also facing the impact of cultural and creative industries. The decline of fireworks industry is a natural historical choice and elimination process.

Panda Fireworks transformation is facing a dilemma

Panda Fireworks, which used to be the gold brand of Liuyang fireworks, also face the dilemma of transformation in the context of the shrinking fireworks market.

According to the data, Hunan Panda Fireworks Co., Ltd. was founded in 1999 and successfully landed in Shanghai Stock Exchange in August 2001. In 2015, Panda Fireworks said that due to the influence of restrictions on the policy of restricted release and prohibition, haze and other factors, the demand of domestic fireworks market was shrinking, the company promoted the transformation of enterprises and increased efforts to develop Internet financial business. In the same year, the abbreviation of the companys securities was changed to panda financial holding.

After the transformation of Internet finance, panda financials fireworks sector was mainly adjusted to export business. According to the 2018 annual report, the companys fireworks product sales volume is 101 million yuan, and all of these operating revenues come from abroad. In terms of Internet finance, the transformation of Panda Fireworks is not smooth. In August 2018, Zhao Weiping, the actual controller of panda financial control, admitted that there were runs and overdue issues between panda Treasury and yinhu.com, the mutual financial platform of the company; in October 2019, panda financial control announced that yinhu.com was registered by the economic investigation branch of Dongcheng Branch of Beijing Public Security Bureau. Panda Fireworks transformation of Internet finance was the realistic choice at that time, and it was unexpected to encounter the industry purge in the field of Internet finance. Chen Duan believes that the cold winter of fireworks industry can be seen from this. Source: responsible editor of Securities Daily: Chen Hequn NB12679

After the transformation of Internet finance, panda financials fireworks sector was mainly adjusted to export business. According to the 2018 annual report, the companys fireworks product sales volume is 101 million yuan, and all of these operating revenues come from abroad.

In terms of Internet finance, the transformation of Panda Fireworks is not smooth. In August 2018, Zhao Weiping, the actual controller of panda financial control, admitted that there were runs and overdue issues between panda Treasury and yinhu.com, the mutual financial platform of the company; in October 2019, panda financial control announced that yinhu.com was registered by the economic investigation branch of Dongcheng Branch of Beijing Public Security Bureau.