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CCID Consulting Forecasts New Round of Competition for China's UPS Market

2008-10-15 19:01 1652


BEIJING, Oct. 15 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's UPS market.

After several years of stable development, China's UPS market is facing a new period of opportunities and challenges in 2008. With China's telecommunication reorganization now in place, also with reforms of ministries and commissions, Olympic Games, and other activities, the market is flourishing with new opportunities for China's UPS market. However, the uncertainties that arise from global economic downturn and rising global currency inflation are starting to have an impact on China's economy, which are leading to challenges for the next 2-3 years. Under the pressure of a worsened external environment, China's economic growth appears to have slowed down, showing some signs of domestic economy adjustment. Subprime lending crisis, rising costs of raw materials, appreciation of the RMB, and other macro-economic problems have impacted domestic manufacturing industry greatly. Snow Disaster in early 2008 in South China and Wenchuan Earthquake in Southwest China have also affected the industry economy greatly. All these objective factors are challenges to the UPS industry.

CCID Consulting statistics show that sales volume of China's UPS market reached 652.6 thousand in 2008 H1, up 5.6% over 2007 H1. It is possible that growth rate of China's UPS market will keep decreasing in 2009 due to macro economic changes and unfavorable policies. However, China's UPS market will revive in 2010, driving by industry upgrading and a growing SMEs market.

Table: Quarterly Sales Status of China's UPS Market in 2008

Q1 Q2 Q3E Q4E

Sales Volume (10,000) 26.10 39.16 41.12 45.30

Sales Revenue (100 Million Yuan) 5.09 7.59 7.92 8.70

Source: CCID Consulting, September 2008

Figure: Sales Revenue of China's UPS Market in 2008-2010

http://www.ccidconsulting.com/upload/13859.jpg

Source: CCID Consulting, September 2008

Overseas companies still take lead in China's UPS market in 2008. APC-MGE, Emerson, and Santak occupy a market share of more than 50% together. Although these three UPS companies take advantages in their technical level and product performance, Kelong, Kstar, and other domestic brands reveal themselves in the market and win considerable market share, basing on good development state and reasonable market strategy. In 2008, China's UPS market is getting more competitive as UPS applications in telecommunications, power, and other industry increase rapidly.

APC-MGE begins to expand production lines and strengthen market promotion in 2008. APC-MGE launches a large scale show delegation project in Tianjin, Shenyang, and other tens North China provincial capital cities. Emerson enhances market development in petrochemistry industry in the seventh petrochemistry association automation annual conference to promote its reliable products, advanced concepts, as well as comprehensive solutions. Kelong sets postdoctoral workstation to attract, cultivate, and use high level professional technical talents to improve technology innovation. Kstar succeeds in Beijing Olympic Game project bidding and becomes one of UPS equipment supplier for Olympic Village. Besides, domestic companies win bids in ICBC nationwide equipment selection, Carrefour centralized purchasing in China Area, Jilin highway, Fujian highway, Xiamen BRT, and other projects.

In the future, UPS will not act only as an uninterrupted power supply, but a comprehensive power supply and management solution, integrating uninterrupted power supply, cabinet and power management, heat dispassion, power cable, routing, and other functions together. Fine management on data center and cabinet products sets higher requirement to UPS solutions. It is necessary for UPS providers to realize full convergence of UPS solutions and business demands from users. Customization, modularization, green revolution, high utilization rate of core equipments and scalability will be the focus in product and service development.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with 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, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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