While browsing the news, I noticed that there are many news reports from machine tool companies across the border. Recently, in the cross-border education sector of the third base, it plans to purchase 100% of the shares of Mejm Education by paying 3.3 billion yuan in cash.

In fact, this is not the first time that the third base has crossed the border. The company, which is mainly engaged in research and development, design, production and sales of plastic pipe complete sets of equipment and five-axis high-end machine tools, was in a revenue crisis in 2016. In 2017, the third base shares turned to the education industry to seek new profit growth points. The author noticed that the acquisition of Maxim Education by the third base will set up a new holding subsidiary, and the original business will not be affected.
Coincidentally, the cross-border machine tool companies are not limited to the third base. Shenyang Energy Transmission Equipment Co., Ltd., a subsidiary of Shenyang Machine Tool, has transformed from an old state-owned enterprise that produces gears for machine tools to a comprehensive enterprise involved in tourism equipment, outdoor products, and cultural and creative products.
Seeing the above news, I believe that everyone will have a question in mind, why are these enterprises that were originally in the machine tool industry operating across the border?
In fact, in the end, it is still a disaster caused by poor revenue. Before the transformation of the third base, the revenue in 2016 fell by 50.95%, and the net profit decreased by 81.81%. Shenyang Energy Transmission Equipment Co., Ltd. began to show a significant decline in performance in 2013 due to the decrease in market demand.
Behind the cross-border is helplessness. Some machine tool companies are also engaged in other businesses because the main business is too weak. Speaking of poor revenue is also considered a "common problem" in the machine tool industry. China's industry started late, and so did the machine tool industry. Due to the lack of time precipitation, China's machine tool enterprises generally have problems of weak technology and weak competitiveness. In addition, the machine tool industry is greatly affected by the external economy. Before 2017, due to low demand, machine tool sales were generally cold. In a limited market, China's machine tool enterprises must face the competition of a large number of domestic peers, and respond to the squeeze of foreign high-end machine tool enterprises in the middle and high-end market. Many enterprises can only desperately compress profit margins to enhance market competitiveness. However, due to fierce competition, many companies have failed to achieve multi-sales in the case of small profits, and losses are inevitable.
Enterprises are based on profit, and in the case of poor performance of the main business, it is not difficult for machine tool companies to play cross-border. At present, the benefits brought by cross-border enterprises are quite high. At least the two companies mentioned above have performed well after crossing the border. However, there are also concerns that companies after the cross-border will never return, completely abandoning the old business after the new business matures. In addition, after cross-border, the business of the enterprise will become complicated, and it is more likely to be in the business. The fear of the cross-border machine tool enterprises will eventually fall into the realm of “chickens and eggs”, and the old and new businesses are in trouble at the same time.
The author believes that to treat enterprises across the border, the mentality needs to be relaxed. First of all, expanding new business and continuously creating new profit growth points is the normal business strategy of the company. The difference is that some enterprises expand their business in the industry, while others invest their money in industries that are completely out of line with their previous main business. Machine tool enterprises are essentially the same as other companies. Whether it is to expand business in the industry or cross-border investment is a normal business operation. Secondly, starting from the reality, in the case of poor management of the main business, it is better to turn to the new industry than to stay in the old industry. On the other hand, if you can achieve the effect of “Wei Wei Zhao” through new business, and drive the development of the old business, is it not the best of both worlds? Finally, cross-border business is not "have no return." In the machine tool industry, although there are many companies that have crossed the industry and operated other businesses, there are also many companies that have entered and invested in machine tools from other industries. For example, Sichuan Yibin Wuliangye Pushche Group Co., Ltd. established Sichuan Pushkin Ningjiang Machine Tool Co., Ltd. in cooperation with Chengdu Ningjiang Machine Tool Co., Ltd.; Gree, which is an air conditioner, also announced that it would develop its own CNC machine tools in 2015.
Overall, cross-border operations of machine tool companies are a common occurrence. The reason why this ordinary thing attracts attention is because the development of the machine tool industry is not completely satisfactory. On the one hand, many of the companies that go out are the poor management of the original business, no matter what the reasons behind it, it always gives people a sense of “escape”. On the other hand, China's machine tool industry is facing difficulties in the process of “high-precision”. Especially after the “Made in China 2025” strategy is put forward, the machine tool as an industrial machine has a special sense of mission and is hard-working in the industry. In the critical period of difficulty, people are more willing to hear the "return", which is more enterprises and resources flowing into the industry. At this time, it is inevitable that there will be a sense of disharmony. The author believes that behind this kind of mentality, in the final analysis, it is still not confident in the development of the industry.
"Accelerate the pace, slow down the mindset", this is the author's current view on the development of the industry. The machine tool industry needs to narrow the gap with foreign countries, and it is necessary to catch up, which is determined by the reality. However, in the development of the industry, it cannot be eager for quick success. Correcting the mentality, more patience for the development of the industry, more perseverance in technology research and development, more concern for talent training, I believe that the future of the industry must have a bright future.