1. The recycling system for renewable resources has been continuously improved and the market scale exceeds RMB 1 trillion. The recovery rate still has room for improvement.
At present, China has initially established a 'three-in-one' recycling chain focusing on recycling points, sorting centers, and hubs, and enterprises and local governments are actively promoting the integration of sanitation systems and renewable resource systems to increase renewable resources and waste. Plastic recycling efficiency.
In 2016, China’s top ten renewable resources were recovered at 256 million tons, an increase of 3.3% year-on-year; output value was 599.3 billion yuan, a year-on-year increase of 14.5%, of which recovery values such as used batteries and waste electronic products still maintained a high growth rate of over 20%. With the improvement of technology and standards, major categories will still have more room for improvement in the future.
2. The core of the policy is to regulate the industry so as to create a sound development environment
The issuance of a programmatic policy such as the Medium and Long-term Planning for Recycling Recycling Resources (2015-2020) has clearly defined the direction of the industry in terms of standardization and scale. In recent years, a series of supporting policies, whether subsidized or binding, have also been introduced. They are all aimed at regulating the behavior of participants in the industry. With the gradual improvement of taxation policies and subsidies for regulated enterprises, the support of funds has been strengthened. Non-standard and small-sized enterprises in the industry are expected to gradually clear out, and poor companies evicte good enterprises. The situation will also improve.
3. Opportunities still exist in each segment
From the category point of view, the scrap, non-ferrous metal production scale is large, and there are still growth potentials driven by policies such as capacity replacement and increase in recycling rate, the end of the scrap cycle, and the rise in bulk commodities; while waste electronic products, waste batteries and other categories are subsidized. With the rapid development of standardized policies, with the gradual standardization of the industry, the scale of future output value is expected to increase rapidly.
4. Head companies will benefit from increased market concentration
At present, the industry is still in the early stage of development, CR10 is less than 30%, but the leading head enterprises effectively improve market share and profitability by integrating resources. At the same time, leading enterprises are integrating upstream and downstream channels, capital and technology, etc. Has demonstrated a strong strength, with the healthy development of the industry environment, leading companies will further highlight the competitive advantage.