Currently, it seems that the market for standard parts in the overall hardware industry is still quite different from what we imagined. In this situation, we can see that the entire international market for screws, as well as the domestic market, lacks sufficient momentum. The impact capacity is also severely insufficient, which means that this is the period with the least rebound ability since the economic recovery.

From the analysis report of the second quarter of standard parts, it can be seen that the overall export volume of our country has dropped to a level that has not achieved the expected breakthrough, which is very damaging. We can look at our own statistical data, which shows that in this quarter, the total output value of standard parts we achieved was about 73.2 billion yuan, with a year-on-year growth rate of only 0.5%. However, this growth compared to last year can be said to be very small. Moreover, we can see many declining figures in export volume. According to customs statistics, the total export value of screw products in the standard parts industry was 5.46 billion US dollars, showing a huge negative growth of -9.1%. The import value of screw products was 3.25 billion US dollars, which also experienced negative growth and reached double digits. The export situation is also very unsatisfactory; although there has been growth in production, the year-on-year growth rate for exported screw products is -4%. It can be said that the entire standard parts industry showed a comprehensive downward trend in this quarter.

From this series of data, we can see that the development of the hardware industry still lacks the ability to generate significant momentum through independent efforts in the overall standard parts industry.

Although our country is a major producer of fasteners, previously, due to the relatively low level of R&D in our country, most fastener companies used imported equipment. Moreover, we can see that many domestic screw devices are relatively simple, and when using domestic fastener equipment, various problems tend to arise. Faced with this series of issues, most fastener companies in our country have had to start using a large number of foreign fastener production and testing equipment.

In June 2013, Luo Baihui, the secretary-general of the International Mold and Hardware Plastic Industry Suppliers Association, conducted a survey of many domestic fastener companies and found that the R&D level in our country has improved to a certain extent. Domestic screw equipment has also reached a high level, and it is expected that by 2020, over 80% of the production and testing equipment in our country's fastener companies will be fully localized.

Research shows that in the entire year of 2012, the production of fastener equipment in our country began to show significant improvement. With government support, we found that investment reached 798.515 billion yuan, an increase of 12.73% compared to 2012, and the production process achieved an output value of 775.496 billion yuan, also with a growth rate of over 12.25%.

In this development trend, from 2013 to 2018, even if the rapid growth of screw equipment is not maintained every year, we can also expect that the fastener production equipment in our country will begin to move towards localization.