In the field of high-end products China domestic production capacity is obviously insufficient, on the one hand, due to the lack of previous China strategic emerging industries, the smaller the size of the overall application for strategic emerging industry output accounted for less than 10% of the total industry, domestic enterprises ahead of the layout of the will is not strong; the other is the high-end product line of capital, technology, equipment higher requirements, enterprises to upgrade the cost to be high, this part of the market competition pressure is significantly higher than ordinary float glass market.

Glass deep-processing products are nearly 1000 China subdivision varieties, has formed a complete system of glass deep processing, 2010 -2014, China glass industry growth at a steady rate, flat glass production capacity annual compound growth rate of 5.9%, increased from 315 thousand and 200 square meters to 396 thousand and 300 square meters, is expected to 2015 to 2019 compound annual growth the yield can keep the rate of 3.7%.

According to statistics, as of the end of 2015, China total production 327 float glass production line, the total production capacity of 1 billion 230 million weight boxes of 10/, which in the production of 224 production lines, production capacity of 860 million weight boxes / year; 69.9% capacity utilization. The float process production accounts for more than 80% of the total output of Chinese flat glass, leading to the oversupply of float glass and some ordinary flat glass, and the structural surplus characteristics are obvious. Ordinary glass structure surplus, high-end product support ability is insufficient.

In order to deal with the problem of structural surplus China flat glass industry, "guidance" to the general office of the State Council on the promotion of building materials industry to adjust the structure of steady growth and increase the efficiency of the pointed out that, by 2020, to a group of flat glass production capacity Yajian, capacity utilization rate to a reasonable interval; flat glass production of the top 10 enterprises focus on the production of about 60% degrees. According to the Chinese architectural and Industrial Glass Association completed the Ministry of Finance and the task entrusted to "flat glass industry" 13th Five-Year "and" research results out of Yajian excess capacity planning, flat glass production capacity utilization rate of 85% for a reasonable interval to 90%. Therefore, "13th Five-Year" during the "reduction" market development characteristics will be more obvious.

China glass curtain wall industry scale steady growth from 99 billion 200 million yuan in 2010 to 140 billion 200 million yuan in 2014, a CAGR of 9%, is expected to compound annual growth from 2015 to 2019 will maintain the rate of 6.8%.

Float glass is mainly used for processing various types of glass deep-processing products, application of glass deep processing products is very extensive, including construction, decoration and other fields, and the development of downstream market demand and macro economy urbanization rate Chinese and fixed asset investment growth is closely related to the. In recent years, China's indicators have maintained steady growth, so that the glass deep-processing industry market demand is guaranteed.

Float glass and deep processing industry profit level is affected by many factors, the external factors mainly include macro economic prosperity, the overall market supply and demand, the price of the raw material level, similar to the internal factors, and photovoltaic glass industry, including production enterprise production line scale, management level and product structure. The internal factor is the main reason for the difference of the profit level of each enterprise in the industry.

Deep processing of glass is made of float sheet of glass processing, its added value is generally higher than that of the original glass, float the original glass for the bulk materials, the production process is relatively simple, the market price is more transparent, the industry price difference is small, the gross margin difference between different companies is mainly reflected in the production scale and internal the management of; and the glass deep processing of different company's gross margin and price differences, mainly because more types of products of deep processing of glass, thickness and processing quality of different types of glass deep processing requirements, the complex degree of difference is bigger.

According to the Chinese architectural and industrial glass association data, 2016 China float glass production capacity utilization rate of 73.45%, compared to the same period last year rose 3.27%; the production capacity of 932 million 340 thousand weight cases, an increase of 66 million 720 thousand weight cases last year; industry inventory 31 million 380 thousand heavy boxes, compared to the same period last year to reduce 1 million 230 thousand weight boxes; inventory in 12.28 days, down 1.47 days. In January 6, 2017, China's glass composite index was 1069.31 points, up 23.19% in January 6, 2016; the glass price index of China was 1082.13 points, up 26.14% in January 6, 2016; the confidence index of China's glass market was 1018.01 points, up 12.02% compared with January 6, 2016. The above data show that the overall situation of China's glass industry is warmer.

The downstream of float glass processing products are mainly building, home furnishing and indoor and outdoor decoration industry. The growth of China's macro-economic and urbanization rate has led to the growth of fixed asset investment, thus increasing the demand for glass deep-processing products.

From 2010 to 2014, the annual compound growth rate of China's fixed assets investment is 20.1%, and the annual compound growth rate of China's fixed assets investment will still be as high as 12.6% from 2015 to 2019. China's urbanization rate increased from 49.7% in 2014 to 53.7% in 2010. It is expected to reach 59% by 2019. According to the statistics of the National Bureau of statistics, China's urbanization rate will reach 57.35% in 2016. With the continuous improvement of people's living standards and the acceleration of urbanization, the demand for glass deep-processing products will continue to rise.