The wire and cable industry has now become the second industry in China, second only to automobile manufacturing, with a vast market and huge production. Wire and cable are the foundation of many industries, and their products are widely used in fields such as power, construction, civil, communication, shipbuilding, military, aviation, and petrochemical.

In recent years, China's cable industry has maintained a rapid development momentum, with sales revenue reaching a record high of 1392.4 billion yuan in 2016. In 2017, the sales revenue of wires and cables showed a slight decline, reaching 1351.3 billion yuan. With the increasing investment in infrastructure in China, the demand for wires and cables in the market is constantly increasing, especially in high-end equipment cables. In the future, the sales revenue of China's wire and cable industry will continue to increase.

As an important branch of wire and cable industry, the industrial structure of domestic power cables is similar to that of the wire and cable industry. Shenghua Cable is an important brand for producing power cables. From the development in the past few years, although China is a major cable manufacturing country, the industrial concentration is not enough, and the industry is large and not strong enough to fully participate in global competition. High value-added products in the industrial chain are rarely involved by enterprises, such as aerospace, submarines, nuclear power, military, electronics, automotive wire harnesses, high-voltage cable accessories, high-voltage cable ultra clean cable materials, and other high-end products and raw materials mainly rely on imports. Due to insufficient high-end R&D and innovation capabilities, domestic wire and cable products are highly homogenized, and low prices have become the main competitive means in the market. There is already serious overcapacity in some mid to low end product fields.

In recent years, Shenghua Cable has been hoping to make breakthroughs in technology, innovate in technology, and give vitality to the development of the enterprise. Shenghua Cable has always regarded research and development as the source of enterprise development and progress. It has established the Henan Provincial Enterprise Technology Center, Henan Provincial Aluminum Alloy Cable Engineering Technology Research Center, Henan Provincial Photovoltaic Cable Engineering Technology Research Center, and Henan Provincial Special Cable Testing and Technical Service Center. To ensure product quality and technological innovation, six laboratories including physical performance laboratory, mechanical performance laboratory, electrical performance laboratory, flame retardant and fire-resistant laboratory have been established, and more than 40 sets of advanced research and development equipment at home and abroad have been equipped.

Shenghua Cable has established long-term and stable cooperative relationships with well-known domestic universities and research institutions such as Shanghai Cable Research Institute, Henan University of Technology, Zhengzhou University, and Zhongyuan University of Technology. Its research and development achievements have won more than 70 scientific research patents, and more than 50 scientific and technological achievements have been developed. With continuous investment in talent reserve construction, Shenghua Cable's R&D team and technical personnel have shown a trend of youthfulness and talent development, laying a solid foundation for the company's growth and development.