"The losses in the first half of the year have been caused. What we need to do is to recover the lost time and lost output value in the second half of the year. Nearly 10 paths are proposed on the spot to teach us how to make efforts to increase the annual performance." Deng Tao, Secretary-General of Dongguan Municipal Government, said when attending the "Guangdong Affairs Forum".
htmlJune 30 is the last day of the first half of 2020. The third phase of the "Guangdong Affairs Forum" was held, focusing on the development of enterprises under the epidemic. The seven companies participating on-site talked about the process of "counter-trend growth" from different perspectives, including cross-border conversion of production, expanding domestic sales, and strengthening R&D. Relevant government officials also attended to share the current support policies. Enterprises are proactive in seeking development, and government support is external. Only by resonating with each other can better results be achieved under the shadow of the epidemic.
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Tosda 1-May performance increased by more than 200%
"Crisis, danger is everyone's, opportunities are their own." Wu Fengli, chairman of Guangdong Tosda Technology Co., Ltd., said that at the beginning of the outbreak, he was also panicked, but after calming down, he began to lead the company to "expand the stock and seek incremental." The stock is the company's robot business. In February, before the overseas epidemic spread, it seized projects in the Vietnamese market and achieved a 70% increase in main business. The incremental volume is to take advantage of the technological advantages of robots to produce mask machines across the border, and research and development along the way, including ultrasonic instruments, meltblown fabric production machines, etc., and finally achieved a growth of more than 200% from January to May.
The outbreak of the epidemic has led to the rapid reshaping of the global trade pattern, which is also an opportunity for Dongguan companies to quickly enter the mid-to-high-end global supply chain. The core technology of target has always been in the hands of Japanese and American companies, and domestic companies have adopted more import methods. Dongguan Oulei Sputtering Target Co., Ltd. continues to invest in technology research and development, and has achieved the domestic production of key target materials in 10 years, and the epidemic has become its opportunity. Company manager Guo Wenming introduced that under the influence of the epidemic in 2020, the company's sales in the first and second quarters achieved a counter-trend growth of more than 40%. "This epidemic has given domestic companies a clearer understanding of the necessity of technology research and development and innovation." The company currently has customers such as BOE.
expands the domestic sales market, and online channels bring new additions
Dongguan is a major foreign trade city, and the survival status of foreign trade enterprises affects the basic situation of the city. At present, expanding domestic sales has become a way for many foreign trade companies to save themselves. Wen Guoxiong, chairman of Dongguan Kangda Toys and Gifts Co., Ltd., shared his story. The company is a Hong Kong-funded enterprise. It has been OEM for 30 years since its roots in Dongguan. Its products are exported 100%. Customers include McDonald's, KFC, etc. In the second half of last year, the company established a special company to explore the Chinese market and signed contracts with more than ten well-known toy IPs to drive domestic sales. However, the exhibition effect was good at participating in the toy exhibition that year. After the outbreak of the epidemic, the company quickly established an online marketing model. In March, it also signed a contract with a brand founded by celebrity Wang Zulan, and participated in online sales activities of e-commerce platforms such as 1688 and Pinduoduo . Regarding the development plan for the second half of the year, Wen Guoxiong said that he would continue to expand domestic sales and make efforts online and offline.
Dongguan Bangze Electronics Co., Ltd. is a traditional foreign trade company. The epidemic has changed the sub-distribution in the past and the sales are Internet-based. Now the company's products are directly sold to consumers through Amazon . Chairman Xu Ning predicts that the company's ODM manufacturing business will drop by 15%-20% this year, but the cross-border e-commerce business will increase by 80%-100% year-on-year. Comprehensively estimates that this year's performance will increase by 50%-60% year-on-year. More importantly, the company's performance share of its own brand business is expected to increase from 30% to 50%. "A positive approach will be adopted in the second half of the year, and branches or joint ventures will be established in Southeast Asia, Eastern Europe and South Korea to break through the blockade of overseas brands."
Executive Vice Mayor Yu Lijun:
The city's economic indicators are stabilizing and improving, and they are full of confidence in the future
On the last day of June 30, Yu Lijun, member of the Standing Committee of the Dongguan Municipal Party Committee and Executive Vice Mayor, brought good news. She said, "The monitoring data shows that Dongguan's economy has begun to recover in a comprehensive manner and economic indicators are stabilizing and improving."
html Since February, Dongguan City has successively issued policies such as "15 Helping Enterprises to Support Enterprises", "10 Helping Enterprises to Resuming Work", "15 Optimizing Services", "16 Accelerating Recovery", "20 Stabilizing Foreign Trade", and "30 Investment Restrictions" to comprehensively help enterprises overcome difficulties and promote development. Yu Lijun listed a number of data. As of the end of May this year, the balance of loans in Dongguan's domestic and foreign currencies increased by 24.7% year-on-year, and the new loans exceeded 70% of the whole year last year. Among them, the balance of manufacturing loans increased by 61.47% year-on-year, and the balance of loans for foreign trade enterprises increased by 63.74% year-on-year, both of which were far higher than the average growth rate of various loans. From June 1 to 27, the electricity consumption of the whole society increased by 5.0% year-on-year; industrial electricity consumption increased by 3.3% year-on-year; fixed asset investment in the city is expected to increase by 5% year-on-year; investment in major projects completed in the city is expected to increase by 29% year-on-year; total import and export volume of the city in June is expected to increase by 5% year-on-year.In this process, many companies have also "going against the trend". Yu Lijun gave an example on the spot. For example, Lifugao Plastics Company in Shilong Town focuses on the development and marketing of the domestic market, and its output value has increased by 11% from January to May this year; Zhenliang Technology of Humen Town continuously improves the process and optimizes quality control, and its output value has increased by 17.5% year-on-year from January to May this year; For example, Hucai Group in Humen Town has leveraged its brand advantages, and more than 20 companies have distributed on demand through centralized procurement, effectively reducing the cost of supplying raw materials.
"Of course, we also know that these achievements are still far from the expected goals of the first half of the year, but we are full of confidence in the future." Yu Lijun said that Dongguan should better coordinate the expansion of domestic demand and higher-level opening up, accelerate industrial transformation and upgrading, accelerate momentum transformation, and continuously create effective supply that adapts to new demands through supply-side structural reform, and launch more products that meet consumer needs; we must unswervingly expand reform and opening up, relax market access, continuously optimize the business environment, actively expand imports, expand foreign investment, and stabilize the basic foreign trade and foreign investment; we must improve the stability and competitiveness of the supply chain and industrial chain, participate in the process of global industrial chain reconstruction, and improve risk resistance.
"Internal factors are still decisive factors. Only when companies have endogenous motivation can they better choose a way out. This is the key to how we can respond to the epidemic and find new opportunities." Yu Lijun said.
Expert comments: It is recommended to establish a "chain leader system" to ensure the industrial chain and supply chain
"Dongguan is indeed a place where experience is produced." Wang Jun, director of the Economic Committee of the Guangdong Provincial Committee of the Chinese People's Political Consultative Conference, commented that seeking change and innovation are both based on trends. After listening to the sharing of many entrepreneurs, Wang Jun praised Dongguan's entrepreneurs and also praised the "wartime mechanism" proposed by Dongguan. He analyzed that "wartime mechanisms are different from ordinary mechanisms. The biggest feature is to concentrate on scheduling resources, secondly, to concentrate on opening up pain points, and secondly, to implement and implement implementation with teams." The implementation of wartime mechanisms has made Dongguan's epidemic prevention and control and resumption of work and production more systematically.
In response to the normalization of epidemic prevention and control, Wang Jun believes that further expansion of ideas is needed and it is recommended to make good use of industry association resources. He gave an example. Dongguan currently has more than 1.2 million market entities. With such a large scale, it is not enough to rely on government support alone. What should I do? Social mobilization is needed, so industry associations have a great role. In the past, the government sent teams to fight tough battles, but under normal circumstances, the "government-industry association-enterprise entity" chain serves enterprises and promotes industry development more accurately by studying industry characteristics. Moreover, the Dongguan industry association is relatively developed, allowing the service tentacles to be extended to more than 1.2 million market entities through industry associations.
"The 'chain leader system' has been launched in Zhejiang, Jiangsu and other places, and Dongguan may be able to refer to it." Wang Jun said that under the normalization of epidemic prevention and control, an industry must first stabilize the leading industry chain. Ensuring the industrial chain and supply chain is an important means to stabilize the basic economic situation. Dongguan’s advantage lies in the integrity of the industrial chain. It is necessary to maintain this advantage and play its role. He suggested that Dongguan establish a "chain leader system", establish an overall coordination mechanism between functional departments and leading enterprises, and do a good job in the "six stability" and "six guarantees".
Interview and writing: Nandu reporter Liang Jindi
