"Teached for decades, once you return to before liberation." This sentence has become a true portrayal of many companies under the epidemic. Stop work and production, suspension of foreign trade, and sudden order reductions have followed one after another, leaving the global market at a low pressure.
Due to the epidemic, customs clearance trade has been forced to be suspended, and many companies that rely on "foreign trade for a living" have been converted to domestic sales. At the same time, economic activities have slowed down, products from multiple terminal companies are unsold, inventory is overwhelming, and need to be sold urgently. Domestic sales have increased, terminal saturation, and the limited market has caused many companies to plummet profits.
The first quarter chemical quarterly report was exposed! Profits plummeted!
Recently, all 255 listed chemical companies have released their first quarterly reports for 2020. The report shows that due to uncertain factors such as crude oil and the new crown epidemic, the revenue of the above-mentioned companies fell by 8.75%, and the total profit fell by 45.73% year-on-year!
Although chemical companies generally plummeted in the first quarter, a few companies grew against the trend in the cracks. According to the quarterly report, 63 companies achieved year-on-year growth in revenue, and 40 companies achieved year-on-year growth in revenue by more than 10%. Among them, Baofeng Energy released its quarterly report on April 28, with the report saying that Baofeng's first-quarter revenue was 3.61 billion yuan, an increase of 416 million yuan year-on-year, an increase of 13.1% year-on-year!
Although OPEC's production cuts were ahead of schedule, downstream enterprises resumed production, and some commodities in the petrochemical industry chain began to rise. However, the current crude oil price is still at a low level, and trade between countries is still temporarily stopped due to the epidemic. Downstream demand has contracted, and price increases may be just a flash in the pan.
Foreign trade is restricted and domestic sales are saturated, and many terminal giants are in crisis!
companies that grow against the trend all have a characteristic, which is their rapid transformation. After the outbreak of the epidemic, Baofeng Energy quickly switched to the upstream raw material of medical non-woven fabrics, polypropylene S2040. With the epidemic, polypropylene products have been rising all the way, driving Baofeng Energy to generate revenue. Before the crisis, it was quickly determined that the market had not transformed, which won vitality for the company.
▲ *PP surged
Previously, many reports have been reported that due to the introduction of trade restrictions by various countries, foreign trade orders have been almost all cancelled, and the order volume is almost 0. With the frozen foreign trade, many foreign trade companies have also transformed into domestic sales in order to survive.
However, the domestic market is also in a downturn due to the impact of the epidemic. Moreover, the market is limited, and the domestic sales saturation still leaves most companies in a state of no orders. Due to the epidemic, offline channels for domestic sales have also been interrupted. Exhibitions that could promote the transaction of a large number of orders in previous years were forced to be suspended, which once again led to a significant reduction in order volume.
It is understood that in order to ensure the survival of enterprises, the situation of foreign trade to domestic sales is spreading. Since the first quarter of 2020, the transaction scale of industrial belt enterprises in the three major export-oriented manufacturing provinces, Guangdong, Jiangsu and Fujian, on the domestic trade wholesale platform, has seen a month-on-month growth rate of 250%, 280% and 270% month-on-month compared with February.
Overall, the scale of factories that have been converted from foreign trade to domestic sales on the 1688 platform has been about 300,000. Now 20,000 new factories that have been "outside to domestic" are added every month, and the speed is still accelerating. It is expected that there will be 500,000 factories that have been converted from foreign trade to domestic sales on the platform this year. The external conversion to the inside continues to increase, and the limited market puts pressure on enterprises to move forward. As the economy and foreign trade of many countries are restricted, terminal giants have also begun to fall into operational crisis, with high pressure of enterprise inventory accumulated and idle production capacity, which once again hit the upstream manufacturing industry with a heavy blow.
terminal closed the store, the factory has no orders, and the unemployment rate of workers has soared!
Previously, the clothing giant "GAP", which has a history of 50 years, has been sold at discounts and sold due to the impact of the epidemic, and its market value has evaporated by 28 billion yuan. It is a pity that it intends to withdraw from the Chinese market. But in addition to GAP, some well-known big brands have also begun to fall into a crisis of unsalable sales. Recently, well-known international sports brands such as Nike and Adidashml7 have also released their first quarter reports.
Both terminal retail giants are in a sales crisis, with almost all Nike's US stores closed, Adidas Europe, North America, Latin America, emerging markets, Russia/CIS and most of the Asia-Pacific region, almost all self-operated and distributor stores have been temporarily closed, and wholesale and physical retail activities in the above markets have completely stagnated. The three brands of
or above are just microcosms of the closure of the terminal market. There are still a large number of terminal stores around the world that have been ordered to suspend business (such as all offline stores of Apple mobile phones are closed). The large-scale closure of terminal stores will cause store inventory to accumulate, thereby affecting upstream factory production, and even affecting the development of the entire industrial chain, causing stagnation of production of enterprises in the industrial chain.
It is reported that due to the sharp drop in terminal demand, downstream orders were almost 0, and many factories were suspended. Currently, Foxconn, a large domestic factory, has stopped recruiting workers, and the prices of temporary workers are below 20 yuan per hour; Dongguan Panda Toy Factory went bankrupt and Jiahe Intelligent cleared out 1,000 temporary workers. Because there is no order to do, the unemployment rate of general workers is rising. dares to ask: demand has dropped sharply, orders are 0, workers are unemployed, where is the way out for enterprises?
is constantly high pressure, and the way out for enterprises is the first!
20 is almost over one-third of the past, and this year is really "unspeakable" for many companies, especially foreign trade companies and manufacturing companies.
WTO issued a warning that under pessimistic circumstances, the highest decline in global trade will reach 32%, and an economic recession has become inevitable and will even continue into 2021. The tone of the hard days of the foreign trade industry in 2020 has been laid. Under the epidemic, foreign trade may switch to domestic demand + the development model of e-commerce live broadcast platform.
Domestic sales orders have higher profits, and the proportion of "outside to internal" will continue to increase in the future, and domestic sales companies must also be prepared to face the transformation. Success in transformation is another sky.
Source: Guangzhou Chemical Trading Center, 21st Century Business Herald, Interface News
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