[Foreword] “While our revenue is flat, profits have dropped by 50%.” The person in charge of overseas business of a company in Zhejiang lamented during the 130th Canton Fair. ”
Foreign trade companies are receiving an explosion of orders, but they all say they are not making money.
“While our revenue was flat, our profits fell by 50%. “The person in charge of overseas business of a Zhejiang company sighed during the 130th Canton Fair.
Under the influence of the complex external environment and the black swan of the epidemic, foreign trade companies are like riding a roller coaster, and The urgent problem before them is “large orders and low profits”.
Surge in costs
“From September last year to February 3rd this year In March, the growth rate of raw materials in our category was around 25%, and it is still rising. “Li Fan, deputy general manager of Xingxing Cold Chain Overseas Business Department, told a reporter from China Business News.
About 51% of the companies surveyed said that export profit margins have declined year-on-year, and 33.3% of companies said It said that profit margins were basically the same as the same period last year, and only 10.6% of companies said that profit margins had increased.
Among them, household appliances, tools, auto parts and other products that account for a relatively high proportion of raw material costs In the highly competitive lighting industry, corporate profit margins have declined significantly.
In addition, export companies have been affected by the appreciation of the RMB exchange rate, skyrocketing sea freight, and recent power cut policies. The comprehensive cost of the company has increased significantly, and the profit margin has dropped again and again.
“For example, if the cost of raw materials rises by 25%, and at the same time the RMB appreciates by 8 points, cumulatively, the company will have to rise at least Only if the price is 30%, can it be almost the same as the original profit level. “The person in charge of a foreign trade company in Zhejiang made a calculation.
Not making money? Raw material and labor costs are rising
“The factory looks like It’s very prosperous, but the problem is that it doesn’t make money. “Liu Long told the reporter of China Economic Weekly that the price of products sold for US$200 last year increased to US$300 this year, but the factory still did not make money. “Many customers placed orders in December last year, and we were forced to do it ourselves in March this year. Chargeback. When raw material prices rise, orders are returned and orders are placed; freight rates rise, orders are placed and orders are returned. ”
Many clothing companies are also not making money. Mao Yihua said that some companies in Ningbo export knitted clothing, and the average profit from one piece of clothing “may be less than one yuan.”
Xie Longfa, who works as a garment processor in Yudu County, Ganzhou City, Jiangxi Province, said that the factory’s profits are very thin, and about 500,000 pieces of clothing are shipped a year. “We mainly rely on volume. Without volume, we can’t make money. The profit of one piece of goods is less than one yuan.”
According to data from the National Bureau of Statistics, in the first half of the year, the country’s 33,000 textile enterprises above designated size achieved a cumulative operating income of 2.34349 billion yuan, achieving profits The total amount is 107.89 billion yuan, with a revenue profit margin of 4.6%.
Liu Long said that due to rising prices of raw materials and freight, the company has received and canceled orders again and again. Although customers can still He understands, but he also thinks that the company is not honest enough. He is worried that after the epidemic is over, if customers can find other sources of goods, business will not be so easy. He also revealed that starting from 2020, the scale of the company has been shrinking, and there are fewer workers. One third.
Diesel generator manufacturers are full of orders under the “power restriction tide”
Affected by multiple factors such as tight power supply and dual control of energy consumption, “power rationing” has occurred in many places across the country. The power rationing came suddenly. In order to seize production, some companies chose to snap up diesel generators. Ensure power supply.
“Almost immediately after the power rationing occurred, orders began to increase. Guangdong, Jiangsu, including Zhejiang and other provinces have received orders. The current orders are about more than 200 units, and some are no longer accepted. There are too many. “A staff member of the above-mentioned generator manufacturer in Yangzhou told reporters.
“Usually delivery usually takes about a week, but now it takes almost 20 days. “The sales manager of a generator manufacturer in Taizhou told reporters, “No matter which company you buy, there is a shortage of products, because there are only a few brands of engines. “
“Generator sets are more for emergencies. For example, if a company comes in with a big order, it wants to deliver it as scheduled without defaulting on the contract. But if you always use a generator to generate electricity, the cost is still relatively high. After all, the price of electricity is relatively cheap. “A practitioner in the internal combustion engine industry revealed in an interview with reporters.
Many interviewed companies said that the company has increased its investment in R&D and innovation, in terms of raw materials, technology, products, Promote innovation in all aspects in the market, and strive to increase the competitiveness of the industrial chain and supply chain while making the supply chain autonomous and controllable.
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