Chinanews.com, Guangzhou, April 26th, Question: Orders will not increase but increase, how can Dongguan's enterprises achieve "contrarian" growth?

  Author Sun Qiuxia

  In Zhangmutou Town, Dongguan City, the production workshops of many enterprises are still running at high speed.

  A few days ago, the reporter walked into a national high-tech enterprise producing personal care products such as electric toothbrushes. I saw workers working in a step-by-step manner, and the sound of machines on the production line roared.

  Since the outbreak, although the company's orders on the international foreign trade market have fallen by 70%, orders on the domestic market have increased by 160%.

  "Contrarian" growth is the epitome of China's manufacturing industry's survival in the crisis. In the case of a large number of cancellations of export orders, turning to the domestic market and demand has become the most direct way for enterprises.

  It is worth noting that while the enterprise is striving to save itself, the Guangdong taxation department has also given it greater support, not only introducing preferential measures such as tax relief, tax rate reduction, and social insurance premium extension, but also helping to solve the problem of poor raw material supply. Downstream production and marketing disconnection and other plugging problems.

Roman production workshop. Photo by Sun Qiuxia

Foreign trade enterprises expand the domestic market, taxation gives real money

  Known as the "world's factory", Dongguan once started by relying on processing of materials and a large number of general workers. As an export-oriented economic city, a large number of foreign trade enterprises have gathered here.

  However, the spread of the overseas epidemic has hit China's foreign trade industry, and Dongguan bears the brunt. In the first quarter, Dongguan's imports and exports fell by 14.3% year-on-year, of which exports fell by 13.3% and imports fell by 15.8%.

  Against the backdrop of the global economic depression, the Guangdong tax department not only reduced or suspended fixed operating costs for many private enterprises such as social security and provident funds, but also recommended that foreign trade companies actively explore the domestic market.

  Guangdong Luoman Intelligent Technology Co., Ltd. (hereinafter referred to as "Roman Company") located in Zhangmutou Township has successfully achieved export-to-domestic sales. As the first batch of enterprises to resume production in Dongguan, Luoman's production workshop has been in continuous operation since February 8, and sometimes workers have to work overtime and rush to deliver goods.

  Luo Guangyu, deputy general manager of the supply chain operation center of Roman Company, told reporters that in early March, due to the impact of foreign epidemics, many overseas customers cancelled orders. As the E-commerce platform saw good sales of the products during the Spring Festival, the company began to deploy ahead of schedule and concentrated on expanding its domestic market share.

  At present, Roman's foreign market share accounts for less than 30%, and the rest have all been turned to domestic. In the first quarter of this year, Roman's total sales increased by nearly 25% year-on-year, and online platform sales in the first quarter were approximately 2.6 times that of the same period last year. The overall operating income in the first quarter was about 70 million yuan.

Workers working in production workshop. Photo by Sun Qiuxia

  The order is full, in addition to seizing the opportunities in the domestic market, it is also inseparable from the timely transformation of Roman. Over the past ten years, the company has been OEM for international brands such as Europe and the United States. Since 2015, it has transformed into the domestic market, and gradually established a research and development team to create its own brand.

  "If we rely on foreign trade as 100% as before, we may not be able to reach today. In recent years, we have seen the trend of dividends and consumption upgrades of the Chinese population, and we have taken the initiative to reduce foreign market share and are committed to making our brands bigger in the country. Be stronger. "Luo Guangyu said.

  In an interview with the media, Lin Yifu, Dean of the Institute of New Structural Economics at Peking University, pointed out that after the outbreak of the global epidemic, the demand has shrunk dramatically. Foreign trade is inevitably adversely affected by foreign epidemics, economic recession and even depression, and the decline will be greater. Under the current situation, China's growth must rely on the domestic market and demand.

  Campbell Electronics (China) Co., Ltd. in Dongguan is also an export-oriented enterprise. Due to the epidemic, overseas orders have declined. Among them, the amount of printer order repairs has fallen by 50% compared with the estimate at the beginning of the year. Currently, two production lines have been discontinued.

  The person in charge of the company said that the fixed costs and semi-variable costs of the company's operations will not decrease with changes in performance. If the overseas epidemic situation cannot be controlled, the company's funds will become increasingly tight. The transformation of domestic sales will be the main direction of the company's future development.

  In order to reduce the operating burden of small and medium-sized enterprises, the State Administration of Taxation Dongguan City Taxation Bureau has launched the "Twenty Taxes", covering 9 main types of taxes and social insurance premiums. Both tax preferential policies to support epidemic prevention and control, as well as tax payment Service measures for people to solve their problems.

  He Weibang, Director of the Zhangmutou Taxation Bureau of the Dongguan Taxation Bureau of the State Administration of Taxation, pointed out: "For high-tech enterprises such as Luoman Company, our taxation department is equipped with taxation service specialists to provide one-on-one preferential tax policy guidance to enterprises."

  According to estimates, in the first quarter of this year, the Roman company can enjoy a high-tech enterprise income tax discount of more than 200,000 yuan, and social security fee reductions of nearly 260,000 yuan, which greatly eased the company's financial pressure.

Zhangmutou plastic raw material market. Photo by Sun Qiuxia

Suppliers take the initiative to switch production, tax "matchmaking"

  In the plastics industry, it is known as "Yuyao in the north and Zhangmu wood in the south". In the camphor wood plastic raw material market, I saw that there was a constant flow of traffic, and most of the shops were also open for business.

  Cheng Xu, chairman of Dongguan Taihe Plastic Trading Co., Ltd., told reporters that due to the epidemic, many of their company ’s foreign orders have been cancelled, but domestic orders have been made.

  "We received an order for polypropylene meltblown materials at the end of March. I didn't expect that the supplier we had been working with had not resumed work. At that time, I was very anxious and didn't know where to find the supplier." Cheng Xu said.

  Polypropylene meltblown material is the raw material for making meltblown cloth. Meltblown cloth is the filter layer in the middle of the mask, commonly known as the "heart" of the mask. During the epidemic, due to the surge in demand for masks, many manufacturers began to convert polypropylene melt-blown materials.

  He Weibang told reporters: "In the first quarter, companies suffered a lot from the epidemic. Our tax department often took the initiative to contact companies to learn about their operational difficulties. If there is a policy, give the policy, and if there is information, give the information to help the company resume work.

  On April 1st, the Guangdong Tax Industry Chain Zhilian platform was launched, and the Dongguan Taxation Bureau of the State Administration of Taxation analyzed enterprises with potential raw material procurement difficulties through tax big data. . Cheng Xu received a recommendation call from the tax department on the same day.

  The platform is a tax big data assistance platform developed by the Guangdong Provincial Taxation Bureau of the State Administration of Taxation, which can help demanding enterprises find sources of goods, support suppliers to release products, and connect and match enterprises for supply and demand.

  With a try mentality, Cheng Xu logged into the functional interface of "find supply" of the industry chain intelligent platform, entered the keyword of "polypropylene melt-blown material", and selected the supplier's location as "Dongguan City". A list of suppliers who have recently sold this material appeared. After a round of comparison and re-screening, Dongguan Jishuo Industrial Co., Ltd. (hereinafter referred to as "Jishuo") was finally identified as the intended enterprise.

  Ji Shuo is a manufacturer specializing in the production of plastic raw materials. During the epidemic, almost half of the production lines were converted into polypropylene melt-blown materials. However, because of the short-term future availability of sales, there were no orders in early April. Through the promotion of the industry chain intelligence platform, orders have now been arranged to June.

  General manager Wang Yong of Ji Shuo told reporters that at present the factory can only produce about 10 tons of polypropylene melt-blown material per day. Buyers often come over to remind the order, "Never dare to take orders now." He revealed that from January to April this year, the company's turnover has reached more than 40 million, and the annual turnover is expected to double from last year.

  Wang Yong admitted that even if a buyer placed an order in the early stage, he would not dare to take orders casually. The enterprises docked through the industry chain intelligence platform are all pushed after the analysis of tax big data, "we are also assured of our cooperation."

  Lai Zhuhua, director of the Big Data and Risk Management Bureau of the Guangdong Provincial Taxation Bureau of the State Administration of Taxation, said that the bureau conducted a semantic analysis, intelligent word segmentation and fuzzy matching on the raw material commodity name information in the invoice to carry out information on the supplier's production capacity, credit rating and other information Comprehensive calculation to achieve "precise matching" of supply and demand.

  "The Zhilian platform launched by the tax department helped us solve the problem of finding suppliers in the vast sea in one afternoon. The orders have been arranged in May, and the sales situation has picked up a lot." Cheng Xu said. (Finish)