In The Low Profit Era, Shandong Manufacturing Enterprises Explore The Way To Break Through In The Face Of Adversity.

If we pay attention to the latest news, we can easily find that coastal areas such as Guangdong, Zhejiang, Shandong and Jiangsu have become the focus of attention.

In July 20th, general secretary Hu Jintao inspected two enterprises of Haier and Jin Wang in Qingdao, Shandong. On the same day, Premier Wen Jiabao inspected private enterprises in Guangdong.

On July 5th, vice president Xi Jinping inspects the Hong Kong funded enterprises in Guangdong. In July 8th, Vice Premier Li Keqiang inspects the economic operation in Zhejiang.

Another Vice Premier of the State Council, Wang Qishan, also investigated the foreign trade and financial situation in Shandong during the period.

At the same time, the national development and Reform Commission, the Ministry of Commerce, the China Banking Regulatory Commission, the State Administration of Taxation and other departments have also deployed to launch a rare economic research since the founding of the people's Republic of China.

Why do these economies attract so much attention?

Our reporter went to several enterprises inspected by Vice Premier Wang Qishan in Yantai, Shandong to see the situation there.

Some clothing enterprises in Yantai, Shandong are being choking by the current unfavorable factors.

The Xinguang garment factory was invested and built by a Korean clothing company in Yantai 3 years ago. The products such as pure cotton underwear and other products produced by the factory are almost exclusively exported to Korea and the European and American markets. The general manager of the company told reporters that the price of their products could reach up to about $1.5 per piece, which has been at a fairly high level in the foreign trade enterprises.

Jin Xicai, general manager of Yantai Xinguang Garments Co., Ltd.: "because they are their own brands, from production development to sales are all a dragon, we are responsible for ourselves, so we have a higher price than other companies."

Many of the brand rights purchased by Xinguang clothing company are popular brands in Asia and the world. As the added value of products is relatively high in the clothing industry, the profits of Yantai Xinguang garment factory have been maintained at over 5%, and the scale of production value has been expanding for several years. However, this year, the profit margins of the company have begun to decline.

Jin Xicai: "at the beginning of this year, at that time, the company's target was 3%, but now it can reach 1.5% at present, so it will be good to achieve 0.5% by the end of this year."

The garments made by the company such as ELLE, Disney and other brands are hard to raise because of the selling price of the products. Therefore, almost all the raw materials purchased from abroad have been changed into domestic procurement in China, but even so, the clothing enterprise is now at the edge of survival.

Reporter: "what does 0.5% profit margins mean for factories?"

Jin Xicai: "why did the company set a profit margin of 3% at the beginning of the year, and it could survive in China if the company could reach 3%? But under 3%, there is almost no profit for the company, which is equal to the loss."

Xinguang garment factory invested about 60000000 yuan to build a standard sewing workshop. Most of the processing clothing machines are fully automatic. Only a special sewing machine is worth tens of thousands of dollars. Jin Xicai said that when he was put into production, he was counting on the factory to complete the output value of 500 million yuan a year. But one year later, the factory which could accommodate more than 1000 workers, only 1/3 of the workers were working. When Jin Xicai opened the door of a workshop inside the factory, the scene of the scene surprised the reporter.

Jin Xicai: "all the equipment that is not needed is stacked here.

In fact, the cost of these devices is not low. "

Reporter: "how much is a device?"

Jin Xicai: "ordinary general five thousand or six thousand, some more than 10 thousand, sometimes in the case of special machines, can achieve fifty thousand or sixty thousand."

Inside the factory, the reporter saw that the sewing machine imported from Korea was idle inside the factory building, stacked with some cargo in the space of tens of square meters, and the equipment surface was covered with thick dust.

Reporter: "the boss here told me that in fact, this workshop has just been completed last year. There are 3 such factories. But now we see that the factory is not sewing machines, but is stacked with some sundries. The workshop is designed according to the sewing workshop, because there are rows of lights on the top, and a sewing machine is under each lamp, but now the plant is now idle because of its shrinking production."

The company official told reporters that under the current circumstances, he did not know how long the Xinguang garment factory could last. The company headquarters in South Korea had put into operation a 1000 person scale garment factory in the Kaesong industrial park on the Korean border, and the production cost of the factory was about 20% lower than that of Yantai. Jin Xicai felt that the depreciation of the US dollar was the most important reason for affecting the company's profits. Since the beginning of this year, the depreciation of the US dollar to RMB has exceeded 8%, and the profits of the company have also been eroded. He regretted that he signed too many long-term orders and did not make a prophetic judgement for this hidden danger.

Reporter: "there are not many enterprises that really have foresight, because at that time, the wages of migrant workers were still very low, and the price of RMB was still very low, so even the low-end manufacturing industry also had considerable profit margins. Unfortunately, almost overnight, these lifesaving rafts were taken away, and business operations felt unprecedented pressure."

Ji Peng, deputy director of Yantai Fushan high tech Industrial Development Zone, said: "most clothing companies are hard to see now."

Ji Peng, deputy director of Fushan high and New Technology Industrial Zone Management Committee, in his view, the crisis faced by Xinguang clothing enterprises is not unique in the city. Recently, the CMC once conducted a thorough exploration of the enterprises in its jurisdiction, and divided more than 300 enterprises into three types of enterprises, such as A, B and C. Like Xinguang garment factory, enterprises with their own workshops, brands and still in production have been regarded as the best class A enterprises. What really worries him is those C enterprises without fixed assets and stable production capacity.

Ji Peng: "first, there is no place to find debt in the future. Now, if the garment factory fails, it owes the old age insurance and wages, but the equipment left behind by the garment factory should be said to be very cheap. Several sewing machines are very cheap, tens of thousands of beautiful script src=>.