Enterprise Heart Disease: There Is Order Not To Answer.

The 109th session

27 reported that the foreign trade situation of Guangdong, Zhejiang, Jiangsu, Liaoning, Sichuan and Hubei six strong export provinces showed that about half of these enterprises' profits declined, and some small and medium-sized enterprises suffered losses or even went bankrupt.

Also, enterprises are facing the risk of order shifting. Some foreign customers have pferred some of their orders to neighboring Southeast Asian countries such as Vietnam and Bangladesh.

According to the results of six provinces' research, at present, the pressure of raw materials, labor costs, financing costs and RMB appreciation has increased the export cost of enterprises by 10 to 20 percentage points, especially the rising cost of raw materials has become the biggest burden of enterprises.

Gifts, toys, textiles and other traditional labor intensive products in China, with the rapid increase of the current cost, the cost has risen to the profit and loss boundary of enterprises. These enterprises are facing the test of life and death.

External market recovery did not bring profits

The popularity of the Canton Fair is particularly strong, and the first day of opening has created a high level of 40 thousand businessmen coming to the meeting in recent years.

The industry believes that this indicates that the international market is recovering.

But this did not make all enterprises particularly heartening.

Reporters found that while seeing the expected orders increase over the same period last year, many exhibitors were unable to earn more profits after receiving orders.

"These foreigners are smart.

Generally speaking, goods are more than three, and now buyers often compare the same products of the whole exhibition hall before placing an order, and the price is very low.

It is not easy to see profits from orders, but it is difficult for enterprises to survive.

A exhibitor who made the latest accessories for Apple products from Shenzhen told reporters that the gross profit margin of his company fell from 10% last year to about 4% today.

Many exhibitors said that the pressure behind the growth of orders has not been reduced, subject to the fact that CPI has been rising too fast and the cost of labor has continued to rise, as well as the appreciation of the renminbi.

"A series of unfavorable factors, such as exchange rate, raw material and labor cost, have come together, and our profit margins have reached the top."

Li Suhua, chairman of Dalian Rui Xing International Trade Co., Ltd., exports the gift box, told reporters. But because of the fierce competition in the homogeneity of the domestic enterprises, even if profits were squeezed, the price increase would be very cautious.

The head of Suzhou Kaiyuan International Group, who exported plush toys, also expressed the same view to reporters. He said that on the one hand, the cost increase, especially the oil price increase, led to a marked rise in the price of chemical materials, and on the other hand, it was difficult to raise prices.

It is worth noting that the above two enterprises are all brand specific district enterprises. It is conceivable that the difficulties of ordinary enterprises will be doubled.

The reporter was informed that the business departments of several provinces have reflected to the relevant parties that the export enterprises are facing many pressures and the export competitiveness has declined. Among them, the rapid rise of raw materials, the appreciation of the renminbi, the rise in labor costs and the shortage of labor and the shortage of electricity are the operating difficulties that the enterprises have generally reflected.

According to a survey conducted by the Ministry of Commerce on 1500 enterprises at the end of March, 74.5% of the employees' wages increased over the same period last year. Of them, 26.2% of the employees' wages increased by more than 10%, and the operating costs of enterprises rose sharply. Even so, many enterprises still had insufficient employment, and 36% of the enterprises said they were short of employment or very scarce.

Moreover, with the growth of many enterprises' orders, the proportion of profits falling and flat has reached 77% this year.

According to Liu Jianjun, Deputy Secretary General of the Canton Fair and spokesman of the press conference, at the end of the first phase of the Canton Fair, foreign purchasers took the initiative, but the short and medium bills accounted for 89%.

Rising commodity prices bring huge cost pressures.

Since the beginning of this year, with the slow recovery of the world economy, the demand for commodities in the international market has increased, the global liquidity has been severely overloaded, and the US dollar has continued to go down. The huge amount of capital driven by speculative factors and hedging factors has poured into the bulk commodity market, leading to the continuous rise of international commodity prices.

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The continuous rise of international commodity prices has brought huge cost pressures to export enterprises.

Reporters during the 2 phase of the Canton Fair interview, many enterprises told reporters that the price of raw materials is the biggest challenge.

Participating enterprises said that although the substantial increase of raw materials can be digested by raising export prices, in the actual process, many export enterprises have limited bargaining power and can not completely pass the risk. On the one hand, the excessive rising of raw materials will affect the order of enterprises and make them afraid to pick up and refuse to pick up.

Teng Xiao, deputy general manager of Jiangsu Hui Hong International Group Light Industry Import and export Limited by Share Ltd, said that the company's cost rose more than 80% from the rising cost of raw materials.

For enterprises, raw material prices rise without regularity and uncertainty, so it is the most difficult to grasp the price trend and defuse risks.

"Driven by the rising cost of raw materials, the price of our hardware and light industrial products in the Canton Fair has increased by 20% over the previous period, which has led some orders to India, Pakistan and other countries. Many of our old customers are not signing the bill with us this year."

Teng Xiao said that the price increase must be achieved through hard negotiations.

Wang Qi, general manager of Longde, Liaoning, told reporters that the average price of the company has increased by 10% at the current Canton fair because of the increase in export costs. "But 10% did not fully fill the cost increase, so we could only compress profits further."

It is understood that the price of domestic means of production continued to rise in the first quarter, driven by the continuous rise of international commodity prices.

The flow of production data increased by 11.2% over the same period, of which 17.8% of refined oil prices, 17.6% of steel products, 10.3% of non-ferrous metals and 8.8% of chemical products.

The purchasing price of industrial producers increased by 10.2% over the same period last year.

Recently, the Ministry of Commerce issued the "China's foreign trade situation report (Spring 2011)" (hereinafter referred to as the "report"), pointing out that from the current situation, as the world economy continues to recover, the external market is generally improving, and enterprise orders have increased.

However, the import and export situation is still complex, and there are many uncertain factors that affect the smooth development of foreign trade. In particular, the price of raw materials and labor wages continue to rise sharply, which will occupy the profits of enterprises in varying degrees. The cost pressure faced by SMEs is even greater.

High cost forced enterprises to upgrade pformation

But as Yao Wenping, vice president of the China Import and Export Chamber of Commerce, said in an interview with our reporter, in the face of rising costs, enterprises will always have their own way to break through a path of blood. "In this process, enterprises should also accelerate the pformation of production methods and improve production efficiency."

Reporters interviewed found that many enterprises have developed new concept products and old products to give new environmental protection concepts through independent innovation, and the profits of products have been improved.

Foshan, Guangdong, Japan is the world's largest aluminum plastic pipe manufacturer, Liao Jianbo, the head of the company, said that the newly launched bathroom products can form a system with the original production pipeline, complete sets of sales. "Although some of the raw materials this year increased by 20%, the added value of our new concept products is also greatly increased, so that the loss can be passed on."

Dong Zubing, the head of Ningbo Ya Mao Lighting Appliance Co., Ltd., who sold 200 million yuan last year, told reporters that at present, the homogenization competition of domestic enterprises is serious. Especially in the background of the increase of raw materials and labor costs by 20 percentage points this year, most of the old products can only be flat, but the profits of new products with green environmental protection concept are about 10% - 20%, which is considerable.

In addition, enterprises can effectively reduce the current high cost by developing the domestic market and innovating their own brands.

Liu Zheng, manager of the Export Department of Zhuhai Li Li Chuang industry and Trade Co., Ltd., told reporters that through the development of the domestic market, it has gained more profits than exports.

"The same baby trolley can sell 1600 yuan in domestic stores, while exports are only $90.

Although the domestic market needs huge market development and marketing costs, but in the long run, domestic sales must be a trend.

Liu Zheng said.

Liu Quanhui, chairman of Yongfeng source group, which manages exquisite ceramic products, said that because of adhering to the high-end line of its own brand, winning the general recognition of the foreign market with unique design and excellent quality, "at present, our quotation has increased by 25% overall, but customers can still accept it."