Exchange Rate Volatility "Engulfing" Export Profits

" RMB appreciation The rent is too expensive and so on, so we can't do business. Two months ago, Taiwanese boss Chen did not think that the factories that he had worked for many years would be disbanded. Yesterday, when the reporter sent an interview, the more than 60 year old man admitted that more than 2000 workers in the Buji factory had been disbanded and compensated and left the factory. Now he is on vacation in Taipei, and is expected to return to Shenzhen at the end of the month. He will continue to explore whether to open a factory in the surrounding area of Shenzhen.

Mr. Chen did not want to talk more about the disbanded factory, but apparently it was appreciated by the renminbi "the butterfly of the Amazon River in South America". Fans are not only Mr. Chen and his 2000 odd workers, who are directly affected by the "Butterfly Effect". There are also tens of millions of foreign trade enterprises in Shenzhen. Exchange rate fluctuations are "phagocyping" the export profits of these enterprises.

　　 "Boiled frog in warm water" can cause numbness.

Yesterday, the spot exchange rate of RMB against the US dollar touched 6.2289 again. It is understood that this is the 16 time in nearly 18 trading days. However, such news did not cause panic in foreign trade enterprises. When communicating with SKYWORTH, TCL, Konka and other experts in the operation of foreign trade enterprises, the reporters found that, for the appreciation of RMB, business people are no longer excited. Some entrepreneurs even calmly told reporters: "war is meaningless, we want to survive, we recognize the loss of exchange rate."

"No orders, only death. If you take orders, you may still live. Many enterprises are holding such an idea in order. Xue Xiaowei, director of Guanlan Bao de toy factory, said that at present, the export environment is not good and orders have been reduced by more than half. At present, there are only more than 2000 workers in factories, and the situation is more serious than in 2008.

For RMB appreciation, large scale foreign trade enterprise People are very calm, quite a "water to cover up" the trend. "Can we not take orders? No, we can't. We are big enterprises. We don't have cash flow. If we take orders, it will be a new world. " Deng Zhibin, deputy general manager of Management Department of international marketing department of Konka Group believes that the appreciation of RMB is the effect of "warm water boiled frog". Foreign trade enterprises are prone to paralysis. Under such circumstances, enterprises should be vigilant and actively seek countermeasures.

　　 Exchange rate appreciation "swallow up" export gross profit

The renminbi's spot exchange rate against the US dollar has risen by about 2.6% since the recovery of the renminbi. When the reporter called a foreign trade enterprise yesterday, the head of the company admitted that he had a headache. He was studying a new order due in March next year, and he planned to budget the cost according to the exchange rate of 6.2 yuan to the US dollar. "120 thousand of the order is a large order for us. The psychological expectation that I will receive after six months is 6.2. I don't know if the other side can accept it."

"Business is business without profit. We will not take orders." A person in charge of a foreign trade enterprise engaged in the watch business told reporters that in the process of RMB appreciation and labor wage rising, some foreign trade enterprises chose to dissolve the factory, and his way was not to receive orders without profit. Because the market has already eliminated many similar foreign trade factories, and his factory has been doing well because of its excellent quality and good price. At present, it has the ability to bargain with foreign investors. But export sales are really bad this year. The official told reporters that in October, there was a single entry, which was 20 thousand yuan because of the two day settlement of foreign exchange.

"If the price remains unchanged, then the appreciation of the exchange rate will increase the export cost by 2%, which means 2% of the gross profit will be eaten by the exchange loss." TCL multimedia overseas business center, general manager of Indonesia branch Shang Yuguo said. Chen Mang, the head of Chaowei industry, counted the accounts for reporters. If he made a $1 million business in September, he expected to earn 2% in November, but the exchange rate changed the business from about 6300000 yuan to about 6200000 yuan, and the gross profit of about 100000 RMB was swallowed to "swallow up".

　　 Deep enterprises to reduce exchange rate losses

In order to prevent gross profit from being eaten by foreign exchange companies, the foreign trade enterprises were "calculating" at several points. Shenzhen Enterprises are already "veterans" in actively trying to reduce foreign exchange rate losses.

To reduce the loss of exchange rate, what is the magic trick of Konka? Deng Zhibin, Konka Group, will first increase the added value of products, enhance the profit margins of products by upgrading the technological content of products, such as the development of smart TV, etc. Secondly, the US dollar will settle in advance, and through flexible communication with customers, adopt the way of early settlement to reduce the losses caused by exchange rate changes. Finally, for financial convenience and circumvention of foreign exchange risk, we will actively strive to win RMB as settlement currency for customers.

In an interview with reporters, Shang Yuguo, TCL, admitted that in the export trade, the appreciation of the renminbi would lead to an increase in costs and a contribution to gross margin. But there are also measures to improve sales structure through the market side, or through the introduction of new products to raise the terminal price to improve gross profit, and further optimize the cost through the factory side, in order to further reduce the impact of exchange rate.