"The main reason for having a hard time is that the cost cannot be afforded, and the price advantage is small." Speaking of the huge increase in the price of raw materials, Yin Defeng sighed deeply: "The price of wicker this year has increased by 400% compared with last year. Labor-intensive enterprises like ours have changed from "little profit" to "no profit."
The toy industry that lives on rubber also has a hard time. Lou Qijin, vice chairman of the Yiwu Toy Industry Association, told reporters that the price of gelatin has increased by 50% in the second half of this year. "The real difficulty has come, not only the price of raw materials, but also the price of various energy sources." Special mention is made of the “diesel shortage†that swept across the south. “The refinement of gelatin requires diesel to burn the furnace. In the context of power cuts, some gas stations in Zhejiang are now“ storing oil and betting up †In addition, the price of industrial electricity has also increased, and this expenditure must eventually be borne by enterprises. The industry will basically have no profit in the second half of the year. "
On the second floor of the first phase of the Trade City, a small shop specializing in jewelry and accessories happened to be moving yesterday. The reporter interviewed the shop owner who was just a "land of dwellings" and learned that because the rent was too high, the impact on the profit margin was difficult to load, so the shop was planning to move the floor and move to another shop with only half the area. The amount of inventory is large. According to the standard area, half a room is now more than 200,000 yuan a year, and the company cannot afford it. "
Mentioning the increase in rental costs, Yin Defeng finally felt a little lucky. "We bought the right to use the shop five years ago, and we can still renew the lease at that time. At that time, it was only 1.2 million yuan, but now it has risen to 3 million yuan." He laughed that this was the same price as Causeway Bay. However, because the products of "Qinfengyuan" are woven with natural materials such as wicker and PVC materials, the following rise in oil prices is destined to be a "cup."
"Yiwu's handicraft market is relatively large. Before the crisis, the annual sales including circulation amounted to 4 billion to 5 billion yuan, but the price of wood, the largest piece of raw materials in the second half of the year, rose by at least 25%, and the average increase of other materials reached 15% or more, "Gong Pinzhong told reporters that the price increase of raw materials has a direct impact on the company ’s profit margin of about 3%." The overall profit margin of the handicraft industry is about 7% -8%. If you take into account the impact of RMB appreciation, it is basically zero profit. . "
Dunning cash problems
In fact, the profitability of wooden handicrafts, photo frames, decorative paintings and other products operated by Gong Pinzhong is still significantly higher than that of the entire low value-added manufacturing industry. Zhang Wei, vice chairman of the China Council for the Promotion of International Trade, once publicly stated that the minimum profit margin for exporters in labor-intensive industries such as clothing and furniture manufacturing is only 3%. If calculated according to this, then only one appreciation of the renminbi is enough to make the enterprise face the "disaster of extinction."
As early as June 19, when the central bank announced that it would further promote the reform of the RMB exchange rate formation mechanism, stress tests by many export companies showed that if the RMB appreciates by 3% in the short term, corporate profits will fall by 30% -50%. Over the past four months, the central parity of RMB against the US dollar has changed from 6.8275 yuan on June 19 to 6.645 yuan on November 10, which is close to a cumulative increase of 3%.
These days, Weng Weizhen is upset about the "debt" that cannot be recovered in time. "The order placed in mid-September, when the exchange rate of RMB against the US dollar was 6.7 at the time of shipment, became 6.66, a loss of 1 dollar, and a loss of 300,000 dollars was 30,000 yuan," she said worryingly. The biggest problem was Foreign trade companies have been in arrears with their purchases. "If the foreign exchange is delayed until December, the depreciation loss may be even greater.
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