In autumn, Shunde Zhongshan home appliance export factory is busy. At about 10:00 a.m. on November 3, in Leliu, Shunde, the home of China’s home appliances, the cross-border truck loading area of Guangdong Xinbao Electric Appliance Co., Ltd., a big exporter of small household appliances, was full of containers and trailers. There are too many goods waiting for export to be put in the warehouse, and some of them can only be stacked on the open space at the door of the warehouse. Outside the coffee machine factory, more than ten trucks from spare parts suppliers are queuing up for unloading. < / P > < p > “our overseas orders rose quarter by quarter in the first three quarters of this year, with a year-on-year decrease of 8% in the first quarter, an increase of 25% in the second quarter, and an increase of more than 40% in the third quarter. The orders are still sufficient in the fourth quarter.” Chen Jingshan, the Secretary of the board of directors of Xinbao shares, told the first financial reporter. < p > < p > on the same day, the first financial reporter also visited Galanz, Delma and Leto. Galanz, one of the leading exporters of household appliances, has a booming microwave refrigerator production line in Zhongshan factory. The production of refrigerators this year is still unable to meet the demand. The orders should be arranged until the first quarter of next year. Leto’s fan export orders this year are one-third more than in previous years, and the export volume of Delma humidifier has doubled. < p > < p > under the epidemic situation, the “housing economy” has filled the export orders of small household appliances such as kitchen appliances and environmental appliances, and the export of household appliances related to food and cleaning, such as refrigerators and washing machines, is also in great demand. “The advantages of China’s home appliance industry chain are obvious, and the epidemic response brings export dividends.” Zhou Nan, Secretary General of the home appliances branch of China Chamber of Commerce for import and export of machinery and electronics, told reporters from China first finance and economics that the export recovery and rising costs also brought pressure. < p > < p > this year, China’s export of household appliances presents a V-shaped reversal. Novel coronavirus pneumonia outbreak in China in the first quarter, and the epidemic in the two quarter was gradually controlled in China. From order postponement to order recovery, and then to overseas orders skyrocketing, out of a curve. Zhang Yifei, director of marketing management of overseas modules of Xinbao Co., Ltd., told reporters of first finance and economics that due to the impact of domestic epidemic situation in the first quarter of this year, the production capacity was insufficient, and it returned to work after the Spring Festival. 3. In April, the epidemic broke out gradually in foreign countries. Facing the situation of partial cancellation and large delay of overseas orders, Xinbao tried to digest the inventory. 5. In June, with the digestion of customer inventory, orders gradually began to resume growth. 7. In August, under the influence of “housing economy”, home office led to a significant increase in orders. Then, until November, the demand for orders was still strong. In the first three quarters of this year, Xinbao achieved a revenue of 9.115 billion yuan, a year-on-year increase of 33.52%; the net profit attributable to the parent company was 900 million yuan, with a year-on-year increase of 75.38%; the export business, which contributed 89% of the revenue, increased by 25% in the first three quarters. Zhang Yifei said that western style kitchen appliances such as pressure coffee machine and multi-functional desktop blender are “exploding”, while toast stove, air purifier and vacuum cleaner are also popular. After adjusting and expanding production capacity, Xinbao was unable to meet the demand for a time, so it transferred part of its export orders to other factories to balance the interests of all parties. < p > < p > Xinbao’s export orders for small household appliances were once received in April 2021. The delivery time of the product line, which used to be one month and a half, is now extended to one and a half months to two months. This year, more than 100 injection molding machines have been added to solve the bottleneck of “burst orders”. By improving production capacity and breaking bottlenecks, we can shorten the order cycle again, pay attention to customer sales inventory, balance orders, and try to meet the needs of most customers. < / P > < p > “it should be basically at the peak of orders now”, Zhang Yifei predicted that foreign customers, taking into account the Chinese Spring Festival holiday, hoped that Xinbao would continue production in December this year and January next year, so as to ensure the supply when the Spring Festival production was suspended. In order to keep track of export orders, Xinbao will provide evening benefits for the export business team at 8:00 p.m., which was not available before. Some foreign customers are in a hurry to “chase orders”. They once pulled the president and CMO of Xinbao into a wechat group and asked why they had not been delivered. Xinbao had to patiently explain and seek understanding. < p > < p > from the perspective of order structure, “housing economy” has different impact on products. Among baking appliances, the order of toaster is higher than other products. As people go out less, the demand for clothing and protection appliances is lower than last year. In terms of regions, South Korea, Japan and Southeast Asia took the lead in restoring orders, while orders in Russia and the United States increased significantly. Orders growth in the United States from June to November, after making up for the previous decline, still had growth. The proportion of orders from India is small, and the recovery cycle of orders in the Middle East and Africa is relatively long. “We should keep a clear mind on the follow-up situation.” Zhang Yifei said calmly. < / P > < p > in the refrigerator factory of Galanz Zhongshan Park, there are so many refrigerators waiting for delivery that they need to be placed in the open space next to the production line. Shao Guoshan, who is in charge of the process quality of the factory, told the first finance and economics reporter that the production capacity of Galanz refrigerator factory has doubled this year, but the supply still falls short of demand. Now the order can be delivered after three months. The order should be arranged to the first quarter of next year, and the Glanz refrigerator factory plans to increase its production capacity by another 50% in 2021. < / P > < p > different from Xinbao export, Galanz is transforming from OEM export to overseas independent brand. The export of Galanz’s own brand refrigerators in North America has doubled this year, and has entered into Wal Mart, home depot, Amazon and other local mainstream channels. The epidemic has led to the overall growth of household appliances related to food and health. Galanz has just strengthened overseas brand promotion and localized design in recent years, so there are too many export orders. < p > < p > Li Wenjian of Galanz’s overseas marketing department also told the first financial reporter that during the epidemic period, customers’ living time at home increased, sales of ovens and microwave ovens increased, and orders for refrigerators and washing machines also increased. This year, the export revenue of Galanz has increased by two digits, including the three digit growth of overseas independent brand business income. The orders in the first quarter were postponed, and the order demand in the second, third and fourth quarters continued to rise.
the growth of one belt, one road and another market is also good. This year, Galanz is promoting its own brand in India, so please bring your products online. Its overseas subsidiaries or branches in North America, Germany, France and Eastern Europe also carry out localization promotion and services. This year, the number of Glanz’s export sales staff increased from 200 to 350. When orders were full, they went off the production line to “compete” for capacity resources. < / P > < p > “in the second half of this year, the export-oriented enterprises in the household appliance industry have encountered explosive growth in orders.” Yao Youjun, President of Omar electric, a big refrigerator exporter in Zhongshan, told the first finance and economics reporter that the main reason was that the overseas factories could not start full operation due to the epidemic situation overseas, and the consumption demand was increased compared with that before the epidemic situation. Therefore, the final result was the rapid growth of demand for home appliances made in China, which led to the current orders of all home appliance export enterprises In a state of full capacity. In the first three quarters of this year, Omar’s revenue was 6.03 billion yuan, a year-on-year increase of 4.3%; in the third quarter, the revenue was 2.44 billion yuan, with a year-on-year increase of 41%, and the net profit attributable to the parent company was 130 million yuan, with a year-on-year increase of 9569.96%, reversing the situation of performance decline in the first half of the year. Yao Youjun predicted that overseas orders would continue to grow without the large-scale marketing of vaccines. Compared with Galanz with annual revenue of tens of billions, Xinbao and Omar with annual revenue of more than 10 billion yuan, Zhongshan Letu Electric is a small and medium-sized household appliance export enterprise with annual revenue of about 100 million yuan. Li Mingyang, general manager of Letu Electric Appliance Co., Ltd., has suffered a lot between the soaring orders and the soaring costs. According to Li Mingyang, the price of bare copper at the end of March and the beginning of April this year was 39000 yuan / ton, 51700 yuan / ton on October 20, up 32.56%; cold rail steel plate 4300 yuan / ton in early April, 5300 yuan / ton on October 20, up 23.26%; tin steel sheet 5000 yuan / ton in early April, 5700 yuan / ton on October 20, up 14% month on month. In addition, at the end of March and early April this year, the lowest price of plastic ABS 121h dropped to about 9400 yuan / ton, and 17000 yuan / ton at the end of October, up about 80% month on month; at the end of March, the price of plastic PP was 6500 yuan / ton, at the end of October, it was 8250 yuan / ton, up 26.9%. “The costs of rent, labor and exchange rates are also rising.” Li Mingyang said that the rent of their factory building in Nantou Town, Zhongshan City, Guangdong Province, was 30% higher than that of the same period last year; it was difficult to recruit workers, and the wages of temporary workers rose from 15 yuan / hour in the same period of last year to 18 yuan / hour now; in the middle of March, 1 US dollar was converted to 7.03 yuan, and at the end of October, it was about 6.7 yuan, “the more foreign trade orders you receive, the more you lose.”. < / P > < p > in order to cope with the shortage of manpower, Leto is promoting semi-automatic production. The production of motor has changed from manual production to automatic winding of machines; injection molding has changed from manual production to one person watching several injection molding machines. Business will continue, at least with normal cash flow. According to Li Mingyang, their net profit margin is only 4%, and some products are still less than that. The increased cost of exchange rate alone has swallowed up the profits. As the price of export fans is basically “fixed price in one year” in August, although their fan orders in 2021 are 50% more than those in 2020, the business is expected to lose next year due to rising material prices, strong RMB exchange rate, rising labor costs and increased factory rents. < p > < p > as the docking point for Leto’s foreign trade orders, Li Mingyang’s wife read several e-mails she recently exchanged with a U.S. client. Compared with September last year, the exchange rate cost has increased by 6.2% in the past year. The increase in copper and other prices has increased the comprehensive cost by 3%. Leto hopes to raise the price by 3.5%. The other party replies to increase the price by 2%. Starting from January next year, Leto’s reply will start from December this year, waiting for confirmation from the other party. < p > < p > such negotiations show that, behind the full orders, Chinese home appliance manufacturers and foreign customers are still struggling together. In Letu, first finance met a resident engineer of Newell, an American client. He said that this year is particularly tired, production capacity is tight, and the shipping schedule has been arranged, so he often has to “supervise” the factory. Under the heavy pressure of cost, “everyone is” boiling “to see who can” endure ” In fact, logistics costs are also rising, and the export containers and positions are very tight. In the south of Zhongshan, the transportation cost of a container is 100 yuan higher than that of 1950 yuan to 2050 yuan, because the labor of truck drivers is expensive, and the cost of picking up containers in the yard is also expensive. In addition, with the upgrading of China’s environmental protection requirements, the scrapping of trailers has increased. What’s more, there are not enough containers. Many of them are abroad and haven’t been shipped back. < / P > < p > “now it’s” get the cupboard, no bin, get the bin, no cabinet. ” Zhang Yifei said that exports are greatly affected by logistics. Taking positions and containers “has never been so difficult as this year. This year, it is difficult to get one container.” Due to the lack of imported containers, the container factory next to Xinbao has increased container orders by 40% – 50% this year. < / P > < p > “we do FOB (FOB), international logistics costs are mainly borne by customers.” Zhang Yifei said that most of Xinbao’s goods are exported from Nansha port in Guangzhou, Yantian port in Shenzhen and Leliu port in Shunde. “We have close communication with the wharf and shipping companies. If there is a warehouse or container, we will immediately inform the salesman and tell the customers that we can compete for resources with the import and export of goods.” Some time ago, the local government came to investigate and help solve the problem. < / P > < p > in the face of the challenges of raw materials and labor costs, Xinbao shares has digested the pressure of rising costs through capacity optimization and automatic production