The Wealth Story Of Pi Liangcheng, General Manager Of Dongguan Shoe Factory

"The more money the dollar makes, the more it loses."

Dongguan great sincerity

Cheng Liangbo, general manager of timber factory, told reporters 15 days ago.

Recently, the renminbi has shown a "rising trend" again, which is not good news for Cheng Liangbo, who is engaged in foreign trade export.

In 2011, the appreciation rate of RMB increased by 4.9%, and the loss of business remittance increased. This loss alone exceeded 1 million yuan.

Originally there were two shoe factories in Dongguan. Last year, he merged the two plants into one to reduce cost pressures, and now has nearly 300 employees.

Generally speaking, from receiving orders to receiving money, the cycle is at least 3 months, and orders for good orders come from overseas markets. All of them are settled in US dollars. Therefore, good waves are very sensitive to fluctuations in exchange rate. Last year, because of the accelerated pace of RMB appreciation, he lost a lot of money.

Cheng Liangbo is lucky that several stable overseas clients have survived in the recent downturn in manufacturing.

Compared with the 2009 Securities Times reporter's first interview with him, the scale of the factory has expanded slightly, but the profit margin has dropped by 5 percentage points.

Over the past two years, many small and medium-sized enterprises in the Yangtze River Delta and the Pearl River Delta have been forced to go bankrupt and move away because of the sharp reduction in overseas orders and the rapid increase in domestic labor costs and raw material prices.

The shoe material industry in Dongguan is also shifting to some Southeast Asian countries.

The crowding out effect of RMB appreciation is strengthening.

Cheng Liangbo said: "in the premise of excluding foreign exchange losses, the profit rate of shoe making business is only 10%. If we calculate the loss on the exchange rate, the profit margin is obviously less than 10%."

In his view, the appreciation of the renminbi is a major trend, but for many small business owners like him, Dongguan is powerless.

Some large scale enterprises can agree with the customers according to the agreement exchange rate, but there are very few export enterprises that have such a right to speak.

Cheng Liangbo felt that the pressure of continuing to open factories in Dongguan was too high, the cost of manpower was too high and profits were very low, and it became more and more difficult to survive.

"Exchange losses can only be carried on their own and deducted from profits."

Cheng Liangbo felt very helpless: "in addition to moving the factory away, I can't think of any other way to deal with it."

In the past two years, a lot of ways to improve profits, including strengthening enterprise management and introducing advanced machines, can not help the whole environment of the manufacturing industry to continue to be depressed.

Cheng Liangbo is also considering moving the factory to Southeast Asian countries with lower labor costs. He is going to visit southeast Asian countries next month to choose a suitable new site.

Soon after leaving the hot spot where he has struggled for over 10 years, he became more helpless. "Dongguan is also taking the route of high technology and low pollution, from big brands like Nike and

To the ordinary foundry, everyone is gradually moving away, which is the general trend.