Constantly explore and develop Xintiandi - Mid year economic research tour for small and medium-sized enterprises, facing difficulties and rising to epidemic | development | enterprises

The latest data from the China Association of Small and Medium Enterprises shows that the development index of small and medium-sized enterprises has stopped falling and rebounded. The development index of small and medium-sized enterprises in June was 89.1, an increase of 0.2 points from the previous month, ending the three consecutive months of decline and higher than the same period in 2022.

Small and medium-sized enterprises are the capillaries of the economy. Only with vitality can the economy develop better. What is the actual situation of small and medium-sized enterprises in the first half of this year, facing the pressure of lower than expected internal and external demand? How can enterprises overcome difficulties? How to further stimulate corporate vitality and boost corporate confidence? With these questions in mind, the reporter has recently visited Tianjin, Henan, Shaanxi, Zhejiang, Guangdong and other places to conduct on-site research on the situation of small and medium-sized enterprises.

Boosting confidence under pressure

In the scorching summer, cicadas chirp incessantly. In the e-commerce delivery area of Zhongjing Food Co., Ltd. located in Henan, the e-commerce order printer keeps spitting out new orders. Picking, packaging, labeling... Workers are busy on the finished product line, and packages waiting to be sent to various parts of the country have been neatly stacked.

"The e-commerce channels have been a big help, and we are currently working hard on several major e-commerce platforms with good results," said the person in charge of Zhongjing Food.

The growth in orders and sales is a real gain for many enterprises. The reporter learned from the research that Zhongjing Food is not an exception. Many interviewed small and medium-sized enterprises believe that the overall performance in the first half of this year was better than the same period in 2022.

The data from the China Association of Small and Medium Enterprises also confirms the further recovery of corporate confidence. From the development index of small and medium-sized enterprises, in the first half of this year, except for a slight decrease in January compared to the same period last year, there was a significant increase from February to June compared to the same period last year.

Behind the improvement in confidence is the continuous efforts of policies. Since the second half of last year, a series of heavyweight meetings have released clear signals of adhering to the "two unwavering principles". From the central to local levels, policy measures have been introduced to address the pain points and difficulties of private enterprises, stimulate their development vitality, and promote precise and direct implementation of various preferential policies. We are determined to solve the problem of outstanding accounts of enterprises, continue to break through various forms of unreasonable market access restrictions and hidden barriers, and increase efforts in relief and assistance... A series of measures continue to alleviate the worries and difficulties of private enterprises.

"Various new support policies and project subsidy applications will be promptly notified by relevant government departments to enterprises. If we encounter any difficulties, we will take the initiative to communicate with the government. The communication between both parties is smooth and also makes us more at ease," said Ji Baofeng, President of Tianjin Aisida Aerospace Technology Co., Ltd.

In the interview, some small and medium-sized enterprises also admitted that their growth did not meet expectations. Cao Bin, the person in charge of Fitch Testing Technology Co., Ltd., pointed out that considering the benefits brought by the smooth transition of epidemic prevention and control, the company was relatively optimistic when setting goals at the beginning of the year. However, from a practical perspective, there is still some pressure to achieve the expected annual goals.

What is the reason? The reporter learned that on the one hand, the destocking of overseas customers has caused a weakening of international market demand, which has put certain pressure on overseas orders of enterprises; On the other hand, some companies face uncertain factors and adopt a wait-and-see attitude towards investment, leading to a reduction in orders from upstream and downstream customers.

A company mainly engaged in the research and manufacturing of wireless home smart security equipment for export, has seen a decrease in exports in the first half of this year. The company manager told reporters that during the epidemic, overseas customers had a large amount of stockpiling and are now busy removing inventory. In addition, supply chains in Southeast Asia and other regions have resumed production, making international market competition more intense.

"Economic recovery is a process, and corporate recovery also requires a process," said Li Lianzhu, Chairman of Guangzhou Shangpin Home Furnishings Co., Ltd.

Shanghai University of Finance and Economics President Liu Yuanchun believes that with the smooth transition of epidemic prevention and control and the implementation of a series of policies, the confidence of enterprises in development has rebounded, but efforts are still needed to stabilize expectations and boost confidence. Especially for small and medium-sized enterprises that have been greatly affected by the epidemic, it is even more important to implement precise policies and respond to concerns.

Deep squat to open up new opportunities

"The key to market pressure is also a good opportunity to squat and accumulate momentum."

The words of Chen Wei, Deputy General Manager of Guangzhou Haiou Residential Industry Co., Ltd., reflect the current challenges faced by small and medium-sized enterprises, as well as their determination to transform and adapt and their expectations for the future.

For Tianjin Langyu Robotics Co., Ltd., it is now a crucial moment to grit our teeth and persist. According to Shan Chenxi, the overseas sales director of the company, due to the problem of long payment terms, the company is currently facing significant financial pressure. However, if there are orders, they still need to be accepted, which is also a good opportunity to seize the market.

When the international market is weak, we will explore the domestic market. When offline sales are difficult to grow, we will fully expand online. When the old track is almost saturated, we will open up new tracks to overcome difficulties... Faced with market pressure and challenges, many small and medium-sized enterprises have leveraged their advantages, quickly adjusted their business strategies, and made every effort to fight a "breakthrough war".

The latest data from the Ministry of Industry and Information Technology shows that in the first half of the year, the added value of industries above designated size increased by 3.8% year-on-year, an increase of 0.8 percentage points compared to the first quarter. 5. The year-on-year growth rates in June were 3.5% and 4.4% respectively, showing a trend of monthly recovery.

New products and new customers have opened up new markets for enterprises. New technologies and equipment have created new conditions for enterprise transformation and upgrading.

Due to the impact of the business situation in the first half of the year, many companies have postponed the investment plans formulated at the beginning of the year. Despite the delay in investing heavily in expansion, the investment in R&D and technological transformation, which has been a steady stream, continues to increase.

When the reporter met Fan Xiang, the person in charge of Nanyang Wanhexiang Food Co., Ltd. in Henan, he was planning to go to Liuzhou, Guangxi to "learn from". Not long after its establishment, Wanhexiang Food encountered an epidemic, but it also caught up with the fast lane of e-commerce sales despite struggling to start. After the stable transition of epidemic prevention and control, Fan Xiang is eager to carry out equipment renovation to improve labor productivity and benchmark against the industry's leading level of automation production to increase output.

In the research, a company's CFO calculated an account for the reporter: R&D and technological transformation investment can be adjusted according to the situation of the enterprise, and R&D investment can be offset against taxes. "The digital automation transformation of production lines can be done line by line, allowing both enterprises and employees time to adapt and learn," said the CFO truthfully.

Opening up sources and reducing costs, saving money is making money.

In the face of new changes in domestic and international markets, Fu Shuangli, Chairman of Zhejiang Yingfeng Technology Co., Ltd., believes that it is imperative to reduce costs, increase efficiency, and transform and upgrade from multiple dimensions and perspectives, such as digital empowerment, management optimization, and reducing financial costs.

To this end, Yingfeng Technology Co., Ltd. invested 1 billion yuan to build a "smart factory", which has basically achieved full process automation of printing and dyeing production from production equipment to environmental protection management. "Our group has an annual sales revenue of approximately 3 billion yuan, and if we can save 1% in dozens of links, we can save 30 million yuan," said Fu Shuangli.

Policy driven enterprise efforts

A good enterprise is the key to a good economy.

Around the pain points and difficulties faced by small and medium-sized enterprises in the development process, various regions and departments have increased their support for small and medium-sized enterprises, and their service awareness has significantly increased.

The government sets up the stage, while enterprises perform. In Tianjin, the Tianjin Leading Group for Promoting the Development of Small and Medium sized Enterprises has proposed 24 specific work tasks from 7 aspects, highlighting the key points of work for 2023; In Henan, accelerate the process of relevant legislative projects, conduct environmental assessments for the development of small and medium-sized enterprises, promote fair competition and the construction of the rule of law; In Shaanxi, the government has proposed the "Ten Banks, One Hundred Billion Benefiting Ten Thousand Enterprises" financing special action, guiding no less than 200 billion yuan of special credit funds every year

In this survey, the reporter felt that the concept of "releasing water to raise fish" and "retaining green mountains" is constantly deepening in people's hearts. "In recent years, we have truly enjoyed the policy dividend," said Ren Yubao, the person in charge of Zhiheng Industrial Co., Ltd. The company's development mainly relies on scientific and technological research and development and skilled workers. Every year, the company saves nearly 4 million yuan in research and development investment tax credits, which is very helpful for the company.

The vast majority of small and medium-sized enterprises are private enterprises, playing a positive role in stabilizing growth, promoting innovation, and increasing employment. They are also an important force in promoting sustained and healthy economic development.

The "Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy" released on July 19th proposed 31 measures in eight aspects to optimize the development environment of the private economy and boost the expected confidence of the private economy.

According to the deployment and arrangement of the State Council, the National Development and Reform Commission has recently established a communication and exchange mechanism with private enterprises, and held a symposium for private entrepreneurs to listen to the real situation of enterprise operation and development, the difficulties faced, and relevant policy suggestions.

"This is a 'reassuring pill' for enterprises," Fan Xiang told reporters. During the epidemic, enterprises received various government support and assistance, and enjoyed policy dividends. After the smooth transition of epidemic prevention and control, he was worried that policies would shift, but the 31 measures in eight aspects introduced this time dispelled his doubts and strengthened his confidence.

"These 31 measures are closely related to our production and operation, such as financing support, digital transformation and technological transformation, and protecting the legitimate rights and interests of entrepreneurs, which are all the contents that we are most concerned about." Fan Xiang said.

In the view of Liu Guanhong, Deputy Director of the Tianjin Port Bonded Zone Management Committee, supporting the development of the private economy requires serving small and medium-sized enterprises well.

The Tianjin Port Free Trade Zone has carried out standardized and market-oriented reforms on the government equity investment guidance fund under its jurisdiction, hoping to support and guide the development of high-quality small and medium-sized enterprises in the area through government equity investment. "How can we convince others if we don't invest in high-quality enterprises in the area ourselves?" Liu Guanhong said with a smile.

Vitality is a manifestation of confidence, which in turn further enhances vitality.

The latest data from the State Administration for Market Regulation shows that in the first half of this year, the number of newly established private enterprises in China reached 4.67 million, an increase of 16.4% compared to the same period last year, and the vitality of private enterprises is constantly increasing.

In the Lingang Industrial Park of Xi'an International Port Area, Xi'an Tongchuangda Communication Equipment Co., Ltd., which was officially put into operation during the Spring Festival this year, submitted a satisfactory transcript in the first half of the year. "The turnover in the first half of this year was over 40 million yuan, and it is still in high demand," said Ni Longgang, the head of the enterprise. The number of workers in the workshop has increased from over 40 in the first quarter to over 100.

"Policies are constantly being strengthened, and we must also work hard ourselves," Ni Longgang said confidently. In the second half of the year, enterprises will also expand their television export related businesses, and the China Europe freight train Chang'an will take enterprises further.