A ten-year estate for a factory owner: five years of factory profits

Source: Internet
Author: User
Keywords Manufacturing
Tags .mall activity buying and selling company customers enterprises enterprises to environment
"It feels the hardest this year. "In the 2008, manufacturing was not really difficult, like having a heart attack and a shock," said He Hui, who joined the manufacturing industry 20 years ago and is now a well-known figure in the Shenzhen real estate investment Circle. But it's a chronic disease and it's hard to recover for a short time. "Statistics released by the National Bureau of Statistics show that although 2013 first half of the national scale industrial enterprises to achieve total profit of 2,583,660,000,000 yuan, an increase of 11.1%, but the growth rate than 1-May down 1.2%, of which, main activity profit growth rate than 1-May fell 4.2%. The overall decline in manufacturing profits has long been an indisputable fact. such as the famous economist Lang Ping nearly three years or even repeatedly publicly said that "the root cause of the rise in house prices is that China has been proud of the manufacturing industry is declining." "Guangdong Provincial Academy of Social Sciences, the Director of enterprise management and decision-making Science Institute of Ordinary Lin, concerned about the Pearl River Delta manufacturing industry for many years," he told reporters in the south, now Guangdong's manufacturing situation is indeed grim, especially in some export-oriented small and medium-sized manufacturing enterprises. He Hui to reporters, ten years ago, his factory a general mechanic one months salary is 800 yuan, and now has risen to 3200 yuan/month. "and are now holding more than 10% per cent a year. "In addition to labor, exchange rates, raw materials and other costs are also growing" compared to ten years ago, our factory profit margin has fallen by 50% this year. "In this situation, the way to concentrate on speculation, his circle of friends there is no lack of such examples." In spite of the limited purchase limit limit signed a series of regulation and control, the property market is still up, the real estate of the myth and the continued slump in the manufacturing industry to form a clear contrast, so many small business owners dare not put the extra money into the factory, but cast into the house. Some people even shut the factory down and become professional speculators. Such a halfway house, in recent years in Shenzhen, Guangzhou and other cities to catch a lot. "The flow of manufacturing capital into the property market", a phenomenon widely reported by the media in 2008, now seems to be becoming more common. In the Pearl River Delta, which mainly manufactures, as the economic environment deteriorated and orders plummeted, the small and medium-sized enterprises that can survive have shrunk sharply. Especially after the 2008 global financial crisis, to export-oriented economy, such as Dongguan, such as the collapse of the tide, the uncertainty of the factory owner trying to draw money through the stock, purchase and other means of capital preservation. Now that the external economic environment remains sluggish and factory orders are only not increasing, looking back at the Battle of funds over the years, they find that buying and selling houses creates the highest profits in a variety of investment channels they've tried. This year, more than 40 leather factory owner Xu Zhao is the Pearl River Delta Small and medium-sized Enterprises to invest in the real estate in miniature, since 2002, he has experienced the manufacturing from madness to the downturn, but also feel the mania of the property market. He bought and sold more than 10 sets of houses, after the financial crisis in 2008, the operating factory turnover shrank 80%, the factory five-year profit is not enough to invest a house profits. Like Xu Zhao, abandoning the industry, pumping capital investment property, as if hasIt is the most common practice for many small and medium-sized enterprises in Zhujiang Delta to increase the value of capital. 2002 years to open a factory to earn 300,000, 100,000 pay in Shenzhen bought a set of three 1964 was born in Xu Zhao, Jiangxi Shangrao, 1990 after graduating from school to assign into a local state-owned enterprises work, when his monthly salary of more than 100 yuan, monotonous work, stable life. This state lasted about five years. To 1995 years, see a lot of young people to reform and opening up the Pearl River Delta to earn money, no longer complacent he, resolutely buyout seniority, with 20,000 yuan deposit south to find a dream. "At that time I was 31 years old, if put today, it is estimated that no one will be willing to give up this stable working state." Xu Zhao said that all the young people around that time had the dream of being a boss. Unlike other entrepreneurs, Xu Zhaonan Shenzhen, and did not immediately start to realize their boss dream, but to find the most suitable for their own industry. "At that time went to a lot of factories, security, went to the hardware factory, but also in the Glass factory did the assembly line workers, until finally entered a leather factory, only to find that this is what I am looking for." Xu Zhao said, entered the leather factory for a few days, he became familiar with all the process, and found that the industry starting point low, to money fast. By the year 2002, he had been familiar with the leather industry and was ready to go it alone. November 2002, I was in Shenzhen Longgang Henggang opened its own leather trading company, mainly the production of leather goods such as purses. Xu Zhao said that in less than a year, he earned the first bucket of gold ——— 300,000 yuan. At that time, he had married in order to solve the demand for housing, took 100,000 yuan as the first payment, in Longgang Brocade Crown Huacheng bought a set of 98 square meters of three, unit price 3300 yuan/square meters. There was no sense of investment at the time, and buying a house was a solution to your own needs. Xu Zhao said, when everyone although the hands of money, but very few people will gaze at the house, a rich want to change a good car. 2006 Factory annual turnover of tens of millions of dollars, in Dongguan even buy two mansion although in Shenzhen leather Trading company to make a lot of money for their own, but because of its main customers in addition to Shenzhen, there are some customers in Guangzhou and other fields. "At that time, considering the manpower and transportation costs, I thought of moving the company to Dongguan, which would save a lot of money," he said. Xu Zhao said that by the Spring Festival in 2005, he had relocated his factory to Houjie town in Dongguan, where he rented a 3000-square-metre plant. Although the company was founded just two years, but the customer continues to a large number of orders to Xu Zhao excited, before moving to Dongguan, his factory annual turnover has reached about 3.004 billion yuan. "After the factory moved to Dongguan, the factory rents a lot lower, the manpower cost is also lower than Shenzhen, the transportation cost also reduces, the profit nature is high." Xu Zhao said that at that time its factory production of leather goods mainly shipped to the United States, the factory turnover is also rapidly higher, starting from 2005, the factory turnover of up to 8 million yuan, 2006 years or even a breakthrough million yuan mark. "At that time, the factory's net profit was about 20%,Actually made some money. May 2006, I bought a set of 120 square meters of three rooms in Houjie East Chui, 3600 yuan/square meters. Later in Nancheng International Mansion bought a set of 210 square meters of superimposed villas, more than 7,000 yuan/square meters. Xu Zhao said that at that time let oneself buy a house again is to be stimulated by the rapid rise of house price in Shanghai. Xu Zhao said that at the end of 2005, he was born with a strong interest in the house, in Shanghai when Xinzhuang saw two houses, at that time as long as more than 4,000 yuan/square meters, did not expect the Spring festival, he saw the house rose to 5000-6000 yuan/square meters. "At the time, it was felt that if house prices were so crazy, they could at least appreciate." Xu Zhao said he bought two properties in Dongguan in the form of a bank mortgage. 2008 Factory turnover, net profits are halved, regret not copied to the bottom of the property market since 2005 factory moved to Dongguan Houjie, Xu Zhao feel once only dream only brilliant. The annual turnover of its factory in 2005-2007 was 8 million, 10 million and 7 million respectively. Although the factory turnover in 2007 was lower than before, he did not realize that it would be the night of manufacturing. Time into the 2008, as the global financial crisis swept, the Pearl River Delta ushered in the darkest days of manufacturing history, a large number of small and medium-sized factories closed down. Xu Zhao, which mainly supplied goods abroad, found things bad and factory orders plummeted. "2008, the factory's turnover dropped to more than 3 million, the original number of large customers are not the basic orders." Xu Zhao said, coupled with the labor costs, transport costs and so on gradually high, the profits of their own factories sharply reduced, from the original 20% pure profit to about 10%. See the manufacturing crisis, Xu Zhao also dare not put the original accumulated money into. "At that time was hit by the financial crisis, prices began to dive around 2008, I was also looking at the house, want to put money in the home to make money." Xu Zhao said that at the end of 2008 he had to Guangzhou Zhujiang New Town, Shenzhen Baoan, Zhuhai and other places to see the room, when the Pearl River New Town house only 18000 yuan/square meters, and baoan room rate is only 8000 yuan/square meters, Zhuhai is lower, only need 4000 yuan/square meters. "Now in retrospect, it was too greedy, and have been thinking about waiting for a lower price to sell." As a result, as the central bank bailed out, prices rose again, and they were afraid to buy them. Xu Zhao said, because the factory orders very few, the profit is also very thin, he basically all around the house. However, although the high rise of the residence let Xu Zhao repeatedly retreat, but soon he turned his eyes to the shop. At that time, I went to Huizhou to play, found a yiwu commodity city in the sale of shops, 25 square meters of shop total price of 100,000 yuan, I then bought 3. "Xu Zhao said," Now the berth has doubled than the original, and there is a fixed monthly rent. " 2011 Sell equipment, shrink factory, two houses a net to make 800,000 Yuan Xu Zhao said, since 2008, the factory's turnover shrank again. From 20Since 09, the annual turnover of the factory is only less than 2 million yuan, the lowest is only million yuan. The number of workers has also fallen from the top 400 to more than 10 people today. During this period he also thought of various ways to make the factory transition, but because of the external environment downturn, each attempt failed. "Now the factory is earning only more than 100,000 yuan a year, and buying and selling houses is more profitable than the factories in the past few years," he said. In 2011, Xu Zhao said, he sold the equipment he had already stopped and rented a factory that dropped from 3000 square meters to 1000 square meters. "Not only I, and I have the same situation of the enterprise at least 60%, the current orders are not ideal, and step by step are slipping." Xu Zhao said, according to his observation, in the manufacturing sector has also been polarized, no core products of small and medium-sized enterprises are basically husband and wife files, such scenes in Dongguan Big Lang, Houjie and other places can be found. In addition to selling the equipment he had brought to his high income, he began to update his original purchase of the property since 2010. Last June, he bought the house in Dongguan Houjie 6000 yuan/square meters to sell, than the original price rose more than 2000 yuan/square meters. And the international mansion in April this year to nearly 3 million yuan sold, excluding 500,000 yuan decoration fee and bank interest, two sets of houses he earned about 800,000 yuan. In addition, in addition to the house sold in Dongguan, the first purchase of the house in Shenzhen he also sold two years ago, this original only 3300 yuan/square meters of the house in the selling time has risen to 10000 yuan/square meters, the return of more than 500,000 yuan. In addition to the sale of the house has a more generous return, Xu Zhao said that although the shop before the Huizhou to buy the business is also good, in addition to their own property prices, monthly rental returns are also more ideal. He also said that his investment in the property also has a vision failure, 2010 in Huizhou Fresh Water purchased a street shop has not improved, delivery has not been rented out, the price has not risen. Previous 1 2 Next
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.