When people began to compare the subprime mortgage crisis with the wings of the butterfly, they discovered that the world economy had long been a feathery one. The good times that continued to flourish seemed to vanish all of a sudden. The cold currents hit every corner of the world economy and quickly emerged and the degree of foreign dependence continued to rise. The enhanced Chinese economy is also unlikely to survive. Winter: There is no national border Taking the synchronous indicators of economic performance as an example, China’s monthly power generation has been declining since March 2008. In October, it was the first year of negative growth year-on-year. It is clear that the operating rate of enterprises is declining. The steel, chemical, building materials, civil aviation and other related data also indicate that the outlook is not optimistic. For example, the CAAC official class load factor has declined continuously since July in July, and the shipping rate has been declining since the beginning of July, indicating a downturn in economic conditions and income expectations. Falling, leisure activities such as business activities, tourism and vacations are shrinking. As Guangdong, Fujian and other provinces at the forefront of China's reform and opening up, its export-oriented industries and labor-intensive industries have been extremely fascinating, but in the current financial turmoil it has encountered unprecedented severe challenges. According to customs statistics, Dongguan City exported 460 million pairs of shoes from January to October 2008, a year-on-year decrease of 7.9%; and toy exports of 1.26 billion US dollars, a year-on-year decrease of 2.5%. Toy giant Hejun Group shut down its two production plants in Guangdong. The largest resin craft company in the country, Xiamen Star Crafts Co., Ltd., crashed and silently complained about the winter cold. Paper Packaging Industry: Difficulties from the bottom up As we all know, the downstream customers of the paper packaging industry are mainly industrial enterprises such as electronics, food, daily chemicals, furniture, and clothing. In recent years, China's paper packaging industry has maintained a sustained and rapid development. Apart from the industry's own efforts, it is also closely related to the rising prosperity of the downstream industry. However, with the proliferation of the US financial crisis, as well as the impact of multiple factors such as domestic labor costs, capital costs, land costs, and rising RMB exchange rates, the operating conditions of these industries have quietly entered the ice. Next, the author takes the analysis of the operating conditions of the major household appliance enterprises in the first three quarters of 2008 in Guangdong and Guangdong provinces as an example. In the first three quarters, the first-line companies such as Midea Electric and Gree Electric Appliances continued to maintain steady growth, while the number of second- and third-tier companies such as Xoceco, Qixi Holdings, and Amoi Electronics had a declining trend in sales and net profits, or they had suffered continuous losses. The decreasing net sales rate reflects that companies are facing difficulties. In addition, from the standpoint of single-quarter operating conditions in the third quarter (for lack of space, not listed), even the excellent enterprises such as Gree and Midea, the downward trend in operating revenue and net profit is also evident, while the export companies account for relatively high proportion of small household appliances companies. In addition to the significant decline in gross profit, the net profit is even more negative. Through similar analysis, it was found that food, daily chemical, furniture, clothing and other industries are also experiencing trouble. The various industries under the social division of labor are closely related to each other and affect each other. The difficulties of the downstream industries are also the difficulties of the paper packaging industry. In provinces with many export companies such as Fujian and Guangdong provinces, the major changes in the economic environment have led to increasing pressure on the business of the paper packaging industry, which can be described as a glory and a loss. Relatively surplus production capacity. Before 2008, the world economy boomed, market demand continued to expand, and the paper packaging industry rose. In addition, the capital market continued to improve, and financing channels remained unblocked. Major paper companies and many cardboard and cardboard boxes companies were investing in expanding production capacity. Construction projects were added. Great technical change. After the outbreak of the US financial crisis, on the one hand, the downstream customers are shrinking orders. On the other side are new projects that have been continuously put into production. The supply and demand are gradually becoming unbalanced, and the relative surplus of production capacity is inevitable and it will be difficult to change in the short term. At present, some paper packaging companies in Guangdong, Fujian and other provinces have begun to cut production and suspend production, and face greater operating pressure. Product prices fluctuate significantly. In the face of the market crisis, various companies competed to sell at a lower price, and various types of products drastically dipped. The price of corrugated paper fell from 3,450 yuan/ton, the highest of the year, to 1,650 yuan/ton currently, and the price of cardboard was 3,600 yuan/ton. Drop to 2,000 yuan/ton. At the beginning of 2008, the prices of waste paper, base paper, and cardboard were constantly rising, and many companies increased their inventory at high levels, causing heavy inventory losses. The sharp fluctuations in prices have caused the product costs of some enterprises to hang upside down from the market price, and the operational risks have increased. Cash flow tends to be tight. In the downturn of the market, orders decreased, product prices continued to decline, payment rates of downstream customers slowed down, and net cash inflows from paper packaging companies' operating activities slowed down. Large-scale investments in the purchase of machinery and equipment, land, and new factories caused the capital chain to become tight. In addition to maintaining daily production and operation, the operating cash flow generated during the year cannot fundamentally support the huge expenditures for investment activities. In the event that the current capital market has been hit hard, in order to ease the pressure on the funds, companies can only seek bank credit support and corporate funds. The increase in costs, the financial risk and the difficulty of capital management. The financing channels are crowded. The financial turmoil has intensified, the economic world is in turmoil, capital markets in various countries have suffered successive setbacks, investor confidence has fallen into historical troughs, and direct financing methods such as new share offerings, public offerings, private placements, and share placements have almost stagnated; September 16, 2008. In the past six years, the People's Bank of China lowered the benchmark interest rate for renminbi loans for the first time, and monetary policy was moderately loose. However, financial institutions faced a complex economic situation and their risk control efforts continued to increase. It was still difficult for paper packaging companies to obtain credit support. Other difficulties. Under the current background of imbalance between supply and demand, external paper packaging companies have increased their market development costs and the risk of recovery of goods, and the internal actual production has become inconsistent with the design capacity, investment scale, and staffing of enterprises. Reflection: Sparks in Winter The crisis has also spread and deepened throughout the world. While destroying the economic development of various countries, it also leaves people with profound thoughts: First, global economic integration can bring about common prosperity, and it can also deliver a crisis like a virus. Whether it is ancient China's “a stone provoking a thousand layers of waves†or the popular “butterfly flapping wingsâ€, it all explains the same truth. As a business manager, especially a decision maker, in addition to focusing on the company itself and upstream and downstream relationships, it should also establish global economic awareness, broaden international horizons, attach importance to and study major economic events at home and abroad, plan ahead, improve decision-making prospects, and manage science. Sex. Second, to avoid herding, individual rationality may lead to collective irrationality. In the case of major project investment, it is necessary to act in a practical and effective manner and strengthen risk assessment. It is advisable to maintain calmness and calmness when the economy is booming, and to be alert enough to repeated construction projects. Third, after the crisis, the company's risk control is greater than the pursuit of profit maximization, maintaining operational capability and cash flow patency. When spring comes, it will be “leftovers are kingâ€. The current difficulties faced by the paper packaging industry are the product of the cyclical fluctuations in the world economy and the common difficulties of all walks of life. We do not have to rely on ourselves. After more than ten years of continuous and rapid development, the paper packaging industry in China has emerged a large number of large-scale, well-equipped and well-managed companies with strong ability to resist risks. Therefore, the impact caused by the crisis is phased. It can also be overcome, and the paper packaging industry is closely related to the national economy and people’s lives. It is a “ever-failure†sunrise industry actively supported by the country. The road may be tortuous but the future is bound to be bright. We remain optimistic and firm in our belief. . Recently, the State Council has launched ten measures to promote economic growth in order to expand domestic demand, and issued major policies such as the “Several Opinions of the General Office of the State Council on the Current Finance to Promote Economic Development,†and believe that with the active fiscal policy and moderately loose monetary policy, Implementation, the paper packaging industry will use the shortest time out of the cold winter of one hundred years, usher in a bright spring as ever! Hot cold pack for waist,gel pack for waist,ice pack waist Ningbo Hejia Ice pack co. LTD, , https://www.cooling-pack.com
