Utilize policies effectively and strengthen internal capabilities — Feng Hongxi, Chairman of Hebei Goldpro New Material Co., Ltd.
Oct 27,2020
Our company is located in Guangping County, Handan City, Hebei Province, and is a research and development and production base for large-diameter semi-self-grinding mill special steel balls. Currently, we have 14 advanced forging and rolling production lines with an annual production capacity of 250,000 tons. Our products are exported to 13 countries and regions, with export revenue reaching US$55 million last year, accounting for about 70% of total sales.
Since the beginning of this year, the sudden COVID-19 epidemic has brought adverse effects on the company's development, with sluggish external demand, insufficient orders, poor logistics, difficulties in financing, and instability in the industrial and supply chains, putting us under immense pressure. Faced with these challenges, we had to find solutions. While fully implementing epidemic prevention and control measures, we focused on internal improvements, enhancing product quality, innovating marketing methods, expanding sales channels, and striving to turn the crisis into an opportunity, minimizing the negative impact of the epidemic on the company's development.
After half a year of hard work, we have withstood the pressure, and our business performance is better than the same period last year. To date, the company's export revenue has reached 400 million yuan, an increase of 25% year-on-year; and 60,000 tons of products have been exported, a 25% year-on-year increase.
The reason for achieving counter-cyclical growth is, on the one hand, due to our own adjustments. In response to the obstacles to the flow of people and logistics caused by the epidemic, the company actively developed online customers, connected with cross-border e-commerce platforms and promotion platforms, launched multilingual product display websites, and used novel forms such as "VR factory tours" to promote products, enhancing product influence. At the same time, we invested 20 million yuan in the implementation of production line expansion and renovation projects, constructing three automated and intelligent forging and rolling steel ball production lines and an intelligent data center. Production efficiency has increased by more than 40% compared to traditional forging processes, and costs have been reduced by more than 15%. The improvement in product quality and technological added value has ensured product sales during the epidemic.
On the other hand, we also benefited from government policies supporting enterprises. Since the outbreak of the epidemic, the municipal and county governments have successively introduced dozens of policies to support enterprises, stabilize foreign trade, and promote development, covering finance, taxation, credit, and cross-border e-commerce, helping enterprises overcome difficulties. For example, during the epidemic, the Guangping County Tax Bureau, relying on the "Internet + Convenient Tax Refund" electronic work platform, guided us in remote paperless declaration, effectively improving work efficiency. In the fastest cases, we could achieve "declaration in the morning, payment in the afternoon." The processing time has been shortened from the previous 20 working days to a few days or even a few hours. In the first nine months of this year, the tax authorities handled 33.39 million yuan in export tax refunds for our company. At the same time, national tax reduction and fee reduction policies have reduced taxes and fees for our company by 668,200 yuan.
Policy support combined with our own efforts has helped us overcome the most difficult times. Next, we will continue to enhance our competitiveness and face external environmental challenges with confidence.
