On November 24, 2008, workers at a toy company in Shenzhen were sewing teddy bear toys, which were originally exported to European and American countries. Schematic diagram. (WANG LEI/AFP via Getty Images)
[The Epoch Times, January 21, 2024](Comprehensive report by Epoch Times reporter Li Jing) As the Sino-US trade war and the CCP’s epidemic control measures have had a huge impact on the Chinese economy, many toy manufacturing companies have withdrawn from Shenzhen. Recently, Shenzhen Daqi Huasheng Electronics (Shenzhen) Co., Ltd. announced the suspension of work and production. This old Hong Kong-owned toy factory has been operating for nearly 30 years and has produced OEM products for world-renowned toy companies such as Disney.
Daqi Huasheng Electronics (Shenzhen) Co., Ltd. (hereinafter referred to as “Daqi Huasheng (Shenzhen)”) issued a notice on January 13 stating that in recent years due to the epidemic and the current harsh economic environment, the company has faced serious difficulties. Due to operating pressure, the income has long been unable to support expenses, and it has been in a state of loss, which has not changed yet. Therefore, production will no longer be effective from January 12, 2024, and all employees will be disbanded.
According to the official website, Daqi Huasheng Electronics (Shenzhen) Co., Ltd. is headquartered in Hong Kong. It established a mainland factory in Longgang District, Shenzhen in 1994, with more than 2,000 employees of various types. The company’s products are exported to Europe, the United States, Japan and other countries.
Daqi Huasheng is a world-renowned high-end electronic toy manufacturer integrating design, R&D, production and sales. The company mainly produces plastic electronic toys, remote control toys, electric toys, advanced electronic consumable products, etc. Its OEM customers include world-renowned toy companies such as Mattel, Xianba, TOMY, and Disney.
Hong Kong Daqi Huasheng established a mainland factory in Longgang, Shenzhen in 1994, which is the above-mentioned Daqi Huasheng (Shenzhen). In August 2013, Daqi Huasheng also established a branch factory in Chenzhou, Hunan, namely Daqi Huasheng Electronics (Chenzhou) Co., Ltd.
According to the annual report, the number of social security payers announced by Daqi Huasheng (Shenzhen) from 2016 to 2019 has decreased year by year, and the decline has been significant. This shows that the number of employees, business scale, and revenue of Daqi Huasheng (Shenzhen) have all declined significantly. During the epidemic, the company’s operations were even worse.
As early as the 1980s, driven by investment from Hong Kong-funded enterprises, Shenzhen’s toy industry became one of the city’s earliest processing industries. Since then, Shenzhen has gradually become an important part of the global toy industry chain.
But the good times didn’t last long. In recent years, labor, factory rent, social security, environmental protection and other costs in mainland China have continued to rise. Especially after the outbreak of the Sino-U.S. trade war and the implementation of various containment measures by the Chinese Communist Party authorities during the epidemic, huge losses were caused to China’s manufacturing industry, including reduced orders, price involution, continued decline in factory profits, layoffs, holidays, closures, transfers, etc. Become the norm.
Many toy manufacturing companies in China have withdrawn from Shenzhen or Guangdong Province and turned to regions with lower operating costs such as Southeast Asia, South Asia, and Mexico.
For example, in March 2020, Hong Kong’s Rising Sun International, the world’s largest toy manufacturer, officially withdrew from Shenzhen; in January 2020, a Hong Kong-funded enterprise, Baofaide Toys (Shenzhen) Co., Ltd. announced the closure of its factory; in March 2019, the second largest toy manufacturer in the United States Hongchang Toys (Shenzhen) Co., Ltd., the main OEM factory of toy manufacturer Hasbro, officially withdrew from Shenzhen; in August 2018, Shenzhen Nanling Toy Products Co., Ltd., a subsidiary of Meisi Group, suddenly announced its bankruptcy. The exit of a well-known toy giant in the toy industry caught all employees and suppliers by surprise.
Editor in charge: Sun Yun#
2024-01-20 23:32:30
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