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Private eye: Govt policy, tech help ward off virus woes

By Sun Chi | chinadaily.com.cn | Updated: 2020-05-20 06:40
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Wang Yanqing, general manager of Huida Sanitary Ware. [Photo provided to chinadaily.com.cn]

Editor's Note: As the novel coronavirus outbreak has been gradually contained in China, China Daily website has invited several executives from Chinese private firms to share their views and experiences fighting the coronavirus, limiting the outbreak's impact on their companies and their business strategies this year. This series hopes to provide insight into how China has taken supportive measures to help private enterprises deal with the epidemic.

How has the novel coronavirus affected your business in China?

COVID-19 does have a certain impact on the sanitary wares industry. In the early stage, problems such as labor shortages, hindered supply chains, pent-up terminal markets and tight cash flow bothered us. Although we took a series of countermeasures, revenue was still lower than expected over the first quarter year-on-year. But we still delivered a net profit of more than 28 million yuan ($3.94 million).

What measures have you taken to deal with the situation?

During the lockout period, we reviewed the development strategy and adjusted plans in operation and production. We accelerated to push ahead livestreaming promotions, prepared for the online China Import and Export Fair with an all-out effort and chose to co-brand with other enterprises. We also strengthened online training about our company culture and ensured no job cuts and on-time pay. We have resumed work since early February.

Huida is the earliest sanitary enterprise that donated sanitary products to Huoshenshan Hospital in Wuhan. We provided support as well to other 46 emergency hospitals for epidemic prevention and control in Hubei and other places in China.

Are supportive measures from the government and financial bodies helpful to your enterprise?

The nation's supportive measures in logistics, export taxes, rental fees, tax day extensions and loans on credit provide us support in production and operation.

The 13 percent rise in export rebate rate implemented on March 20 by China's Finance Ministry, covering 1,084 products including sanitary wares, is a remarkable boost in terms of export for the sanitary ware industry, which helps lower operating costs and mitigate pressures on cash flow.

In addition, governments and chambers of commerce help us acquire proof of force majeure in needy cases.

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