01
2013
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08
Jinlong Electric Motor: The Block Economy Shows Clear Acceleration Amidst Market Headwinds
□ Reporter Zhu Lingqiao and Li Jiewen / Photos by the reporters The international financial crisis has had profound and lasting impacts—even now, both domestic and overseas market demands are still being slowly released. Meanwhile, as trade barriers in Europe and the U.S. continue to rise, many export-oriented enterprises in Taizhou have begun shifting their focus back to the domestic market. Jinqing Town in Luqiao District is a thriving industrial hub with an economy heavily reliant on exports. However, recent multi-day field investigations conducted by our reporter reveal that, despite the challenging global market conditions, Jinqing’s economy—once built entirely on exports—is now showing clear signs of accelerated growth. Data shows that in the first half of this year, Jinqing Town’s industrial output continued the positive momentum from the previous quarter. The town’s total industrial output value above designated size reached 2.984 billion yuan in the first six months, representing a year-on-year increase of 3.8%. Among the 63 large-scale enterprises, several stood out: notably, 17 leading companies—including Jinlong and Anlu—each generating over 100 million yuan in output, collectively contributing 2.06 billion yuan to the town’s total, a remarkable 8.7% rise compared to the same period last year. With overseas sales facing setbacks, the domestic market has emerged as a new growth driver for these businesses. Since the beginning of this year, shifting from export-oriented operations to domestic sales has become a hot topic among many Jinqing-based enterprises. In Jinqing, the metalworking and machinery sectors have long been dominant industries, with an exceptionally high dependence on foreign markets—over half of the town’s 71 self-operated export companies specialize in metalworking and machinery products. Unfortunately, in recent years, this sector has clearly shown signs of decline. Zhejiang Jinlong Machinery & Electrical Co., Ltd., the industry leader in Jinqing’s machinery sector, achieved an impressive output value of 360 million yuan in the first half of the year, marking significant growth compared to the same period last year. According to Ye Jinwu, Chairman of the company, this robust expansion is largely attributed to the firm’s proactive adjustment of its production and sales mix, balancing domestic and international markets more effectively. “Last year, Jinlong Machinery & Electrical’s export share soared to 95%, but by the first half of this year, we’ve already reduced that figure to 70%, while boosting our domestic sales to 30%,” Ye explained. He added that the surge in domestic demand was the primary factor behind the company’s strong performance in the first half, and he anticipates even stronger growth in the second half, with annual output expected to climb by 20% to 25%. “Given the heightened risks in the global market, fine-tuning our sales strategy—by prioritizing both domestic and international channels—has helped stabilize our customer base and significantly strengthened our ability to withstand external uncertainties,” Ye noted. Looking ahead, he expressed optimism that the company will gradually overcome the longstanding issue of “flowers blooming inside the wall yet fragrant beyond.”
□ Reporters Zhu Lingqiao and Li Jie, Text & Photos
The international financial crisis has had a profound impact, and even now, both domestic and overseas market demand is still being slowly released. Meanwhile, as trade barriers in European and American markets continue to rise, many export-oriented enterprises in Taizhou have turned their attention back to the domestic market.
Jinqing Town in Luqiao District is a thriving industrial town primarily driven by an export-oriented economy. Recently, after several days of on-site investigation, reporters discovered that despite the challenging global market conditions, Jinqing's economy—once heavily reliant on exports for its growth—is now showing clear signs of accelerated recovery.
Data shows that in the first half of this year, Jinqing Town’s industrial production continued the growth momentum from the first quarter. The town achieved a total industrial output value of 2.984 billion yuan for enterprises above designated size, representing a year-on-year increase of 3.8%. Among them, 63 large-scale enterprises performed exceptionally well—particularly the 17 leading companies, including Jinlong and Anlu, each generating over 100 million yuan in output. Together, these 17 enterprises recorded a combined output value of 2.06 billion yuan in the first half of the year, marking an impressive year-on-year growth of 8.7%.
Sales to overseas markets have hit a snag, making the domestic market a new growth driver for businesses.
Since the beginning of this year, shifting from exports to domestic sales has become a topic of discussion among many Jinqing enterprises.
In Jinqing, hardware and electrical machinery have always been the dominant industry, with a high dependence on foreign markets. Among the town's 71 self-operated export enterprises, more than half are in the hardware and electrical machinery sector. In recent years, however, the industry has clearly shown signs of decline.
Zhejiang Jinlong Electromechanical Co., Ltd. is the "leader" in the Jinqing electromechanical industry, with a production value of 360 million yuan in the first half of the year—a significant increase compared to the same period last year. According to Ye Jinwu, Chairman of the company, this robust growth is primarily attributed to the firm’s timely adjustment of the balance between domestic and overseas production and sales.
“Last year, Jinlong Electric’s export ratio reached 95%, but in the first half of this year, the export share has already dropped to 70%, while domestic sales have risen to 30%.” Ye Jinwu told reporters that the output growth in the first half of the year was primarily driven by the domestic market, and he expects even stronger growth in the second half—projecting that the company’s full-year growth will reach 20% to 25%.
"Now, risks in the international market are significant. Adjusting our sales structure—both domestically and internationally—can help stabilize our customer base and strengthen the company's ability to withstand uncertainty," said Ye Jinwu. He added that in the future, the situation where products "bloom indoors but gain popularity abroad" will also improve.
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