Date: 1st Jan. 2023
Happy New Year to all !
The past 2022 was a very chaotic and unbearable year for China. To deal with Covid-19, the Chinese government has adopted a strict “Zero Covid” policy. Since the lockdown in Shanghai in early April, logistics were interrupted, factories were shut down, and orders were reduced, leading to the bankruptcy of a large number of companies and the rapid decline of the Chinese economy. By the end of the year, the local government’s finances could no longer afford the huge expenditures required by the “Zero Covid” policy. At the same time, a large number of people protested and demonstrated in some areas demanding the cancellation of the “Zero Covid” policy. Thus forcing the government to consider abandoning the “Zero Covid” policy.
On December 7, Chinese government suddenly canceled the “Zero Covid” policy. In the case of “Let-It-Rip Covid Reopening”, a large number of citizens were infected with Covid-19, which made the production and work of enterprises unable to proceed normally. Quite a few companies were forced to take the Spring Festival holiday in advance. In 2022, China’s private enterprises, especially small and medium-sized enterprises, worst hit since the 2008 world economic crisis. However, the government’s help to private enterprises is very little, and enterprises can only rely on their meager strength to support them. Our company’s turnover in 2022 has been reduced by 20% compared to 2021, but expenses cannot be reduced, resulting in a sharp drop in profits. But thanks to the hard and conscientious work of all employees of the company, we were able to survive this difficult year.
Entering 2023, the cancellation of the “Zero Covid” policy and the gradual relaxation of entry and exit restrictions are undoubtedly a good direction for the development of enterprises, but it is still difficult, and enterprises must save themselves. Our company will take positive actions in 2023, including relocating to a place with larger inspection space, purchasing new equipment, implementing a more standardized work management system, and so on. By taking these improvement measures, we hope to increase the trust of customers, thereby increasing orders, increasing new customers, and expanding the scope of inspectable products. These measures will be implemented immediately, and the goal is to complete all improvement projects in early February after the end of the Chinese New Year holiday.
Since the infection of the Omicron variant is unlikely to end immediately, it is expected that in the first half of 2023, it will still need to face the adverse effects of the large-scale infection of the virus. Our company will work harder to keep there will be no obvious recession in the first half of 2023, and hope to start a good development in the second half.