▶ Video account attention cross-border navigation It was learned that from 0:00 to 24:00 on March 14, Shenzhen had 60 new cases, of which 39 were confirmed cases of COVID-19 and 21 were asymptomatic carriers of the new coronavirus. As of now, Shenzhen still maintains an average of dozens of positive cases per day, and the epidemic prevention situation is unprecedentedly severe. For this reason, Shenzhen has implemented emergency closed management, and all enterprises in the city are required to work from home. Many cross-border sellers moved computers overnight, and a large number of factories and warehouses also stopped operating, so sellers had to ship goods overnight... ▲ The picture comes from the seller communication group The recurrence of the epidemic has affected the store operations of many sellers to varying degrees, and even faced the risk of out-of-stock and business interruption. Recently, Shenzhen-based Lens Technology, a major seller, announced that it would suspend production activities due to the epidemic. Lens Technology announced production suspension as the company's operations were impacted by the epidemic! Recently, Lens Technology disclosed a risk warning announcement regarding the impact of the epidemic. The announcement indicated that the production and operation of Lens Technology and some of its subsidiaries have been affected to a certain extent due to the continued development of the epidemic at home and abroad in recent times. ▲ The picture comes from Lens Technology’s announcement At present, Dongguan Lens Technology has carried out epidemic prevention and control in accordance with the requirements of the local epidemic prevention and control headquarters, arranged centralized isolation and nucleic acid testing for all employees, and has suspended production activities. The time for resuming normal production and operations is still uncertain, and corresponding arrangements will be made based on the local government's epidemic control requirements. On the other hand, the severe trend of the epidemic at home and abroad has also posed great challenges to cross-border logistics, which has had a comprehensive negative impact on Lens Technology's product delivery, logistics costs, procurement costs, labor costs, epidemic prevention expenditures and related cost control. The announcement showed that some of the raw materials, chips and other materials purchased by Lens Technology from overseas encountered certain difficulties in the logistics link, which had a certain impact on the company's main business. At the same time, the epidemic in Vietnam also had an impact on its product delivery. In this case, in order to minimize negative impact and control risks, Dongguan Lens Technology will take the following countermeasures: 1. Actively communicate with customers, optimize production capacity arrangements, and strive to achieve product delivery; 2. Under the premise of strictly complying with the requirements of epidemic prevention and control, make preparations for resuming work and production in advance, strive to resume normal production and operation as soon as possible, and reduce losses; 3. Strengthen communication with the government, continue to actively coordinate cross-border logistics resources, activate alternative transport capacity and solutions, and minimize the impact of logistics obstruction; 4. All parks and subsidiaries of the company should further improve epidemic prevention and control, and appropriately reserve epidemic prevention supplies and production materials in advance. It is understood that according to the 2021 annual performance report previously released by Lens Technology, its revenue during the reporting period was 35.286 billion yuan, a year-on-year increase of 22.60%; net profit was 2.162 billion yuan, a year-on-year decrease of 62.14%. ▲ The picture comes from Lens Technology’s announcement Among them, Dongguan Lens Technology's operating income in the first three quarters of last year accounted for 6.76% of the company's total operating income . This production suspension will also have an impact on the product production and delivery of some customers, and the research and development of new products. It can be seen from Lens Technology’s performance report last year that the COVID-19 pandemic has become an important factor affecting the company’s performance. On the one hand, the recurrence of the epidemic has continued to affect Lens Technology's overseas business, and factors such as logistics obstruction and supply chain epidemic prevention and control have further affected the production and delivery of orders. On the other hand, it has also led to a shortage of industrial raw materials and a sharp rise in prices, which has increased the company's procurement costs. At present, the large-scale resurgence of the epidemic has made the road to epidemic prevention in Shenzhen and other parts of the country arduous and arduous, and has dealt a heavy blow to cross-border companies. Shipping companies have adjusted their businesses one after another, and these warehouses will be temporarily closed! It is reported that on March 14, a total of 3,507 new local cases of COVID-19 were confirmed nationwide. Under such a serious epidemic situation, many shipping companies have also adjusted their domestic operations one after another. Recently, Maersk issued a notice on adjustments to its related businesses in China: At present, the berthing and departure of ships remain normal, and the terminals at major GCA ports are still operating as usual. However, in terms of land transportation, although drivers can continue to provide truck transportation services if they hold a negative nucleic acid test report, Maersk expects that due to frequent nucleic acid testing, the overall operational efficiency of truck transportation will be significantly reduced, especially in Hong Kong, Shenzhen, the western Pearl River Delta, Shanghai, and the inland ports of the Yangtze River. In addition, the following logistics services will also be adjusted: Shenzhen Warehouse: From March 14 to March 20, the warehouse in Shenzhen will remain closed. Warehouses in Shanghai and Qingdao are still operating normally. However, if the driver comes from a medium- or high-risk area, he or she must show a health code and a negative nucleic acid test report within 48 hours when entering the port. HKDC (Hong Kong Distribution Centre): Currently still in operation. Hong Kong: The cargo can only be booked after it is delivered to the Hong Kong airport warehouse. Therefore, the delivery time of air freight service is longer than usual. Shenzhen: Air freight warehousing and pickup services have been suspended until further notice. In addition to Maersk, CMA CGM, ONE and other shipping companies have also issued notices to change logistics services in some epidemic areas. For sellers, the obstruction of cross-border logistics and interruption of production activities caused by epidemic prevention and control will have a great impact on this year's performance. Under this circumstance, sellers also need to make timely adjustments to their business while complying with epidemic prevention requirements to minimize losses. The epidemic is not over yet, and the road to epidemic prevention is long and arduous. But I believe that sellers will be able to overcome the off-season, defeat the epidemic, and welcome the fruits of the peak season harvest.
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