Made in Guangdong” behind the Paris Olympics
“Our PAR40+ became the official ball of the Paris Olympic Games, and we have already supplied more than 35,000 table tennis balls to the organising committee, with a total value of about 5 million Yuan.” (hereinafter referred to as “Double Fish Sports”) Wang Xiaodong, chairman of the Board of Directors of Guangzhou Double Fish Sporting Goods Group Co.
From the first table tennis ball made in a small workshop next to the Pineapple Temple in Huangpu, Guangzhou, to becoming a supply brand for many international sports events, Wang Xiaodong admits that the achievement is based on 70 years of precipitation, including the development of production lines and the accumulation of testing technology.
“We have narrowed the elasticity tolerance of table tennis balls to within 4mm, the weight tolerance to 0.015g, and the hardness and roundness tolerance to within 0.05mm.” Wang introduced that for the Paris Olympics, Double Fish Sports not only modified the production line, but also specially designed 15 automatic inspection processes, and then manually screened, and finally picked three to five out of 100 balls for use in the Olympics.
Last year, Double Fish Sports enjoyed a pre-tax deduction of over 2 million yuan for R&D expenses. “Our annual R&D expenses account for 8 til 10 per cent of sales, and we mainly make products with technical content around international tournaments, including intelligent serve machines and table tennis tables. With the tax policy dividend, the company has more funds to invest in R&D, making the product business richer, and this year the company’s sales increased by nearly 20 per cent year-on-year.” Wang Xiaodong said.
In Qingyuan, Guangdong Province, Guangshuo Shoes Co., Ltd (referred to as “Guangshuo Shoes”) production workshop 22 production lines in full force, after cutting, processing, needle turning and other processes, a pair of new offline finished sports shoes were packaged, ready to be sent overseas to provide athletes of the Olympic Games and sporting goods consumers to use.
Guangshuo shoes formerly known as Guangzhou Guangrong Shoes Co., Ltd, founded in 1987, is a large Sino-foreign joint venture light industrial shoe manufacturing enterprises, is NIKE’s first contracted factory in mainland China.
“Large events have a certain pulling effect on the sales of sporting goods, so far, we have received orders for finished shoes related to the Olympics this year about 80,000 pairs, the value of about 16 million yuan.” Xu Jianling, financial manager of Guangshuo Shoes, said that in the footwear OEM industry, the annual product development capacity of enterprises largely affects the number of mass production orders. Guangshuo Shoes set up a development centre very early, and invested roughly 200 million yuan in R&D a year.
In Xu Jianling’s opinion, the policy of adding deduction for R&D expenses gives enterprises a greater incentive to invest in the development of shoe models and the research and development of shoe-making technology. Last year alone, the accumulated tax concessions and tax deductions have exceeded 13 million yuan, and from January to May this year, they can enjoy tax concessions and tax deductions of more than 9 million yuan.
Founded in 1999, Dongguan Jiaheng Toys Co., Ltd (referred to as “Jiaheng Toys”), is a professional toy ball manufacturer in the Pearl River Delta, the products have long been exported to Japan, Europe and the United States, Southeast Asia and other countries and regions, and has had a number of participation in the domestic and international sporting events product equipment manufacturing experience.
“At the beginning of 2023, we received an order demand from a French customer, and in July of that year the batch of orders was identified as the 2024 Paris Olympic Games order. This inflatable volleyball for the Olympic order a total of 50,000 copies, in May this year to do the last batch of products, the whole order took more than half a year to complete.” Jiaheng toys foreign trade business person Jiang Lijun said.
Jiaheng toys closely follow the theme of the Olympic Games, combined with the characteristics of the mascot Frigidaire personalised design innovation, so that the inflatable volleyball also shows the aesthetics of “Made in Guangdong”. “Our annual R & D investment is very large, the company continues to launch new products and develop new moulds, tax relief to a large extent to enhance the competitiveness of our products.” Jiang Lijun said.
It is understood that from 2021 til 2023, Jiaheng Toys enjoys about 548,000 yuan of tax reductions and exemptions such as income tax incentives for small and micro-profit enterprises, and handles about 6.42 million yuan of export tax refunds. Jiang Lijun introduced, the company’s regular orders are currently scheduled until September, this year’s sales increased by about 8% year-on-year. (End)
