Gifts / Sports & Toys

In the market situation with uncertain economic prospects, the news that several old toy factories in Dongguan have closed this year is disheartening, but it is not without good news: Hong Kong Huasheng Toys has gone against the trend, opening new factories and expanding production capacity in Guangxi, which has strengthened confidence in the domestic toy industry. Huacheng Import and Export Data Observation Report.

Standing for half a century

Huasheng Toys was founded in Hong Kong in 1976 and set up a factory in mainland China for the first time in 1981. Over the past 40 years, a total of 11 toy factories have been set up. In addition to the Hong Kong headquarters, four toy factories are located in Guangdong, five in Guangxi and one in Vietnam, with a total area of more than 2 million square meters and about 20,000 employees. The scale is among the best in the world.

According to the observation report of Huacheng's import and export data, in the past seven years (except for the impact of the COVID-19 in 2020), the income of toy manufacturing has increased year by year, with the income of 4.129 billion Hong Kong dollars in 2021 (about 3.427 billion yuan at the exchange rate of that year); In 2016, the operating profit even reached the height of about 8%. Under the pressure of various soaring costs last year, it is not easy to maintain a net profit of 2%.

In the first half of this year, the revenue of toy manufacturing business was 1.852 billion Hong Kong dollars (about 1.661 billion yuan), up 26% year on year.

The ability to survive and grow in the era of meager profits is enough to show its strength.

Seeking Development in Adversity

As a foundry, Huasheng Toys is low-key; But from time to time, it has taken unexpected actions when the industry's confidence in toy OEM is low.

For example, in 2012, we took over the Dongguan Guanyue Toy Factory, which was founded by Li Ka shing and later transferred, and set up Yingfeng Factory, which caused heated discussion in the industry.

At that time, the toy manufacturing industry (especially toy OEM) was one of the pillar industries in Dongguan. It had just recovered from the collapse of two large OEM factories, Junling and Hejun Toy Factory, due to the financial crisis in 2008. The prospect of industrial recovery was still unclear and the confidence of the industry was low.

Unfortunately, in the same year of 2012, Dongguan Guanyue Toy Factory, which was founded by Li Ka shing and changed hands in the same year when Hejun closed down, also couldn't bear to close down. Huasheng immediately announced that it would take over, which was considered as a shot in the arm for Dongguan's toy manufacturing industry.

In recent three years, many old OEM factories such as Fanda, Kaishan, Jingli (Children's Garden) have closed down due to the impact of the epidemic, but Huasheng has continued to build new factories and expand production capacity: Huayao Toy Factory in Rongxian County, Guangxi in 2020, Huasheng Yingfeng Factory in Beiliu, Guangxi in 2021, Wanfeng Toy Factory in Yulin, Guangxi in 2022. Huacheng's import and export data observation report.

Strive for reform and progress in the new era

Huasheng has stood firm for nearly half a century. In addition to its pioneering spirit, it is also inseparable from the enterprising spirit of the second generation.

At present, the person in charge of Huasheng Toys is Wu Xuyang, who is also the youngest son of co-founder Wu Hongsheng. After finishing his studies, Wu Xuyang joined Nanhua Group, a family enterprise. Later, he took over Huasheng Toys Co., Ltd., a subsidiary of Nanhua Group, and transformed Huasheng Toys from a traditional toy OEM manufacturer to an international one-stop overall solution supplier.

According to the observation report on the import and export data of Huacheng, since 2014, Huasheng Toys has made a large amount of asset investment, added two new factories, expanded the plant area, and increased 50% of high-tech automatic production lines, making the company's performance increase by 40% in the next three years.

In terms of internal management, Huasheng's toy factory has set up operating units in different regions to manage the production capacity of the factory, so that the operation and monitoring of the entire production process are closely linked; The implementation of cost control, continuous promotion, 5S management and strengthening of supply chain management have enabled Huasheng Toys to improve product quality and win the trust of many industry giants and toy brands such as Hasbro, Mattel and MGA Entertainment while maintaining profitability.

In terms of environmental protection, Huasheng's Shenzhen plant took the lead in implementing carbon reduction management to reduce energy consumption and waste emissions. The carbon emission quota has turned into a profit since 2015.

For the continuous development and training of all employees, the company established Huasheng College to provide the latest training and manufacturing technology theory. The college cooperates with many domestic universities to research and develop automation and new manufacturing technology concepts to enhance the company's long-term competitiveness, Huacheng Import and Export Data Observation Report.