Recently, there have been reports from Dongguan, Guangdong, and Tianjin regarding the struggles of two companies in the manufacturing industry.
In Dongguan, an injection molding factory was forced to close down due to a lack of stable orders, leading to the disposal of new equipment that cost millions of yuan within just two years. On the other hand, the leading electric vehicle company, Emma Technology, announced that its wholly-owned subsidiary, Emma Motors in Guangdong, would cease production and transfer production capacity to Guangxi and Chongqing while selling off remaining assets.
A video circulating on WeChat Video and Douyin platforms on October 2nd showed the shutdown of an injection molding factory in Dongguan, with several Haitian brand injection machines being prepared for resale. Some machines, including models like 260T, 320T, 380T, and 650T, were equipped with robotic arms. The authenticity of the video has not been officially confirmed yet.
Insiders revealed that the equipment had been purchased less than two years ago. With a lack of stable orders, the factory’s financial chain eventually broke, leading to its closure.
A Taiwanese business manager in Dongguan, Mr. Lin, mentioned that many Taiwanese businesses are considering or already in the process of relocating due to the challenging situation. He stated, “Taiwanese businesses are now trying to evacuate. Many machinery-intensive enterprises are closing or relocating, with machines waiting to be moved. Those who do not evacuate usually face hidden difficulties.”
Commenting on the video in related forums, some netizens expressed concerns about the sudden closure of businesses and how it would impact workers. There were also opinions reflecting the harsh reality of the physical economy where substantial investments may not guarantee sustainability in the long run.
In comparison to the struggles faced by small and medium-sized manufacturing industries in Dongguan, there have also been production adjustments at the corporate level. One of China’s electric vehicle industry giants, Emma Technology Group Co., Ltd., announced the closure of its subsidiary, Emma Motors in Guangdong. The decision was made to enhance operational efficiency through cost reduction and unified management, citing the impact of evolving policies such as the new electric bicycle safety technical standard.
According to Emma Technology’s semi-annual report for 2025, as of June 30, Emma Motors in Guangdong had total assets of about 710 million yuan, liabilities of approximately 461 million yuan, and net assets of around 249 million yuan. In the first half of this year, Emma Motors generated an operating income of about 1.268 billion yuan with a net profit of approximately 98 million yuan.
On a consolidated level, Emma Technology recorded an operating income of 13.031 billion yuan in the first half of 2025, a 23.04% year-on-year increase. The net profit attributable to the parent company’s shareholders was 1.213 billion yuan, up by 27.56% compared to the previous year. These figures were sourced from the company’s regular reports and announcements.
Established in 1999, Emma Technology is headquartered in Tianjin and is a transportation equipment manufacturer involved in research, production, and sales. The company’s product range includes electric bicycles, electric tricycles, low-speed electric quadracycles, bicycles, electric-assist bicycles, as well as various components. Emma Technology has production bases in Tianjin, Jiangsu, Zhejiang, Guangxi, and Chongqing, and has expanded operations to Indonesia with a new facility under construction in Vietnam.
Industry analysts believe that Emma Technology’s recent production shifts and new facility placements are aimed at reducing manufacturing costs, aligning with market demands, and adapting to changes in domestic policies and international trade environments.
Mr. Wang, a retired economist from Renmin University of China, mentioned that the current business environment in China is not conducive to the survival of enterprises due to declining exports leading to reduced orders, which can sever the financial chain for small and medium-sized manufacturers when orders dry up.
Recent reports of companies switching industries, halting production, or temporarily closing down in Guangdong and other regions have sparked extensive discussions among netizens, with job security being a primary concern for many. A former employee in Huizhou, Mr. Yan, who was laid off last month, expressed worry about the future of workers amidst such operational shifts.
Concerning Emma’s production halt, some netizens are concerned about the potential challenges in Guangxi and Chongqing due to insufficient industrial support post-relocation. However, others believe that the advantages of lower labor costs and land incentives in these regions may outweigh any possible drawbacks in the long term.
As of the time of writing, the local commercial and relevant regulatory authorities in Dongguan have not publicly responded to the closure of the injection molding factory, while regarding Emma Technology’s Guangdong subsidiary stopping production, only the company’s announcement stands as the formal source, as local governmental bodies have not issued any comments.