The headquarter of Shanghai “A” foreign company is located in Europe, the main business was to purchase various daily goods from China and sell them to the European markets. Influenced by the COVID-19, the orders of “A” foreign company which came from European headquarter were reduced significantly. So that the business revenue had a sharp reduction, it didn’t support its basic operating costs of nearly RMB 400,000 per a month, such as offices or business staff salaries and social security. The losses of “A” foreign company were increasingly seriously, it had no choice but to cancel the company.

But European headquarter had a quite entanglement. On one hand the headquarter wasn’t willing to quit easily from Chinese market, on the other hand, if it did not cancel the company, the business revenue was quite small in a short term. So that the “A” foreign company also needed to pay an expensive maintenance cost, this might result more deficit.

After the headquarter of “A” foreign company discussed with Dongjin, we provide a proposal about LOW-COST hosting services to company. For example, lowered costs of housing rents and people greatly and lowered the annual maintenance costs of the company within RMB 100,000, it satisfied the business purpose of European headquarter to stay in Chinese market in a low- cost manner.

Dongjin remind:

Influenced by many factors, plenty of foreign companies in China have trapped in deficit state in recent years. However China was an important market which multinational companies could not and would not to give up. What about those foreign companies in China had difficulties in running businesses temporarily but they didn’t want to cancel even exit thoroughly Chinese market? This has become current puzzles for many multinational companies.

Dongjin fully understands entanglements and demands of those multinational companies, it can custom-tailor a LOW-COST hosting services for them. If foreign companies have the same troubles, welcome to connect with Dongjin for consulting and discussing at any time.

Mike Chang

Partner

mikechang@shanghaiinvest.com