Frontline Insights | City's Listed Firms Surge 50% in Four Years: Decoding the Secrets of Industrial Upgrade

Deep News
11/02

"Dongguan's manufacturing sector is rewriting its playbook with 'manufacturing aesthetics' as its new mantra. Take a DIY assembly toy produced eight years ago—its current monthly sales still exceed 3,000 units at a local factory, a scenario unimaginable in the past. This transformation mirrors the journey of a metal processing OEM that evolved into an original pop toy brand, emblematic of the city's industrial metamorphosis.

Official data reveals Dongguan's GDP reached 931.9 billion yuan in the first three quarters of 2025, marking 4.5% year-on-year growth. The "world's factory" is now pivoting from manufacturing to smart manufacturing, with 63 A-share listed companies as of June 2025—a near 50% increase from four years prior. Notably, 27 locally listed firms each invested over 50 million yuan in R&D during H1 2025.

The upgrade is palpable across sectors: 1. **Pop Culture Economy**: Once home to OEMs supplying 70% of POP MART's (09992.HK) production capacity, Dongguan now hosts 87 toy manufacturers with 27 exceeding 100 million yuan in annual output. Companies like Ha Yidai Toys now offer full-spectrum design-to-production services for mascot derivatives. 2. **Tech Leap**: Advanced manufacturing grew 6.8% YoY, outpacing the city's average. Topstar Robotics debuted its humanoid robot for injection molding—voice-controlled arms can now fetch cola cans on command. 3. **Global Ambitions**: Ceramics giant Marco Polo, fresh from its Shenzhen IPO (opening price: 33.1 yuan, +140.73%), finds Middle Eastern demand surging for its Dunhuang-themed tiles.

Behind the scenes: - **R&D Surge**: Dongguan's listed firms spent 3.71 billion yuan on R&D in H1 2025 (+30% vs 2023), led by Shengyi Tech's 642 million yuan investment. - **Brand Breakthroughs**: Microstone Tech transitioned from metalwork to exporting original 3D puzzles to 100+ countries, with 35% overseas sales. - **Policy Tailwinds**: Since 2022, the city has prioritized digital transformation through annual "No.1 Documents," while 2025's cluster development strategy targets high-end industrial chains.

Chen Yingyi of CDI notes the paradox: OEM expertise creates both path dependency and technical foundations. "The tipping point," she stresses, "is management's resolve to break inertia." With youth shunning factory jobs, automation isn't optional—it's existential for this Pearl River Delta powerhouse rewriting its legacy.

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