On July 20th, employees of Dongguan Suyi Toys Co., Ltd. and Dingjia Knitwear Company told the reporter that the direct cause of the failure of the two companies was the breakage of the capital chain.
Due to the continuous reduction in orders since 2009 and internal equity disputes, Su Yi’s investors in South Korea have no longer made payments to their two factories in Jiangsu and Dongguan. Since this year, the number of orders has dropped one after another, and the cash flow has also been problematic. The debts of the remaining suppliers, such as loans, cannot be repaid.
According to a person from the National Federation of Industry and Commerce, the Federation of Industry and Commerce has just completed a major survey of small and medium-sized enterprises in 17 provinces and cities. The results of surveys and studies show that the current survival of SMEs is very difficult, and the difficulty level is even higher than the initial period of the 2008 financial crisis.
The person explained that in 2008, although external demand was shrinking, but the credit to relax the company's capital is not tight, and the current situation of enterprises is that foreign demand has not yet been truly restored, monetary tightening led to the vast majority of SMEs funding chain is in jeopardy.
This over a million words research report has been submitted to the State Council. The aforementioned sources said that the report predicts that the situation of SMEs in the second half of this year will be even more difficult. The collapse of several Wenzhou enterprises in recent months and the recent vicious closings of Dongguan enterprises have confirmed this judgment, but he also reminded them that they are from start-up companies. Compared with the number of failed companies, it is still not possible to conclude that there has been a “surge of closureâ€.
From 2000 employees to 500 employees, a staff member serving in the Sai YA America Sales Department introduced that on July 20th, Su Yi’s Dongguan Hongsheng Industrial Zone temporarily paid 70% of the salary of more than 500 workers.
According to her introduction, since its registration in 1994, Suyi has been in Dongguan for 18 years. Its toys are mainly exported to three major markets in Europe, America and Japan. Before the financial crisis, the factory employed more than 2,000 people, but since 2009, it has been The orders were deteriorating, and the reputable factories began to default on the suppliers’ payment. When the bankruptcy took place, the company had only 500 employees and the dismal operation was evident.
Sino Art's investor is South Korea's Su Yee Hong Kong Co., Ltd. registered in Hong Kong. It has two factories in Dongguan, Guangdong. Another factory that has not closed down is Dongguan Suyi Children's Products Co., Ltd. In a factory, the legal representative of the Koreans is Kim Jin. There is a supplier of fine arts, this company is jointly invested by Koreans Li Zaicheng, Wen Yanguan, Jin Zaiqian and Hong Yude.
Su Yi's capital chain tension has long been herald. Its main supplier, Mr. Zhang from Dongguan reach Knitting Factory, introduced that, since July 2009, Su Yiyi has changed its past 50-day settlement practice, claiming that the capital chain has problems and began to After the debts owed to the suppliers, after all parties had barely maintained cooperation for a year and a half, the snowballs of debts were getting bigger and bigger. At the beginning of this year, the major suppliers had basically suspended their supply to the Su Yi.
And just before the six senior executives of Dongguan Suyi started to “run†on July 14th, in the early morning of July 8th, the three South Koreans of Suzhou Suyi Toys Co., Ltd. with the same capital disappeared overnight, in arrears. More than 10 million *** of the purchase price and wages of workers have not been paid.
On July 15, local courts in Dongguan seized, seized, and frozen assets worth 1.1 million yuan. According to the aforementioned suppliers, according to the figures on the default payment list, Dongguan Suyi currently has more than 13 million yuan in *** of suppliers’ purchases outstanding, plus more than 1 million yuan of rent and 1.5 million yuan. Workers’ salaries are not paid and they are ineligible for debt.
The toy industry was listed on the high-risk list by the bank. The world's leading toy giant Mattel Group's major suppliers in China told reporters on July 19th that companies that have recently experienced operational problems are basically concentrated in labor-intensive export industries. He believes that similar incidents may also occur in the Pearl River Delta. "There are many factors that cause companies to struggle. At present, the most prominent problem is financing."
According to the supplier, such industries as toys have been listed in high-risk areas in commercial banks. In the past, orders could be pledged to about 60%** of the order amount, which was used to pay workers' compensation, electricity bills, and suppliers' payment in advance. Wait for the export to complete the payment before repaying the interest. However, under the background of monetary tightening, some exporters have been unable to obtain support from this channel and have to invest in the private lending market.
"A ticket issue, the buyer breaches contract, or encounter quality returns, the company's capital chain will face a fracture." The above person said. One background that has to be mentioned is that the main consumer market of Chinese toys will start implementing the most stringent toy safety directive in history on July 20 this year. The limit for specific heavy metals will be increased from 8 to 19, for the first time. Or limit the use of 66 allergenic fragrances.
The aforementioned National Federation of Industry and Commerce officials also stated that during the survey, more than 90% of the interviewed SMEs said that they could not obtain ** from banks, and the status of small and micro enterprises was even more distressed. According to this person, the SMEs can get 2-3 dividends (monthly interest) from the bank. The ** has been quite good, and the monthly interest rate of underground finance in Zhejiang has even been as high as 5 points or more. "The reality is that ** is hard, and it's hard to do it," he said.
"Floating tide" or strategic shift?
On July 20th, Huang Yi, director of the Dongguan SME Bureau, responded that the collapse of several companies may be an isolated phenomenon.
Prior to this, Zhang Jianwen, director of the Guangdong Provincial SME Bureau, also publicly stated that at present, the situation of the difficulties of the operation of some small and medium-sized enterprises in Guangdong has indeed gradually increased, but "there is no corporate closures."
After the outbreak of the financial crisis in 2008, there was a wave of corporate closures in the major economic provinces. The Guangdong Small and Medium Enterprises Bureau had reported that over 15,000 SMEs had closed down in Guangdong Province in 2008.
Gao Guangdong, one of China's largest toy exporters, said on July 19 that the current collapse of enterprises is roughly divided into two categories. Some foreign-funded enterprises actually move their production bases from China and transfer them strategically. The second type is to survive the 2008 financial crisis, but it is up to the present, had to empty bankruptcy.
Previously, Nike Group had stated that Vietnam has become the largest source of Nike footwear products, and China Manufacturing has already retreated to second place.
Liu Kun, the general shoe exporter of Nanhai Taiwan, the main leather shoe exporter in Guangdong, told reporters that the good time of labor-intensive industries in mainland China has come to an end. At several previous gatherings of Taiwanese businessmen in Guangdong, many bosses have sprouted. meaning.
The aforementioned Guangdong high-level light industry executives said that most of the second-type failing companies have been in the industry for many years and have survived the most difficult of 2008 but did not wait until tomorrow. He said that after 2008, the transfer of orders caused by the collapse of a large number of toy companies had caused orders for large factories to have a temporary improvement, but the weak demand in the European and American markets made it difficult to sustain demand for replenishment stocks. The company’s export target for this year is locked at “equal to last year,†but taking into account the substantial increase in export prices, this flat export value actually means a significant drop in the volume of exports.
The above-mentioned research report of the All-China Federation of Industry and Commerce reviewed the current difficulties faced by SMEs. Industry and business people said that in addition to the brunt of the ** problem, raw material prices, labor costs, *** appreciation, land costs have led to rising operating costs of enterprises, while the company's product prices are difficult to synchronize with the same increase, which makes the company The profits have been severely squeezed. Many small and micro enterprises have experienced sharp declines in their profits, and quite a few companies are on the verge of losses.
According to the source, in the survey, some companies even stated that the speculative gains from stockpiling reselling raw materials are much higher than those obtained by selling finished products after processing and processing.
Due to the continuous reduction in orders since 2009 and internal equity disputes, Su Yi’s investors in South Korea have no longer made payments to their two factories in Jiangsu and Dongguan. Since this year, the number of orders has dropped one after another, and the cash flow has also been problematic. The debts of the remaining suppliers, such as loans, cannot be repaid.
According to a person from the National Federation of Industry and Commerce, the Federation of Industry and Commerce has just completed a major survey of small and medium-sized enterprises in 17 provinces and cities. The results of surveys and studies show that the current survival of SMEs is very difficult, and the difficulty level is even higher than the initial period of the 2008 financial crisis.
The person explained that in 2008, although external demand was shrinking, but the credit to relax the company's capital is not tight, and the current situation of enterprises is that foreign demand has not yet been truly restored, monetary tightening led to the vast majority of SMEs funding chain is in jeopardy.
This over a million words research report has been submitted to the State Council. The aforementioned sources said that the report predicts that the situation of SMEs in the second half of this year will be even more difficult. The collapse of several Wenzhou enterprises in recent months and the recent vicious closings of Dongguan enterprises have confirmed this judgment, but he also reminded them that they are from start-up companies. Compared with the number of failed companies, it is still not possible to conclude that there has been a “surge of closureâ€.
From 2000 employees to 500 employees, a staff member serving in the Sai YA America Sales Department introduced that on July 20th, Su Yi’s Dongguan Hongsheng Industrial Zone temporarily paid 70% of the salary of more than 500 workers.
According to her introduction, since its registration in 1994, Suyi has been in Dongguan for 18 years. Its toys are mainly exported to three major markets in Europe, America and Japan. Before the financial crisis, the factory employed more than 2,000 people, but since 2009, it has been The orders were deteriorating, and the reputable factories began to default on the suppliers’ payment. When the bankruptcy took place, the company had only 500 employees and the dismal operation was evident.
Sino Art's investor is South Korea's Su Yee Hong Kong Co., Ltd. registered in Hong Kong. It has two factories in Dongguan, Guangdong. Another factory that has not closed down is Dongguan Suyi Children's Products Co., Ltd. In a factory, the legal representative of the Koreans is Kim Jin. There is a supplier of fine arts, this company is jointly invested by Koreans Li Zaicheng, Wen Yanguan, Jin Zaiqian and Hong Yude.
Su Yi's capital chain tension has long been herald. Its main supplier, Mr. Zhang from Dongguan reach Knitting Factory, introduced that, since July 2009, Su Yiyi has changed its past 50-day settlement practice, claiming that the capital chain has problems and began to After the debts owed to the suppliers, after all parties had barely maintained cooperation for a year and a half, the snowballs of debts were getting bigger and bigger. At the beginning of this year, the major suppliers had basically suspended their supply to the Su Yi.
And just before the six senior executives of Dongguan Suyi started to “run†on July 14th, in the early morning of July 8th, the three South Koreans of Suzhou Suyi Toys Co., Ltd. with the same capital disappeared overnight, in arrears. More than 10 million *** of the purchase price and wages of workers have not been paid.
On July 15, local courts in Dongguan seized, seized, and frozen assets worth 1.1 million yuan. According to the aforementioned suppliers, according to the figures on the default payment list, Dongguan Suyi currently has more than 13 million yuan in *** of suppliers’ purchases outstanding, plus more than 1 million yuan of rent and 1.5 million yuan. Workers’ salaries are not paid and they are ineligible for debt.
The toy industry was listed on the high-risk list by the bank. The world's leading toy giant Mattel Group's major suppliers in China told reporters on July 19th that companies that have recently experienced operational problems are basically concentrated in labor-intensive export industries. He believes that similar incidents may also occur in the Pearl River Delta. "There are many factors that cause companies to struggle. At present, the most prominent problem is financing."
According to the supplier, such industries as toys have been listed in high-risk areas in commercial banks. In the past, orders could be pledged to about 60%** of the order amount, which was used to pay workers' compensation, electricity bills, and suppliers' payment in advance. Wait for the export to complete the payment before repaying the interest. However, under the background of monetary tightening, some exporters have been unable to obtain support from this channel and have to invest in the private lending market.
"A ticket issue, the buyer breaches contract, or encounter quality returns, the company's capital chain will face a fracture." The above person said. One background that has to be mentioned is that the main consumer market of Chinese toys will start implementing the most stringent toy safety directive in history on July 20 this year. The limit for specific heavy metals will be increased from 8 to 19, for the first time. Or limit the use of 66 allergenic fragrances.
The aforementioned National Federation of Industry and Commerce officials also stated that during the survey, more than 90% of the interviewed SMEs said that they could not obtain ** from banks, and the status of small and micro enterprises was even more distressed. According to this person, the SMEs can get 2-3 dividends (monthly interest) from the bank. The ** has been quite good, and the monthly interest rate of underground finance in Zhejiang has even been as high as 5 points or more. "The reality is that ** is hard, and it's hard to do it," he said.
"Floating tide" or strategic shift?
On July 20th, Huang Yi, director of the Dongguan SME Bureau, responded that the collapse of several companies may be an isolated phenomenon.
Prior to this, Zhang Jianwen, director of the Guangdong Provincial SME Bureau, also publicly stated that at present, the situation of the difficulties of the operation of some small and medium-sized enterprises in Guangdong has indeed gradually increased, but "there is no corporate closures."
After the outbreak of the financial crisis in 2008, there was a wave of corporate closures in the major economic provinces. The Guangdong Small and Medium Enterprises Bureau had reported that over 15,000 SMEs had closed down in Guangdong Province in 2008.
Gao Guangdong, one of China's largest toy exporters, said on July 19 that the current collapse of enterprises is roughly divided into two categories. Some foreign-funded enterprises actually move their production bases from China and transfer them strategically. The second type is to survive the 2008 financial crisis, but it is up to the present, had to empty bankruptcy.
Previously, Nike Group had stated that Vietnam has become the largest source of Nike footwear products, and China Manufacturing has already retreated to second place.
Liu Kun, the general shoe exporter of Nanhai Taiwan, the main leather shoe exporter in Guangdong, told reporters that the good time of labor-intensive industries in mainland China has come to an end. At several previous gatherings of Taiwanese businessmen in Guangdong, many bosses have sprouted. meaning.
The aforementioned Guangdong high-level light industry executives said that most of the second-type failing companies have been in the industry for many years and have survived the most difficult of 2008 but did not wait until tomorrow. He said that after 2008, the transfer of orders caused by the collapse of a large number of toy companies had caused orders for large factories to have a temporary improvement, but the weak demand in the European and American markets made it difficult to sustain demand for replenishment stocks. The company’s export target for this year is locked at “equal to last year,†but taking into account the substantial increase in export prices, this flat export value actually means a significant drop in the volume of exports.
The above-mentioned research report of the All-China Federation of Industry and Commerce reviewed the current difficulties faced by SMEs. Industry and business people said that in addition to the brunt of the ** problem, raw material prices, labor costs, *** appreciation, land costs have led to rising operating costs of enterprises, while the company's product prices are difficult to synchronize with the same increase, which makes the company The profits have been severely squeezed. Many small and micro enterprises have experienced sharp declines in their profits, and quite a few companies are on the verge of losses.
According to the source, in the survey, some companies even stated that the speculative gains from stockpiling reselling raw materials are much higher than those obtained by selling finished products after processing and processing.
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