The proportion of traditional industries in Zhejiang is relatively large, which amplifies the impact of the current decline in exports on the entire economy.
Mutual guarantees between companies trigger a series of bankruptcies
In recent years, diversification of business operations has become a fashionable vocabulary. When the real estate development peaks, all kinds of companies rush in and compete for land; when the securities market is booming, many companies acquire securities companies, speculate in stocks, and do futures. The collapse of several larger enterprises in Zhejiang, such as Jianglong Control Group Co., Ltd., was due to blind expansion and led to destruction.
Zhang Handong, director of the Zhejiang Provincial International Economic and Trade Research Center, believes that there are many problems in the management and operating ideas of enterprises like Jianglong. The main problems are blind expansion and diversified operations, spreading the stall too large, and very poor risk resistance. weak. Especially when investing in some real estate projects, once the capital chain is broken, the company will naturally collapse. Moreover, mutual guarantees between companies will trigger a series of bankruptcies. The reporter learned that before Jianglong went bankrupt, it submitted a report to the government, mentioning that “we have expanded in accordance with the government’s requirements to become bigger and stronger.” This also reminded the local government to be careful about “making it bigger and stronger.” , Enterprise expansion cannot be encouraged lightly.
Except for two companies, Supor and Zhongjie Holdings, in Yuhuan County, Taizhou City, there are less than 30 companies with an output value of over 100 million, and the remaining 2,000 or so are small and medium-sized enterprises. Zeng Shuixi, director of Zhongjie Huanzhou Steel Co., Ltd., told reporters that the funds of these small and medium-sized enterprises rely on primitive accumulation, and the debt ratio is not high. There are not many companies that have closed down due to insolvency. “The bankrupt companies are caused by spending 1 yuan to do things that cost 10 yuan,” Zeng Shuihui said: “If you don’t have money, don’t blindly do big things.”
Many business owners complained to reporters that banks are in trouble with business operations When times are good, it’s the icing on the cake, vying for loans to companies, fueling their impulse to expand. It is often a loan from the parent company, and a number of subsidiaries are established under the group company to invest in real estate, mineral resources and other projects. Once operations encounter difficulties, banks are eager to withdraw funds. In order to meet emergencies, companies often resort to high-interest private capital. Repay the bank loan and hope to get a new bank loan soon. However, some loan officers did not fulfill their previous commitments out of self-interest, but refused to refinance for various reasons. As a result, not only did the company collapse, but also the guarantee companies were implicated one after another.
Wenling Zhongma Group was sued by the Ningbo Branch of Hua Xia Bank in July this year due to debt disputes with the subsidiary of Longbiao Group that it provided guarantee, and was subsequently closed by the creditors of Longbiao Company. The total assets of Zhongma Group are about 1 billion yuan, ranking fourth among the top 10 enterprises in Wenling last year. Its operating conditions have been good this year. However, due to the closure of accounts, it is difficult to turn around funds and production and operations are in trouble.
Enterprises accuse banks of refusing to save companies and cutting wages from the bottom. Some even think that banks have forced enterprises to death. The reporter interviewed a banker in Ningbo who has been working in the banking industry for ten years. He told reporters that banks, as enterprises, also face very fierce competition. “Almost all banks, big and small, have settled in Ningbo. Who doesn’t want to lend money to those who can? Companies that cannot lend money must be bad companies. We must also be responsible for depositors.” He said, “Many companies have developed in the past few years and have not experienced the financial crisis in 1997. They have been used to good times.” Some loan officers allow companies to borrow money when their operating conditions are still good, but companies do not have enough risk awareness and do not leave themselves any room when borrowing money.
Zhuo Yongliang, director of the Zhejiang Provincial Development and Reform Institute, believes that it is normal for companies to have financial difficulties. Entrepreneurs must know that it is the most difficult thing in the world for you to get money from others. Zeng Shuihui also often warns his friends, “Don’t borrow money that can’t produce benefits!”
Zhou Dewen, president of Wenzhou Small and Medium Enterprises Promotion Association, believes that if banks cannot lend to enterprises or compress funds, they must do so in advance. Inform companies so that they can prepare early.
“It is estimated that 20% of shoe factories will close down by the end of the year”
When Zhuo Yongliang conducted research in Zhejiang Province, he found that this year, some enterprises in underdeveloped areas in Zhejiang that mainly sell domestically performed well. The ones that are having a hard time are mainly areas that have long been mainly exported to foreign countries.
Teng Xingbiao, chairman of Wenzhou Fuluomi Shoes, told reporters that since last year, the impact of rising costs on small and medium-sized enterprises has gradually emerged. As a representative of labor-intensive enterprises, the overall situation of Wenzhou’s shoe industry is relatively difficult. “Chemical raw materials are rising rapidly, and the glue and polyurethane used in shoemaking have doubled.”
Zhang Handong said that the impact of the financial crisis caused by the U.S. subprime mortgage crisis on China will begin to appear in the second half of this year. In fact, until In the first half of this year, companies were not worried about running out of orders, but they were afraid to take orders due to rising costs of raw materials and labor and the increased risk of exchange rate changes. After September, although raw material prices dropped, orders decreased due to the impact of the financial crisis. Yuhuan County in Taizhou is known as the “Hometown of Automobile and Motorcycle Parts in China”. Orders for automobile ball cages here have been reduced by half since September this year.
This pair of export-oriented laborFor intensive enterprises, it is just adding insult to injury. “Coupled with comprehensive factors such as the exchange rate and labor costs, the cost has increased by 30%, while orders in the United States have decreased by 40%, and Europe has also decreased by at least 20%.” Teng Xingbiao calculated an account for reporters. A factory with 1,000 people has a month Producing 240,000 pairs of shoes, the company pays one to two yuan for a pair of shoes, which is only about 400,000 yuan a month. However, based on the average monthly salary of 1,500 yuan, the labor cost per month is 1.5 million yuan. If you want to retain skilled workers and keep the factory running, you have to do it even if you lose money. The competition among enterprises is becoming more and more fierce, and they are undercutting each other’s prices, and the weak ones will die. “Because profits are too low, many companies are losing money. 30% to 40% of surrounding shoe factories have suspended or semi-stopped operations. It is estimated that 20% of shoe factories will close down by the end of the year.” Teng Xingbiao said.
Zhou Dewen said that Wenzhou’s growth method of relying on low cost and low prices has not changed for decades. If we do not rely on qualitative improvement but only quantitative expansion, problems will arise once we encounter changes in the external environment.
Taizhou Yihong Industrial is a professional water pump manufacturer and the largest automobile water pump manufacturer in China. 90% of its products are sold abroad. General manager Chen Xiuping told reporters that business is becoming more and more difficult now. Contracts generally stipulate that exchange rate changes will not affect the price within three points above and below. If it exceeds this range, negotiations will be required. This year, the exchange rate against the euro is 18% worse in one month. These Enterprises have to foot the bill.
Against the background of macroeconomic control last year, the central government raised interest rates six times and the deposit reserve ratio 15 times, resulting in a sharp decline in domestic bank liquidity. In the past, when banks had ample funds, some corporate credit loans were sufficient. But now, even if some small and medium-sized enterprises obtain real estate certificates and land certificates to apply for mortgage loans, they are turned away by banks. The prosperity of Wenzhou’s private finance has alleviated the problem of corporate financing difficulties to a certain extent. Chen Xiuping said that Zhejiang’s private lending capacity and willingness are relatively strong. Without private financing, more companies would fail. However, the interest rates for borrowing are relatively high, which may exacerbate the difficulties of enterprises and even cause some social problems.
Excessive concentration of homogeneous products creates a squeezing effect
In Zhejiang, different industrial chains have been formed in various places. Small commodities in Yiwu, automobile and motorcycle parts in Taizhou, clothing in Ningbo, shoemaking and leathermaking in Wenzhou, etc. Producing whatever makes money is a basic requirement of a market economy. However, if homogeneous products are too concentrated in a region, a squeezing effect will occur. The result will be serious overcapacity, disordered competition, and a huge waste of social resources.
“It is relatively easy to open a shoe factory, which requires not much capital, but it is harder to survive than before.” Teng Xingbiao told reporters that he invested 880,000 yuan to open the shoe factory, but now the money is only enough to buy it. Plants and equipment, once wages cannot keep up, the factory will close. He believes that the government must improve the entry threshold for enterprises through industry and commerce, fire protection, investment assessment, etc. Otherwise, once many weak enterprises enter, they will have no way out.
“We can no longer make shoes that make no money.” Teng Xingbiao suggested that the government collect statistics on domestic and foreign production and sales of various industries and release them to enterprises in a timely manner to guide investment behavior. “We can’t do this ourselves.”
A government official told reporters that in the past, when mentioning a certain place, one or two industries with advantages could be listed, but now a place has all kinds of industries and products. , but they are all traditional industries and low-end products, and there are few products with high-tech content and high added value.
Zhuo Yongliang believes through investigation and research that the proportion of modern industries in Zhejiang is relatively small. For example, the communications and electronic equipment industry, which currently has a good growth momentum, only accounted for 5% of the total industrial output value above designated size in Zhejiang in 2007. This industry in the country accounted for only 5%. The proportion is 9.7%, Shanghai is 22.3%, and Jiangsu is 15.4%. Coupled with the problems encountered by Zhejiang’s Chimei, Bird and other companies, Zhejiang’s communications and electronics industry contributed only 1.4% to the province’s industrial growth from January to August this year. Some high-growth modern industries are relatively small in scale and have a very limited role in driving industrial growth in Zhejiang. |
