The Report Of The Federation Of Industry And Commerce To The State Council: The Current Survival Of Smes Is More Difficult Than In 2008.

Manufacturing industry

In July 20th, employees of Dongguan Su Yi Toys Co., Ltd. and Ding Jia knitted garment company told reporters that the direct cause of the closure of the two enterprises was the fracture of the capital chain.

Due to the continuous reduction of orders since 2009 and the internal equity disputes, Su Yi has been in Korea.

According to a person from the National Federation of industry and commerce, the Federation of industry and Commerce has just completed a large survey of small and medium-sized enterprises in 17 provinces and cities. The results of the survey show that the survival of SMEs is very difficult and even more difficult than the beginning of the 2008 financial crisis.

This person explained that in 2008, although the external demand was reduced, the relaxation of credit made the capital of enterprises face no tension. The current situation of enterprises is that the external demand has not really recovered. The tightening of monetary policy has made the vast majority of SMEs' capital chain in jeopardy.

The Research Report of over 10000 words has been submitted to the State Council.

According to the foregoing people, the report predicts that the situation of SMEs will be more difficult in the second half of this year. The collapse of Wenzhou enterprises in recent months and the recent vicious collapse of Dongguan enterprises have confirmed this judgment. However, he also warned that the conclusion of "collapse tide" can not be drawn from the comparison of the number of new enterprises and bankrupt enterprises.

From 2000 employees to 500 employees

In July 20th, the Dongguan Hongsheng Industrial Zone, which is located in Su Yi Industrial Park, temporarily paid more than 500 workers' 70% salaries.

She said that since 1994, the time of registration in Dongguan has been 18 years, and the production of toys is mainly exported to the three largest markets in Europe, America and Japan. Before the financial crisis, the size of the factory was over 2000. However, since 2009, the order of vegetarian art has gone from bad to worse, and the factory which has always been creditworthy has started to default on the suppliers' money. When it went bankrupt, there were only 500 employees in its vegetarian arts.

Li Zaicheng, a registered Korean artist in Hongkong, has two factories in Guangdong, Dongguan. She has two factories in Dongguan, Guangdong, and another factory that has not yet gone bankrupt is called Dongguan children's products company, and another factory in Suzhou.

There is a supplier of vegetarian products. This company is jointly invested by Korean Li Zaicheng, Wen Ju Guan and Jin in Qian and Hong Shunde.

The capital chain tension of Suzhou Art has long been a harbinger. Its main supplier, Mr. Zhang, a knitting factory in Dongguan, has introduced the practice of clearing up the past 50 days since July 2009, claiming that there was a problem in the capital chain and began to default on the payment of suppliers. After almost a year and a half of cooperation, the debt snowball was getting bigger and bigger.

And in July 14th, before the six executives of Dongguan Su Yi were "runaway", the three Koreans of the same company in Suzhou in the early morning of July 8th were disappearing overnight, and about 10000000 yuan in arrears and workers' salaries were not paid.

In July 15th, local courts in Dongguan sealed up, seized and frozen assets of 1 million 100 thousand yuan worth of Dongguan arts and crafts.

According to the foregoing supplier, according to the figures on the list of arrears of payment, there are still about 13000000 yuan suppliers' unpaid loans in Dongguan, and about 1000000 yuan of rent and 1 million 500 thousand yuan of workers' salaries are not paid.

Toy industry is listed in high-risk list by banks

The global toy giant MATTEL group's main supplier in China told reporters in July 19th that the recent business problems were basically concentrated in the labor-intensive export industry. Judging from the toy industry, he judged that similar events might be concentrated in the Pearl River Delta.

"There are many factors that lead to the difficulty of the enterprise. At present, the most prominent problem is financing."

The supplier said toys such industries have been included in high-risk areas in commercial banks.

We can get about 60% of the loan amount by order pledge, which is used to pay the workers' wages, electricity charges and suppliers' payment in advance, and to repay the interest after the export completes the collection.

However, under the background of tight money, some exporters have been unable to obtain loans support through this channel and have to invest in private lending market.

"If one ticket is defective, the buyer breaks the contract, or the quality returns, the capital chain of the enterprise will be broken."

These people said.

A background that has to be mentioned is that the EU's main consumer market for Chinese toys will start implementing the strictest toy safety directive in July 20th. The limit of specific heavy metals has increased from 8 to 19, and 66 kinds of allergenic agents have been banned or restricted for the first time.

The aforementioned members of the National Federation of industry and commerce also said that over 90% of the SMEs surveyed were unable to obtain loans from banks, and the financing situation of small and micro enterprises was more embarrassing.

According to the source, loans for SMEs to get 2-3 cents (monthly interest) from banks have been quite good. The monthly interest rate of underground finance in Zhejiang has even reached 5 points or more.

"The real situation is that loans are also difficult, and no loans are difficult."

He said.

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"Collapse tide" or strategic shift?

In July 20th, Huang Yi, director of the Dongguan SME Bureau, responded that the successive failures of several enterprises may be only an isolated phenomenon.

Prior to that, Zhang Wenxian, director of the SME Bureau of Guangdong, has publicly stated that the current situation of some small and medium-sized enterprises in Guangdong has been gradually increasing, but "there has been no business failure."

After the outbreak of the financial crisis in 2008, there was a wave of business failures in the major economic provinces. The Guangdong SME Bureau has informed that more than fifteen thousand SMEs in Guangdong province have gone bankrupt in 2008.

The top of Guangdong's light industry group, one of China's largest exporters of toys, said in July 19th that the failure of the current enterprise was roughly divided into two categories. Some foreign enterprises actually moved out of China's production base and moved strategically to shut down. The second category, which had survived the financial crisis in 2008, was no longer supported by the current situation, but had to go bankrupt in two hands.

Previously, Nike group has said that Vietnam has become the largest source of Nike footwear products, made in China has retired to second.

Liu Kun, chief executive of Guangdong's main footwear exporter, South China's Taiwan funded footwear industry, told reporters that the labor intensive industry's good time in mainland China has ended. Many of the bosses have sprouted in Guangdong's previous gatherings.

The top executives of Guangdong's light industry said that most of the second types of bankrupt enterprises had been in the industry for many years and survived the hardest 2008, but did not wait until tomorrow.

He said that after 2008, the pfer of orders caused by the collapse of a large number of toy enterprises had led to a slight improvement in the orders of large factories. However, the weak demand in Europe and the United States caused the demand for replenishment stocks to be unsustainable.

The company's export target this year is "flat with last year", but taking into account the substantial increase in export prices, the flat export volume actually means a sharp decline in export volume.

The above National Federation of industry and Commerce Research Report on SMEs are currently facing difficulties.

People in charge of industry and Commerce said that in addition to the brunt of the financing problem, raw material prices, labor costs, appreciation of the renminbi and cost of land have led to the rising operating costs of enterprises, while the prices of enterprises are difficult to synchronize with the same extent. This has seriously squeezed profits of enterprises, and many small and micro enterprises have seen a sharp decline in profits, and quite a few enterprises are at the edge of losses.

The source said that in the survey, some enterprises even said that the speculative profits gained from hoarding and selling raw materials were much higher than those obtained from the sale of finished products after processing.