Wenzhou Footwear Industry Rationally Treats Diversified Financial Investment

In 2011, a private financial crisis in Wenzhou aroused public concern. After the most painful "year pass", the reporter went to Wenzhou to investigate in depth, trying to reflect the truth of Wenzhou in this round of turmoil, and explore the changes of Wenzhou's enterprises, markets and government in this round of turmoil.

Wenzhou is once again standing on the important time node.

Wenzhou, the earliest place for China's private economy, has been focused by news media several times. This time, it is highly concerned by the whole country on the cusp of public opinion.

In April of last year, some enterprises in Wenzhou began to see the news of their escape from debt due to the broken capital chain. After that, the media reported more bosses' running events, and even a few entrepreneurs chose the extreme way of jumping and suicide. A local financial turmoil or lending storm that has been called local has actually taken place.

Various doubts about the private economy in Wenzhou are starting to emerge, and more of course are concerned with inquiries. The local people are also sighing that the firecrackers of the Spring Festival in the Spring Festival are much fewer, and they expect too much for the dragon year.

A frank leader of the local character had to stand up for many times to speak for Wenzhou's private economy, to speak for the Wenzhou enterprises, and even to defend those entrepreneurs who had already passed away. If you sum up the mood and action of a somewhat publicized official in a sentence, that is what he has repeatedly said on his lips: to speak fair for Wenzhou enterprises.

After the financial turmoil, did the Wenzhou enterprises come out of the cold winter for nearly a year? Our reporter and his colleagues went to Wenzhou with a lot of concerns and questions, trying to reflect on the Wenzhou in this storm. From Yueqing, Yongjia to Ruian, from Ouhai, Lucheng, Longwan to the economic and Technological Development Zone, journalists interviewed over 12 days include more than 100 business people, financial circles, officials and scholars. 88 Wenzhou entrepreneurs with different industries and different enterprises told reporters about their yesterday, today and tomorrow.

What do they tell us? We try to solve the mystery.

Financial turmoil hits, pain surviving.

It is not yet clear that Wenzhou's private financial turmoil is over. According to the observation of the local financial sector, March is the peak of loan repayment. It is estimated that there will be about 100000000000 yuan, and there may be some more running events. But the most difficult days should be said to have come.

At the moment, we should see more clearly about the corporate life in Wenzhou's private financial turmoil.

In a tight monetary environment, highly active private lending to Wenzhou businesses is being hit, like a speeding car on a motorway. The capital chain of some enterprises has been taut or even broken, and has involved the related enterprises in the loan guarantee chain, so the Domino effect has happened.

"The impact of this round of private financial turmoil on the local economy is more serious than the last Asian financial crisis and the global financial crisis, which is even more significant than the two events in 80s of last century's Yueqing lift and Wulin men's shoes burning." Most of the interviewees assessed the lethality of this round of financial turmoil.

"The feeling of being forced to pay is something you ordinary people can't imagine. Wherever you go, someone stares, circles, curses, and smash your house at random. There are no human dignity at all. There have been several attempts to commit suicide. Chen Xiaowu, who was invited by the reporter to drink coffee and chairman of the 5 enterprises, looked gloomy.

"10 billion debt, there are banks, private lending, the highest interest to 4 points.

The bank's money is tight, and it can't get in. Last September, when the debt was paid up to more than 300 million, the hole was still unable to make up for it, so the psychological defense line collapsed. Hu Fulin, chairman of Xintai group, recalled the mentality when he left home.

What is the overall survival of Wenzhou enterprises? What are the injuries of Wenzhou's private economy? What is their ability to withstand the crisis? This is undoubtedly the most concerned issue.

The pain of Wenzhou enterprises in this financial turmoil is getting clearer and clearer with our in-depth interview in Wenzhou.

Reporters learned in the 12 day survey that the entrepreneurs who jumped and suicide in the storm were confirmed to be 5. There were about dozens of entrepreneurs in Wenzhou city and 3 counties and cities under the jurisdiction of the government. {page_break}

According to the data provided by Wenzhou finance office, last year to mid February this year, venture enterprises (closed down, stop production, run away, tight capital chain) enterprise 234. According to the summary information provided by the Wenzhou municipal Party committee, by the end of February, there were more than 300 enterprises (including entrepreneurs running away, closing down and breaking up capital chain).

This is the real situation of Wenzhou's most serious financial crisis.

It is unfair to judge the survival situation of the entire Wenzhou enterprises only if there are problems with only a few enterprises.

"There are more than 420 thousand self-employed businesses and private enterprises registered in the city's industrial and commercial sector, and there are more new businesses than dead ones. The whole economy is still growing. Electricity consumption, tax revenue and the income of ordinary people have increased. There has been no unemployment. Therefore, we call it "partial financial turmoil, which will not have a big negative impact on the overall situation and the long term". A local leader explained this in an interview.

The head of the local economic department analyzed that there were more than 80 thousand private enterprises and two hundred or three hundred dangerous enterprises in Wenzhou in February this year, but only 0.2% to 0.3%, and most of them were small and micro enterprises. The number of newly registered enterprises is obviously more than that of the cancelled enterprises. Even in the most representative month of October last year, the total number of enterprises cancelled, including difficulties and failures, was 300, but the number of new businesses was more than 1400.

According to the information provided by the Wenzhou branch of the people's Bank of China, the non-performing loan ratio of the city's banking institutions at the end of last year was 1.3%, an increase over the previous period, higher than that of the 1% of the national commercial banks in the same period. This non-performing loan ratio increased considerably from the end of 9, showing a monthly upward trend in the fourth quarter of last year and the first increase in the past 10 years. But it is undeniable that, according to the international standard of banking standards, this non-performing loan ratio is still at the international advanced level.

When we approached nearly 100 business executives, we had some "very little influence" when answering questions about the impact of the storm on their own enterprises. Some of them had little influence, and others were looking for opportunities in danger. Even for the "future impact", these entrepreneurs almost unanimously call "no worries". This provides a strong evidence for journalists to judge the overall survival of enterprises in Wenzhou.

The other parts of the economy have not yet been abnormal in the information we are trying to gather. Data show that in 2011, Wenzhou's GDP reached 335 billion 100 million yuan, an increase of 9.5% over the same period last year, slightly higher than that of our province and the national average level. Investment, consumption Exports grew steadily. Although the growth rate of industrial production in Wenzhou showed a downward trend last year, the overall growth rate remained stable. The total industrial output value of Industrial Enterprises above Designated Size reached 430 billion 300 million yuan, an increase of 12.6% over the same period last year, and achieved an industrial sales value of 419 billion 440 million yuan, an increase of 13.1% over the same period last year, and the industrial production and marketing rate reached 97.5%.

No increase in residents' income has been observed.

Last year, the per capita disposable income of urban residents in Wenzhou and the per capita net income of rural residents reached 31749 yuan and 13243 yuan respectively, which were higher than the average level of our province, which increased by 13.6% and 16% respectively. After deducting the price rising factors, the actual growth rate was 7% and 9.9% respectively.

Kangnai's shoe making output increased by nearly 30% compared with the same period last year. This year, the average unit price was increased by six or seven US dollars to 30 US dollars. Data from industry associations show that Wenzhou system was made last year. shoes Annual output value of 83 billion yuan, an increase of 6.41% over the same period. The clothing industry is better than that. Semir's output value reached about 6000000000 yuan last year, up by 20% over the same period last year. The number of women's clothing enterprises that won by brands has maintained more than 50% growth. According to statistics of Wenzhou clothing chamber of Commerce, the output value of local 157 garment manufacturers last year was 26 billion 900 million yuan, up 25.6% over the same period last year. Until now, in the seemingly ordinary traditional industries, the competitiveness of Wenzhou enterprises can not be underestimated.

After the new year, the sound of the rumble continued in all parts of Wenzhou. According to the Wenzhou Municipal Commission for letters and visits to key enterprises in counties (cities, districts) and development zones, online surveys show that more than 90% of enterprises are already in operation before the end of the month.

"Over the years, many enterprises in Wenzhou have been bigger and stronger, with a large scale and ability to resist risks." A large number of well-known entrepreneurs such as AOKANG, Kangnai, Jiangnan holding group and many new generation entrepreneurs expressed the same voice. Perhaps this is a true portrayal of the ability of Wenzhou enterprises to resist risks.

Under the trend of multiple factors, "stand firm"

"If I can do it again, I will do my best job." Hu Fulin, a symbol figure of this financial turmoil, told us. Although he does not think that entering the photovoltaic industry is a mistake, there are new rules in mind.

"Profit seeking is the nature of capital. As for profit or profit, it can only be decided by the entrepreneur who controls capital." A local leader replied to reporters about the diversified investment problem of Wenzhou enterprises.

With regard to whether investment is diversified or single and reasonable and effective, economists and enterprises have been arguing so much that they can only be determined by the controlling power of investors. Some people blame Wenzhou enterprises for their misconduct in real estate, coal and coal mines. But Wenzhou entrepreneurs understand that any kind of investment may be completely different from that at that time. Whether the high profits can be collected depends on the strength of its market game and the right risk control.

Wenzhou enterprises are willing to invest a lot, which is determined by factors such as Wenzhou's economic development space, highly active private capital and unique regional culture characteristics. In fact, Wenzhou enterprises, like other enterprises in other parts of the world, have many successful cases of diversified investment. {page_break}

Of course, this financial turmoil has taught Wenzhou enterprises a lot of investment. Some "run" entrepreneurs, except those involved in gambling, are mostly regretful. If we continue to stick to the main business, there will be no accidents. The implication is that the risk of diversification is not yet in control.

In the trend of investment diversification, we see more of the overall image of Wenzhou enterprises adhering to the main business.

A joint-stock bank in Liushi, Yueqing, issued more than 200 loans to local enterprises, and none of them ran away. The governor told reporters that because these enterprises are engaged in the real economy, bank loans are also mainly loans to enterprises that adhere to industry. Similarly, there are no such "running" events in the more than 600 large scale enterprises with relatively high level of industry and the Wenzhou economic and Technological Development Zone. The leaders of the Development Zone consider how to build a platform to meet the increasing demand for employment.

New domestic electrical contacts Material Science Wenzhou's Hongfeng, the first listed company in the industry, is being held by the two brothers, who are also eyed by Chen Xiao.

In a small conference room filled with technical books, the two brothers told us that the company invested all its capital in the main industry, and the breakthrough original technology was upgraded from the traditional "silver point" to "electric contact functional composite", which greatly improved the product performance and reduced the cost by half. It is said that the important scientific papers produced here were employed by top professional international conferences, and the invention patents have been awarded 18 items. The announcement shows that the annual compound growth rate of the company's net profit from 2008 to the first half of last year reached 122.6%. The company's recent earnings bulletin showed that total business revenue increased 78.84% in 2011, and total profit increased by 85.77% over the same period last year. The two brothers attributed this achievement to "concentrating the dominant force to fight the war of annihilation".

According to the reporter's understanding, nearly 4000 regulated enterprises in Wenzhou City, apart from the problems of individual enterprises, basically did not appear more serious problems, the fundamental reason is that these enterprises can adhere to the main industry, and the main business development scale is relatively large, and the ability to fight risks is relatively strong.

All circles in Wenzhou, especially entrepreneurs, have repeatedly stressed to reporters that a lot of enterprises and individuals in Wenzhou are engaged in diversified investment. However, it can not be concluded that Wenzhou enterprises are leaving the main business, engaging in diversified investment and leaving the real economy in the virtual economy. If we look at Wenzhou enterprises in this way, it is a big misunderstanding. Wenzhou enterprises attract more than 3 million migrant workers every year. Recruitment is not satisfactory this year, and workers' income is relatively high in the whole country. This proves that Wenzhou enterprises are sticking to the main business and the real economy.

At the same time, they also stressed that Wenzhou's relatively diversified investment is determined by the relatively narrow economic development space in Wenzhou. It is decided by the abundance of private capital in Wenzhou. It is their choice as a main body of a single market, and is a legitimate market behavior under the state law.

Of course, this private financial crisis has struck a warning bell for Wenzhou's diversified investment. In the conversation with reporters, many Wenzhou entrepreneurs said that Wenzhou people gained the biggest consensus from this financial turmoil, that is, the main business is the foundation of their own business, and the main business is strong enough to resist the storm. Even some mistakes in the pluralistic field can be made up by the "big brother" of the main business.

For fear of uncertainty, a group of clothing entrepreneurs collectively discuss ways to do well in the main business, and stick to it, though not easy, but do not give up, and let the survival be more realistic. This is not a rejection of any non staple business investment, but Wenzhou entrepreneurs do not want to let sensitive smell dominate everything, but consciously cultivate rationality to control risk. No matter how the media speculate on another investment new project of "French School", chairman Peng Xing insisted on cultivating the clothing industry with 99% energy, while the other more attractive investment such as real estate development, financial services, mineral resources, network technology, cultural media and so on were asked by professionals. Some entrepreneurs clearly define the main industry and auxiliary industries, and adhere to the principle of coordinated development between the main and the subsidiary in operation.

It can be expected that after this private financial turmoil, Wenzhou enterprises will stick to the main business and the real economic development path and become more solid and diversified investment will be more rational.

"Low and small", spanformation and upgrading seek "change"

Commodity to currency is a dangerous leap. If it falls, then it is not only merchandise that breaks but is the owner of the commodity. What Marx said in "Das Kapital" has another meaning for today's Wenzhou enterprises. The storm made them not want to repeat the last jump, but to open a new leap.

Our investigation in Wenzhou not only wants to see clearly the Wenzhou economy in this storm, but also wants to see how the market players in Wenzhou are fighting against the storm, and what changes will lead to in Wenzhou's leading industries.

The original leading industry is not easy to live. Shoes, lighters, clothing, fasteners... These "Wenzhou manufacturing", which once supported Wenzhou's rapid economic growth, is no longer honored. {page_break}

With the squeeze of the cost and the market, profits continue to shrink. An entrepreneur even uses "thinner than the razor blade" to describe, and others have no choice but to quit. It seems that Wenzhou's shoemaking enterprises are lucky. In recent 17 years, there are still 2616. But the fastener industry in Wenzhou has disappeared in 1000 years in 1 enterprises, and Wenzhou lighters enterprises have returned to 4000 from the most brilliant period. Like this "low and scattered" Wenzhou goods, what else can it change?

When we were exploring all parts of Wenzhou, most of the Wenzhou enterprises that had just started the new year were trying to "change a living method". The first phase of the civil financial turmoil in Longwan District, the second week after the Spring Festival holiday, has reached 87% of the operating rate. It has swept the shadow of the slowdown in the total industrial output value above the scale last year. Walking into the workshop of Jiangnan Valve, Huang Zuoxing, chairman of the board, guided us to see all kinds of new products at the same time, and talked passionately about such terms as "supersonic" and "sensor". When we skillfully explained the operating mechanism and technical specifications of various valves, we did not forget to remind these new products that they were not yet open. This year, another key product in the nuclear sector will be industrialized, and two new products will be developed.

In February 16th, a number of private entrepreneurs in small and medium-sized traditional industrial enterprises, in a conference room of the Longwan district government, accused the current economic operation of some "inappropriate times", and expressed their way of survival with impassioned enthusiasm.

What else can be done after the technology upgrade? Li Qizheng, chairman of East Asia valve, will turn a lot of energy to close contact with the end customers. It flew 10 times a week about 15 thousand kilometers before the Spring Festival. Ali Gia Bnnie, who is mainly exporting to the US market, plans to sell some high-grade shoes for sale this year, and commissioned a French company to plan for the brand.

Wenzhou shoe leader Kangnai's nearly 20 thousand yuan single price customized shoes appear in the five Horse Street chain store, the clothing industry bigwigs o Bon Ni is advocating a new consumer culture, so that people not only buy clothing, but also customize clothing.

For the big shuffle that may happen in the fierce competition, Wenzhou bosses who are struggling to get out of the competition are no strangers at all. As Li Yanhui, consultant of the clothing trade association, said, shuffling will give up skilled workers, technicians, and give up market share, and all the resources of all the fallen enterprises will become fertile soil for the new generation of clothing enterprises.

It has been noticed that some powerful enterprises in Wenzhou can tear down the "low and small" labels and catch up with the tide.

The "pain" of the low value added product of electronic components is cheering for another new cause, water equipment. According to Chairman Zhu Jincheng, the reason why he did not invest in real estate is that the profit margin of new industries is not lower than that of real estate. The product may be able to understand it in the workshop. A direct drinking machine called "the world's first super intelligent control hot and cold mini bar" has completely changed the appearance of our drinking machine, which is more like a coffee machine. In fact, many products have such titles as "the world's first" and "the world's first". Not long ago, a product also won the "2011 China Innovation Red Star Award". AOKANG, which has been latent for 8 years in biopharmaceutical industry, has produced rabies vaccine, epidemic cerebrospinal meningitis vaccine and many other products. Wang Zhentao, the head of the company, said that as soon as this goes on, all the investments in the early stage can be recovered.

In the Longwan area, Zhongke energy, which extracted diesel oil from trench oil and plants, has brought about 100 thousand tons of biodiesel energy and high technology projects annually. This year's output value can reach 500 million yuan. In the Wenzhou economic and Technological Development Zone, Zhongguang technology has become a model of domestic independent innovation and a star enterprise of strategic emerging industries. In Ruian, Huafeng invested nearly 1 billion yuan in profits last year. All of this year's investment has been reproduced. The Chemical Wharf of the gang Zhuang Ao port has been launched. The new material project in Chongqing will soon be put into operation, and the insulation materials will be pushed to the whole country. Such stories can last for days.

Indeed, enterprises in many real economies in Wenzhou have laboriously worked hard.

99.5% of the enterprises here are small and micro businesses. They were recruited for a little bit when they grew up a little, making Wenzhou become an incubator for small and medium-sized enterprises. Because Wenzhou has not provided land and environment for these enterprises to expand.

There is new room for adversity to break through. New urbanization is becoming a new battleground for Wenzhou's economy. It is said that to promote the construction of an ecological international modern metropolis, we need to build a new platform for the spanformation and development of Wenzhou, and provide wider space for the majority of entrepreneurs. Under the development orientation of ecotype, international and modern metropolis cities, a large number of platforms and new Highlands for urban and industrial development are being built, and the new urban areas such as Oujiang Estuary new area, such as the financial agglomeration area, and all kinds of modern service industry gathering areas, cultural creative and pioneering Parks and modern agricultural parks are being promoted.

The construction of metropolis driven by new urbanization also accelerates the modern service industry. In Lucheng, Jin Zhe, the new president of Jintai group, who returned from the United States, led us to the Wenzhou clothing market with many years of history and depicted the blueprint for his new idea. It is said that in the second half of this year, more than 2 billion yuan will be invested to upgrade the professional market to a square complex. Many new gadgets such as high-end business hotels and shopping centers will be integrated into it. The operators will undertake internal and external orders in the office space of a building.

Huang Weijian, chairman of the Wenzhou nongovernmental capital service center, delighted with all kinds of signals. "The golden period of development of the third industry is coming."

When someone questioned the question of whether or not to save Wenzhou, the Wenzhou people responded that "we do not need to save you, we have strong vitality". Although they also want to be protected by society, self-reliance and self-improvement will always be the first option. Therefore, when they were not afraid of the pain, when they invariably stated that "this pain is better than the late ones", when they made the same statement that they would get better and better, we clearly felt that they would not like to talk about yesterday's story, they were looking for directions from the dangerous situation, trying to break through a new road, make themselves reinventing themselves, and work together to rebuild a new Wenzhou.