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Pearl River Delta "Collapse Tide" Survey

2011/6/14 14:31:00 122

Collapse tide

"Rumors once again enveloped China's coastal manufacturing industry.

Mr. Yuan Yuan from Hongkong has invested and worked in Zengcheng, Guangzhou, for 20 years. He runs Guangzhou, Carle.

clothing

The Company Limited (hereinafter referred to as "Carle company") moved into the factory building of Xintang town in Zengcheng last year.

Jeans produced in Zengcheng account for 1/6 of the world's jeans production. Recently, media reports reported that a large number of garment factories were closing down.

This makes Mr. Yuan quite doubtful. In his view, the days of the enterprises are indeed very sad, but the "collapse tide" has yet to come.

To this end, reporters in the Pearl River Delta.

Guangzhou

Field investigations in Shenzhen, Dongguan and other places found that enterprises in the Pearl River Delta did encounter more severe difficulties than in 2008 - rising labor costs, rising raw material prices, appreciation of the renminbi, and tightening of money.

In the traditional industries represented by clothing and garment industry, individual enterprises are closing down.

Many high-tech enterprises still have strong vitality, but the bottleneck of financing still gives them the biggest headache.

Shrink and scale hard

"From last October to now, the garment industry has been going downhill.

The company suffered losses.

Our products are exported by 100%, with a profit margin of 10%, but the profit margin of the order is 5%, and the loss of labor cost and exchange rate is less.

Mr. Yuan said, "the garment industry in these two years is still more sad than the financial crisis."

In Mr. Yuan's view, the reason why many enterprises can still support them is that there has been no collapse of the financial crisis in 2008, which is related to the changes in the paction modes of these enterprises.

Due to the fear that the debt can not be collected, the suppliers of cotton yarn and cotton cloth have cancelled their credit pactions for one and a half months, instead of cash pactions.

"Because the garment factory can not credit the raw material supplier's money, it will not appear the phenomenon of bankruptcy before being recovered."

However, the consequence of this is that the size of the garment factory's business has also shrunk due to tight cash flow.

"Before 100 yuan to do 300 yuan business, now 300 yuan to do 100 yuan business."

Mr. Yuan sighed.

And because the plant is rented, it gives him no fixed and effective collateral, and it is difficult to raise funds from the bank to solve the problem of tight production funds.

In the clothing industry, the situation like Mr. Yuan is not an isolated phenomenon.

The owner of another jeans manufacturer said he had been in the garment industry for 7 years, and this year it was the worst business. He had used the previous 3 million yuan to support this year's loss business.

He told reporters that there are indeed some small garment factories in Zengcheng. Due to lack of funds, some of them have been closed down, and the local labor disputes have also increased.

However, figures from the Zengcheng Bureau of statistics show that from 1 to April, Zengcheng's industrial electricity consumption increased by 9%, and Dongguan, which is known as the "world factory", is also implementing the power restriction measures of industrial enterprises that "open five stops two".

Electricity consumption has not been shrunken. It is generally considered to indicate that the overall industrial economy in the region is growing positively, so there will be no "closing tide" of enterprises.

"In fact, a small number of small businesses are eliminated every year, which is a market behavior."

A local official believes that industrial upgrading will inevitably eliminate a number of weak enterprises, but unlike the mainland, the collapse of small businesses in the PRD will not affect local employment, so there is no need to worry too much.

The same is the garment industry. Huang boss of the Wei Peng knitting mill in Changping, Dongguan, says that the company still has little profit.

He owns the property of a four storey factory, and last year he bought a batch of new production equipment from the bank.

In the four floor factory, the workers are working in the heat.

However, "orders fell by 30% this year, when goods were piled up last year, and it was difficult to walk."

Huang said that because he was worried about losing customers, some of his orders this year were driven by his own initiative.

"Now 30% of the order is zero profit, and 70% of the order has 3%~5% profit."

According to him, this part of the zero profit order was taken in October and November last year, when labor costs were estimated to rise by 15%, but in fact it increased by 20%. The price of raw materials was estimated to increase by 10%, but in fact it increased by 15%~20%. At that time, it was thought that the order would have a profit of 5%~10%, but now it turned into zero profit.

In June 2nd, a big garment factory in the neighboring town closed down, which made Huang boss very worried.

It is reported that this enterprise has more than 300 equipment, the plant occupies more than ten acres, the surface looks red and red, but its 70% order losses amount to 10%.

"The whole industry is suffering, and orders are not good for the next two or three months.

It's harder than 2008. "

Huang boss sighed.

This difficulty is exactly the "sequela" of 2008 - the monetary tightening after the loan of the amount of money, and the enterprises are struggling to survive.

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Old and new industries: financing difficulties

Last year and the year before last, Huang bosses borrowed money from banks to upgrade equipment and purchase raw materials. The cost of loans was nearly 10% through guarantee agencies.

"At that time, with this interest rate financing, the company still made profits, but if it is now, the loan will lose 5 points.

We are still very nervous this year.

However, because the loan interest rate is very high this year, I will not consider the loan again. "

The general manager of the company's business department of a joint-stock bank told reporters that in the Pearl River Delta, the minimum interest rate for banks to small and medium enterprises is up to 15% on the basis of the benchmark interest rate, generally floating 30%~50%, that is, the interest rate of 8%~10%.

If we add 3 points of the guarantee fee, it will be more difficult for the traditional SMEs to pay such high interest rates.

"The profits of traditional enterprises are generally around 5%, and such a high interest rate is not enough for traditional enterprises.

A lot of clients have been crying out for me that the funds are tight. Tightening up credit this year may cause some small and medium-sized enterprises to go bankrupt.

The boss of a Taiwan funded electronics factory in Dongguan said: "peers should be very difficult.

The local enterprises are a chain. If there is a part of the enterprises that fail to operate well, they will break down and break down.

However, he said that no such sign has been seen.

Another part of the Pearl River Delta's powerful emerging enterprises are facing the same predicament as traditional enterprises: rising costs of raw materials and labor, appreciation of the renminbi, and declining profit margins.

However, the biggest problem faced by these high-tech enterprises is not survival, but how to develop faster.

Their biggest problem now is the massive financing needed for expansion to meet the tight credit policy of the banks this year.

"Because there is no collateral, we can not get bank loans, we can only rely on our own funds to maintain."

Cai Wenhen, general manager of Guangzhou Guangfu Packaging Machinery Co., Ltd. (hereinafter referred to as "Guangfu packaging machinery") is distressed.

The annual output value of Guangfu packaging machinery is less than 20 million yuan, which is defined as "below scale enterprises" in the Government Statistics Bureau.

Under the same "below scale enterprises", Cai Wen has eight hands, including machinery manufacturing in food and chemical industries, most of which are named "Guangfu".

Even under the current bad environment, Cai Wen still has many orders for these enterprises.

"These enterprises, we have invested 30 million yuan in our own capital, running 3 times a year, and can do nearly 90 million yuan business."

Cai Wen calculated an account: if the funds permit, the business can achieve 150 million ~2 billion yuan.

At present, there are more than 200 people in the factory, with an annual output value of 400 thousand yuan per capita. If the funds are sufficient, the annual output value per person can reach 600 thousand yuan.

"Our company has been restructured for nearly 10 years, and has never been able to get loans from Chinese banks. Even last year, from the Standard Chartered Bank, 1 million yuan loans were granted only 300 thousand yuan, and the loan interest rate was more than 10%."

Now, Tsai Wen is still trying to get loans from the bank, but he says that a fatal flaw in a company's difficulty in obtaining loans from banks is that there is no fixed asset as collateral.

The factory building of Guangfu packaging machinery is located in Haizhuqu District, Guangzhou, but the factory building is rented. Its factories in Panyu and other places are also rented.

The same situation also happened in the Shenzhen City Technology Co., Ltd. (hereinafter referred to as "Jie Neng"), "we signed a lot of contracts, want to loan 6 million ~700 yuan to expand development, found a lot of banks, but because there is no effective collateral, banks are reluctant to lend."

Its deputy general manager Zhang Jianrong said.

Founded in 2007, Czech Republic mainly developed coaxial broadband access equipment, and 24 employees created a net profit of 2 million 720 thousand yuan last year.

However, due to the fact that enterprises pay cash for buying raw materials, and the payment of clients is serious, the repayment usually takes a year.

Xu Changguo, general manager of Dongguan Wei Wang Electronics Co., Ltd., also reflects the same financing dilemma: "10% of the loan interest rate is no problem for us."

The company has invested more capital in the past two years to develop new products such as LED energy saving lamps. Compared with the old products, the company has a better bargaining power. However, the company has a tight fund at present. Because there is no property to mortgage, it is hoped that the bank will be able to obtain bank financing through a 50% mortgage of equipment discount.

But so far, it has not been able to talk with the bank.

At present, SMEs get financing from banks, the cost is generally over 10%, and it is not cheap. Even so, only a few enterprises can get financing.

A joint-stock bank told the general manager of the public business department that, because the risk of small and medium enterprises loans is large, and the performance of large customers has been improved rapidly, banks are more willing to become big enterprises, and they usually stay away from SMEs.

Although the Pearl River Delta has expanded the loan business of medium-sized enterprises in recent years, the risk of small businesses is greater, so lending is still more difficult.

The enterprises surveyed by reporters reflect that the financing problem is mentioned annually and can not be solved every year.

This year, under the environment of shrinking credit, these emerging enterprises, which are eager to expand their capital, are still hard to solve.

Reporters understand that the Pearl River Delta has not yet seen a large-scale "collapse tide" so far, and many enterprises have taken many ways to deal with the difficulties: avoiding RMB appreciation through RMB cross-border trade settlement, introducing talents to improve enterprise management level, striving for more high-end product orders, and pforming enterprises from export to domestic sales and equipment renewal.

In the current situation, the "collapse tide" is most likely to occur in small and medium-sized traditional enterprises without core technology.

Some of them have faced the situation of zero profit or even loss.

The way ahead is still unknown.