Within a week, two textile-related top 500 private enterprises in Shandong filed for bankruptcy

Over the past two years, Shandong enterprises have been under strong pressure of deleveraging and market capital shortage. Many enterprises are hovering on the life and death line of capital rupture. Just this week, two top 500 private enterprises in Shandong Province applied for bankruptcy, and all of them concentrated in Dongying City, which makes people sad.



1. Shandong Jinmao Group filed for bankruptcy. In 2017, 324 of China's top 500 private enterprises were listed as
.


On November 28, Shandong Jinmao Textile and Chemical Group Co., Ltd. broke out two bond defaults within one day, & ldquo; 15 Jinmao bonds, & ldquo; 16 Jinmao 01 & rdquo; were not paid on schedule.



According to the trusteeship management report issued by Caitong Securities, according to the debt repayment arrangements reached between issuers and investors, & ldquo; 15 Jinmao Debt & rdquo; should be partially paid on November 26, 2018. As of November 28, due to the issuer's shortage of funds, the issuer failed to complete the payment as agreed.



At the same time, the trusteeship report issued by Caitong Securities disclosed that Shandong Jinmao had applied to Dongying Intermediate People's Court for reorganization. Dongying Intermediate People's Court of Shandong Province ruled on November 26, 2018 to accept Jinmao's application for reorganization.



On November 26, the Dongying Intermediate People's Court, on the basis of the debtor's application, decided to accept the bankruptcy reorganization application of Shandong Jinmao Textile and Chemical Group Co., Ltd. according to law, and Shandong Jinmao Textile and Chemical Group Co., Ltd. entered the bankruptcy reorganization procedure.



2. Shandong Dahai Group filed for bankruptcy, ranking 51st among China's top 500 private enterprises in 2017 < br />.


On November 26, the Dongying Intermediate People's Court, on the basis of the debtor's application, decided to accept the bankruptcy reorganization application of Shandong Dahai Group Co., Ltd. according to law, and Shandong Dahai Group Co., Ltd. entered the bankruptcy reorganization procedure.



Dahai Group has been in Qilu for 30 years, ranking 217 of China's top 500 enterprises in 2018 and 63 of China's top 500 private enterprises. It is regrettable that such a private textile giant ship will go bankrupt and reorganize.



Mutual insurance is certainly one of the reasons why these two large enterprises filed for bankruptcy within a week. Many Shandong enterprises are also deeply involved in the guarantee dilemma faced by Dahai Group and Jinmao Group.



Many bosses lament that business is difficult and the textile industry market is grim. Market bearishness, inadequate demand and low start-up rate are the common suffering of many small and medium-sized textile enterprises.



In the final analysis, the main reasons for the collapse of textile enterprises are as follows:
.


1. Blind price war

Textile enterprises like to fight price war. Some products have very low prices, but competitors will lower prices. Of course, there is no guarantee of quality. Because of price war and vicious competition, many enterprises have little profit and no ability to carry out technological innovation at all. As a result, they can only maintain market share through price reduction and form a vicious circle. In the context of large-scale consumption upgrading and overcapacity, enterprises are still making rude products, seizing the market through low prices, and finally can only enter a dead end.



2. Labor costs are too high

Labor costs are getting higher and higher, and many textile enterprises are facing the pressure of 15% annual wage increase, while the price of products has not increased. The vast majority of enterprises have reduced their staff, but still can not resist the pressure of rising costs. The explicit and implicit cost of labor force has risen sharply, which makes many textile enterprises overwhelmed.



3, chaos guarantee

In the process of business expansion, human relations and mutual support between textile business owners are indispensable, so there is a series of guarantees, which are both glorious and harmful. Banks urge businesses to borrow, encourage them to guarantee each other, and local governments, for local economic and employment considerations, vigorously encourage guarantees. In the environment of overcapacity, when banks start to draw loans, they kill some healthy enterprises just like burning warships.



4, random investment

Textile enterprises are not profitable, many enterprises will invest in some projects unrelated to the main business, the most common is real estate. Enterprises'indiscriminate investment often brings great pressure on cash flow. Once banks draw loans, the consequences are very serious.



5. Transition is not timely < br />.
Overcapacity of textile enterprises in China is a serious problem in general. If it is not transformed in time, it can only go bankrupt. In fact, there is still room for the transformation and upgrading of textile enterprises, for example, they can develop into more specialized areas, or abandon products with low profit margins and focus on products with high profit margins.



6. Environmental protection is not up to standard

Environmental supervision is becoming more and more stringent. If it fails to meet the standards, it needs to be rectified immediately, and a large amount of funds and resources are invested in self-improvement. But many enterprises still only choose “ look at money “, only focusing on immediate interests, but ignoring the long-term development of enterprises, shutdown and bankruptcy will become sooner or later.



Facing the increasingly globalized and open textile market, any country and any textile enterprise are facing opportunities and challenges. In the next few years, whether foreign or domestic, the speed of shuffling in textile industry will only be faster and faster. The domestic textile industry should learn to think, to be flexible and to be innovative so as to remain invincible.