Zhuang Ji: The arrival of a dark nightmare from the garment industry to the shipbuilding industry

Now, the online news about the upcoming collapse of the Zhuangji Group has buzzed. According to sources, Zhuangji Group is currently in the process of asset liquidation and it has 5 billion bank loans to repay.

In response to the news, Zhuangji executives said in an interview that the Zhuangji Group was not purported to be in the process of bankruptcy or liquidation, but it did have financial difficulties.

Speaking of Zhuangji Group, everyone's initial impression of it came from the apparel industry. Zhuangji suits can be said to be one of the leading brands in domestic men's suits. Last year, their sales reached 2.45 billion.

Since 1993, Zhuang Ji entered the apparel industry and began pushing the concept of "business leisure." For relevant rumors, Zhuang Ji Group apparel business stakeholders in an interview with reporters, said that the current apparel sector is operating normally.

Related parties: Zhuang Kyrgyzstan itself involves a relatively wide range of businesses, including mining, ships, clothing, real estate, and it is an independent operation of each sector, independent accounting, their shareholders are not the same for each plate, are not The same investment customers, and the boss is not the same owner, of course, companies want to diversify the direction of development, this is the direction of the strategic direction of the enterprise, my side is responsible for the clothing sector, here are very benign in the operation, not into questionable.

As early as 2006, Zhuang Ji began to enter a new field - shipbuilding. For Zhuang Ji’s move, the company’s senior executive explained that, in fact, the main industries of many private enterprises in Liuzhou Town in Wenzhou have not been profitable or even losing money for many years. The survival of enterprises depends mainly on foreign investment income. As in previous years, they rely on real estate, logistics, hydro-powered wind power, and mining to realize benefits. It is precisely these new investment industries that have fallen into slumps in recent years.

It is this emerging field that eventually became a nightmare for the Zhuangji Group. As a subsidiary of the Zhuang Ji Group, Zhuangji Shipbuilding Co., Ltd. undertakes the construction of two 82,000-ton freighters, which is the largest tonnage ship in the history of Wenzhou Shipbuilding Industry. It is a pity that these two giants did not bring glory and profits to Zhuang Ji, but it became a deadly burden.

In 2008, when the international financial crisis surged, the international shipping industry suffered a total loss, and the shipbuilding industry naturally was not spared. Not to mention that Zhuangji Shipbuilding Company, which has just started, many large shipbuilding companies are also in crisis.

The owners of two 82,000-ton bulk carriers under construction by Zhuangji Shipbuilding also made preparations for abandoning these two vessels because of serious losses. To make matters worse, the financing bank also claimed a total of 336 million yuan from Zhuangji Shipbuilding with a refund guarantee letter. In the case of tight funding, the two ships may have to be "bad boats."

In the dilemma Zhuangji Group faces, the bank’s attitude is worth pondering. Zhuangji Group executives stated that from November to December, seven banks, including the major lenders, Bank of China, requested a loan of 35 million yuan. This is tantamount to the deepening of the capital chain Zhuangji Group. The high-level official even said pessimistically: "If the bank continues to pull down, I do not deny that Zhuang Ji is very likely to close down."

For this situation, Zhou Dewen, head of the Wenzhou Small and Medium Enterprises Development Promotion Association, said that around him, the problem of SMEs’ ​​financial difficulties is still very serious, mainly related to the bank’s loan withdrawals and credits.

Zhou Dewen: The bank’s performance this year is actually very bad. Since this year, companies have been continuously withdrawing loans and pressure on loans. The banks have taken care of themselves and now their non-performing loan ratios are gradually increasing. Many banks simply disregard the funds of enterprises for so-called self-protection. Situation, draw loans, pressure loans I personally think that is more common, it will result in two loses. Recently, corporate funds have been drawn down, and the capital chain has been broken. As a result, the company's non-performing loans have been shut down. The chain reaction has caused the bank's non-performing loan ratio to rise further. The settlement of this knot has opened the bank and the enterprise has been able to share the same problems.

It cannot be because individual companies may face financial difficulties and can't borrow money, but draw money from other large companies and pressure them. This will inevitably create a vicious cycle, cause serious social problems, and the banks will not be able to discuss the results.

Among the current Wenzhou enterprises, there is a complex "mutual protection" relationship. At present, the Zhuangji Group and other five companies have secured loans of more than one billion yuan each other, and these five companies have more mutual protection relationships with other companies.

Including the Zhuang Ji Group, these six companies involved bank loans worth four to five billion yuan. If coupled with other companies in the supply chain, they owed more than RMB 30 billion in bank loans. Zhuang Ji’s senior management expressed worries: “Once a chain reaction is triggered, most companies are unable to save themselves.”

The senior official also stated that at present, Zhuangji Shipbuilding owes more than RMB 600 million in bank loans, and the total loans of Zhuangji Group are RMB 1.39 billion, together with the RMB 336 million claimed by banks after abandoning the ship, a total of more than RMB 1.7 billion, and the total amount of Zhuanggui Group There are 2.4 billion yuan in assets. However, he was worried that if the company really went out of business, it would be handed over to the bank for disposal. “One dollar can only be disposed of three or four corners.” Zhuang Ji’s assets may be sold off.

On November 19th, Zhuangji Group submitted an “emergency report” to Wenzhou City. Zhuangji said in the report that due to the recent shipowners’ abandonment of the ship, bank loans, and trust crisis of mutual insurance companies, the three were stacked together. Zhuangji Group has pushed an embarrassing situation.

Zhou Dewen, president of the Wenzhou Small and Medium Enterprises Development Promotion Association, also believes that the current Wenzhou Gold Reform has not shown any effect, and some companies have shown yet another round of difficulties in the capital chain. He called for assistance measures.

Zhou Dewen: The golden reform has indeed been more than 200 days. For such a long time, there has been no breakthrough in the reform of the real financial system. The purpose of the reform is to break the financing difficulties of SME financing, but so far, it should be said that this did not play such a role. The role of SME financing has not been solved, many companies have been loaned, pressure on credit, leading to capital chain fracture, facing bankruptcy, financing costs have not seen reduced, in this case, Wenzhou gold reform has come to a very important The key point.

The Wenzhou Golden Reform is not loosened, or the Wenzhou local government functional departments dare not boldly go for a walk, and there are also many companies in Wenzhou who can now say that they are once again faced with financial difficulties and may be even worse before the Spring Festival. Should give rise to a high degree of attention, for some enterprises in trouble, there are targeted measures to help.