The Pformation Of Capital Investment To Sewing Machinery Industry Is Difficult.

On the hot summer day, Chinese sewing machinery enterprises collectively suffered from "ice disaster".

According to statistics from the China Sewing Machinery Association to the main production enterprises in the industry, as of the first half of 2008, the sales volume of the enterprises decreased significantly from the same period last year, and the decline ranges from 30% to 50%.

"Last month, I visited 9 enterprises, such as leap, gem, ZOJE and so on. These enterprises are now facing different degrees of difficulty.

From the whole industry, the biggest difficulty now is the shortage of funds. Almost all the small businesses are closed down, and the middle enterprises are in a semi shutdown state. There are also various problems in the leading enterprises. "

Nagata Mihiro, director of China Sewing Machinery Association, told our reporter.

Capital turn

According to the survey data of China Sewing Machinery Association last month, compared with the previous stage, the main economic indicators of China's sewing machinery industry have obviously declined, and the industry profits have shrunk dramatically.

From 1 to May this year, the sewing machinery industry achieved a total industrial output value of 6 billion 100 million, down 21.76% from the same period last year, an increase of 41% over the same period last year, and a 6 billion decline in industrial sales value, a decrease of 20.25% over the same period last year, an increase of 35% over the same period last year, and a 6 billion 700 million decrease in sales of products, a decrease of 27% over the same period last year, and a cumulative profit of 300 million yuan, down from last year, and a decline in growth rate.

Among them, cumulative inventory of sewing machines 500 thousand, an increase of 27.29% over the same period.

At the same time, the growth rate of sewing machinery import and export trade slowed down.

From 1 to May this year, the export of sewing machinery products in China ended eight consecutive years of rapid growth, and the first time there was a sharp decline in export growth.

According to the statistics of the General Administration of customs, the total export trade of sewing machinery in China (excluding pre sewing equipment and spare parts) and parts and components is 780 million US dollars, down 4.88% from the same period last year, the total trade volume is declining, and the import has been shrunk. The import of sewing machinery and spare parts from 1 to May was 150 million US dollars, down 22.89% from the same period last year.

"Many enterprises are turning to seek new development. This is our biggest concern."

Da Mihiro said, "especially the backbone enterprises, began to turn to other mechanical manufacturing areas, such as medical devices, tobacco, automobiles, aircraft manufacturing, and even if we lose confidence in ourselves, it will be very difficult for the whole industry to overcome difficulties."

Gu Liping, deputy general manager of Ningbo development Sewing Machinery Co., Ltd., told reporters: "our total number of orders has dropped by 50% over the same period last year. Now we are under great pressure. We are investing in foreign trade and medical equipment, trying to see if we can develop in other industries."

Last year, in order to carry out diversified operation, ZOJE shares illegally occupied more than 160 million yuan of funds of listed companies, and did not return all the funds occupied until April 21st of this year.

In May 26th, Cai Kaijian, chairman of ZOJE shares, published a letter of apology, saying "sewing machinery and equipment industry is a small industry with limited market size. My idea is that we must cultivate more and better other industries at the group level".

Today, ZOJE group has nurtured ZOJE's kitchen and bathroom shares and two subsidiary companies of the world's steel industry. Cai Kaijian has publicly said: "I will load them into listed companies according to circumstances."

Chen Hongmei, a news and Propaganda Department of gemstone sewing machine group, told reporters: "apart from sewing machinery, the company has invested in electronic control, real estate, financial insurance and other fields."

Difficult pformation

Sewing equipment production leading enterprises leap Group is also frozen.

Since the beginning of this year, banks have tightened their credit and made it difficult to get loans from banks or even turn to "usury" for hundreds of millions of working capital.

However, due to the sluggish business, the leap is unable to repay the borrowed funds.

"The surface of leap events is a problem of capital chain. In fact, there are defects in the management mode and development concept of private enterprises. In the process of development, they only pay attention to scale and do not attach importance to quality. The enterprises and entrepreneurs in this industry are not mature enough."

Da Mihiro said.

At present, 95% of the sewing machinery industry in China is private enterprises, with few state-owned components. Therefore, it is a fully competitive industry, but the industry concentration is very low, and there is a large number of disorderly competition. SMEs are almost entirely dependent on export tax rebates to create profits.

Tian min Yu believes that to eliminate this situation, we must take the road of joint mergers and acquisitions to form a large backbone enterprise.

However, the total output value of sewing machinery industry is only about 40000000000, and the market development space is limited.

According to the reporter, gemstones, leaps, ZOJE, Shang Shang Bei and other leading enterprises themselves are tired. In addition to internal restructuring, external mergers and acquisitions are difficult to carry out.

Chen Hongmei told reporters: "we have merged the 9 workshops into 5 workshops, and we need to digest them slowly, so there is no external merger."

The biggest disadvantage of sewing machinery lies in its excessive dependence on the textile and garment industry and the low and medium product structure.

Most domestic clothing enterprises purchase equipment from abroad, and the closure of a large number of small and medium-sized garment enterprises directly leads to the sharp shrinkage of the domestic sewing machinery market.

To cultivate an independent market is still a "distant goal".

Coupled with the implementation of the tighter monetary policy and the implementation of a series of macro measures, the sewing machinery industry is just as bad as it is. It also tests the limits of the life of this small industry.

"The problem is not a bad thing. We are very hopeful this year."

Da Mihiro said.

"I think there is a misunderstanding of the sewing machine outside. We think that we are producing a simple sewing machine. In fact, it is very high in sewing machine technology. It can produce sewing machines well, and there is little problem in the production of other machinery.

Besides, we are small businesses, so the government tends to ignore it when formulating policies.

I think this industry is a victim of national policy, and the outside world does not understand it.

China's sewing machinery occupies 70% of the world's share, and it is also an absolute advantage in parts assembly. The government should treat it differently, and it should not be cut across the board. "

Da Mihiro appealed to the government to adjust the export rebate rate of sewing machines and increase the loan intensity.

Zheng Lei, senior vice president of investment bank international investment bank, said that most enterprises will withdraw from the market, and a small number of elites will develop towards the high end, and future integration may be just minor adjustments in the industry.

He believes that the industry does not scale as much as technology, even if the market is small, it can earn money. Only in this way can it survive better, but technology input is a hard job.