Zhejiang'S Economy Is Running Tight And Leather Enterprises Are Facing Difficulties In Survival.

    浙江省經貿委日前發布的《上半年工業經濟運行狀況和發展趨勢》報告中顯示，在宏觀政策從緊、國際經濟波動、通貨膨脹明顯等壓力下，浙江工業經濟處于緊運行狀態。

From 1 to June, the increase in industrial added value and total profits of Enterprises above Designated Size in Zhejiang increased by 5.5 and 17.8 percentage points respectively over the same period last year.

From 1 to May, there were 1.07 loss companies above Designated Size, with a deficit of 19.6%.

According to the statistics of Zhejiang industry and Commerce Bureau, there are more than 1200 enterprises in Zhejiang province shutting down and shutting down business in the first half of this year, which has not been in Zhejiang's history for 10 consecutive years.

The differentiation of industries in Zhejiang is more obvious. Most of the textile industry, especially leather, chemical fiber, clothing, printing and so on, has a large deficit.

Crude oil and refined oil prices fell sharply in the oil processing industry. From 1 to May, they lost 2 billion 890 million yuan from net profit in the same period last year to net loss of 1 billion 550 million yuan.

The food and paper industry has played a price inflation effect, and the profit growth has exceeded 50%. The pharmaceutical industry has been out of the doldrums for 3 consecutive years from last year, and its profit growth has surpassed the peak period of nearly 10 years. The profit of chemical and rubber industry has surged 50%, which is rare in recent years.

In addition, the shipbuilding industry has become the strongest industry in the province. The output value from 1 to May is as high as 10 billion yuan, and the output value, profit and investment growth of the waste and waste materials recycling processing industry are over 40%, 110% and 80% respectively.

Analysis of the UnionPay letter:

UnionPay analyst believes that under tight background and regulatory pressure, SMEs in Zhejiang are experiencing unprecedented pressure:

    首先是企業資金鏈斷裂風險加大

There are a large number of SMEs in Zhejiang province. Since 2007, prices of raw materials, labor, coal and oil pportation have continued to rise, and the market competition for products has become increasingly fierce. The sales pressure of small and medium-sized enterprises has been increasing. A large amount of liquidity has been left behind in the production process, accounts receivable has increased, the capital occupied by inventories has increased, and the demand for funds has increased rapidly.

With the increase of capital demand, due to the intensification of domestic inflation pressure, China has implemented tight monetary policy, and the credit supply of domestic SMEs has been tightened.

Some small and medium enterprises with better efficiency are facing difficulties or even bankruptcy, unable to repay the loan funds.

The leading group of China's sewing machine industry, the "leap Group" in Taizhou, Zhejiang, is in a predicament due to the fragmentation of the capital chain.

Large enterprise groups still encounter difficulties, and small and medium-sized enterprises with poor capital strength are even more difficult to survive.

    其次是外貿形勢惡化打擊浙江出口企業

Zhejiang is a major province of China's foreign trade, and has a huge contribution to China's exports. Zhejiang enterprises export low price strategy, for example, the price of an electric car is only the price of a foreign shoe, while the idea of "heavy export and light domestic sales" has made Zhejiang's import and export structure unbalanced for a long time.

This is in sharp contrast to the import and export structure of Jiangsu's "half of the import and export".

The external dependence of Zhejiang's industrial economy is at the forefront of the domestic economy. Over the years, 30% of the industrial economic growth has come from exports.

However, in recent years, due to the large appreciation of the renminbi, the rising price of raw materials and the rising cost of labor, the export situation of Zhejiang is very serious and its growth rate has fallen to a low level.

In the 1-4 month of this year, the total delivery value of export products of the small and medium-sized enterprises in the province was 252 billion 786 million yuan, an increase of 12% over the same period last year, an increase of 10.67% over the same period last year, which has dropped to the lowest point in recent years.

In April, the delivery value of export products of Enterprises above designated size was 81 billion 332 million yuan, up only 11.2% from the same period last year, the growth rate was the lowest in 1998.

The excessive dependence on exports makes Zhejiang enterprises fluctuate greatly when the foreign trade environment changes.

The appreciation of RMB makes the main business profit margin of Enterprises above Designated Size in Zhejiang province at present only 4.3%.

In addition, because of the disorderly competition of export enterprises and more international trade frictions, many export enterprises are faced with the problem of survival rather than development, and export enterprises are facing a reshuffle.

Finally, the interest rate of private lending is rising and enterprises are overwhelmed.

Because of the tight financial position, many small and medium-sized enterprises can only turn to private lending in order to find financing channels.

At present, the proportion of private financing has risen from 16% in 2006 to 28% in Wenzhou, Zhejiang.

In 2007, the interest rate of private lending in Zhejiang increased rapidly. The weighted average interest rates in the four quarter were 12.30%, 13.69%, 14.53% and 16.84%, respectively, rising 0.76, 2.76, 3.58, 4.76 percentage points respectively, and the rise was obvious.

However, high interest rates may not solve the problem of enterprises.

In 2008, SMEs in Zhejiang were overwhelmed by loans and usury.

Taizhou has already seen 15 cases of escaping usury from its failure in operation. The legal representative of Shaoxing Shangyu Green Textile Co., Ltd., which was involved in private usury, disappeared suddenly at the end of 2007, and the company ceased production.

Usury can only alleviate the temporary financial strain of enterprises, but because of the weakening economic situation at present, the low profitability of enterprises and the inability to repay the high interest debt due to maturity, it is inevitable for enterprises to go bankrupt and bankrupt.

UnionPay analyst cautioned that the survival situation of SMEs in Zhejiang is getting worse and worse, not only the result of tightening credit, but also the appreciation of RMB, deterioration of foreign trade environment, rising cost, and even the problem of Zhejiang's industrial structure. The differentiation of profits among industries is the best proof.

It is suggested that banks should pay more attention to the advantageous enterprises with high income and profit margins, so as to avoid bigger profits and enterprises with deteriorating financial conditions, and guard against credit risks.