The Death Of Jiang Long Has Exposed The Crisis Of Shaoxing'S Textile Industry.

In recent days, the Zhejiang Jiang long holding group Limited (hereinafter referred to as the Jiang long group) has heard the news of the missing couple of the legal representative.

In October 7th, the group ceased production.

On the 8 day, it issued a short notice on "China printing and dyeing" issued by Singapore listed companies, asking for a 1400 hour suspension.

In October 10th, the Shaoxing Keqiao Development Zone Management Committee dispatched a working group to the group and convened relevant parties to discuss the reorganization of assets.

This exclusive investigation shows that the total assets of the group are 2 billion 200 million yuan. At present, only two core enterprises, Zhejiang Jiang long textile printing and dyeing Co., Ltd. (hereinafter referred to as Jiang long printing and dyeing) and Zhejiang Southern science and Technology Co., Ltd. (hereinafter referred to as southern science and Technology), have liabilities of 1 billion 150 million yuan.

According to incomplete statistics, the group's external guarantee, private lending and supply chain arrears totaled about 2 billion yuan.

In October 11th, the Shaoxing police controlled a dragon guarantor with the evidence of escape. But Tao Shoulong and Yan Qi, the founder of Jiang long, are still missing.

At present, at least 4 creditors have sued Jiang long and its guarantor to the court.

　　陶氏冒險“過江”

Referring to the 4 million 670 thousand yuan loan owed by Jiang long, Feng Xingquan, chairman of Shaoxing Zhen Xi dye Co., Ltd. has a headache.

Feng Xingquan and Tao Shoulong have some personal relations.

According to him, Tao Shoulong graduated from Taixing University in Jiangsu and went to Shaoxing to develop textile raw material business in her hometown.

Founded in April 2003, the couple served as chairman and CEO respectively.

Tao focuses on project investment and daily production, and Tao wife and Yan Qi are in charge of trade.

At that time, Shaoxing County identified the textile industry as a pillar industry, and formulated a series of supporting policies, which made the Dow couple who boast of "crossing the river dragon" like a duck to water.

In August 2004, Jiang long went into operation and exported 20 million US dollars in that year.

In 2005, sales volume broke through 600 million yuan and net profit amounted to 70 million yuan.

In April 2006, Singapore's Temasek Investment Holdings and New HorizonFund, a joint venture established by Japan's Softbank, signed a contract for the printing and dyeing of Jiang long for 20% of its $7 million cash.

In September 7th of the same year, Jiang's "China printing and dyeing" was officially listed on the main board of Singapore. It issued 113 million shares and the issue price was 0.27 yuan / share. On the same day, the stock opened at 0.40 yuan / share. Tao Shoulong became famous overnight and became the leader of Shaoxing's printing and dyeing industry.

In 2007, the new more than 40 thousand square meter production workshop was set up by Jiang lung, which invested 220 million to purchase 10 3.2 meter door width special printing lines from abroad. It became the largest home textile and wide scale printing production base in China and even in the world.

According to the web site of the dragon group, there are 8 members, including textile, printing and dyeing, clothing and trade, with total assets of 2 billion 200 million yuan and more than 4000 employees, with sales of 2 billion yuan in 2007.

At the beginning of this year, Tao Shoulong planned South technology to be listed on NASDAQ in the early October.

However, at the end of last year, banks tightened up, and the bank recovered more than 100000000 of the group's loan and reduced the new loan amount, which had a great impact on its cash flow and normal operation.

In the case of financial difficulties, Tao Shoulong took the risk to seek private lending and embarked on a road of no return.

　　江龍的債務窟窿

As early as the beginning of this year, Jiang long had already shown the problem of capital shortage.

During the Spring Festival, many executives of Jiang long got a "white" year-end award, and the promise was that they would honor the year-end bonus by May 2008.

In July 22nd, when Tao Shoulong attended the entrepreneur forum organized by the Shaoxing county government, he said that the company should cut costs and increase revenue and reduce expenditure, and push South Science and technology to be listed as soon as possible.

"The goal of Tao Shoulong's acquisition of Southern technology is to go public."

Zhou Dawei, the owner of Shaoxing chemical fiber raw materials, told our reporter that, however, the global economic downturn and the stock market bear bear the prospect that the listing of technology in the south is far from being expected.

So, how big is the debt hole of Jiang long?

This exclusive survey shows that only the liabilities of Jiang long printing and dyeing and southern technology reached about 1100000000 yuan.

By the end of 2007, the total assets of Southern science and technology were 898 million yuan, bank liabilities totaled 519 million yuan, owners' equity 378 million yuan; as at the end of 2006, the total assets of the printing and dyeing company were 1 billion 83 million yuan, the total liabilities of banks were 637 million yuan, and the owners' equity was 446 million yuan.

According to incomplete statistics, the group's external guarantee, private lending and supply chain arrears totaled about 2 billion yuan.

Among them, the southern technology involves at least 526 million yuan of guarantee amount and foreign currency, guaranteeing a total of 29 contracts. Jiang Long's printing and dyeing involves at least 677 million yuan guarantee and 54 contracts guaranteed.

Jiang Long's financing target is about more than 300 local small and medium-sized textile enterprises and individuals. Most of the reasons for borrowing are loans. The longest time is not more than 1 months, the shortest is even one day.

Interest on loans rose from 3 to 8 at the beginning of the year.

Take 1 million as an example, the monthly interest rate is 8 points, and the interest rate in one year is as high as 960 thousand.

The Dow and his wife launched a self rescue operation.

Jiang long, an internal Jiang long newspaper published in June 30th, said that this year, it could receive nearly $300 million in domestic and foreign financial support.

Jiang long and SamSung group of Korea set up a strategic alliance. The 35 million yuan that Jiang recently purchased for raw materials from abroad is fully paid by Samsung.

In July 31st, Shaoxing Daily reported that Jiang had invested 450 million yuan in technical renovation funds since last year, and became the production base of uniformed 76 universities in the United States.

"In the first half of this year, sales and taxes increased by 165% and 330% respectively."

Then, Jiang promised to the creditors, "200 million shares will be issued according to the plan, and the share price will be more than 4 dollars, and about 20% will be issued. The first phase will raise about 160 million US dollars, and the sponsor will guarantee every two and three periods of financing after the listing, with no less than 50 million dollars per time."

With the release of such positive news, the Shaoxing county government has already intervened in the debt problem of Jiang long.

At the end of July, the Shaoxing county government convened two large local enterprises to discuss with them about one hundred million of the loan to Jiang long, and this sum of money went to the special account of Jiang long in August 4th.

But the money was soon spent.

In August 23rd and September 1st, the government held two meetings on Banking and enterprise cooperation and hoped that the 23 credit banks would "pull together".

In September 6th, the government convened a meeting of 8 enterprises to guarantee loans from the Bank of Hong Kong. All 8 were local businesses.

A company that guarantees the most guarantees a guarantee of 450 million yuan.

But in September 15th, the bankruptcy of Lehman brothers in the United States appeared, and the Southern Technology listing program collapsed.

However, this did not affect the local government's plan to save the market for Jiang long.

In September 18th, the Keqiao Development Zone Management Committee issued a "policy statement letter" to the creditors of the Yangtze River. The government will give policy support to the dragon group. First, the Jiang long group (including its subordinate enterprises) stripped part of the non principal assets for the purpose of "slim down and healthy body", and both sides should carry out the policy support of the assets paction tax, production, business tax and local retained part.

Secondly, on the basis of increasing the cash flow of 200 million ~3 billion, Jiang agreed that the industrial land of South Science and Technology located in Ke Bei should be changed to commercial and residential land, and that part of the supporting policy of land leasing should be retained.

However, the manager of the Fund Department of Jiang long found that all the money coming back from the financing didn't even pay interest; the foreign trade manager found that several high foreign payments did not seem to have entered the company's headquarters account.

"Jiang's purchase price from South of Jiangsu is 10 yuan per metre, 9.8 yuan sold to Shaoxing, and the cost of some printing and dyeing orders is 2 yuan and one meter. He asked the other party to pay 1.8 yuan in cash.

It's not about money.

Zhou Dawei said, it was found that Mercedes Benz 200, which was worth 2 million of Tao Shoulong, vanished, and Yan Qi's 1 million 750 thousand value of the Lu Hu off-road vehicle was gone. Even Tao Shoulong's worth of millions of golf club membership cards also appeared in others' hands.

In September 30th, when the manager of foreign trade department went to inspect the export bin, the old worker in the boiler room asked, how did the information of the finance department pour into our boiler and burn it?

Later, it was discovered that all financial accounts in the late Jiang long period were burned.

In October 4th, Dow and his wife disappeared.

Three days later, Jiang long ceased production.

There are rumours that Dow may pfer huge sums of money to overseas accounts.

Since its establishment, the group has invested about 1 billion yuan, and its liabilities have been conservatively estimated at 2 billion.

　　政府接盤？

In October 9th, with the efforts of the Shaoxing county government working group, more than 4000 staff of Jiang long had received 8, 9 or two months' wages.

The amount of funds is roughly 10 million to 20 million yuan, which is first paid by the government.

On the morning of 9, a number of private creditors jointly signed a submission to the government.

Preliminary statistics show that their lending funds have reached 800 million.

On the 10 day, the working group arranged for some suppliers to make reconciliation.

Shaoxing county government working group responsible person said, Jiang long is a private enterprise, all problems should be solved through the market rules, the government can only coordinate from it, if the coordination fails, suppliers still have to take legal channels.

But some suppliers disagree.

They believe that the government should come forward to reorganize or debt to equity swap to save the dragon. If it is not handled properly, the crisis of Jiang long will be a heavy blow to the entire Shaoxing textile industry chain.

In 2007, Shaoxing's total industrial output value was 51 billion 200 million, of which the textile industry accounted for 50%, and textile exports amounted to 6 billion 644 million US dollars, accounting for 48.1% of the total export value of the city.

The first textile network editor in chief Wang Qian said that the capital chain breakage of Jiang long holdings is actually a reflection of the current situation of the entire textile manufacturing industry.

Data show that in 1-8 months of this year, the profits of textile enterprises above Designated Size reached 73 billion 960 million yuan, down 33.79 percentage points from 1-11 months last year, the lowest growth rate since 2001.

"The capital problems of some large enterprises are serious, and they are expanding very rapidly in the early stage. Once they are tightened up by the national fiscal policy, capital shortage or even bankruptcy is inevitable."

Since last year, under the interweaving of multiple factors such as macroeconomic regulation and control, the survival pressure of Zhejiang private enterprises has been highlighted.

Statistics of Zhejiang economic and Trade Commission show that in the 1-5 month of this year, there were 1.07 loss Enterprises above Designated Size, with a deficit of 19.6%.

One supplier told reporters that in the upsurge of the last round of development zones, there were many enterprises similar to Jiang long holdings, which expanded by enclosure and made loans and imported equipment.

"The government supports the development of some enterprises by building blocks. They are big but not strong, and are faced with a huge test of the new cycle of recession."

In this regard, the head of the Keqiao Development Zone Management Committee said frankly, "the acceleration of the era of high cost has tortured the development mode of the economic development zone.

Our way out is pformation and upgrading, negating extensive management, and innovating strong industries and increasing efficiency.

In October 11th, this newspaper tried to contact Xu Huanming, Secretary of the Shaoxing county Party committee many times, but there was no reply.