The First Case Of Chinese Enterprises Is In The Financial Turmoil.

One of the world's largest toy industry and commerce, one of the two factories of Hejun group, has been closed down, and 6500 employees are facing unemployment. This is the biggest case of the collapse of Chinese entity enterprises, which is affected by the financial crisis.

An expert analysis pointed out that "from the impact and visibility, it can be said that the U. S. financial crisis has affected the collapse of China's real economy, the first case."

Yesterday, a piece of paper announcements will push the group to the forefront.

Among the five brands of the world's toys, Hejun is already the manufacturer of three brands. Why did the factory of such a large company go bankrupt?

Hejun has two factories in Zhangmu head, the total number of employees is about 6500. Hejun also has large factories in Qingyuan, Guangdong. Hejun is a Hong Kong listed company, playing a decisive role in the toy industry. Among the world's top five brands of toys, Hejun is already the three brand manufacturer.

How can the factory of such a large company suddenly collapse?

Zhangmutou Hejun toy factory closed down

At noon yesterday, a BBS named "Sunshine Community" suddenly appeared with a clear picture. A notice on the picture was particularly dazzling.

"A cloud of clouds appeared in the sun", "the collapse of the tide swept across Dongguan", the contents of the announcement drew a lament from netizens.

The notice was inscribed on the "Zhangmutou town people's government". The time was "two, 00, eight October 15th". The content was directed against "all employees of Hejun factory": "because of the poor management of the enterprise operator, the enterprise closed down.

At present, the town government has set up a special working group to make every effort to solve your wage problem.

According to sources, the factory worker of Zhangmutou Jun Jun toy factory went on strike the day before August to recover wages.

In the afternoon, wages were paid in August, and wages in 9 and October were still not paid.

The above public announcement is committed to: "three days to deal with, solve the problem."

The daily economic news was confirmed yesterday from the office of the government office in Zhangmutou town, Dongguan. The Zhangmutou Hejun toy factory has been closed down.

The veteran in the toy industry analyzed that the global economic slowdown was hit by the financial crisis. Although the technology and scale of the enterprise were in the leading position in the industry, Hejun group also failed to circumvent the problems caused by the industry and business environment in the face of the widespread crisis affecting China's export manufacturing industry.

In the toy industry, Hejun group is famous. As the representative of the largest toy factory in the world, it mainly manufactures and sells toys on the basis of OEM (OEM) benchmark, including providing OEM business to Mattel Inc, the world's largest toy company, and famous foundry products including MATTEL, HASBRO and so on.

Affected by the financial crisis

Some experts pointed out that the products of Dongguan Zhangmu factory were sold to the United States, and its collapse was obviously affected by the financial turmoil and subprime mortgage shocks. From the influence and visibility, it can be said that the first case of the US financial crisis has affected the closure of China's real economic enterprises.

Chao Gang Ling, Dean of the school of international business management, Shanghai University of Finance and Economics believes that the foundry industry is most affected by the financial crisis.

Data show that the first 8 months of China's toy exports this year, though 5 billion 100 million US dollars, have increased by 1 percentage points over the same period last year, a sharp drop of nearly 22%.

The situation in Dongguan is even worse. In the first half of this year, Dongguan's toy exports amounted to 550 million US dollars, down 1.5% from the same period last year, becoming the first decline in recent years.

According to public information, the toy industry has formed 70% of the world's toy production, 70% of Chinese toys Guangdong, and 60% of Guangdong toys Dongguan.

An open China Customs report points out that toys are traditional labor-intensive products. Since the beginning of this year, domestic raw materials and labor costs have risen, RMB appreciation has accelerated, financing difficulties have been reduced, export tax rebate rates have been lowered, and foreign inspection fees have increased.

"It's not easy now," said Professor Chao Gang Ling, who is familiar with Hejun group. He is now known as one of the biggest enterprises affected by the US financial turmoil in China. After losing 200 million Hong Kong dollars in the first half of the year, it is not easy to sustain it.

Previously, the company announced last year's "business outlook" that it would continue to suffer from the continued appreciation of the renminbi, the continued rapid rise in raw material and labour costs and the government's reduction in the export value added tax refund.

Under the background of the global economic recession this year, the "prospect" has become a reality.

In October 15th, Hejun group announced the suspension of the "announcement of sensitive information on stock price to be published".

On the 14 day, Hejun group received the lowest price since the listing of HK $0.08.

Compared with the historical high price of HK $2.38 in July 20, 2007, the stock price shrank by 95% in 15 months.

Hu Jinbin, chairman and executive director of Hejun group, which has nearly 40% stake, has also suffered from the great shrinkage of assets. It has shrunk to HK $14 million 340 thousand from the highest sum of HK $426 million 700 thousand.