"Change Of Life And Death" -- Intervention In "Sleepy" Qingdao Textile

Core tip: in China, the textile industry has a "green sky" theory. "Green" means Qingdao.

However, the once brilliant Qingdao textile industry went to the brink of bankruptcy after entering the 90s of last century.

Today, the spinning and weaving share accounts for more than 90% of the city's total spinning group. The group has 120 thousand spindles and 620 top shuttleless looms, with no shuttle rate reaching 100%, and no joint yarn reaches 100%. The whole group's equipment has reached the world's first-class level.

The textile industry in Qingdao has been developing vigorously.

The change of life and death all stems from the intervention of the Great Wall Ji'nan office in the Great Wall.

Intervening in "sleeping" Qingdao

"We see a new batch of modern factories in Qingdao's textile industry, and a batch of new factories.

However, 4 years ago, the Ji'nan Office of the the Great Wall asset company was not a small problem: the Qingdao textile industry, which had been in trouble, was the bottomless abyss of falling into bankruptcy, or the future of revitalization, to a great extent on how the Great Wall Co accepted the package.

At that time, in the face of complex problems, the Great Wall asset Ji'nan office also did not have a brilliant idea in the chest. "Bad luck, huge assets will be smashed in their own hands. What is more serious is that once the brilliant Qingdao textile industry may fail, tens of thousands of employees are facing unemployment risks and social contradictions will intensify."

"Reality forces us to assume social responsibility and business innovation, so as to give full play to the advantages of the company in dancing the capital cube, and creatively solve the problem."

Hu Jianzhong told reporters when he recalled the predicament at that time.

What is the problem facing the Great Wall assets Ji'nan office at that time?

Since the 90s of last century, textile enterprises in Qingdao have generally suffered from poor management efficiency due to various reasons such as system, management, market and so on. Most of them are in bankruptcy, shutting down or semi shutting down. They are seriously insolvent. They have completely lost the ability to repay debts by relying on their operating income. Qingdao textile industry, which once once had a bright prospect, was plunged into stagnant water.

Saving this great industry that once brought honor to Qingdao has become a serious illness in Qingdao before and after 2005.

After many countless intermediate links, the heavily indebted asset bundle has been pferred to the the Great Wall Asset Management Co.

Look at some of the key accounts and make people sweat.

It contains almost 40 debt enterprises of all textile enterprises in Qingdao, with a total debt of 1 billion 179 million yuan and a total debt of interest of about 2000000000 yuan.

How can this solve the problem of social development and stability? This dilemma is forcing the Great Wall assets to find a good way to "break the cocoon and rebirth" for Qingdao textile.

Looking for a magic wand for capital operation

As the biggest creditor of Qingdao textile system, the pressure faced by the Great Wall Asset Management Co is imaginable.

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If the Qingdao textile enterprises are bankrupt directly according to the general method, what will happen to them? In the face of reporters' questions, Qi Fangqing, assistant general manager of the Ji'nan Office of assets in Ji'nan, analyzed that the problem will be very serious.

First, the textile industry in Qingdao will suffer heavy losses and bear historical responsibilities; secondly, tens of thousands of workers will face enormous survival problems and social instability; third, the 102 billion yuan loan will lose their principal and interest, the state will be damaged, and the interests of the enterprises will be impaired; fourth, the image of the Great Wall Co will be damaged, and the society will think that it is unable to solve the complex debt problem and will not be able to shoulder the social responsibility.

Faced with challenges and facing responsibilities, the Great Wall Co Ji'nan office has entered a first level operational state. They found that the land occupied by Qingdao textile enterprises is the only way to break through this impasse.

And Qingdao is carrying out the cage industry to move the enterprises out of the urban area.

So they soon put forward the operation mode of "reclaiming assets according to the actual value of creditor's rights". The textile company used the land leasing policy and other realizable assets to repay debts in installments.

Hu Jianzhong introduced this idea: first, it can quickly withdraw funds, so that textile enterprises can get new equipment and technology.

Qingdao textile enterprises regain new life

The train of thought has been found, but the implementation must have a down-to-earth solution.

The the Great Wall Asset Management Co, which is good at dancing capital management magic wand, has turned its attention to the "asset management" solution.

The so-called asset management, Hu Jianzhong said, is the concept of enterprise asset management and urban management. With the theory of differential rent, we will fully implement the relocation plan of textile enterprises, use the land price difference between urban land and suburban land to solve the problem of resettlement of employees, and appropriately fulfill the funding needs of debt, so as to create conditions for Qingdao textile enterprises to regain new life.

The relocation of Qingdao textile enterprises will leave more than 1000 acres of valuable land in the urban area.

After repeated consultations between the the Great Wall Asset Management Co and Qingdao Textile General Corporation, we decided to set up Qingdao Liancheng Real Estate Co., Ltd. to develop the land so as to solve the problem of repaying foreign debts of Qingdao textile system and obtaining funds for enterprise development.

After the establishment of Qingdao, the efficiency of home ownership is very high.

In April 30, 2007, Luoyang Road 12 land development project, its "Liancheng garden" project has been successful, although most of the resettlement housing, no money, but it has become the landmark of Qingdao real estate industry.

The head of the Great Wall asset Qingdao project department said: Although the way of assets management for Qingdao spinning enterprises is just beginning, we can see from the recent financial figures that the original assumption is correct, and the recovery of capital and the enhancement of asset value are very optimistic.

It is gratifying to note that textile enterprises have received hundreds of millions of yuan of funds, and more than 20 thousand workers have been properly resettled. A number of non debt and high technology textile enterprises have become a new highlight of Qingdao's economic development.

It is understood that at present, the cooperation between Great Wall Co and Qingdao textile enterprises is expected to go deeper, and their offices in Ji'nan also look forward to expanding the business of the head office.

We intend to take part in the reorganization of enterprises through various ways such as asset replacement, capital injection and so on. We must select the textile enterprises with good prospects for development and the existing Qingdao Liancheng real estate company to cultivate the market. Through the IPO or the existing listed companies' resources, private placement and backdoor listing, we will bring Qingdao textile enterprises to the field of listed companies, establish a modern enterprise system fundamentally, realize mechanism innovation, and create a more brilliant tomorrow for Qingdao textile enterprises.