Wenzhou'S Small And Medium-Sized Enterprises Are Robbed Of Life And Death &Nbsp; Wen Shang'S Road Of Salvation.

This is a test of life and death.

In Wenzhou, Zhejiang, the traditional manufacturing profits which once brought the first pot of gold for small and medium-sized enterprises have fallen again.

Since last June, the annual return on investment of a large number of SMEs in Wenzhou has dropped from 8% to 10% to 1% to 3%. With the tightening of bank credit, the "ischemic" small and medium-sized enterprises have been forced to turn to private lending.

According to the reporter, in Wenzhou's private lending circles, the monthly interest rate is generally 6 to 8 points, the synthetic annualized interest rate is 72% to 96%, far exceeding the annual investment return rate of small and medium-sized enterprises.

This means that in the short term, if SMEs fail to repay private loans, the interest on profits will increase the debt proportion of enterprises, causing capital chain breakage and insolvency.

Some people say that high private lending and financing are like a poisoned wine. SMEs can temporarily quench their thirst, but are doomed to escape the fate of death.

In Wenzhou, where the boss is everywhere, more and more people have been drinking this wine cup.

It is very risky to borrow usury to do business unless it is short term turnover.

Otherwise, only the profiteering industry will be able to repay principal and interest, such as gambling, smuggling, manufacturing fake and shoddy products, investing in real estate and so on.

An insider, who declined to be named, told reporters.

"10 years ago, one year can buy a house, and now it takes 10 years to buy a house."

In front of reporters, Yang Feng, general manager of a glasses factory in Wenzhou, opened his speech.

The middle-aged man, who is slightly bloated and wearing a leopard print shirt, has been doing business for more than 20 years. Unfortunately, the old industry experience has not helped him get rid of the embarrassing state of half stop work and half start.

Reporter survey found that in the rise of raw materials, appreciation of the renminbi, wage surge, labor shortage, energy saving and emission reduction and increased financing costs and other multiple pressures, the profits of SMEs in Wenzhou are generally squeezed, and the plight of survival is once again highlighted.

"Since the Spring Festival this year, a worker's salary has increased by four hundred or five hundred per month, and the cost of light wages has increased by more than ten thousand."

Yang Feng told reporters that before and after 2000, the profits of enterprises reached 30%, and then expanded, and the profits were not as good as a year.

According to the annual income of 500 thousand yuan, in the past, we only need to produce two thousand or three thousand pairs in one day, but now we must make ten thousand pairs every day, and the profit falls to 5%.

Yang Feng's eyeglasses business, all the orders from abroad, the brand is the customer, this kind of OEM SMEs are very common in the local.

Production costs continue to rise, coupled with the appreciation of the renminbi, the profits of the spectacle factory are being squeezed again and again.

And if the corresponding price increases, Yang Feng's glasses do not have a competitive advantage, "orders are likely to flow to Vietnam, Kampuchea and other countries."

"The average annual return on investment of SMEs in Wenzhou ranges from 8% to 10%. Now it has slipped to 1% to 3%. There is a bit of trouble. Private enterprises will lose money, and losses can be sustained in the short term. They will not be able to endure any longer, and they may go bankrupt."

Zhou Dewen, President of Wenzhou SME Promotion Association, said in an interview with reporters.

"Our profit has dropped by 50%, worse than 2008."

Wang Wen, who is engaged in the import and export trade of garments, told reporters that the rate of return on investment in the past year was about 10%, and now it drops to 5%.

"Now that orders are annoying, it is difficult to sign and sign. If you sign it, you will be afraid that the cost of production will be too high in the future, and you will lose money at the fixed price. If you do not sign it, a good customer will slip away."

In the past, orders were the happiest thing for her.

In order to reduce costs and control risks, she will shorten the delivery time, only within three or four months of the list, and no longer the order of cotton yarn quality, replaced by a relatively affordable polyester.

Like Wang Wen, Yang Feng will limit the order delivery time to 50 days, and the order beyond half a year or one year is not acceptable.

What is more urgent is that some capital chain breaking enterprises unfortunately fell to the brink of collapse.

Over the past few years, three well-known small and medium-sized enterprises in Wenzhou have gone bankrupt or bankrupt, and the heads of enterprises have been forced to flee to the outside world, leaving an indefinite huge debt.

In mid April, Wenzhou broke out the news that the three flag group of Yueqing's old brand enterprise was on the verge of bankruptcy, and Huang Huang, the owner of Jiangnan Leather Co., had absconded.

In April 19th, Portman, the Wenzhou restaurant chain brand, and Yan Qin, the owner of Hong Kong's Shang Ji, suddenly failed to get married, and became another protagonist of the Wenzhou private enterprise's capital chain breaking incident.

It is understood that the three flag group, a veteran enterprise with cable production, has broken up the capital chain due to the arrears of up to 123 million yuan of bank loans. Most of its fixed assets in Yueqing, Wenzhou have been frozen or pferred.

Yan Qin, a Western-style restaurant, a Chinese restaurant, a fast food restaurant and a hotel, fell to Portman and Hong Kong's Restaurant kingdom.

Almost at the same time, Huang crane, the chairman of Zhejiang Jiangnan Leather Co., Ltd., who had been steering the company for more than 10 years, never left behind, leaving more than 300 million of debt suspense.

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The annual interest rate is 240%.

When profits decline, small and medium enterprises with insufficient funds will turn their attention to private lending. However, the way of lending for SMEs is equally bramble.

In April 11, 2011, the reporter saw that many restaurants and restaurants in Wenzhou's downtown area, such as Portman's coffee shop and port Shang Ji, had been closed or pferred.

Portman's fast food restaurant, which is located in Lucheng Textile Road, has already changed its appearance. The three Bay shop has become a garage.

Like Portman's restaurant chain, companies that died due to the broken capital chain appeared.

"Under the current financial policy, 70% of SMEs can not get bank loans, and some enterprises are forced to turn to private lending if they want to survive."

Zhou Dewen said.

Since 2010, China's bank deposit reserve rate has been raised 11 times, the cumulative range has reached 5.5 percentage points, and the deposit and loan benchmark interest rate has been raised 4 times, with a cumulative range of 1 percentage points.

The latest news is that since May 18, 2011, the deposit reserve ratio has increased by 0.5 percentage points, and the deposit reserve ratio of large and medium-sized financial institutions will reach a high level of 21%.

Monetary tightening has pushed more capital strained enterprises to private lending markets, while interest rates of private lending institutions have risen.

Reporters learned that the current private lending in Wenzhou is limited to 3 monthly interest rates to 5 points, the average adult interest rate is 36%~60%, accounting for 20% of the lending market; half a year's short-term loans accounted for six or seven, the monthly interest rate between 6 and 8 points, the highest individual reached 2 Gross, that is, 240% annual interest rate.

According to the law, four times more than the benchmark interest rate of bank loans is defined as usury.

According to the latest bank interest rate, the annual interest rate for the half year period is 5.85%, and the annual interest rate from six months to one year (inclusive) is 6.31%, and the adult interest rate is 23.4% and 25.24% respectively.

Compared with the above private lending rates, most of the private lending is obviously usury.

On the one hand, the sharp decline in corporate profits, on the one hand, private lending rates continue to rise, the difference between the two "spreads" is shocking.

Since 2011, the tragic stories of Baotou's big businessman Jin Li Bin's self Immolation and yellow crane absconding have all implied the shadow of usury.

High interest lending, which is used as a life-saving straw, has become a new liability pressure. In the short term, it may cause enterprises to "die back to life". In the long run, it is easy to be insolvent and hard to repay.

Unfortunately, in order to save the nearly collapse of the capital chain, many small and medium-sized enterprises take risks and move towards a life and death struggle.

"The owners of small and medium-sized enterprises treat their industry as if they were their own children. Although they are sick, they will not see him die. They must try to save him and send oxygen and blood pfusion at any cost. Maybe the opportunity will come when the policy improves."

Zhou Dewen endorsed Wenzhou's small and medium-sized enterprises.

In the end, there will be a small number of enterprises that will be able to get better policies or turn losses into business.

At present, known three flag group, Portman restaurant chain, Jiangnan Leather Co., Ltd. and other collapsed enterprises have a certain reputation in the local, but more obscure small and medium-sized enterprises collapsed, silent, no one knows how much of their private lending debt loopholes.

Reservation Road

Entering the new village of Shui Xin in Wenzhou, dazzling neon lights and unrestrained music are scattered in the shopping streets, which are still bustling.

The idyllic Portman steak house is quiet and dark, and several middle-aged people who recycle waste are selling things that can be sold outside the closed shop.

"It used to be a good business here, a lot of people came, but it was closed more than 20 days ago."

Reporters interviewed people around.

The cost of financing has become the last straw in the small and medium-sized enterprises.

No one wants to see their businesses die because of the chain break. They are looking for salvation.

"What do we do? We are all dying!" Zhou Dewen's office is often surrounded by a group of business leaders.

Facing the small and medium-sized enterprises that come to complain, Zhou insists that "the leftover is king". "If you have one breath, you will save it. Many small and medium-sized enterprises may fall immediately if they do not engage in private lending. If you borrow it, you can catch your breath, but you are drinking poison."

In Wenzhou, Zhejiang, almost all private enterprises borrow money from the public, "borrowing money is harder than making money."

A Wenzhou businessman who has had more than 10 years of commercial war has told reporters about the difficulties of financing. Banks will not give up in the snow. They will only add to the icing on the cake.

The newly established small loan company is a supplement to village banks, but only one or two counties in each county in Wenzhou. The quota is limited, which is so small for 360 thousand small and medium-sized enterprises in Wenzhou.

According to a reporter's survey, small loan companies have also set strict standards in selecting enterprises to borrow money, while limited self owned funds plus 50% of bank financing ratio, so that small loan companies themselves suffer from the lack of funds.

Under the pressure of rising raw materials, appreciation of the renminbi, wage surge and structural pformation, corporate profits have been compressed repeatedly. When there is a problem in the capital chain, private lending is the way to redeem themselves.

At present, the average annual interest rate of private lending in Wenzhou has reached 72% to 96%, while the annual return on investment of industrial investment is only 1%~10%.

It is not enough to borrow profits and profits from industrial profits.

It is very risky to borrow usury to do business unless it is short term turnover.

Otherwise, only the profiteering industry will be able to repay principal and interest, such as gambling, smuggling, manufacturing fake and shoddy products, investing in real estate and so on.

An insider, who declined to be named, told reporters.

At the time of the global financial crisis in 2008, 20% of Wenzhou's small and medium-sized enterprises were in a state of shutdown or semi shutdown, and 6.6 000 enterprises were in danger.

Zhu Jiguang, owner of Zhejiang Yun Guang pump and valve manufacturing Co., Ltd., Zheng Yajin, chairman of Zhejiang new pharmaceutical Limited by Share Ltd, chairman of Pang Guixiong and chairman of Central Valley sugar group, and so on, have been heading for a "no return road", leaving behind grief and debt.

"The present enterprise survival environment is more severe than the financial crisis."

Zhou Dewen, who has studied deeply in Wenzhou's small and medium-sized enterprises, bluntly said.

This view is consistent with some of the heads of enterprises interviewed by reporters.

Wang Wen, who has been in the clothing business for more than 20 years, is one of them.

Although the order of garment factories she started in 2008 has been reduced, the capital flow is smooth with the more stable sales channels of the garment factories. But now, "orders are not coming up, and the production cost is so high. Once the list is signed, it will be supplied at a loss."

Yang Feng, who made glasses business, began to feel "afraid" of the order. "The cost is too high, and the industry is becoming more and more not earning money, just like sugar cane has no sweet taste."

Every year 6, 7 and August are the off-season for the eyeglasses industry. With the summer approaching, the measures to limit electricity consumption in Zhejiang will also take effect.

Yang Feng said, "if we limit electricity consumption in 6, 7 and August, and stop the other 2 costs, we will cancel all orders and suspend business for a while."

In fact, enterprises such as Yang Feng, which start half up and half down, are not alone. Some of their peers have even closed their doors quietly.

The current situation of small and medium enterprises under pressure is worrying again.

In China, small and medium-sized enterprises are the main body of creating wealth and jobs.

According to statistics, more than 70% of China's tax revenue is created by small and medium-sized enterprises, and about 80% of the employment is settled by small and medium-sized enterprises.

"If the Bank continues to tighten this way, there is no government support policy, in the second half of this year 40% of the small and medium-sized enterprises will be faced with bankruptcy."

What worries Zhou Dewen most is that many small and medium-sized enterprises are falling down. "It is right to eliminate a number of backward production capacity and compete for a number of good companies. The problem is that all the babies born are anti risk ability is poor, and some growth businesses and the rotten enterprises are dead together."

For this reason, "the government should support and care for small and medium-sized enterprises, especially those with more growth."

Said Zhou worried.