Capital Chain Break &Nbsp; Cause Small And Medium Shoe Enterprises To Survive.

In May 26th, the gate of Jiangnan Leather Co., Ltd., located in Longwan, Wenzhou, was locked, and a notice of liquidation was posted on the door plate.

The security guard at the gate told reporters that the equipment in the factory had basically been emptied.

Qingming Festival, Wenzhou Jiangnan

A stone stirs up a thousand layers of waves.

The collapse of the three enterprises has rapidly aroused widespread concern.

This has also attracted the attention of the Ministry of industry and information. It requires the investigation of the financing of 16 contents involving small and medium-sized enterprises' capital shortfall, the real interest rate of private lending, and the number of small and medium-sized enterprises closed down due to the broken capital chain.

According to people familiar with the matter, recently, the Zhejiang banking regulatory bureau and the Wenzhou banking regulatory sub bureau also organized a special investigation team to go to Wenzhou to conduct research.

A report issued immediately holds that although the current prudent monetary policy has produced some pressure on corporate finance, there has been no concentration failure of enterprises.

Reporter's survey in Wenzhou shows that since the beginning of this year, with the gradual tightening of the macroeconomic environment, the production and operation costs of enterprises such as employment, mobile capital and raw materials have continued to rise. The situation of power shortage is once again highlighted. The uncertainty of industrial products exports is more, and the pressure of production and operation of SMEs in Wenzhou has increased significantly.

"Although it can not be said that the financial turmoil in 2008 is also difficult, but this year's business pressure factor is indeed a lot more."

Jiang Hua, the owner of a metal material company in Wenzhou.

Rising costs make the boss scared.

"When we communicate with business owners, they say" fear "in all aspects of the cost increase.

Zou Jianqiang, deputy director of the Wenzhou Industrial Park Management Committee Office said.

Wenzhou Industrial Park has a total of more than 110 enterprises, including leather, clothing, machinery, stainless steel and other industries, of which leather industry has a total of more than 20 enterprises, accounting for 50% of the total output value of the park.

Since last year, the supply of raw materials for leather industry has been tight. The price of commonly used calf has increased by 20%. The price of international oil has fluctuated, and the price of chemical raw materials has also risen fiercely.

The pressure of raising prices is also being pmitted to downstream enterprises.

Besides the shoe material, the polyurethane material used in the sole has risen from nearly 21 thousand yuan to 25 thousand yuan per ton, or nearly 20%, and the glue has nearly doubled.

A person in charge of the shoe industry in Wenzhou said that the degree of export price rise is far from the increase of cost.

Although the EU anti-dumping measures on leather shoes expired in March of this year, many European leather shoes orders returned to Wenzhou, and the average unit price of exports has improved. However, the appreciation of the RMB against the US dollar has reduced the profit margins of European shoe companies.

In the expectation of the appreciation of the RMB against the US dollar, the small and medium-sized enterprises with weak bargaining power are afraid to take orders from the long period.

With the advent of summer, power shortage has become an important constraint for enterprise production.

Jiang Hua said that since April of this year, his company has begun to limit electricity and implement the "five stop two" power supply measures every week.

Just a few days ago, Tan Rongyao, the director of the State Electricity Regulatory Commission, said that in June, the country will enter the peak of electricity consumption. The peak power gap is expected to reach 30 million kilowatts in the peak period.

The 10 provincial power grids, including our province, will have a tight supply and demand situation.

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Employment costs increase by 50%

Another profit that is eroding the profits of small and medium enterprises is the steep rise in labor costs this year.

Zou Jianqiang introduced that the remuneration of enterprises, industries and jobs in Wenzhou Industrial Park increased by 15%-20% on average this year. Even so, labor intensive clothing industry still dissatisfied workers.

The reporter learned from a jeans factory in Longwan, Wenzhou, that the factory originally planned to recruit 400 workers this year, and eventually recruited only 100 people, and generally had little technology.

Jiang Hua's company last year offered a monthly salary of less than 1500 yuan, but this year, he raised his monthly salary to 1800 yuan, and he had to eat and lodge.

Jiang Hua said, "if the cost is calculated, the rent and vegetable prices are going up this year. The cost of labor will increase by about 50%."

According to data from the Wenzhou Municipal Economic and Trade Commission, 74.5% of the enterprises said they were short of employment, an increase of 14 percentage points over the same period last year, and nearly 60% of the enterprises' general wage increased by 10% over the same period last year.

"In a comprehensive way, the price of our company has been almost equal to the cost during this time of this year, and the profit is close to zero."

Jiang Hua said, "but I dare not raise the price of the product. Raising the price is equivalent to throwing away the market share. I can only sacrifice profits to protect customers."

With the continuous extrusion of various costs to SMEs, the growth of some traditional industries has been in the doldrums.

In the export oriented enterprises of 35 eyeglasses, lighters, pens, locks and other export oriented enterprises monitored by the Wenzhou economic and Trade Commission, the loss accounted for 1/4 of the total, while only 30% of the enterprises' profits continued to grow.

The average profit rate of the industry is 3.1%, and the profit margins exceed 5% of the enterprises are less than 10.

Tight capital chain led enterprises to get together and close down?

The continuous rise of various costs has made many small and medium-sized enterprises thirst for credit funds. However, the gradual tightening of the money supply has made these enterprises' capital chains tight.

Data obtained by a provincial Banking Regulatory Commission showed that in the first quarter of this year, loans for SMEs in the province were about 4880000000000 yuan, about 84000000000 yuan lower than the same period last year, and the actual annual interest rate of bank loans was more than 12%, an increase of about 4% over the same period last year.

Under such circumstances, small and medium-sized enterprises which mainly rely on bank loans, only 57.4% of the capital demand satisfaction (that is, the total number of small and medium-sized enterprises / small and medium-sized enterprises) that the demand for funds is satisfied.

Enterprises that can not borrow money can only turn their attention to private lending, resulting in interest rates on private lending.

The interest rate monitoring of private lending of Wenzhou branch of the people's Bank of China showed that at the end of 3, the comprehensive interest rate of Wenzhou's private lending market was 24.81%. In the first quarter, the comprehensive interest rate of private lending in Wenzhou rose by 11.91% in the single quarter, up 8 percentage points higher than in the fourth quarter of 2010.

The rising cost of financing has made the small and medium-sized enterprises that have already suffered multiple pressures even more breathless.

"Some enterprises have short term turnover through private lending, and the monthly interest rate has reached 6 points."

Zhou Dewen, chairman of Wenzhou SME Promotion Association, is worried about the current situation of SMEs.

"If the money continues to tighten, there will be a lot of small and medium-sized enterprises' capital chain problems."

At the same time, some people worry that the continuous tightening of the capital chain will lead to or lead to Wenzhou SMEs reappearing to collapse during the financial crisis.

In response, the latest report issued by the Zhejiang banking regulatory bureau and the Wenzhou banking regulatory bureau made a relatively clear response: according to the Wenzhou business system survey, the current prudent monetary policy has produced some pressure on the financing of enterprises, but it has not fundamentally affected the overall development of Wenzhou enterprises, and there has been no phenomenon of centralized failure of enterprises.

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Statistics from Wenzhou Administration for Industry and Commerce showed that at the end of the first quarter, the number of private enterprises in the city was 534, down 14.56% from the same period last year.

However, the total number of registered private enterprises in the city has reached a record high of 73 thousand and 200 yuan, with a registered capital of 206 billion 310 million 960 thousand yuan, an increase of 15.11% and 28.37% over the same period last year.

"Some high polluting enterprises such as leather and steelmaking which do not comply with environmental requirements must be closed according to regulations, and some industries must be eliminated because of excess capacity, and should not be simply interpreted as a precursor to Wenzhou's economic crisis."

According to the survey report.