Profits Decline, Financing Difficulties &Nbsp; Toy Enterprises In Pearl River Delta Or Reappearance Of Closure Tide

The collapse of the 2008 has already cast a shadow over the small and medium-sized enterprises in Dongguan.

According to a field survey of Dongguan, although there has not been a large number of small and medium-sized enterprises in Dongguan, the financing chain has broken down, and the toy industry is particularly strong.

The price of raw materials is rising, the wages of workers are rising, and even people can not be recruited. The appreciation of the renminbi has led to a decline in export profits.

The toy manufacturing industry, which had a very low profit, was worse.

Life in the Balance

Zhang Wenxian, director of Guangdong SME Bureau, attended the "Guangdong and national famous" held by the Guangdong Provincial Government Information Office recently.

"Raw materials have gone up, and this year, the wages of our employees have also risen by about 10%, resulting in higher production costs and lower profit margins.

No one can survive this way. "

Dongguan Xu Cai toys, a responsible person said.

About 80% of the toy enterprises in China are "OEM" foundry production mode.

OEM toy enterprises lack independent innovation, the core technology is controlled by others, and there is a risk of passive responsibility due to design defects. At the same time, the market and customer structure are single, and the profit margins and risk tolerance capabilities are low.

It is understood that small and medium-sized Dongguan

"Profits continue to decline, orders are afraid to pick up. Banks believe that the toy industry is too risky and has stopped lending to toy processing enterprises. We can only turn to higher cost private lending channels."

Director of a toy factory in Houjie, Dongguan, said.

Zhang Wenxian used "one plus one minus" to describe the financing pressure of small and medium-sized enterprises: the reduction of capital supply and the increase of financing cost.

The small and medium-sized enterprises in Dongguan are mostly rough processing enterprises. The system is not standardized, the management level of enterprises is relatively low, the financial reports are not standardized and lack credibility, and the financing risk of SMEs is too high. The banks are reluctant to make loans to small and medium enterprises from the cost and risk of loans.

Survey data show that the average loan ratio of SMEs in Dongguan is only 38.84%.

This time, it stopped lending to the toy industry.

The annual interest rate of private lending is as high as 20%~30%, which is just like drinking toys to quench thirst.

The data show that in April 2011, the number of enterprises in China's toy industry lost 261, accounting for 22.6%; the total cost of product sales reached 31 billion 530 million yuan, an increase of 19.69% over the same period last year; the average number of employees was 577 thousand and 900; at the end of last year, the number of employees was 673 thousand and 500, the absolute amount was reduced by nearly 100 thousand, and the asset liability ratio was 50.18%.

A customer manager of Dongguan Houjie sub branch of Guangdong Development Bank said, "in the second half of this year, there may be a collapse of SMEs in Dongguan."

Behind risk

The toy industry is one of the five pillar industries of China's exports. At the same time, China is also the largest toy producer and exporter in the world, and toy exports account for 75% of the global toy exports.

According to statistics from the General Administration of customs, toys for narrow 1~10 months in 2010

According to statistics from the General Administration of customs, China's toy market imports amounted to US $266 million in 2010 1~10.

According to the proportion of domestic toys accounted for 86.48% of the domestic market in 2009 accounted for 13.52% of the proportion of imports, in 2010, China's toy domestic market sales amounted to $2 billion 361 million.

The export volume is US $10 billion 106 million plus US $2 billion 361 million domestic sales. In 2010, the scale of toy sales in China amounted to US $12 billion 467 million, equivalent to 81 billion yuan.

It is understood that toy sales in the Pearl River Delta account for about 70% of the country's total, that is, toy sales in the Pearl River Delta in 2010 amounted to 57 billion yuan.

In addition, in 2008, there were about 8000 toy enterprises in the Pearl River Delta region, and 5000 after the economic crisis, about 3000.