Small And Medium Sized Shoe Enterprises Export Decline Facing Winter

"Capital chain is the biggest difficulty that enterprises are facing at present. For small and medium-sized enterprises, they are also financing and failing to finance.

"Many people in the southern Fujian business community say that the role of financial institutions will play a vital role in the survival of small and medium-sized enterprises.

Reporters in the coastal area of Fujian learned that, with the approaching of the closing time of the year, the small and medium-sized enterprises, which have been accustomed to the operation of arrears, are facing increasing pressure from the capital chain.

Financial institutions have increased support for financing, and the relevant government departments have reduced the tax burden, which has become the general voice of small and medium-sized enterprises struggling in the "cold winter".

Export-oriented enterprises are facing the "cold winter". As a big export country in Fujian Province, Jinjiang's export trade is declining.

According to the statistics of Jinjiang Municipal Bureau of inspection, the export volume of the city dropped by 10.3% in the first 10 months of this year, of which the export volume to the US dropped by 12.8%, and the export batch to the EU dropped by 7.8%.

In all kinds of products, clothing has dropped by 18.7% and footwear has fallen by 11.8%.

Last year, 30 of the 226 enterprises that had export performance in the year 1 to September stopped exporting and 105 suffered negative growth.

Xie Luwei, director of the Jinjiang Municipal Bureau of Commerce, said that many small and medium-sized export enterprises in Jinjiang are in an awkward situation without orders or afraid to take orders. It is very difficult to operate.

In addition, the risks faced by enterprises facing export collection are significantly increased, and importers are in arrears and even refuse to pay.

Jinjiang Jiale Mei umbrella Co., Ltd. is an export enterprise with annual output of 1 million dozen umbrella products. Xiao Qingjiang, the head of the company, told reporters: "now we are afraid of not alone, but afraid of receiving orders.

"Just past the Canton Fair, Xiao Qingjiang did not participate in the first exhibition.

"In the past, most worried about the quality problem being returned by the foreign party and the claim. What worries most is the exchange rate risk. Even if the deposit is 30%, if the foreign currency depreciates too quickly, the foreign party will rather lose the deposit and not the goods.

"The depreciation of foreign currency, especially the depreciation of Australian dollar, ruble, euro and other currencies in the second half of the year, has led some enterprises to encounter a setback in their strategy of resolving export risks through market diversification.

Wang Gengsheng, general manager of Fujian Sanli Locomotive Co., Ltd., said that since September, the euro and the pound have both depreciated by nearly 40%. In the past, the US dollar became the most stable currency, and the exchange rate risk in the non dollar market was even greater.

A series of policies to support export enterprises to raise export tax rebates have brought more hope to export enterprises in distress. However, some enterprises have appealed for more tax rebates, cleaning up inappropriate fees and reducing the burden on enterprises.

How much tax and fee does an enterprise have to pay?

A business owner in Quanzhou who did not want to be named said, "there are more than 10 collection of local taxes.

It is understood that in addition to taxes related to the production and operation of enterprises, the land tax department also collects urban property tax, land use tax, personal income tax and stamp duty. In the Quanzhou area, the land tax is also charged for the maintenance of dike projects, the employment security for the disabled, the adjustment fund for the food price, the local educational attachment, and the social security fund. Some enterprises have a tax burden exceeding 10% of the sales revenue.

In recent years, Jinjiang has two hundred or three hundred registered umbrellas, attracting about 30 thousand employees, and the size of family workshops is almost the same.

"It will be the most difficult time before the year, and the umbrella making enterprises will go bankrupt.

Wang Anbang, chairman of the umbrella industry association of Fujian province and the plum umbrella industry of the largest export umbrella enterprise in the country, said that making umbrellas rely solely on processing fees and weak industrial control. Once the export declines, there must be a number of enterprises falling down. Those enterprises that owe too much loans and receivables will be the first to bear the brunt.

In the Chen Dai Town, the largest sports shoes production base in China, del Hui has convened the dealers from all over the place to meet.

Why should the vice president of the company say, "now that every enterprise has managed to withdraw the funds before the year, it will be useless for the company to be bigger now.

"A dealer from Yunnan is a reflection of the fact that every brand new sports shoes store has been on sale for a few days, but it has not been seen in the past. Everyone is eager to return the money before the year.

"For a period of time, the state has promulgated a number of policies to guide financial institutions to increase lending support to small and medium-sized enterprises. Can financial institutions play a role of" timely relief "in the special period of" new year "?

Most of the respondents said they were not optimistic.

A medium-sized garment manufacturer in Jinjiang has increased its export volume by 30% this year, but its profit has not increased.

The chairman of the enterprise said that the profits of the export enterprises had declined sharply, but the financing cost of the banks had not declined. The lending rates of the SMEs generally rose 20% to 50% on the basis of the benchmark interest rate, and the cost of loans was around 10%. If the profits of enterprises were low, the more loans, the greater the loss.

In the view of this business owner, we should be vigilant against the phenomenon of "banks pushing money to overtake enterprises" in the near future. Beware of some assets that are not bad enough to be pushed down by loans due to insufficient cash flow.

Enterprises generally believe that financial institutions still have plenty of room for innovation in financial products.

Why does it mean that "del Hui" has been listed as the top 500 brand in China by the Chinese brand laboratory. The brand of Jinjiang is quite well-known in the whole country. However, banks do not pay much attention to the value of intangible assets such as factories and equipment.

The owner of the clothing company reflects that his company's assets appraisal is over 100 million yuan, but the amount of loans that can be borrowed from banks is only tens of thousands, so it is difficult to meet the needs of enterprises.

A typical case is that a city in Fujian province has set up a Guarantee Corporation in order to ease the difficulty of lending to small and medium enterprises, but in the last few months, less than 10 loans are secured.

Stakeholders told reporters that even if the loan secured by Guarantee Corporation, commercial banks still adhere to the benchmark interest rate on the basis of floating 50%, plus 3% of the premiums collected by Guarantee Corporation, the cost of the loan was about 13%, so that small and medium-sized enterprises are deterred.

The financial institutions should have a bigger role in the development of other developed areas along the coast. The economic sector of Southern Fujian is relatively backward in financial support, and the financing channels of enterprises are narrow. Many enterprises will only deal with financial institutions after they are "famous".

Less loans, mainly relying on their own accumulation, also made many enterprises face the current economic downturn lightly and avoid heavy capital costs to drag down enterprises. This is also a major reason why Minnan enterprises can remain relatively stable at present.

Reporter interviewed learned that for the growing enterprises relying on more bank loans, the strength of bank credit support is becoming the "life and death hand" that decides the survival and survival of enterprises.

For some time, both the central government and local governments have been looking for greater help from the financial institutions to help SMEs to "go through the border".

Yang Yimin, Secretary of the Jinjiang municipal Party committee, said that in the face of the crisis, the Jinjiang government paid close attention to the problem of enterprise capital chain and introduced a series of measures in financial support.

As early as June this year, the Jinjiang municipal government invested 30 million yuan to attract 3 private enterprises to invest 69 million 990 thousand yuan, and set up a Jinjiang city Company limited by guarantee with a capital of 99 million 990 thousand yuan. In October, the first small loan company of Jinjiang, Fujian Heng Cheng small loan company, was established in October, with the registered capital of 300 million yuan. It was able to handle the loan discounting business below 10 million yuan. Jinjiang also registered a 25 million yuan in the form of venture capital guidance fund to support the establishment of Hongqiao Hongqiao venture capital company.

According to reports, as of the end of October, Guarantee Corporation and small loan companies have already helped SMEs to borrow about 40000000 yuan.

In the counties of China, Jinjiang is famous for its "brand capital". Many brands are undoubtedly intangible assets of great value. Whether these intangible assets can be revitalize for the financing of enterprises has been highly concerned by business owners.

Not long ago, Jinjiang issued the "directive on trademark exclusive rights and equity loans", and tried to win the right to exclusive use of trademark and equity loans in all commercial banks in the end of the year.

"If a commercial bank can emancipate the mind and only one trademark right, it can bring a large amount of financing to Jinjiang's brand enterprises with good prospects and solve the most urgent shortage of liquidity at present.

Why bother to say.

Yang Jing: editor in charge