Textile Giant Vertical Chain Group Capital Chain Breakage Faces Restructuring

Shaoxing's domestic textile giant, Zhejiang longitudinal and horizontal group, is about to be reorganized after its capital chain break. The crisis in the region has attracted 26 leaders from the 5 working groups of the local government.

The domestic textile industry is highly concerned about this. What makes the "vertical and horizontal" sink into a financial crisis?

Before that, Shaoxing's hualian three Xin, Jiang long holdings, Feng Ming synthetic fiber and so on also successively suffered an accident. This reporter conducted a further investigation, and found that a news in Shaoxing business circles has not been news. Serial guarantee "Pyramid" surfaced.

The guaranty circle of the vertical and horizontal group, no matter in vertical and horizontal headquarters and divisional investigation, has shocked the reporters. Because of the large scale investment of Zhejiang longitudinal and horizontal group, 7 enterprises have provided guarantee for it, and he has secured about 18 enterprises, involving a total guarantee amount of about 3 billion yuan.

At the same time, as of October, about 15 banks became loan banks of vertical and horizontal groups, including 5 large banks, such as industry, agriculture, China, construction and exchange, and 7 joint stock banks including Shanghai Pudong Development Bank, Minsheng Bank, Xingye Bank, Huaxia Bank, Shenzhen Development Bank, Guangdong Development bank, Hengfeng bank, Shanghai bank and Shaoxing commercial bank, and 1 rural cooperative financial institutions, Doumen town Nong Xin.

Shaoxing bank correspondent told reporters that because the vertical loan involves almost all banks in Shaoxing, some banks have a very large amount of money.

Some banks give vertical and horizontal loans to nearly half of their annual profits. If they become losses assets, 100% of the bank's performance will be doubled.

Around the composition of over 4 billion yuan credit and the process of cross industry, cross regional capital operation and capital chain risk accumulation, our reporter has been following up the capital flow.

It has been learned that banks have maintained good cooperative relations with the vertical and horizontal groups.

"Our loan business with vertical and horizontal groups is not developed in recent years. It has more than a decade of credit relations. Local big businesses start from small loans like 2 million, and continue to grow bigger."

In December 11th, a large bank official said.

In addition to the longitudinal and horizontal crisis that has just taken place, the Shaoxing link guarantee network has not ended the three Huaxin and Jiang long holdings.

Reporters yesterday saw in the desolate factory area, Hualian three Xin three production lines only opened one.

The government is still investigating the assets and liabilities before restructuring, and will redefine the company's equity situation after the end.

At present, Hualian holding company holds 16%.

Tao Shoulong's and Yan Qi's court hearing will be held this month.

The government intends to auction at the end of this month.

Now, Jiang long Holdings has ceased production, and only two security guards watch office buildings and abandoned fabrics every day.

A Shaoxing county government official said that Shaoxing's textile industry is still in the stage of solving difficulties.

Although the progress of the Hualian three Xin reorganization has already begun to dawdle, it does not mean that Hualian three Xin has pulled out of the mire. The reason is that the guarantee network behind its roots is likely to knock down again.

In June 12th, the Hualian holdings report on Hualian three Xin's capital increase and share expansion showed that as at the end of 2007, the total amount of foreign mutual insurance of Hualian three Xin company amounted to 1 billion 940 million yuan, of which the amount of mutual insurance with Zhejiang Seiko Construction Industry Group Co., Ltd. was 670 million yuan, and the amount of mutual insurance with Zhejiang Southern Holding Group Co., Ltd. was 500 million yuan, and the amount of mutual guarantee with Zhejiang rich Group Co., Ltd. was 725 million yuan.

But according to our reporter's in-depth investigation, 1 billion 940 million is just the tip of the iceberg of the guarantee network of Hualian three Xin.

Prior to the Shanghai Securities Journal reported, Hualian three Xin involving the amount of guarantee risk amounted to about 8 billion 300 million yuan, and this statement has also been confirmed by Shaoxing bankers.

"In fact, almost all the large enterprises in Hualian three Xin base camp are basically related to their guarantees. The difference between them is only the size of the amount."

Those familiar with the Shaoxing guarantee industry said.

Previously, because the Hualian three Xin stopped production, the Shaoxing guarantee circle was in a state of alarm.

According to the announcement issued by Hua Lian holdings in June 12th, one of the three Eastern shares of Hualian, the three yuan mutual benefit between Hualian three Xin and Zhejiang Seiko construction industry group was $670 million.

The matter of "Hualian three Xin" has been solved almost, and the government is very supportive.

After all, Jinggong group is also a local key company in Shaoxing. The guarantee amount of "Jinggong group strategic development" to Hualian three Xin is very huge. Like our company, although it guarantees hundreds of millions of dollars, it is relatively small.

A Shaoxing company official told our reporter.

Shi Guilin, Secretary General of Shaoxing Guarantee Industry Association, has made it clear that it is 100 million to guarantee large enterprises like Xin Lian three Xin, and 10 million of them are not in the right place at all.

In addition to Hualian three Xin, the guarantee amount of Jiang long holdings is relatively small, but it has also reached a huge margin of about 1 billion - thus, the amount of guarantee involved by the two companies is more than 9 billion yuan.

In fact, the fragmentation of Pyramid capital chain is just a microcosm of Shaoxing's dilemma.

Since the beginning of this year, the number of enterprises with limited influence and the number of discontinued enterprises in Shaoxing has been quite large. There are mainly 6 Hualian three Xin, Jiang long holding, Shaoxing Wuhuan spandex, Jin Xiong, Shaoxing's Yao long, Shengzhou Best and so on.

With the in-depth investigation of journalists, two complete security maps showing "Pyramid" shape are clearly visible.

If the top is Hualian three Xin and Jiang long group, then the first tier of the tower is to provide guarantee or mutual protection to the two companies, including Jiangsu Huaxi Group, Hualian holdings, Zhejiang prospect Holding Group Co., Ltd., Zhejiang Gabriel Holdings Group Limited, and other related companies, such as Zhejiang Far East Chemical fiber group, Zhejiang Fortune Group Limited, Zhejiang Seiko Construction Industry Group Co., Ltd., Zhejiang South Holding Group Co., Ltd.

Shaoxing, a local banking industry, told reporters that the guarantee amount provided by the prospect group and Gabriel to Hua Lian Xin Xin at three reached at least 2 billion yuan and 1 billion 500 million yuan respectively, while Huaxin three Xin's guarantee to the outlook group and Gabriel is relatively few hundreds of millions of yuan and 1~2 billion yuan.

"But the problem is that in addition to guaranteeing the Hualian three Xin, the prospect group and Gabriel have also secured other enterprises, such as the total external guarantee amount of Gabriel has reached about 2 billion yuan, that is, 500 million yuan is a guarantee for other enterprises."

The above insider said, "besides the guaranty of about three yuan by the Hualian" Xin Xin "to Gabriel, it also received a guarantee of about 600 million yuan, and there is a mutual guarantee between the outlook group and Gabriel" ".

Thus, under the first tier of "Pyramid", the Guarantee Corporation of the second tier gradually emerged.

Compared with a few large enterprises at the first level, the companies that provide guarantee or mutual protection to the first tier companies, though small in scale, are numerous and fragile.

For example, Zhejiang Xiong Feng import and Export Co., Ltd. and Zhejiang five ocean printing and dyeing Co., Ltd. have provided guarantee to the group. The total guarantee amount is at least 800 million yuan, reaching about 75% of its total.

In addition, the enterprises involved include Zhejiang Tianma Industrial Limited by Share Ltd, Zhejiang Wing Lung Industrial Limited by Share Ltd and so on.

Among them, there exists mutual insurance between Tianma industry and Zhejiang, Shaoxing gentry Textile Co., Ltd. and prospect group.

And in the second tier, there are third echelons, or even fourth echelons.

"How many enterprises in Shaoxing county are involved in these two Pyramid guarantee circles? Nobody knows."

Shaoxing bankers said, "I don't think anyone can really get the exact amount of the guarantee."

What is more complicated is that there is still a lot of relationship between the two "Pyramid". For example, Zhejiang Xiong Feng provides security to the group, and also guarantees the guarantor of the three guaranty.

However, the practice of Zhejiang Xiong Feng is a common practice in the whole enterprise guarantee circle of Shaoxing county.

The Shaoxing Guarantee Circle, which is a proud and prosperous one in the boom of the local government, will undoubtedly have boundless scenery.

However, as the impact of the global financial crisis on the textile industry of Shaoxing, which is highly dependent on the outside world, is becoming more and more obvious.

"Therefore, the crisis of the entire textile industry in Shaoxing has not been completely lifted because of the revive of Hualian three Xin".

The above said.

"The impact of this crisis is too great, and the impact on banks is no exception.

We are now faced with a big enemy and write a credit risk memorandum every day.

A Shaoxing banking credit officer told reporters.

"For these security companies, to save others is to save themselves and save everyone."

A Shaoxing enterprise participating in the guarantee is called it.

Zheng Yuyao, deputy director of the school of economics and management of Shaoxing University, who has studied Shaoxing's local economy for a long time, analyzes the reasons why Shaoxing enterprises frequently appear problems. The reason is that most of Shaoxing's textile enterprises belong to the middle and low end manufacturing industries, which are more affected by the downturn of the economic boom, while the local enterprises prefer to guarantee each other.

"From the end of this year to the first quarter of next year, new enterprises will not be excluded.

However, the long-term economic situation is still optimistic.

In the face of the textile industry's serial guarantee crisis, the Shaoxing government has strong support.

There are three prescriptions for mass salvage issued by the Shaoxing County Government: first, the most rapid way to promote corporate restructuring; two, to stabilize the banking camp; three, to resolve the guarantee risk with preferential policies.

Chen Yueliang, vice mayor of Shaoxing, also stressed that in dealing with enterprise risks, three kinds of people should be attacked, one is "underground banks", the other two are enterprises with economic problems or related personnel, and three are other economic crimes.

"Private enterprises are doing well, they are very smart, they can't get rid of them well."

Feng Jianrong, county magistrate of Shaoxing County, said that in 2007, the county finance could directly use funds of 17 billion yuan, and this year it must exceed 20 billion yuan.

"20 billion, regulating a county economy, I think we can make a difference."

He said, "we have the financial resources to be able to speak in front of the president."

In stabilizing the bank's confidence, Shaoxing county also put forward specific requirements, hoping that banks' loans to enterprises will be restored to the beginning of the year.

Yang Jing: editor in charge