Shoes And Clothing Enterprises Unstable Orders, Aggravated Financing Is Not Smooth

At 6 in the evening, it is time for Hongkong Sen Cheng garment factory to knock off.

The workers in twos and threes slowly walked out of the workshop, and the deserted factories were somewhat out of tune with the rushing crowd from work in the past years.

"For the time being, only 200 workers have been recruited this year."

Hongkong boss Cheng LAN Lei said so.

The 20 year old Hong Kong funded enterprise in Changping, Dongguan, has 1500 workers last year.

Owing to the reduction of orders, the original three floor workshop of Hongkong Sen Cheng garment factory is now only left on the first floor of the workshop, and the two or three floor is closed.

In the circle of Cheng LAN Lei, "basically there are no difficult foreign trade enterprises".

Especially for Hong Kong funded enterprises, because of their regional particularity and the culture of Hong Kong funded enterprises formed in the past decades, the impact has been more intense in this financial turmoil.

Jiang Ling, vice mayor of Dongguan, also believes that the difficulty of Hong Kong's investment is not only higher than that of Dongguan's local private enterprises, but also exceeds Taiwan funded, Japanese funded and Korean funded enterprises.

According to the data released by a person in charge of the Hongkong Federation of industry, nearly half of the more than 58500 Hong Kong enterprises engaged in processing trade in the Pearl River Delta are unable to survive the financial turmoil.

Apart from nearly 1.5 businesses that failed last year and 2000-3000 new businesses not opened after the Spring Festival this year, 10000 enterprises will go bankrupt from now on to economic recovery.

In the past 30 years, Hong Kong enterprises in the Pearl River Delta have gone through their different years.

However, why is the Pearl River Delta port enterprise particularly vulnerable in the economic recession? The order is life and death line. "Orders are the life of the processing trade enterprises."

Professor Jiang Lin, director of the Department of finance, south of the Five Ridges Institute of Zhongshan University, has been studying export-oriented enterprises for many years.

However, what is known as "life" has plagued most of the difficult Hong Kong enterprises, and there are many foreign trade enterprises or even months of zero orders.

"From the second half of last year, there was basically no big order.

After the spring of this year, enterprises are almost impossible to run normally, and orders are fragmentary.

Cheng Lanlei told reporters frankly.

"You can do it when you receive an order. There is no order."

Cheng Lanlei compared his desire for orders to a torment, which has lasted for nearly a year.

"The order volume in 2008 is half of 2007, and this year's situation can only wait and see."

Even if there are a small number of orders, it will also make Mr. LAN Lei unhappy.

"The order price is too low, basically no money to earn."

Cheng Lanlei said.

Another Guangzhou funded enterprise, run Jing Shoes Co., is almost the same as the Sen garment factory.

Boss Wei Ling told reporters: "in the first half of the year, there is no improvement. How can we alleviate it? It's hard to say, look at the economic situation."

"If the economy in Europe and the United States does not improve, foreign orders will not come.

There is no hope of remedy for the three companies. "

Jiang Lin bluntly said.

Jiang Lin believes that after decades of development, Hong Kong enterprises, which once owned orders and management advantages, no longer have their advantages.

"On the contrary, it has greater disadvantage in terms of financing and cost compared with local private enterprises."

A Credit Guarantee Corporation manager said.

From the Spring Festival to now, the manager of Liu has been organizing efforts to investigate companies that have business dealings with the company.

Embarrassing financing, "capital turnover is particularly slow, which has never happened in decades."

Cheng Lanlei made 7000 US orders last year, and the cost has gone up to date.

"If the goods were sent to them, the Americans would say" 1 "and" no money ". There was no way to fight them, only to pay them 30 percent off or to pay by installments.

According to Cheng Lanlei, there are many Hong Kong enterprises close to him, and many of them are unable to carry out normal capital pfer because of the financial difficulties of upstream and downstream enterprises.

"If you owe someone else or someone owes you money, they will bankrupt the business."

Cheng Lanlei said.

Capital turnover is difficult, and financing is more difficult.

"Our loans to the Pearl River Delta and loans to Hongkong are much more difficult than other enterprises."

Wei Ling said.

Mr. Liu, general manager of a large Credit Guarantee Corporation in Guangzhou, agrees with this. He said: "general Guarantee Corporation is unwilling to guarantee Hong Kong enterprises. They believe that Hong Kong enterprises are not grounded."

Because the plant is rented and the boss is Hongkong people and other reasons, the financial institutions in the Pearl River Delta are afraid of the boss's escape and the loan is not easy to consider the Hong Kong enterprises.

According to Jiang Lin's investigation in Hongkong, Hongkong's financial institutions are also very secretive about Hong Kong's enterprises in the Pearl River Delta.

"These enterprises generally have only one office in Hongkong, and the factory is in an industrial area of the Pearl River Delta. The Bank of Hongkong thinks:" 1, who knows what he is doing? "Jiang Lin said.

As a result, banks in Hongkong will not lend easily to Hong Kong companies.

The isolated situation is also delicate in the relationship between government policies and enterprise groups.

Although the high level cities in the Pearl River Delta are aware of the strong impact of Hong Kong enterprises in the financial turmoil, Dongguan has recently launched the support policy for the largest number of enterprises in Hong Kong, and has signed a joint assistance agreement with Hongkong Trade Development Council to expand market cooperation between Guangdong and Hong Kong funded enterprises.

However, most of the PRD port enterprises indicated that the real significance of giving real estate to Hong Kong enterprises is hard to see in many preferential policies that stimulate the economy.

Jiang Lin also agreed, for example, Dongguan, Zhongshan and other cities had issued loan risk compensation policy, and did not mention Hong Kong enterprises.

Jiang Lin has deep reasons for this situation.

He believes that the responsibility of local enterprises is not very clear because the root causes of Hong Kong enterprises are poor and the local governments are not very active in supporting policies.

Not only that, but some entrepreneurs in the Pearl River Delta have some views on Hong Kong enterprises and think that they should be cautious in cooperation with Hong Kong enterprises.

A private entrepreneur in Guangzhou said: "many Hong Kong businesses give others the impression that they are cheap and do not look at the long term.

Hongkong people are very smart in doing business. "

In the case of the original economic downturn, the upstream and downstream enterprises were particularly cautious when they were working together, and the situation of Hong Kong enterprises in the enterprise group deteriorated.

Wei Ling, who is still trapped in the domestic market, has attributed the difficulty to the lack of orders. However, whether he can turn to domestic sales? The boss of Hongkong Dongcheng Garments Co., Ltd., in 2007, has decided to do domestic sales. Sales mainly depend on wholesale markets and a small number of agents, but now it is difficult.

According to him, domestic enterprises are facing the problem of unsalable sales.

His company's wholesale sales decreased by 70% last year, up to 200 thousand in the second half.

Now there are 80 thousand stocks in stock, that is, 2 million 500 thousand of the funds can not turn around.

He said he now wants to deal with inventory at a low price, generally handling about 5 yuan, or weighing package sold.

"It's not worth a lot of money to sell junk now."

Although the domestic sales situation is not optimistic, Jiang Lin believes that this is still the only way out except orders.

A Dongguan port owner, who sells leather goods and office supplies, says that this year, we must insist on domestic sales. "There is no way out. We can no longer wait for death."

Cheng Lanlei said he had been hesitant about turning to domestic sales.

According to him, the domestic payment mode is different from the relatively good settlement mechanism of overseas customers, which will make it difficult for customary exporter to adapt.

At present, domestic customers are basically using after sales payment, which is different from the cash on delivery of foreign trade.

Besides, we must take the road of brand to do domestic sales.

According to his understanding, it is quite necessary for a company like him to make a brand at least 6 million yuan.

It is difficult to prepare for this fund and whether it can be done is uncertain.

Numerous difficulties are intertwined into a gray net, enveloped above Hong Kong enterprises.

More shoes and hat investment information, click here to enter the responsibility editor: Wang Xiaonan