After experiencing a difficult 2021, many building materials people are looking forward to the market getting better in 2022. However, reality has poured cold water on building materials people. One-third of 2022 has passed, and people have found that the home building materials business is getting harder and harder to do!
Last month, an incident occurred in Shunde, Guangdong, where the owner of a kitchen and bathroom company ran away. It is understood that the company maliciously owed employees more than 3 million yuan in wages and nearly 10 million yuan in supplier payments. Employees and suppliers blocked the door to ask for payment and wages. After the incident, some suppliers were able to contact the boss of the company by phone, but received news that the payment for the goods might only be paid at a 20% discount. From this point of view, the owner of the company did not run away, but had no choice but to abandon the business due to difficulties in operating the factory.
In the ceramic industry, there have been a number of corporate bankruptcy cases since 2022, with the debt of the company with the highest debt reaching 570 million yuan.
23 bankruptcy cases of ceramic companies have occurred across the country since 2022
The reporter checked the People's Court Announcement Network and the National Enterprise Bankruptcy and Reorganization Case Information Network and found that since 2022, there have been at least 23 cases of bankruptcy, liquidation or reorganization of ceramic companies across the country. Among them, Jiangxi production areas have the largest number, with 6; followed by Guangdong, Sichuan and Shandong production areas, with 4, 3 and 2 companies respectively. Most ceramic companies were already insolvent when they went bankrupt, and were also in arrears with employee wages.
On February 22, Sichuan Mingzhu Ceramics Co., Ltd. was declared bankrupt by the Jiajiang County People’s Court of Sichuan Province because it was unable to pay off its due debts and its assets were insufficient to pay off all debts. At the time of bankruptcy, the company's total assets were 22.7296 million yuan, total liabilities were 116 million yuan, and the asset-liability ratio reached 509.88%.
On April 18, Jiangxi Hongbo Ceramic Raw Materials Co., Ltd. was declared bankrupt. The company’s debtor had total assets of 19.0499 million yuan, total liabilities of 46.1464 million yuan, and a debt ratio of 242.24%.
However, there are also bankrupt ceramic companies that have been revitalized, such as Jiangxi Zhengda Ceramics and Dongyang Ceramics.
On March 18, the Intermediate People's Court of Pingxiang City, Jiangxi Province issued an announcement and ruled in accordance with the law to terminate the bankruptcy proceedings of Jiangxi Zhengda Ceramics Co., Ltd. It is understood that Zhengda Ceramics, which was founded in 2008, was in trouble due to poor management and broken capital chains. It ceased production on June 19, 2019. The legal representativeLost contact. As of December 2020, Zhengda Ceramics had liabilities of approximately 570 million yuan, of which the principal of loans from financial institutions with mortgage rights on all the company's assets amounted to 220 million yuan, and arrears of employee social security fees and wages amounted to 17.4 million yuan.
In May 2020, the Executive Bureau of Pingxiang Intermediate People's Court forced an auction of the company's assets. After evaluation, the company's assets were put up for public auction online, and the auction was ultimately rejected for 190.39 million yuan. On January 9, 2021, Asus Holding Group wholly acquired Zhengda Ceramics, which had been bankrupt for nearly 2 years, at a failed auction price of 190.39 million yuan, and officially changed its name to Jiangxi Huarui New Material Technology Co., Ltd. After receiving the assets, Huarui New Materials carried out equipment renovation and upgrade in the first half of 2021, started production in the second half of the year, recruited more than 1,200 employees, achieved an output value of 300 million yuan and paid taxes of 8.3 million yuan in only half a year.
On March 31, Jiangxi Dongyang Ceramics Co., Ltd. was declared bankrupt by the People's Court of Gao'an City, Jiangxi Province because it was insolvent and unable to pay off its debts when due. It has been found that as of June 7, 2021, Dongyang Ceramics' total assets were 160 million yuan and its total liabilities were 180 million yuan. It is understood that in the second half of 2016, Dongyang Ceramics ceased production due to difficulties in capital turnover and its inability to repay huge debts, and planned to transfer it to external parties at a price of about 100 million yuan. Finally, Jiangxi Manjianghong Ceramics invested 80 million yuan to acquire it, revitalized the original production line, and resumed production.
The assets of more than 20 bankrupt ceramic companies were auctioned
The results found on the Ali Judicial Auction Network show that the assets of more than 20 ceramic companies have been publicly auctioned/sold since 2022. The Jiangxi Hongbo Ceramic Raw Materials Co., Ltd. and Sichuan Mingzhu Ceramics Co., Ltd. mentioned in the previous table Recently bankrupt ceramic companies such as the company have also begun judicial auctions.
The related assets of Sichuan Mingzhu Ceramics Co., Ltd. held its first auction at 10:00 on April 22. The subject matter included a total of 526,929.00 pieces of inkjet ceramic tiles (artistic lines) produced around 2014 and a building with a total area of 35,271.80 square meters. Properties, machinery and equipment, land use rights, etc., with an estimated price of 39.3737 million yuan. As of 10:00 on April 23, the auction attracted 1,654 onlookers, but failed because no one bid. The second auction will start on June 10, and the estimated price will be reduced to 31.5 million yuan
Unlike the failed auction of Sichuan Mingzhu Ceramics Co., Ltd., the related assets of Jiangxi Hongbo Ceramics Raw Materials Co., Ltd. were divided into 4 auctions, all of which ended in transactions, with a total transaction price of 19.1108 million yuan.
Among the assets successfully auctioned since 2022, the largest transaction value is the land use rights and houses and other real estate of Hubei Jinhaida New Materials Co., Ltd., with a transaction price of 107 million yuan. After the auction, Hubei Jinhaida New Materials Co., Ltd.'s inventory of ceramic tiles with an original value of nearly 10 million yuan also conducted its first auction bidding. The overall auction amount was 3.484 million yuan, and the average unit price was about 9.2 yuan/㎡. However, after the first auction failed, the total price of the second auction dropped to 2.8 million yuan and still no one bid.
Judging from the auction results, assets such as factories and land use rights are obviously easier to transact than assets such as ceramic tile products and equipment. However, there are also assets such as land use rights and factories of bankrupt ceramic companies that have been auctioned despite multiple price cuts. For example, the land use rights, housing buildings, industrial plants and other assets of Linyi Meermei Ceramics Co., Ltd. were auctioned for the first time at a price of 75.0242 million yuan. , after 4 failed auctions, the price was discounted and reduced by more than 14 million, but still no one bid.
Home and building materials stores frequently close and run away
Since the beginning of this year, affected by various factors such as the epidemic, cost pressure, and international conditions, the market for the entire home building materials industry has not been optimistic. The most obvious phenomenon is that dealers have frequently closed their doors and fled.
In February this year, Nanchang Red Star Macalline Shopping Mall *Bang Doors and Windows closed due to a broken capital chain, making it difficult to cash in on the installation of doors and windows. Preliminary statistics show that the store has 20 outstanding orders, involving an amount of more than 200,000 yuan.
On February 25, Ma* Wardrobe at Xiyingmen Mall in Putian, Fujian Province suddenly closed down. Many consumers’ money was taken away by the merchants. However, the Mago factory did not receive orders. It is reported that this complaint involves more than 20 consumers, with a consumption amount of more than 2 million yuan.
On April 7, Ningbo Evening News reported that the local Tongtong International Home Furnishings merchant was suspected of running away. According to preliminary statistics, more than 50 consumers placed orders at the store, involving an amount of more than 2 million yuan. Not only that, its employees wereThree months' wages are in arrears, and the person in charge of the company is out of contact.
On March 16, many netizens reported on the public message board of Ningbo Internet Minsheng e-Diantong Public Message Board that Ke* Customization on the 7th floor of Ganglong International Home Shopping Plaza in the High-tech Zone was in arrears with customer orders and the boss had no money to deliver or refund. They may face huge losses. According to media reports, more than 50 customers have suffered losses, with a cumulative amount of more than 2.6 million yuan.
On April 9, Mango Metropolis reported that the store in Changsha Shang ** Duoduohecheng suddenly closed. The boss issued the news that "it was forced to close the business, the goods could not be delivered as scheduled, and the store was unable to provide refunds." Many consumers fell into the position of defending their rights.
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Some sanitary ware store dealers said helplessly, "Basically, within a few months, there will be several dealers. Excluding operating costs and logistics costs, you can't make much hard-earned money." The sudden outbreak of the epidemic has turned many of the original Building materials stores that are struggling to survive are on the verge of bankruptcy, and more and more building materials dealers are being eliminated.
The transformation of the industry's sales model will inevitably bring about a "shuffle" of manufacturers and distributors. For building materials dealers, after changes in the industry environment, whether they can quickly adjust internal management, grasp new traffic entrances, and improve their ability to expand unit value has become the key to getting out of the market predicament.
