Everyone has heard of the burning chain. And doing business is a chain of links. If one link goes wrong, every link will suffer disaster. Recently, as the chemical industry has entered the traditional peak season, various problems accumulated in the first half of the year have also begun to appear. Business has been bleak due to reduced orders, a large number of companies have laid off employees and sold factories due to financial difficulties, and large amounts of bad debt have impacted companies and they have written off their products!
For small and medium-sized enterprises, bad debts are a sword that can choke the enterprise and cause it to evaporate in an instant.
The central bank announced: 446.3 billion bad debts were written off in half a year!
Recently, the central bank released statistics on social financing scale in the first half of 2020. The data shows that the total scale of loan write-offs is 446.3 billion yuan! Banks have over 100 billion in bad debts, and many people attribute the increase in bad debts to the epidemic. In fact, the epidemic has only accelerated the exposure of bad debt risks.
During the epidemic, factories suspended production, companies lacked orders, and the economy declined, resulting in a significant decrease in corporate income and a sharp increase in the risk of bad debts. As the problem of bad debts comes to light, companies’ difficulty in collecting payments has become the focus of the industry.
Fafa Technology has difficulty collecting the 34 million payment for goods and has made provisions for bad debts!
As a large enterprise, Kingfa Technology has suffered a lot this year. First, there was the US 6.8 billion mask order incident, and then there was the bad debt incident involving Shengquan New Materials. If small and medium-sized enterprises could not withstand the blow, they would have closed down long ago.
*Source: Kingfa Technology Semi-Annual Report
According to Kingfa Technology’s 2020 semi-annual report, Shengquan New Materials owes Kingfa Technology more than 34.4 million yuan in accounts receivable, and Kingfa Technology has accrued 100% bad debts! With such a large sum of money, how much annual income does a small and medium-sized enterprise have?
Titan shares’ receivables remain high and the future is unclear!
The textile leader Titan Shares recently updated its prospectus. This is the second time that Titan Shares has taken care of it. Titan, whose accounts receivable remains high and bad debt problems are increasing, is once again facing the challenge of going public.
According to information, due to the downturn in the textile industry in recent years and the increasing costs, Titan The shares also had funding problems. From 2017 to 2019, Titan Shares accrued bad debts of 69 million yuan, 85 million yuan, and 84 million yuan respectively, while the net profits of Titan Shares during the same period were only 72 million yuan, 69 million yuan, and 59 million yuan. In 2018, In 2019, Titan Shares’ losses from bad debt provisions exceeded the company’s net profit. Faced with so many bad debts, Titan’s development is full of challenges. Faced with bad debts, it is difficult for banks and large leading companies to collect debts, let alone ordinary companies?
Over 100,000 companies have been cancelled! Please pay back promptly!
Bad debt is the news that everyone least wants to hear. Because bad debt means that the hard work and payment for goods have been wasted! Unable to collect or make payments, companies struggled to operate, and had no choice but to pay for goods externally, forcing many small and medium-sized enterprises to write off. According to Tianyancha data, the total number of companies that have been canceled exceeds 100,000! Among them, 11,140 new chemical companies were canceled within one year of establishment.
*Tianyancha
It is reported that Guangdong, Jiangsu, Shandong, Zhejiang, Anhui and other major chemical industry provinces The number of cancellations is relatively large, and the number of canceled companies is still increasing. Recently, the country has also introduced new cancellation regulations to speed up the cancellation of companies. Companies that fail to cancel in time will face taxes and high fines! The epidemic + environmental inspection + hazardous chemical inspection + safety inspection + market economy downturn, multi-layered challenges are stacked up. Many companies have written off and closed down due to poor management before they started to make profits, leaving a pile of bad debts to crush their suppliers.
New scams have appeared recently. When encountering “delayed payment” transactions, please be vigilant. The year of the epidemic has not been easy for everyone. Now that we have entered the peak season of the industry, everyone in the textile industry is asked to deal with integrity and receive payment in a timely manner! When trading, you should pay attention to the other party’s company dynamics, and settle in advance if there is any abnormality. </p
