China's private glass giant Wal-Mart will suspend production and liquidation across the board
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According to public information, Huaerrun, headquartered in Zhangjiagang, Jiangsu, is a large-scale float glass enterprise in China. It has more than 8,000 employees, total assets of more than 9 billion yuan, and 20 float production lines. The Group's total glass production and sales ranked first in the domestic industry for 13 consecutive years. Its base in Jiangmen was once the largest float glass production line in China. Chen Huinan, the former chairman of Huaerrun, also worked in 2005, 2006 and 2011. In 2012, he boarded the Hurun Rich List.
Real estate adjustment, overcapacity in the glass industry, industry insiders said that coupled with the sharp drop in product prices and increased environmental costs, Wal-Mart retreated and eventually fell into the final of bankruptcy liquidation.
Wal-Mart stopped production across the board. Although there was a rumor that Wal-Mart had ceased production, the outside world was still surprised when Wal-Mart fell. In 2013, Huaerrun was also recommended by the China Building Glass and Industrial Glass Association with CSG A and Fuyao Glass to be selected as the National Key Support Glass Group.
In fact, the commodity website "Business Society" also had information on the quotation of Huaer Run glass products on September 28. It was not thought that the company crashed in less than a month.
On October 18, the reporter learned from an industry analyst that the news of the suspension of the production of Wal-Mart. At the same time, the reporter noted that on October 18, Zhangjiagang’s local life website “Zhangjiagang Loves the Internet†disclosed that “Zhangjiagang, the country’s largest private glass company, was shut down for liquidation on October 20,†said the insider of the Huaer Run Glass Factory. Going to the factory, and also issued two announcements with the official seal of "Hualun Glass Industry Co., Ltd.". "Huarer has indeed stopped production. It turned out that Zhangjiagang is ranked among the top ten companies on this side. Later, it will not work. It has been supported. At the beginning of the year, it changed a major shareholder. A PE company took over and wanted to change its business ideas, but it did not improve. "An official familiar with the company in Zhangjiagang City confirmed to the "Daily Economic News" reporter.
The reporter checked the industrial and commercial information and found that the first major shareholder of Huaerrun was CDH CRYSTAL (HK) LIMITED, and the second largest shareholder was Jiangsu Huaer Run Group Co., Ltd. At the same time, Wal-Mart was a large body. There are 9 subsidiaries, in addition to local layout in Zhangjiagang, Jiangsu, and subsidiaries in Jiangsu Huai'an, Guangdong Jiangmen and Shandong Heze. "We know that the Zhangjiagang headquarters has stopped production and the whole group has been notified internally. At present, Jiangmen Huaerrun Company has normal production and operation, employees are still at work, and Jiangmen should have gradually separated from the headquarters." Jiangmen Hua An internal employee of Errun Glass Co., Ltd. told reporters.
Suspension of production for many reasons In fact, although the fall of Warren is shocking the outside world, but in the industry seems to be only a difficult portrayal of the industry. “The most important downstream industry in flat glass accounts for 75% of real estate, the automotive industry accounts for about 15%, and the growth rate of real estate is declining. In addition, the rapid expansion of the glass industry in recent years has resulted in overcapacity and low-price competition. Many glass companies are in Loss of business status." Zhuo Chuang information glass industry analyst Miao Yunping told the "Daily Economic News" reporter.
Miao Yunping said that the non-virtual, financial report data show that in the first half of this year, CSG A (000012, SZ) achieved a net profit of 206 million yuan, a year-on-year decrease of 65.08%; Qibin Group (601,636, SH) net profit of 93.51 million yuan , a year-on-year decrease of 35.45%; Yaopi Glass (600819, SH) and Jinjing Technology (600586, SH) both suffered losses in net profit, with losses of 79.53 million yuan and 74.97 million yuan respectively.
CSG A explained that in the first half of the year, due to the adjustment of the real estate market and overcapacity, the operating pressure of the float glass industry was further increased. The downward pressure on prices and rising pressure on the cost caused the whole industry of the float glass industry to face losses.
At the same time, the introduction of the new environmental protection law has become more stringent on the requirements of overcapacity glass companies, and the pressure on corporate environmental protection costs has increased, further reducing profits. "Beginning at the beginning of this year, the environmental protection pressure of glass enterprises is especially strict in East China. The general situation reflected in the industry is that the cost of the increase of 60 yuan / ton is basically lower than before, the price is low, the demand is not good, and the environmental protection pressure is increased. The situation of glass enterprises is even more difficult." Miao Yunping said that Waldorf's glass products are basically positioned at the low-end, "more than 90% of the products are used in the real estate industry, the scale is relatively large, and it is an established company with more employees. Not only are there market and environmental factors, but bankruptcy of companies may also have problems with poor management and management."
Subsequently, the reporter turned around and found the legal representative of the second shareholder of Huaerrun, Jiangsu Huaerrun Group Co., Ltd. Cao He, and wanted to interview the relevant issues, but after calling the phone, he asked if the other party was Cao He, and the other party answered first, then said The reporter made a mistake and hang up the phone.