China Toy Giant - Hejun Group Falls In The Financial Crisis

Hejun group is a Hong Kong listed company, playing a decisive role in the toy industry. Among the five major brands of the world's toys, Hejun group is already a manufacturer of three brands.

Hejun group has two factories in Zhangmu head, the total number of employees is about 6500.

How can such a large company's factory suddenly collapse?

One of the world's largest toy industry and commerce, one of the two factories of Hejun group has closed down, and 6500 employees are facing unemployment.

This is the biggest case of the collapse of Chinese entity enterprises, which is affected by the financial crisis.

factory

Worked with toy giant

At noon on the 15 day, a BBS named "Sunshine Community" suddenly appeared with a clear picture. A notice on the picture was particularly dazzling.

The notice was inscribed on the "Zhangmutou town people's government". The time was "two October 15th eight". The content was directed against "all employees of Hejun plant": "because of the poor management of the enterprise operator, the enterprise closed down.

At present, the town government has set up a special working group to make every effort to solve your wage problem.

According to sources, the factory worker of Zhangmutou Jun Jun toy factory went on strike the day before August to recover wages.

Reporters yesterday from Dongguan Zhangmutou town office office confirmed that the Zhangmutou Hejun toy factory has closed down.

In the toy industry, Hejun group is famous. As the representative of the largest toy factory in the world, it mainly manufactures and sells toys on the basis of OEM (OEM) benchmark, including providing OEM business to Mattel Inc, the world's largest toy company, and famous foundry products including MATTEL, HASBRO and so on.

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Affected by the financial crisis

Some experts pointed out that the products of Dongguan Zhangmu factory were sold to the United States, and its collapse was obviously affected by the financial turmoil and subprime mortgage shocks. From the influence and visibility, it can be said that the first case of the US financial crisis has affected the closure of China's real economic enterprises.

Chao Gang, Dean of the school of international business management at the University of Finance and economics, believes that OEM companies are most affected by the financial crisis.

Data show that the first 8 months of China's toy exports this year, though 5 billion 100 million US dollars, have increased by 1 percentage points over the same period last year, a sharp drop of nearly 22%.

An open Chinese customs

It is pointed out that toys are traditional labor-intensive products. Since the beginning of this year, the rising cost of raw materials and manpower, the accelerated appreciation of RMB, difficulties in financing, the reduction of export tax rebate rate, and the increase in foreign inspection fees have all contributed to the collapse of Chinese toy enterprises.

Professor Chao Gang Ling, who is familiar with Hejun group, said that this is the most influential company he knows at home in the United States, and after the loss of HK $200 million in the first half of the year, it is not easy to sustain it.

Related dynamics

Handsome or winding up

Market news came out that Hejun group has appointed a temporary liquidator and may be taken over.

In October 15th, Hejun group announced the suspension of the "announcement of sensitive information on stock price to be published".

On the 14 day, Hejun group received the lowest price since the listing of HK $0.08.

Compared with the historical high price of HK $2.38 in July 20, 2007, the stock price shrank by 95% in 15 months.

Hu Jinbin, chairman and executive director of Hejun group, which has nearly 40% stake, has also suffered from the great shrinkage of assets. It has shrunk to HK $14 million 340 thousand from the highest sum of HK $426 million 700 thousand.

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Depth analysis

Entity crisis is far more than toy enterprises.

In August, the media also reported that Yiwu toys were directly related to life and death. In September, the media revealed that the Chinese gift toy industry was experiencing a cold spell. In October, it was the day when the world's largest toy industry and industry and commerce group fell.

Upgrades from winter to bankruptcy may be far more than the toy industry.

The next big bankrupt company is likely to be in the textile industry.

Latest customs data show that Chinese textiles in 2008 1~9 months

The total export volume was 136 billion 940 million yuan, an increase of 8.12% over the same period in 2007, and it fell for 8 consecutive months.

In fact, if combined

Changes in Chinese textiles since June of this year

Exports actually show negative growth.

Ma Yun, chairman of Alibaba's board of directors, said, "the economic crisis will come and will definitely affect the real economy."