Even if a loss to take orders, mobile phone industry's dilemma end

These days, Weibo micro-letter widely circulated mobile phone foundry Enterprises, Dongguan trillion Letter Communications Industrial Co., Ltd. ("Trillion letter") chairman Ko Suicide News, it is frustrating. In Ko left staff letter, revealed the cause of suicide: Enterprise Capital chain completely broken, can not be reintegrated into funds, can only take this extreme means.

Fortunately, after the rescue Ko away from the danger of life, but the tragic color of the letter communication is not so light, in fact, this is the whole domestic mobile phone foundry industry tragedy, especially for those small and medium enterprises. The whole industry profit rate is very low, the order is not guaranteed, the industry chain layer arrears of money, these vicious disease let the foundry enterprise "physical condition" extremely bad, carelessly will fall into the abyss.

Operation three years capital chain break

Industry and Commerce registration information display, trillion letter communication was founded in 2011, registered capital of 20 million yuan, there are three natural shareholders, Ko is one of them, he is also the company's legal representative and chairman.

Ko in the "Swan letter", said that after careful review of the company's payables and receivables, know that the company has a big problem, "Our capital chain has been completely broken, but also the years, no one can lend me money to let us roll over, someone must stand up for this matter is responsible, that is my responsibility." ”

In fact, the financial chain of trillion-letter communication has been a problem for some time, arrears of suppliers ' money, workers ' wages and even the canteen providers. "Trillion letter owed us a hundred thousand of leasing fee", Yang Lihua to "it times" reporter said, he is a Shenzhen company general manager, for mobile phone OEM enterprises to provide testing equipment leasing services, trillion letter communications has been their customers. "In the second half of 2013 to the first half of 2014, we did not receive letters of credit, then we withdrew." ”

Yang Lihua does not agree with Ko's practice of committing suicide. After the news of his suicide, Yang Lihua was surprised, he sent a micro-blog: "You come back." As a defaulting supplier of mine, this call is not for money, is for a life. ”

How much do you owe trillion letters? According to the local government's briefing, trillion letter communication employs about 400 people, due to poor business, before employees reflect the existence of arrears of wages, the local town government has been the trillion letter newsletter as a key monitoring object. According to preliminary statistics, the letter of the outstanding staff wages (November 2014 to December) of about 2.3 million yuan, the arrears of about 60 suppliers total payment of about more than 50 million yuan.

With the intervention of the local government, the landlord agreed to advance the workers ' wages in full. As for the arrears of suppliers, the payment will be resolved by judicial means. "Trillion-letter communications into the liquidation of the link, but this process may be relatively long." Because the money owed us is not much, we are actually prepared for bad debts. "Yang Lihua said.

Domestic and foreign, squeezed at both ends

Trillion letter communications, such as small and medium-sized mobile phone factory, in Shenzhen, Dongguan area there are many, in recent years the domestic mobile phone market in full swing but did not let them feel warm.

China cool together with millet, the Charm clan, Oppo and other domestic brands in the domestic mobile phone market occupies most of the country, over the ocean brand. But these front-line enterprises are basically impossible to find these small and medium-sized factories to work. "Basically, the flagship mobile phone is our own factory to produce, the low-end mobile phone will allow the generation of factories to produce, of course, we choose to have the strength of the generation of factories, I hope the quality is guaranteed, otherwise it smashed their own brand." "Shenzhen, a domestic brand of mobile phone enterprise Marketing director of the IT times," said.

For these small and medium-sized mobile phone generation factories, their orders are mainly from the manufacturers, market-oriented mainly Southeast Asia, Africa, South America, India and so on. For example trillion letter communication, no own brand, main foundry Southeast Asia mobile phone brand, peak period, annual orders more than 3 million, employees nearly 2000 people.

"There is no way out of the low-end market now, even for overseas, low-end mobile phones are becoming more and more difficult to do," Tang Rikin, president of the Shenzhen Mobile Communications Federation, said to the IT Times reporter. In the past, the Indian market has been the export powerhouse of Shenzhen mobile phone, "but now the Indian market has been very difficult to do, India's local brands up, and in terms of law, labor costs, and other aspects of Chinese companies are also adverse." ”

In markets such as Southeast Asia, the challenges facing Shenzhen's mobile phone are huge. In Indonesia, for example, local manufacturers such as Aries Indo Global and Smartfren EADS, which launched the "Evercoss" brand, are catching up and expanding their share. In the Philippines, local manufacturers such as Cherry Mobile, myphone and CloudPhone have increased their share of the handset market, and exported to Burma and Vietnam.

Debts dragged down a string of

The living space of the handset manufacturer is greatly compressed, on behalf of the factory naturally difficult to escape doom: The profit margin is too low "eat not good", orders did not guarantee "eat not enough", there are layers of arrears, in case of which link broken, we are unlucky.

"A few days ago with a friend to a generation factory, the boss is complaining that the processing fee is very cheap, a mobile phone board processing fee only 1~2 yuan, excluding equipment costs, labor costs and so on, in fact, it is difficult to make money." To tell the truth, a small generation of factory bosses a year of money, may not be comparable to the income of middle managers in large enterprises, and very tired, really tired, "Yang Lihua said.

In Shenzhen's foundry industry, it is very common to rob a single phenomenon. Even if not to make money, but for the order quantity is not guaranteed small and medium-sized factories, or willing to answer, because not to work, build factory costs are not back.

At the same time, mobile phone manufacturers, foundry, accessories vendors in arrears, debts phenomenon is very common, a problem, the chain of other enterprises along with bad luck. "A few days ago, with a representative of the owner of a factory to eat, he said that there is still 5 million of the payment has not been collected back, now very much pressure," Tang Ruijin said.

Trillion letter communications chairman of suicide, with debts have close relationship, other people's money to come back, they owe others money can not, was forced into a corner. "This time I owe someone, and it is likely to let other people lose their shirts, my heart is really sad, I can run away, but my heart is not justified." Ko wrote in Swan letter that the bankruptcy of trillion letters will bring many suppliers to bankruptcy.

"Now basically there is no cash, for us, the default of 3-4 months to the payment of customers even the quality of customers." "Yang Lihua said. It is conceivable that there are risks in this midst.