Red Bean Zhou Yao lead South Jiangsu Bank 6.2 billion debts like devil-ridden

Red Bean Zhou Yao lead "Sunan Bank", 6.2 billion debts such as devil-ridden red Bean group has been planning to enter the financial industry, the participants in addition to Jiangsu Bank, GF Bank, Wuxi agricultural firm and other four commercial banks, including Amway life insurance and other 10 companies. Financial Weekly Trainee reporter Zhang Banhai/Shanghai report recently, private capital into the banking industry has become a hot topic in the market. Because the name of "Sunan Bank" was approved by the State Administration for Industry and Commerce, the protagonist of the behind-the-scenes red Bean group also surfaced. According to the financial weekly reporter, the company has been planning to enter the financial industry. This from the red Bean Group of a large number of shares in the financial institutions of the situation know one or two. In addition to Jiangsu Bank, GF Bank [micro-BO], Wuxi agricultural firm and other four commercial banks, including Wuxi Western Union Investment Development, Amway life insurance and other 10 companies, involved in commercial banks, investment management, life insurance, guarantee letter, private equity and other fields. Although the participation of a large number of financial institutions, but did not prevent the red Bean Group's bank debt pressure approaching. As of the end of the first quarter of this year, the red Bean group and its red Bean shares, general technology, including 11 subsidiaries of the bank loan balance amounted to 6.281 billion yuan, of which 3.556 billion yuan will expire in 2014, accounting for more than 56.62%. Transiting bank bond blood 3.5 billion bank loan expires next year Red Bean Group is a diversified holding group company, with textile and clothing as the main business, involving locomotive tires, real estate, bio-medicine and other four areas, with red Bean shares, Wuxi Southland, Red Beans Home, general technology and other 11 subsidiaries. In the stock structure of the red Bean group, the Zhou clan shares the absolute advantage of the total equity of the company by 68.16%, of which Zhou Yao accounted for 35.27%, the company's largest shareholder. From the industrial structure, the clothing industry, rubber industry is the leading industry of the red Bean Group. 2012 Red Bean Group Apparel plate, rubber plate total operating income accounted for 88.05%, operating profit accounted for more than 80.79%. But from the operating profit margin feedback data shows that the red bean Group Apparel plate and rubber plate business margin is only 15.16% and 10.36%. While bio-medicine and real estate has 58.65% and 44.05% of the operating gross profit margin, is considered as a profit growth point within the red Bean Group. "China's apparel industry entry threshold is low, market competition is very fierce." The tire industry is dependent on the international market, export volume accounted for about 40% of the domestic tire production. In the external market deterioration, internal and external demand is weak, it is easy to cause apparel industry, tire industry overcapacity, seriously affecting the development of the main business of the red Bean Group. "An industry analyst told a weekly newspaper reporter. Main business gross margin continued low, to the red Bean Group management capacity and solvency caused a certain pressure. The short-term debt repayment pressure of the red Bean group, at the end of 2011 and 2012, the proportion of total liabilities accounted for 69.83%, 60.01% respectively. Although current liabilities accounted for a slight decrease in total liabilities, the proportion was still relatively high. In addition, its operating activities in cashNET flow is also unstable, the 2010-2013 quarter of the data showed that the red Bean group operating activities cash net flow is-1.252 billion yuan, 145 million yuan, 696 million yuan and 44 million yuan, while the first quarter of 2013, the total amount of short-term interest liabilities has 6.717 billion yuan, accounting for the current liabilities 77.72 %, to the red Bean group Capital chain brings heavy pressure. As of March 31, 2013, the Red Bean Group bank loans amounted to 10.645 billion yuan, of which a short-term loan of 4.921 billion yuan, accounting for 46.23%, a year expired long-term loans of 654 million yuan, and long-term borrowings have 5.07 billion yuan, accounting for 47.63%. Over the same period, the Red Bean Group and its 11 subsidiaries, including red Bean shares and general technology, reached 6.281 billion yuan from the bank. The borrower includes bank of China [-1.39% funds], Huaxia Bank [-0.49% Fund research], GF Bank and many other banks, of which 3.556 billion yuan will expire in 2014, accounting for 56.62% of the total. Since 2012, the Red Bean Group has increased the issuance of debt financing Instruments, supplementing the group and its subsidiaries with cash flows and repaying bank loans through medium-term instruments and non-public-oriented debt financing instruments. As of March 31, 2013, the Red Bean Group and its subsidiaries through the bond direct financing 4.363 billion yuan. Over the same period, the Red Bean Group and its subsidiaries from the domestic commercial banks to obtain bank credit limit of 12.355 billion yuan, has not yet used the credit limit of 4.423 billion yuan, has been used to account for 64.2% of the total amount of credit. Into the financial industry prepared for a long time red bean first pilot in the 11 subsidiaries of the Red Bean group, the Red Bean Group Finance Company and Wuxi Xishan District Rural Microfinance Company is its financial services franchise company. Among them, the red Bean Group Finance company mainly provides the guarantee for the member unit, the bill acceptance and the discount, the financing consultant, the credit appraisal and the related consultation and so on business, solves the Red Bean Group and its subsidiary's capital demand. and Wuxi Ford Rural Microfinance company mainly with the red Bean Group has business dealings with suppliers as the main target customer base, to carry out micro-financial services. From the shareholding structure, although the red Bean Group through its own shareholding with subsidiaries, the actual absolute holding of two financial services companies. Red Bean Group, red Bean shares, red Bean International Holdings of Red Bean Group Finance company 63%, 31%, 6% of the shares; and Wuxi Fu Rural Microfinance Company by the red Bean Group, red Bean shares, red Bean International, Wuxi Southland respectively holding 26.67%, 25%, 25% and 6.66%. The red Bean Group has been planning to enter the financial industry. This from the red Bean Group of a large number of shares in the financial institutions of the situation know one or two. In addition to Jiangsu Bank, GF Bank, Wuxi agricultural firm and other four commercial banks, including Wuxi Western Union Investment Development, Li an life insurance, including 10 companies, involved in commercial banks, investment management, life insurance, guarantee letter, private equity and other fields. "Private capital squeezed into the banking industry, in addition to its own capital business needs,Also with the current virtual economic income is higher than the real economy. Now the overall economic environment downward, the market demand has fallen, the enterprise manages to fall into the predicament. The return on capital in financial services, such as banking, is much higher than in other sectors, where capital is scrambling to enter. Many entrepreneurs have abandoned the business of real companies and turned to the financial sector. "East China a large enterprise Mister frankly. According to a Wuxi local clothing factory executives told the Financial weekly Reporter: "Red bean Group has a plan to enter the banking industry, but because the regulatory layer has not opened private capital to enter, only through financial companies, small loans and other channels to achieve financial intermediation, on the one hand to solve their own operating capital requirements, On the other hand, through small loans to promote the increase in business income. Now the national gold reform Step by step, the Red Bean Group has proposed to set up private banks. "At present, clearly said to set up a bank, including Suningyun, Kaile technology and other listed companies, while the new lake, Zhejiang Guangsha, Youngor, Hagoco and other listed companies through the participation of the bank twists and turns involved." "Red Bean Group has been trying to become a pilot, all the procedures are in progress," said one of the people in the red Bean Group to the financial weekly. The future of the bank's ownership structure will be modelled on the Wuxi Ford Rural Microfinance Company. "If, as mentioned above, as a subsidiary of the Red Bean Group, red Bean shares will share in the newly established private banks, and perhaps it is so, as of September 13, red Bean shares three consecutive trading, by the market hot."