Jiangsu Five A Toothbrush Factory Bloom and Wither
Feb 19, 2020
DuringtheQingDynasty, LiuWanxingbuiltYangzhou' sfirstbeefbonetoothbrush.WhatLiuWanxingdidn' texpectisthataftermorethan170years, hischildrenandgrandchildrenmadethisindustrybiggerandstronger.Atpresent, thetoothbrushesproducedbyHangjihaveoccupied60% ofthenationalmarketand35% oftheworld'. Smarket.AsanativeofHangji, YangZhaojin, likeeveryoneelse, wasengagedintheproductionandsalesoftoothbrushesthathisparentshaddone.Intheearly1990s, YangzhouWuaiToothbrushFactorywasestablished.JiangsuFiveLoveGroupCo, Ltd.In2003, afterColgate' swholly-ownedacquisitionofthedomesticbrandSanxiaotoothbrushes, Wuaitoothbrushesroserapidly, accountingforupto30% ofthedomesticmarket, effectivelyfillingthemarketgapleftbytheacquisitionofSanxiao.FiveLovehasalsoreachedagloriousperiodofhisdevelopment.Enlistedbyvarioushonorsandwiththestrongsupportofvariousfinancialinstitutions, YangZhaojinbeganhisambitiousinvestmentexpansionplan, tryingtosurpasstheheightoftheSanxiaoGroup, whichwasfoundedbyhisfellowKoreanHanping, inthefie ldoftoothbrushes.In2003, YangZhaojin
30millionyuanimportedfromGermanytheworld' stopbrushingequipment, expandedproductioncapacitytoimproveproductionandquality, onlytofindoutaftertheequipmentwasboughtback, therelatedsupportinginvestmentisalsomillionsandmillions, theseequipmentdidnotcreatearesponseafterthepurchaseValuable.Inthemarket, thefivelovetoothbrushsiegeisslightlylower, whichhassuccessivelyfilledthegapleftbythethreesmiletoothbrushes.However, theenlargedmarketsharefailedtofillthelostprofitsduetoinvestmentfailure, soYangZhaojindecidedtotransitiontootherindustriestoobtainhigherprofits.Duetoabundantfundsandhugecreditsgrantedbymajorbanks, YangZhaojininvestednearly100millionyuantobuildabatchofhousingonthenewlyacquiredindustriallandinthenameofbuildingemployeedormitories, hopingtoentertherealestateindustryatalowcost.Butbecauseofthenatureoftheland, thesehousesfailedtosellandhundredsofmillionsofdollarsweredeposited.ThisseriesoferroneousinvestmentshasreducedWuai' smainbusinesstoothbrushintoawageearnerformajorbanks.Thehugeamount z investic do bankovnictvíprůmyslovýchellterisků. Konzervativní banky zahájily přijímání úvěrů ze společnosti Wuai.Wuai, který ztratil finanční prostředky, musel použít soukromé finanční financování, které se podílí na financování úvěrů.
Theglobalfinancialcrisisthateruptedin2007andthecontinuousappreciationoftherenminbigraduallymadeWuaiGroupaslavetothelendingmarket.WuAibegantobearheavyinterest, sinkingstepbystep.Attheendof2013, thecrisisoffivelovesfinallybrokeoutinthepublic' ssight.Thedebtsowedtofinancialinstitutionsandprivateloansweremorethan400millionyuan, andworkers' wageswereowed5millionyuan.ThedoorofWuaibegantobeblockedconstantly, andthemainbusinesstoothbrushcouldnolongerbeproducedandsoldnormally.Thiswinterinearly2014wasextremelycoldforWuai.