Another Electronics Factory In Shenzhen Has Suddenly Announced The Closure Of Its Traditional Manufacturing Industry

- Sep 01, 2018-

The legal persons of shenzhen leida industry co., LTD. : dai yiluo and li jinfa, paid their employees on the evening of May 15, 2017, and disappeared the next day. It is said that they currently owe over 200 suppliers for payment, about 30 million yuan, which triggered the collective rights protection of suppliers. 

Another electronics factory in shenzhen has suddenly announced the closure of its traditional manufacturing industry

Another electronics factory in shenzhen has suddenly announced the closure of its traditional manufacturing industry

Another electronics factory in shenzhen has suddenly announced the closure of its traditional manufacturing industry

On May 15, shenzhen linengda industrial co., ltd. published a notice of suspension of business and a notice to inform creditors!As follows:

Another electronics factory in shenzhen has suddenly announced the closure of its traditional manufacturing industry

Another electronics factory in shenzhen has suddenly announced the closure of its traditional manufacturing industry

Reason for closing: due to the fierce market competition, the increase of raw materials and the substantial increase of costs, the company has suffered continuous losses in recent years. Now the company's capital chain has been cut off.. 

According to the national enterprise credit information system, the company was registered in 2003, the legal person is dai yele, the address is in shenzhen pingshan new district pingshan jiangling xiangjiang industrial park building B 4th floor, the shareholder information shows: Hong Kong li nanda enterprise group co., LTD and shenzhen tang mei electronics co., LTD. 

A group of activist suppliers gathered at the tomei technology building, where the company is based

A group of activist suppliers gathered at the tomei technology building, where the company is based

In fact, the closure of manufacturers is just a lonely shadow of the OEM industry in China. Although it is sad, it would be more effective to stimulate Chinese enterprises to realize the importance of transforming and upgrading and building their own brands rather than struggling on the edge of marginal profits. 

In the past, when the electronic market was booming, it was good. Everyone had money to make, but the problem of earning more and earning less was not highlighted.However, as the global economic situation is not optimistic now, the electronics market has also begun to fall sharply, and business orders have plunged.At the same time, domestic production costs, rental costs and labor costs are rising rapidly, with corporate profits falling sharply and many companies already overwhelmed. 

As China's natural energy consumption and the rising price of resource products are irreversible and the manufacturing cost is rising, China's low-cost advantage in manufacturing industry is being lost.More importantly, China also faces the dual pressure of developed countries returning to manufacturing and developing countries accelerating to catch up, and its traditional extensive growth mode is in full swing. 

Most of the reasons for the failure are the failure of customers or losses and huge payment arrears, resulting in the rupture of their own capital chain.Of course, there are a lot of their own mismanagement, resulting in huge losses. 

On the other hand, we can also see that the government always tries to rescue large factories before they shut down, but now the situation has changed.Now the government is advocating economic transformation and promoting "industry 4.0", and the government attaches more importance to high-tech enterprises. In contrast, traditional manufacturing enterprises have been neglected and become "abandoned children", which is especially obvious in the pearl river delta region. 

The pain facing China's manufacturers is not just a loss of cost advantage, a shift in policy direction, but more a fear of "death by change".