Recently, China's refrigerator industry, one of the 'four Golden Flower' Xinfei Electric under pressure due to the capital chain suffered a crisis of the third production cut-off, the direct release of the new fly-out of refrigerators across the board 'New fly ads do well, as good as the new fly refrigerator . This sentence has been popular in the classic advertising slogans north and south, now want to become a swan song yet?
'New fly ads do well, as good as the new fly refrigerator', the ad has been popular in large rivers north and south, the new flying refrigerator has also become the benchmark for China's home appliance manufacturing industry, the market share was as high as 20% .But the past, In the present depression it is very pale.
▲ Photo Source: New fly refrigerator advertising screenshots
In the autumn of 11 years after the founder Liu Bingyin died in 2012, some new flying employees who tried to change the status quo of life magnified the photos of his lifetime tens of times before the headquarters of the new flying headquarters. , Thousands of new flying employees wearing blue tooling gathered here, shouting 'up salaries, to survive', and sealed the factory gate .That is the first time, China's refrigerator industry 'four golden flowers' One (three other companies: Mei Ling, Haier and Rongsheng) suffered a production cut-off crisis, this time with the rapid intervention of the government, Xin Fei Electric executives made a compromise;
In 2013, it unexpectedly announced that some of its production lines have been discontinued since May 28. Part of the company's employees have also been dismissed, and the flame of the cut-off was burned but alleviated with the help of the government.
In November 2017, the company was forced to stop production due to pressure from the funding chain. "A restructuring report issued by the Board of Directors of a new flying electric appliance indicates that the third production discontinuation crisis of the new flying electric appliance has come and the application for legal protection is imminent. .....
This time, anyone else will be able to save it?
▲ Image Source: Visual China
Xinfei seeking legal protection
According to Beijing Commercial Daily, Dahe Network, China Home Appliances Network and other media reports, recently, the industry insiders received a from Henan Xinfei Refrigeration Appliance Co., Ltd., Henan Xinfei Electric Co., Ltd., Henan Xinfei Appliance Co., Ltd. in 2017 November 1, 2001 jointly issued a restructuring statement:
As of October 31, 2017, the Company faced market competition and downturn, and sustained losses in the past few years.Under the pressure of the capital chain, the Company has only ceased its production activities at present, and the above three companies had ceased their operations to Henan Xinxiang Intermediate The people's court submits a request for restructuring and, under the supervision of the people's court, reorganizes according to law.
▲ Photo Source: China's home network
The note also states that Sunflex is prepared to gain legal protection by entering the reorganization process, enabling companies to enter a relatively safe operating environment and to focus on the strategic design of the company's regeneration. The company has started a working group that includes Managers and representatives of Yongan Shanghai Consulting Co. At the same time, the court will appoint a supervisor to supervise the reorganization and the working group will convert the related assets into cash but it will take time to process.
The three companies, promised in the note, will deal fairly and fairly with the interests of creditors and shareholders. Reorganization is a better solution than liquidation and will bring the best results to all those involved, including employees and suppliers .
Another board member of Xinfei Electric, which was acquired by the industry, wrote to Xinfei's staff letter: 'In the past few years, Henan Xinfei Electric Appliance Co., Ltd. has been operating in a highly competitive and challenging business environment. Under the pressure of price competition in the electrical appliance industry, the profitability of Xinfei Company has become more and more difficult.
According to the letter, the new company is not going to carry out the liquidation, and under the licensing and OEM arrangements, the management team will continue to review potential strategic partners that intend to use the new trademark. Xinfei has appointed Ernst & Young (Shanghai) as the reorganization business Advisor In addition, an outside manager will be appointed to work closely with the management team and Ernst & Young to oversee the reorganization and the company has appointed Ng Tze-shan as chief reorganization officer.
▲ Photo Source: Xin Fei Electric official website screenshot
According to Beijing Daily News sources said that the experts said the new choice of flying full suspension of the current initiative, as well as submitted to the court to apply for a restructuring of the company, instead looking for new buyers to fly refrigerator, instead of direct bankruptcy liquidation approach, Obviously the majority of shareholders are reluctant to the old home appliance industry in China have memories of the old brand exit home appliances market stage, the brand resources may become cash burden.
▲ Photo Source: Xinfei Mall screenshots
And, every Xiaobian (micro signal: nbdnews) found that in the new flying appliance online store, the point of selling hot goods, are prompted to 'not for sale' and 'zero inventory'.
According to Dahe Network, the plant has been suspended since November 1, the factory has been in a state of security in addition to security outside, the warehouse and the workshop are affixed to the seal.
Two fatal injuries to the new fly
The industry believes that the decline of the new fly and the company's chaos of brand authorization are closely linked.
According to Beijing Daily News, in March this year, the country held a small home appliances trade fairs, the three companies also represent the new company to exhibitors, also claimed that they each have the right to use the new fly trademark and behind the new Flying company 'new fly' brand to make 'one woman and more married' business decision-making.
It is reported that when ownership of Xinfei brand owned by Xinxiang City, Henan Province, the new flying refrigerator business does not have the brand ownership, in addition to refrigerators, other household appliances categories of new fly brand rights are foreign leasing, for the use of royalties to earn .
'On the surface, licensing the brand to multiple companies will benefit in the short term, but without a rigorous and effective monitoring mechanism, it will adversely affect the healthy growth of the brand in the long run. Is the integrity of the brand name of 'Xinfei' and will inevitably affect other categories under the brand name of 'Xinfei'. In the end, 'Xinfei' will be reduced from a name brand to a name brand. '
In addition to this, another thorny issue for Xinfei was the Hong Kong-based investor Hong Leong, which joined in 1994.
▲ Source: Hong Leong Group official website screenshots
According to earlier news from China.com, during the interview, a number of newly-started employees thought that the decline of Xinfei and the opposition of employees and management began in 2005 with Hong Leong.
Xinfei's predecessor was a small local military industrial enterprise, which was transformed into a refrigerator under the leadership of founder Liu Bingyin in 1984. In 1988, the four targets of Xinfei's sales revenue, profits and taxes, total labor productivity and per capita profit and tax both ranked Xinxiang crown.
In 1994, under the background of the successful experience of the coastal areas by Henan Provincial Party Committee and Government and the strategy of "grafting and reforming state-owned large and medium-sized enterprises with foreign investment", Henan Xinfei Group, Singapore Hong Leong Electric Appliance and Singapore Yuxin Electrical Appliance Tripartite Joint venture, the establishment of Henan Xinfei Electric Co., Ltd., which accounted for 49% stake in the New Flying Group, Singapore accounted for 45% of both parties and 6%.
Founded in 1963, the Hong Leong Group in Singapore is Singapore's largest developer of real estate and hospitality investment, with companies listed in multiple countries including the United States, United Kingdom and Singapore.
In the same year, a new fluorine-freezer production line was put into operation by Xinfei, the output of refrigerators rose from 360,000 to over 1 million units, net profit after tax was 315 million yuan, and all shareholders repaid the principal and interest in the next three years. In 1996, Xin Fei Electric among the top three refrigerators nationwide, ranked China's refrigerator industry 'four Golden Flower'.
▲ Image Source: Visual China
But in 2005, after Xinxiang City Government transferred 39% of the state-owned equity held by Xinfei Group to Xinfeng Electric in the joint venture company to Hong Kong, Hong Leong Group controlled 90% of the new flying electric appliance Shares, Xinfei Group executives in the joint venture Xinfei Electric not only lost the right to operate, but also by the decision makers into participants.
'Hong Leong Group did not properly retain the original team of senior executives and technical backbone, resulting in the loss of these people, so that the new business management in the increasingly imperfect,' said Liang Zhenpeng appliance analyst.
And in the course of 12 years of operation, there is a growing gap between the Hong Leong Group and its employees due to cultural conflicts.
From the development of the past few years flyover situation, it is clear that the Hong Leong Group has been powerless, there is no good way to save the new fly.Industry analysts said that if there is no strong new shareholders settled, Xinfei Electric is Resilient to death.