Jinli Group recently confirmed that half of its employees in Dongguan’s Jinli Industrial Park will leave, and said that layoffs are one of Jin Li’s series of measures. At this time, the news that Liu Lirong’s shares were frozen on January 10 has been close to 90. day.
There is no news of layoffs 50% of self-help financing
The Jinli Smartphone official issued a statement to explain the current situation of Jinli Industrial Park.
Jin Li stated in the statement that since the crisis, Jinli Group has adopted the lead-in-guarantee production plan in the early stage, and now it has adopted a scheme to cut costs and attract investment, so as to attract investment and ensure production, it officially issued a document on Friday (March 31) to Jinli Industry. Some employees in the park canceled the labor contract through negotiation.
In the future, Jinli Industrial Park will retain about 50% of its employees to continue production to ensure the normal operation of the production line. At the same time, there are also ODM manufacturers assisting in the production of Jinli mobile phones, which will supply Jinli's orders both domestically and overseas.
Jin Li emphasizes that the termination of the contract with employees is based on the principle of equality and voluntariness, and the goal of consensus is not to compel compulsions, to respect employees' own choices, not to force, not to threaten, to induce unfairness, and not to deceive. Compensation standards strictly enforce relevant provisions of the Labor Contract Law. Employees will be compensated according to the 'n+1' approach and will sign a compensation agreement with their employees. The economic compensation will be paid in installments. Payment will be made starting from the month after the signing of the compensation agreement. The monthly compensation will be paid for one month. Conducted, paid for up to 8 months.
If the employee is unwilling to terminate the contract or the employee does not agree to pay in instalments, he may not accept the termination of the contract. The Jinlihui will continue to retain the labor contract relationship. Special groups such as pregnant women, maternity period, and lactating women workers shall not be included in the scope of the agreement.
Jin Li said that layoffs are one of Jin Li’s series of measures for self-help. The company’s board of directors and management team are full of confidence in Jin Li’s reorganization. I urge you to give us more time to weather this difficult time.
Liu Lirong once publicly stated that for the current status of Jinli, it will be divided into three steps to solve the problem. First, Jinlihui will introduce partners to ensure production and sales; Secondly, it will introduce strategic investors and replenish funds; and third, it will be sold. Debt is paid by assets and creditor support is obtained.
After the debt crisis, Jin Li has been trying to carry out financing activities.
Previously, it was reported that the pick-up party was Hisense. For this news, Jin Li also told the “Securities Daily” reporter that he is currently negotiating financing, and there should be strategic funds to enter, but they are not related to Hisense.
In addition, Jinli officials previously denied to the Securities Daily reporter the possibility of Liu Lirong's exit in the reorganization. Jin Li said that 'it can't be out because Liu Lirong is the soul of Jin Li’s. This matter of financing is personally discussed by him. of. '
Since then, there have been no new news on financing. 'I heard that Liu Lirong had gone to the United States to raise money and he has also lent a lot of money. But now it may seem to be just a saying. 'A person from the industry told the Securities Daily reporter.
Others in the industry thought that the financing should not be so fast.
The gambling full screen suffered a general decline in the market
Regarding the debt problem, Liu Lirong had accepted an interview with the media before admitting that, 'The main reason for the Jinli capital chain outbreak was the overspending of marketing expenses and investment expenses in 2016 and 2017. Jinli's marketing expenses invested more than RMB 6 billion in 2016~2017. Three years of foreign investment costs more than 3 billion yuan, two costs close to 10 billion yuan, have a great impact on the Jinli capital chain, resulting in difficult turnover of goods, after the payment of goods in arrears by suppliers for asset preservation.
Indeed, Jinli has always been willing to operate the brand.
Liu Lirong took the helm again, re-sorted product lines, formed five product lines of M, W, S, F and King Kong; decisively cut off the product positioning of “small and fresh”, and led Jin Li to return to the 'business' where 'environmental life' was the selling point. ' Route, and based on this add a new connotation - 'security'.
In order to establish a brand new brand image and influence, Liu Lirong replaced Jin Li's logo and stepped up efforts in marketing. He took a huge amount of funding and sponsored the "Swordsman", "Most Powerful Brain" and "Chu Qiao Biography". Other popular variety shows, film and television programs, some of which have a nominal fee of RMB 100 million; Feng Xiaogang, Yu Wenle, Wu Gang, Xue Zhiqian, Liu Tao, Ke Jie and other popular stars have been invited as brand spokespersons.
Jin Li’s operating strategy for the past two years looks very similar to that of OPPO and Vivo. He has spared no effort to win big-name celebrity endorsements and popular variety titles. This high-flying marketing strategy has indeed brought brand visibility to Jin Li, 2016. In the year, Jinli’s global shipments of mobile phones were approximately 40 million units, an increase of 21% from 2015.
Therefore, at the beginning of 2017, Liu Lirong set a goal. In 2017, Jinli’s domestic sales guaranteed sales of 30 million units and challenged 38 million units.
However, this growth did not continue as expected. Jinli’s shipments in 2017 actually plummeted to 26 million units. In 2017, Jinli Mobile’s sales volume in China was 14.94 million units, ranking 7th, with a share of only 3%. Compared with the goal set at the beginning of the year, Liu Lirong has shrunk by half.
There is a background that the mobile phone market as a whole is not optimistic. According to the “Analysis of the Operation and Development Trends of the Domestic Mobile Phone Market in 2017” released by the China Institute of Information and Communications, the domestic mobile phone shipments in 2017 were 491 million units, a year-on-year decrease of 12.3%.
In the cruel and sluggish market as a whole, we just woke up from the glory and defeat of the functional machine. In the era of smart machines, Jin Li, which has gradually improved but has not yet stood firm, is in a rush to play. .
In November 2017, Liu Lirong opened Jinli’s “Comprehensive Screen” strategy and released eight full-screen mobile phones at a single price. The price coverage ranged from low-end to high-end. However, the Chinese smart phone industry has reached the ceiling and moved from an incremental market. For the stock market, the aggressive expansion strategy laid a stance on the crisis of the capital chain.
The television conference that mimics the appearance of OPPO that mimics the OPPO has become a footnote for Jin Li’s strategic thinking at that time was not clear enough. According to the “Securities Daily” reporter observation, in mid-2017, OPPO teamed up with Zhejiang Satellite TV to open up an innovative The concert-style conference was very effective. In November 2017, Jin Li’s full-screen conference also joined hands with Shenzhen Satellite TV. However, unlike OPPO’s skillful inlaying of product selling points into a concert, Jin Li only passed TV stations bluntly. A live broadcast event that was similar to usual was heard. The OPPO reached out to the target audience, the young people group, through the star-studded live concerts. However, Jin Li’s live broadcasting of the TV station could reach its main consumer groups. The effect did not seem obvious.
If Jin Li’s celebrity endorsement title is followed, the variety shows its effectiveness is worth investing in. The saving of this TV station’s press conference is not necessary for Jin Li.
Jin Li suffered setbacks. If he stands up again, perhaps he will re-examine the laws of the market and his own strategy.