Post-Valley Coffee debt follow-up Yunnan Hougu Coffee directly hit the debt crisis

Peng Jie, reporter of China United Business Daily, reporting from Yunnan.

Like many Yunnan entity enterprises, Hougu Coffee Company, a local coffee leader, has fallen into a serious debt crisis. Fortunately, Hougu Coffee is determined to take off the "emperor's new clothes" of private lending, face the debt crisis and find a solution.

Hougu faces the debt crisis

Despite the efforts of enterprises to do a good job in production and trade (sales income of 1.1 billion yuan in 2013 and 1.5 billion yuan in 2014), despite strong profitability and good sustainable development, in the past two or three years, due to the unreasonable credit structure, Hougu coffee spent hundreds of millions of yuan on borrowing money to turn around and repay loans. Hougu Coffee in the face of debt crisis, where to go?

Since 2010, Hougu has had some private loans one after another, and it is the unreasonable credit structure of banks that has led to the "long-term use of short-term loans". Every month, 100 million to 200 million loans mature, requiring enterprises to make a "U-turn." With the passage of time, it has caused enterprises to occupy "U-turn" funds for a long time, and in the face of such a situation, enterprises dare not communicate with banks at all and can only bear it silently. " Zhang Ruijing, legal representative of Hongtian Group, the parent company of Hougu Coffee, said: "it's time for Hougu Coffee to take off the emperor's new clothes!"

Now Hougu Coffee is determined to take off the "emperor's new clothes"! However, the problem also arises: enterprises no longer raise funds to "turn around", within 90 days of loan maturity, there may be a "record of non-performing loans", which is a fatal blow to the development of enterprises! Continue to borrow money to "turn around", the enterprise will never get out of this "swamp", drinking poison to quench thirst will only make the enterprise die more miserably!

We made a difficult choice of the former and stopped raising funds to "turn around", said Zhang Ruijing. Because in the end, enterprises must be responsible to society and creditors! Continuing to borrow "U-turn" will only implicate more and more people into this "swamp". Taking advantage of our normal production, normal operation, and ensuring that the long-term interests of our 300000 farmers will not be affected, we must quickly cut the mess, take this step, and face the possible upcoming debt crisis!

How to save Hougu Coffee

Is there any way to save a real business like Hougu Coffee?

Mr. Xiong Xiangren, founder of Hougu Coffee, is worried about the survival of the enterprise, while also thinking about the solution: a few days ago, Premier Li Keqiang summoned some well-known domestic economists and entrepreneurs to consult the people on how to solve the current business difficulties. "We need to use structural reform to solve structural contradictions," he said. " What is "structural reform"? The structural reform we understand should be the partial structural adjustment and reform of the current national credit policy. If this understanding is valid and can be adjusted, then many enterprises in the real economy, including Hougu Coffee, seem to have a solution to the debt crisis.

On the basis of practice and understanding of the current national credit policy, Xiong Xiangren believes that if the following practices (let's call it "three strokes and two styles") can be implemented at the same time, then the debt crisis of most real economic enterprises, including Hougu Coffee, can be easily solved.

Three tricks: 1. Financial institutions must give enterprises a policy of extending loans for 1-2 years without drawing or suppressing loans; 2. The people's governments of various cities should, in the light of local conditions, set up a platform for communication between enterprises in the real economy and their creditors as soon as possible. Under the coordination and service of government departments, enterprises and creditors reach a memorandum of understanding to trade time for space to avoid rushing up and forcing enterprises to collapse. 3. Judicial organs should not seize assets and accounts as soon as they receive litigation requests, but should adhere to out-of-court mediation and file cases cautiously on the basis of the actual situation, so as to ensure the normal operation of enterprises to the maximum extent.

Two types: 1. For entity enterprises with good growth, the state finance should allocate part of the funds in time, increase credit and discount interest on some loans to enterprises, effectively reduce the burden on enterprises, and let enterprises adapt to the new normal as soon as possible. Regain a new life 2. For the banks that can quickly solve the loan extension and renewal of loans to the entity enterprises, the government should give them timely commendation and encouragement so that the banks can more boldly support the entity enterprises to get out of the predicament.

If the above-mentioned "three moves and two styles" can be carried out at the same time, it will certainly create conditions for China's real economy to achieve a "soft landing". The implementation of "three strokes and two styles" can not only resolve the debt crisis for real enterprises, including Hougu Coffee, but also enable these enterprises to get out of the predicament as soon as possible, restore vitality, and continue to support the heavy burden of national economic development. If the ultimate benefit will be the whole country and society!

Some banks untie Hougu Coffee.

On February 14, when the Western Valentine's Day, Hougu Coffee received a surprise on Valentine's Day: after paying attention to Hougu Coffee facing the debt crisis, some banks approved the policy of "lending new and returning old" short-term liquidity to Hougu Coffee. Support to "untie" Hougu Coffee.

Xiong Xiangren, chairman of Hougu Coffee, told reporters: bank of China (601988, stock bar) and Industrial and Commercial Bank of China (601398, stock bar) were the first to put forward and apply for 250 million and 78 million short-term loans for Hougu Coffee respectively to go through the procedures of "loan new and return old". The term is three years for the Bank of China and one year for the Industrial and Commercial Bank of China, provided that interest payments must be made in accordance with the new agreement. This measure greatly reduces the debt burden of Hougu Coffee, enables enterprises to pay more attention to operation and management, and strengthens the confidence and determination of enterprises to get out of the predicament as soon as possible.

Hougu Coffee faces the debt crisis

On the afternoon of February 9, Hougu Coffee, Lingfeng Coffee, Kunming Xinrong, Hongtian Group and other enterprises expressed the embarrassment of the debt crisis in the face of the media. From the guarantee business of nearly 200 private enterprises in Yunnan, it is observed that many private enterprises in Yunnan have operational problems, and a large number of private enterprises are facing debt crisis.

In order to avoid overdue loans, enterprises generally adopt two ways: one is to sell products cheaply to repay, which naturally offset corporate profits; the other is to raise funds from private capital, but the high financing cost will completely engulf the reasonable profit space of enterprises.

"80% of the time is spent on financing, dreaming about how to raise money to turn around." Xiong Xiangren frankly said that Hougu Coffee's debt crisis is only a microcosm of the predicament of real economic development, and hopes that financial institutions will adjust some of their financial policies. like fighting the fire, we will give policy support such as "extension" of corporate loans, "repayment of new loans" and "extension of working capital loans".

Thinking after "unbinding"

In Xiong Xiangren's view, the proposal of "three strokes and two styles" is actually only a summary and summary of the current national credit policy, not the first. He applied and called on the financial sector to make timely adjustments to the financial products used by enterprises according to the development needs of enterprises.

Once again, when talking about the Bank of China and the Industrial and Commercial Bank of China to provide timely policy support for enterprises to "loan the new to the old", Xiong Xiangren's eyes were red: "very moved!" I did not expect that the bank could support the development of the enterprise so quickly. " At least for a year, enterprises do not have to rack their brains all day to solve the "U-turn" capital problem, and enterprises no longer have to carry the high financial costs of private lending, and enterprises can finally embark on the track of sound development.

Xiong Xiangren said: "the premise of the bank's help to Hougu Coffee is the normal operation of the enterprise and the huge potential development space, as well as the strong confidence of the management team in the development of the enterprise." This time the bank can give Hougu coffee "loose" policy, which fully reflects the strong sense of social responsibility of the financial sector, and is a concrete manifestation and solemn commitment to private enterprises! Enterprises will cherish and live up to expectations, and with the concern and support of the government and financial departments, they will certainly be able to work out a path of development that suits them! "

At the same time, through this crisis, enterprises should also reflect on their own shortcomings and strengthen their own management, so that they can really mature after the crisis and create more wealth for the society. Only in this way can we truly reflect the value of the government and banks in helping enterprises solve difficulties and get out of difficulties.