Author:Bezel Machinery (Shanghai)  Release time:2016-04-11  keywords：Construction machinery default rate of up to 30% repurchase risk how to do

Recently, Qi Jun, President of China Construction Machinery Association, told reporters that this year, construction machinery industry customers average default rate has reached 25%-30%, well done 7-8%.

Insiders said that the most serious of the company's customer default rate has been close to 70%.

"The default rate in the history of the industry high, whether agents or manufacturers, the future should pay attention to risk prevention and control," Qi Jun stressed.

And an interview with the reporter interviewed a number of engineering machinery agents have said that since 2012 the construction machinery sales are very low, the current most urgent task is to go to customer receivables. 4 trillion investment gave birth to the manufacturers of this group of crazy, with our agents to help a fool, and now had to pay for the crazy expansion of the early."

It is reported that the construction machinery industry has been popular credit sales model, mainly including the installment, bank mortgage and financing lease. Due to the fierce competition in the industry, in order to improve market share, manufacturers have to reduce the transaction conditions. 30% of the Shoufu ratio is reduced gradually, even once heard manufacturers' "zero Shoufu" financing lease or even waive interest.

This aggressive sales policy to quickly expand the size of the company, but at the same time to operate buried hidden.

"A large number of poor customers are brought into the industry, once the downstream industry slowdown, the repayment ability of these customers will be a serious decline, the manufacturer's capital turnover will bring the pressure," said the industry, told reporters.

At the beginning of 2012 so far, large group (601258. SH) will continue to face downstream customers default, due to the impact of macro-control, downstream clients connected to live more and less, resulting in a month is not for the last month, and had to be forced to default, disputes with a large group.

Once the downstream customer defaults, these delays may not even be on the amount of money will form a lot of bad debts, and industrial chain transmission in the industry.

While the industry's listing Corporation currently has a high. As of three one weight (600031.SH) as of the first three quarters of this year, accounts receivable for 20 billion 700 million yuan, while in 2011 the company's annual net profit of 8 billion 600 million yuan, that is, if the formation of 1% of bad debts, it will devour profit of more than 200 million yuan.

Competitors Zhonglian Zhongke 000157.SZ/1157.HK is not exceptional also, 39%. As of September 2012, Zoomlion accounts receivable and long-term receivables together accounted for total assets proportion from 21% in the middle of 2007 increased to 2012 years ago in the third quarter, the first three quarters, the company should receivables reached 19.7 billion yuan. And in 2011 the company's annual net profit of 8 billion 100 million yuan.

In order to maintain the current profit table debut, in the downstream infrastructure investment slowdown, increased customer default background, the two companies even spontaneously adjusted the proportion of bad debt provision.

In addition, for manufacturers, but also to bear the risk of collateral repo. Because both the bank mortgage or financing lease sales model, manufacturers are required to provide security for the customer. If the customer defaults, the manufacturer needs to reimburse the remaining principal and interest payments to the bank on behalf of the customer.

Although credit sales and real estate mortgage sales are similar, but the core difference is that real estate is likely to rise, the risk is relatively small, and the recovery of construction machinery and equipment is bound to depreciate. Recycling of these second-hand equipment, how to deal with the manufacturers are also a big problem.

"In fact, it is not possible to go all the way to breach of contract law, had to discuss with the customer to postpone payment. If future downstream market recovery delays, the risk in the industry chain further conduction, drained a group of agents and manufacturers is sooner or later the thing, "an engineering machinery agents to reporters said.

According to the reporter, at present many companies in the industry has begun to pay attention to strengthening the prevention and control of risk, such as increasing credit sales of the first payment ratio, shorten the repayment period, avoid interest free sales, and the sales staff to increase the examination of the accounts receivable recovery efforts.

Source: Financial Network