Since 2018, the term "winter in the ceramic industry" has often been mentioned by people in the industry. The specific manifestations of the downturn in the overall industry environment are as follows: some ceramic companies with no core competitiveness and excessive operating leverage have financial problems when faced with the pressure of increased environmental protection or other uncertain factors. From the beginning, these ceramic companies defaulted on payment, wages, loans and other dishonest behaviors, then declared bankruptcy and liquidation, and then were put up for auction by the court, and finally withdrew from the stage of history.
If you want to use one sentence to describe the reshuffle of the ceramic industry, the most vivid one is the time-honored saying "Thousands of sails are passing by the side of the sinking boat, and thousands of trees are springing in front of the diseased trees." This is also true. Among the assets left by those ceramic companies that have been eliminated by the times, some of the land, houses, equipment and other assets will be collected by the growing ceramic companies, becoming the nourishment for them to enhance their own strength.
Since 2021, the bidding enthusiasm of ceramic enterprises for bankrupt ceramic enterprises has increased significantly. Relevant data shows that from January 1 to November 22, 2021, a total of 73 assets of 49 ceramic companies across the country were auctioned/sold, with a total asset valuation of approximately 2.675 billion yuan; among them, a total of 34 assets were successfully auctioned/sold , with a transaction volume of approximately 1.799 billion yuan. Comparing the data in 2021 with that in 2020, the total transaction volume shows a substantial growth trend. From January to December 2020, a total of 110 assets of 63 ceramic companies across the country were auctioned/sold, with a total asset valuation of more than 2.595 billion yuan, of which 53 were successfully auctioned/sold, with a transaction volume of 536 million yuan.
Judging from the geographical distribution of ceramic companies involved in auctions/sales, they are mainly concentrated in Guangdong (12 companies), Shandong (7 companies), Jiangxi (6 companies), Sichuan (5 companies), Guangxi (4 companies) and Liaoning (4 companies), among which several projects with a turnover of over 100 million are the assets of bankrupt ceramic companies in Guangdong and Guangxi.
Hongyu was purchased for 186 million yuan
Guangxi Xinzhong Ceramics Co., Ltd.
On March 4, the land use rights, buildings and other overall assets of Guangxi Xinzhong Tao Ceramics Co., Ltd. that were auctioned in bankruptcy were sold at a price of 186 million yuan. The buyer was Guangxi Hongsheng Ceramics Co., Ltd. After inquiry, Guangxi Hongsheng Ceramics Co., Ltd. was registered and established in Teng County, Guangxi on January 20, 2021. It is a newly established subsidiary of Hongyu Group.
The overall assets of Guangxi Xinzhong Ceramics Co., Ltd. photographed by Hongyu include: a total construction area of 198,510 square meters of buildings, structures and other auxiliary facilities (approximately 298 acres); vehicles; 6 ceramic production lines, a total of 1,087 units ( sets, individuals, etc.) machinery and equipment; 14 trademarks (i.e., the entire factory of the first phase of the new Zhongtao project that has been completedassets); one state-owned land use right with an area of 168,167.04 square meters (approximately 250 acres); one state-owned land use right with an area of 75,062.64 square meters (approximately 113 acres).
Lianchuang bought it for 145 million yuan
Guangxi Jinshajiang Ceramics Co., Ltd.
On April 8, the production and operating assets of Guangxi Jinshajiang Ceramics Co., Ltd. were auctioned as a whole. The subject matter was appraised at 174 million yuan and the starting price was 97.6 million yuan. After multiple rounds of bidding, Cenxi Lianchuang Ceramics Co., Ltd. sold it for 145 million yuan. The transaction was completed at a price of RMB 10,000.
The assets auctioned by Guangxi Jinshajiang Ceramics Co., Ltd. include: industrial land with a construction area of 233,767.83 square meters, four factories with a total area of 72,347.06 square meters, as well as machinery and equipment for three production lines, office buildings, and three trademarks. It is reported that the three production lines are one antique brick production line and two polished brick production lines, with a total production capacity of 60,000 square meters per day.
Dongpeng was auctioned for 110 million yuan
Qingyuan Juncheng Ceramics Co., Ltd.
On November 16, Guangdong Dongpeng Holdings Co., Ltd. issued the "Announcement on Wholly-Owned Subsidiaries Participate in Bidding to Acquire Assets" stating that its wholly-owned subsidiary Guangdong Dongpeng Ecological New Materials Co., Ltd. purchased Qingyuan for RMB 110 million. The land and above-ground buildings and attachments of City Juncheng Ceramics Co., Ltd.
The assets auctioned by Qingyuan Juncheng Ceramics Co., Ltd. include: the industrial land use rights located in No. 5, Area B, Yunlong Ceramics Industrial Base, Heyun Town, Qingxin District, Qingyuan City, buildings and ground attachments, and a transformer. It is reported that Dongpeng Ecological New Materials Company plans to implement an ecologically friendly high-performance slate new material production project on the subject assets to further promote green building materials and low-carbon products.Transform and upgrade the direction to provide the market with environmentally friendly new material products.
The above auction information is as follows (table):
It can be known from the auction information of bulk assets transacted in the ceramic industry in 2021 that the bankrupt ceramic companies listed for auction in Guangdong and Guangxi are more "sought-after". Although they have all experienced failed auctions, in the second auction Listed auctions also have sellers bidding and closing deals. The final transaction price of the relevant subject matter of Guangxi Jinshajiang Ceramics Co., Ltd. was even higher than the starting price (last auction) by more than 45 million yuan.
If you compare the data with information on several bulk asset auctions of ceramic companies transacted in 2020, the gap can be seen more clearly.
HSBC bought it for NT$213 million
Zhaoqing Baolilai Ceramics Co., Ltd.
In September 2020, all the overall assets of Zhaoqing Baolilai Ceramics Co., Ltd. were put up for auction with a starting price of 121 million yuan. After multiple rounds of public bidding, Zhaoqing Huifeng Ceramics Co., Ltd. won the highest bid. The online auction of this subject The transaction price was 213 million yuan.
The overall assets auctioned by Zhaoqing Baolilai Ceramics Co., Ltd. include: industrial land and above-ground buildings, supporting facilities in the factory, production lines and mechanical equipment, office equipment, etc.). Public information shows that the production base of Zhaoqing Baolilai Ceramics Co., Ltd. covers an area of more than 300 acres, has six ceramic tile production lines, and has a daily production capacity of 120,000 square meters.
Lianhui bought it for NT$85.2815 million
Cenxi New Power Ceramics Co., Ltd.
In July 2020, the land use rights, factory buildings and machinery and equipment of Guangxi Cenxi New Power Ceramics Co., Ltd. were put up for auction. Finally, after 28 rounds of bidding, they were sold at a price of 85.2815 million yuan. After the successful auction of New Power Ceramics Company, the project was renamed Guangxi Lianhui Ceramics Co., Ltd.
After inquiry, Chen Zhenming, the founder/shareholder of Guangxi Lianhui Ceramics Co., Ltd., is also a director of Foshan Jinluyu Ceramics Co., Ltd., Foshan Duonuo Ceramics Co., Ltd., etc. After installing machinery and equipment, it is estimated that an additional investment of 120 million yuan will be used to introduce new modern production lines to produce high-end products such as antiques, full-body marble, medium slabs, and rock slabs in various specifications. After production is put into operation, the annual output value will exceed 400 million yuan.
A company bought it for 67.59 million yuan
Zhaoqing Gome Ceramics Co., Ltd.
In February 2020, Zhaoqing Gome Ceramics Co., Ltd.'s assets including land use rights, above-ground buildings, machinery and equipment, inventory and other assets were successfully bid by a ceramics company at a price of 67.59 million yuan. The identity of the transaction person has not been disclosed.
It is reported that Zhaoqing Gome Ceramics Co., Ltd. was originally a production enterprise of a certain scale, with three ceramic production lines. Due to poor management and other reasons, it eventually went bankrupt because it was unable to repay huge debts. When the Dinghu Court accepted the company's bankruptcy liquidation case, the company had already owed hundreds of employees millions of yuan in wages and economic compensation.
The above auction information is as follows (table):
The auction information of bulk assets transacted in the ceramic industry in 2020 shows that most bankrupt ceramic companies were successfully auctioned after many failed auctions and price reductions. Among them, Zhaoqing Gome Ceramics Co., Ltd. was put up for auction for the first time. The time was April 2018, a full two years before the transaction was successfully completed.
Why are bankrupt ceramic companies in Guangdong and Guangxi becoming more and more popular as time goes by?
Taking the Jiangxi production area as a reference, there are also many bankrupt ceramic companies listed for auction in this production area, but most of the ceramic companies that have been taken over are local companies; and the leading companies in the ceramic industry are mostly expanding their production capacity in Jiangxi production areas. By directly investing in building factories, some may also follow Mona Lisa's approach of acquiring local companies.
It is said that "big fish eat small fish, and small fish eat shrimps." Aren't Guangdong's large ceramic companies interested in "small shrimps" from other production areas? actuallyotherwise.
There is actually another reason why large-scale ceramic companies in Guangdong are more willing to take over bankrupt ceramic companies that are listed for auction in Guangdong and Guangxi, and that is management. In other words, the closer the acquired assets (land, houses, equipment) are to the company's base camp, the easier it will be for the company to upgrade equipment and production capacity of the new production base, copy the original production model, and share resources, etc. , the most important thing is to facilitate the direct management of the new production base system.
(Author: Hong Xiaochun)
