All walks of life in the world had some problems before the epidemic, but the sudden epidemic was simply a god assist, so that the enterprises that still had to be saved were directly doomed. The construction industry, as an absolutely traditional industry, is no longer brave. Due to the epidemic this year, in order to stimulate the economy, follow-up infrastructure investment is about to come out again.
For some construction companies, overcoming and overcoming may be able to overcome this difficulty. But at a time of economic tension, the company was on the road to extinction.
The following are more than a dozen leading construction companies that have fallen in recent years
- In April 2020, Nantong Yijian went bankrupt and liquidated;
- In July 2021, Zhejiang Zisheng Construction Engineering Co., Ltd. (first-class qualification for construction engineering) applied for bankruptcy liquidation;
- In August 2021, China Yunnan Highway Construction Group Co., Ltd. (senior qualification in highway engineering) filed for bankruptcy reorganization;
- In September 2021, the Yiwu Municipal People's Court of Jackie Chan Construction Group Co., Ltd. (Senior General Contractor of Construction Projects) ruled to accept Jackie Chan's bankruptcy liquidation case;
- In September 2021, Zhejiang Yiye Construction Co., Ltd. (first-class qualification for construction projects) issued a bankruptcy auction announcement, and the auction was held on the online platform on October 21;
- In October 2021, Henan Expressway Development Road and Bridge Engineering Co., Ltd. (which has 11 construction enterprise qualifications such as highway engineering first-class qualifications and municipal public works first-class qualifications) issued a bankruptcy reorganization recruitment announcement.
- In November 2021, the announcement of "Chongqing Yuanfei Construction (Group) Co., Ltd. Recruitment of Restructuring Investors" was publicly released on the National Enterprise Bankruptcy and Reorganization Case Information Network;
- In November 2021, the company of Sichuan "Zhongchenda Western Construction Engineering Co., Ltd." publicly recruited investors for restructuring due to bankruptcy reorganization;
- In January 2022, Nantong Liujian went bankrupt and reorganized; as the saying goes: "Chinese architecture looks at Jiangsu, Jiangsu construction looks at Nantong", this news is also unexpected
- In February 2022, Jianye Group issued an announcement announcing that it would be adjusted from five-level management to three-level management, directly laying off 60% of employees, and finally only more than 400 people were left.
As a construction company, you will never file for bankruptcy unless you have to. That's not over yet, and there are plenty of construction companies on their way to closure. So many large construction enterprises are still like this, how can so many small and medium-sized construction enterprises survive?
Why did you go down this path?
(1) Its own profitability is poor, operating profit continues to be negative, operating income fell by 17% in 2020, and net profit also turned negative.
(2) The debt burden is relatively heavy, the company's asset-liability ratio is above 73% all year round, and the short-term debt is obvious, and the coverage of monetary funds for short-term debt is less than 20%.
(3) Negative events continue to occur, resulting in a decline in its refinancing ability. After repaying the existing bonds in advance, it eventually went to bankruptcy reorganization.
2022 is a key year for construction enterprises, and the construction industry will move towards high-quality development in the future