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Decrypt the cable industry with low profit margins factors

Release date:2013-07-15

2012, the national wire and cable industry profit margin was 5.54%. To 2013, because the back section, financing difficulties, as well as the high cost of production, market factors such as overcapacity serious backlog of cable companies profit margins.According to Bureau of Statistics data show that: As of April this year, the national wire and cable industry profit margin decreased to 4.15%! 
  "Back to the payment difficulties" as a chronic problem in the cable industry, resulting in the cable business capital chain tension, some of which corporate profit margins almost "hanging by a thread." Obviously, the problem is not solved back section, will definitely lead to the production company's cash flow and insufficient financial difficulties, which affects many aspects including procurement, including. Once encountered bad debts, bad debts, the consequences are more disastrous, cable companies directly affect profitability. 
  In fact, because of the problem of low profit margins, currently a large number of companies have the edge at a loss in order not to loss, many companies across the moral bottom line, ignore the law and regulations, providing the market with counterfeit products. 
  For the period of payment is too long, some producers that the average period of payment from one month to three months or even a year or so! Only some of the main requirements to maintain existing customers or manufacturers of cash transactions represent a shorter period of payment. 
  In the increasingly tense corporate cash flow situation, the cable factory receivables increased significantly over last year, and even harder to recover some money. Wire and Cable providers expressed reluctance among many credit to the real estate business, because the real estate capital chain particularly tense, worried that eventually becomes bad credit. 
  Summary "back section difficult" issue, mainly in the following five kinds of forms: 
  one, the advance payment. Customers are generally unwilling to pay advance, even before the advance payment, but also requires the supplier to provide advance payment guarantee, delaying the advance payment. Some of the contract: Delivery period is 20 days after receipt of advance payment bond for the parties within 30 days of advance payment, because the handle advance payment guarantee at least a week, customers in more than 30 days after the advance payment until the cable delivery place After yet often prepayment arrival. 
  Second, to the payment of the purchase. After the arrival of the goods, the customer should pay the supplier, but the customer also requested for shipment back to a single side once again provide the original certificate, warranty book and other materials (the actual arrival time has been provided for the party), then the purchase price paid to ; there are many companies or the total package installation requiring owners after payment payment to the supplier, these acts have delayed the payment of the purchase. As customers deliberately delayed, cable products from the hair cycle is generally cash on delivery is 3 to 4 months.
  Third, the payment time the agreement is not clear. If the customer often require project completion, electricity, installation and commissioning after payment, many major projects require project completion even after clearing the balance due accounts, these payments are part of enterprises can not grasp. Especially for long cycle projects, requiring all goods until payment to settle, this payment method will increase the financial pressure on the supply side, so that a large number of supply-side to advance the production of capital. Such as government programs, generally no prepayment, enterprises should scheduling shipments on schedule, they would go after delivery are owed ​​money, greatly increased the company's financial pressure. For example, some transport projects, due to the construction cycle is longer, from the first to the last batch of supplier delivery end, delivery time may be up to a year, such as special circumstances, cycles longer. 
  Fourth, the retention payments. Equipment products generally have a retention agreement, cable metallic materials products, are not subject to retention, but most customers will require 5% to 20% of the retention money. Customers will be required in the contract or installation project completion and acceptance 1 to 2 years after the end of the retention payments, there is no clear and specific time of payment, retention arrears 2 to 3 years are normal. Now, the cable companies to pay out money retentions about 20% to 30% of the total. 
  Fifth, there is big bully customers shop phenomenon. Especially with large customers, long-term customer contracts, there are many unfair terms, compression of the cable companies profits. After the signing of the sales contract, if copper prices, the customer asked to continue execution of the contract, which is entirely favorable for the customer; when prices continued to fall and exceeds a certain level, some customers may be looking for a variety of reasons to defer to the goods, the reduction of non-performance of the contract or order to the enterprise caused by pressure on the stock, making money becomes "dead money."Cable companies participating in the project bidding, bid contract from quote to generally have a period of time, during which the case of copper prices, the customer may request bidders secondary offer; case of copper prices, the customer may be declared successful enterprise and requires a contract, or forfeiture of the bid bond. 
HG8868  Now, "the back section difficult" issues that need purchaser, cable manufacturers and other parties with relevant government order to solve, it seems difficult to achieve in a short time, thus the cable manufacturer's profit margins have been squeezed or further. In addition, China Wire and concentration is low, disorderly competition and long-term existence of objective phenomena, but also severely restricted the domestic wire and cable home of the profits.

2012, the national wire and cable industry profit margin was 5.54%. To 2013, because the back section, financing difficulties, as well as the high cost of production, market factors such as overcapacity serious backlog of cable companies profit margins.According to Bureau of Statistics data show that: As of April this year, the national wire and cable industry profit margin decreased to 4.15%! 
  "Back to the payment difficulties" as a chronic problem in the cable industry, resulting in the cable business capital chain tension, some of which corporate profit margins almost "hanging by a thread." Obviously, the problem is not solved back section, will definitely lead to the production company's cash flow and insufficient financial difficulties, which affects many aspects including procurement, including. Once encountered bad debts, bad debts, the consequences are more disastrous, cable companies directly affect profitability. 
  In fact, because of the problem of low profit margins, currently a large number of companies have the edge at a loss in order not to loss, many companies across the moral bottom line, ignore the law and regulations, providing the market with counterfeit products. 
  For the period of payment is too long, some producers that the average period of payment from one month to three months or even a year or so! Only some of the main requirements to maintain existing customers or manufacturers of cash transactions represent a shorter period of payment. 
  In the increasingly tense corporate cash flow situation, the cable factory receivables increased significantly over last year, and even harder to recover some money. Wire and Cable providers expressed reluctance among many credit to the real estate business, because the real estate capital chain particularly tense, worried that eventually becomes bad credit. 
  Summary "back section difficult" issue, mainly in the following five kinds of forms: 
  one, the advance payment. Customers are generally unwilling to pay advance, even before the advance payment, but also requires the supplier to provide advance payment guarantee, delaying the advance payment. Some of the contract: Delivery period is 20 days after receipt of advance payment bond for the parties within 30 days of advance payment, because the handle advance payment guarantee at least a week, customers in more than 30 days after the advance payment until the cable delivery place After yet often prepayment arrival. 
  Second, to the payment of the purchase. After the arrival of the goods, the customer should pay the supplier, but the customer also requested for shipment back to a single side once again provide the original certificate, warranty book and other materials (the actual arrival time has been provided for the party), then the purchase price paid to ; there are many companies or the total package installation requiring owners after payment payment to the supplier, these acts have delayed the payment of the purchase. As customers deliberately delayed, cable products from the hair cycle is generally cash on delivery is 3 to 4 months.
  Third, the payment time the agreement is not clear. If the customer often require project completion, electricity, installation and commissioning after payment, many major projects require project completion even after clearing the balance due accounts, these payments are part of enterprises can not grasp. Especially for long cycle projects, requiring all goods until payment to settle, this payment method will increase the financial pressure on the supply side, so that a large number of supply-side to advance the production of capital. Such as government programs, generally no prepayment, enterprises should scheduling shipments on schedule, they would go after delivery are owed ​​money, greatly increased the company's financial pressure. For example, some transport projects, due to the construction cycle is longer, from the first to the last batch of supplier delivery end, delivery time may be up to a year, such as special circumstances, cycles longer. 
  Fourth, the retention payments. Equipment products generally have a retention agreement, cable metallic materials products, are not subject to retention, but most customers will require 5% to 20% of the retention money. Customers will be required in the contract or installation project completion and acceptance 1 to 2 years after the end of the retention payments, there is no clear and specific time of payment, retention arrears 2 to 3 years are normal. Now, the cable companies to pay out money retentions about 20% to 30% of the total. 
HG8868  Fifth, there is big bully customers shop phenomenon. Especially with large customers, long-term customer contracts, there are many unfair terms, compression of the cable companies profits. After the signing of the sales contract, if copper prices, the customer asked to continue execution of the contract, which is entirely favorable for the customer; when prices continued to fall and exceeds a certain level, some customers may be looking for a variety of reasons to defer to the goods, the reduction of non-performance of the contract or order to the enterprise caused by pressure on the stock, making money becomes "dead money."Cable companies participating in the project bidding, bid contract from quote to generally have a period of time, during which the case of copper prices, the customer may request bidders secondary offer; case of copper prices, the customer may be declared successful enterprise and requires a contract, or forfeiture of the bid bond.

2012, the national wire and cable industry profit margin was 5.54%. To 2013, because the back section, financing difficulties, as well as the high cost of production, market factors such as overcapacity serious backlog of cable companies profit margins.According to Bureau of Statistics data show that: As of April this year, the national wire and cable industry profit margin decreased to 4.15%! 
  "Back to the payment difficulties" as a chronic problem in the cable industry, resulting in the cable business capital chain tension, some of which corporate profit margins almost "hanging by a thread." Obviously, the problem is not solved back section, will definitely lead to the production company's cash flow and insufficient financial difficulties, which affects many aspects including procurement, including. Once encountered bad debts, bad debts, the consequences are more disastrous, cable companies directly affect profitability. 
  In fact, because of the problem of low profit margins, currently a large number of companies have the edge at a loss in order not to loss, many companies across the moral bottom line, ignore the law and regulations, providing the market with counterfeit products. 
  For the period of payment is too long, some producers that the average period of payment from one month to three months or even a year or so! Only some of the main requirements to maintain existing customers or manufacturers of cash transactions represent a shorter period of payment. 
  In the increasingly tense corporate cash flow situation, the cable factory receivables increased significantly over last year, and even harder to recover some money. Wire and Cable providers expressed reluctance among many credit to the real estate business, because the real estate capital chain particularly tense, worried that eventually becomes bad credit. 
  Summary "back section difficult" issue, mainly in the following five kinds of forms: 
  one, the advance payment. Customers are generally unwilling to pay advance, even before the advance payment, but also requires the supplier to provide advance payment guarantee, delaying the advance payment. Some of the contract: Delivery period is 20 days after receipt of advance payment bond for the parties within 30 days of advance payment, because the handle advance payment guarantee at least a week, customers in more than 30 days after the advance payment until the cable delivery place After yet often prepayment arrival. 
  Second, to the payment of the purchase. After the arrival of the goods, the customer should pay the supplier, but the customer also requested for shipment back to a single side once again provide the original certificate, warranty book and other materials (the actual arrival time has been provided for the party), then the purchase price paid to ; there are many companies or the total package installation requiring owners after payment payment to the supplier, these acts have delayed the payment of the purchase. As customers deliberately delayed, cable products from the hair cycle is generally cash on delivery is 3 to 4 months.
  Third, the payment time the agreement is not clear. If the customer often require project completion, electricity, installation and commissioning after payment, many major projects require project completion even after clearing the balance due accounts, these payments are part of enterprises can not grasp. Especially for long cycle projects, requiring all goods until payment to settle, this payment method will increase the financial pressure on the supply side, so that a large number of supply-side to advance the production of capital. Such as government programs, generally no prepayment, enterprises should scheduling shipments on schedule, they would go after delivery are owed ​​money, greatly increased the company's financial pressure. For example, some transport projects, due to the construction cycle is longer, from the first to the last batch of supplier delivery end, delivery time may be up to a year, such as special circumstances, cycles longer. 
HG8868  Fourth, the retention payments. Equipment products generally have a retention agreement, cable metallic materials products, are not subject to retention, but most customers will require 5% to 20% of the retention money. Customers will be required in the contract or installation project completion and acceptance 1 to 2 years after the end of the retention payments, there is no clear and specific time of payment, retention arrears 2 to 3 years are normal. Now, the cable companies to pay out money retentions about 20% to 30% of the total.

2012, the national wire and cable industry profit margin was 5.54%. To 2013, because the back section, financing difficulties, as well as the high cost of production, market factors such as overcapacity serious backlog of cable companies profit margins.According to Bureau of Statistics data show that: As of April this year, the national wire and cable industry profit margin decreased to 4.15%! 
  "Back to the payment difficulties" as a chronic problem in the cable industry, resulting in the cable business capital chain tension, some of which corporate profit margins almost "hanging by a thread." Obviously, the problem is not solved back section, will definitely lead to the production company's cash flow and insufficient financial difficulties, which affects many aspects including procurement, including. Once encountered bad debts, bad debts, the consequences are more disastrous, cable companies directly affect profitability. 
  In fact, because of the problem of low profit margins, currently a large number of companies have the edge at a loss in order not to loss, many companies across the moral bottom line, ignore the law and regulations, providing the market with counterfeit products. 
  For the period of payment is too long, some producers that the average period of payment from one month to three months or even a year or so! Only some of the main requirements to maintain existing customers or manufacturers of cash transactions represent a shorter period of payment. 
  In the increasingly tense corporate cash flow situation, the cable factory receivables increased significantly over last year, and even harder to recover some money. Wire and Cable providers expressed reluctance among many credit to the real estate business, because the real estate capital chain particularly tense, worried that eventually becomes bad credit. 
  Summary "back section difficult" issue, mainly in the following five kinds of forms: 
  one, the advance payment. Customers are generally unwilling to pay advance, even before the advance payment, but also requires the supplier to provide advance payment guarantee, delaying the advance payment. Some of the contract: Delivery period is 20 days after receipt of advance payment bond for the parties within 30 days of advance payment, because the handle advance payment guarantee at least a week, customers in more than 30 days after the advance payment until the cable delivery place After yet often prepayment arrival. 
  Second, to the payment of the purchase. After the arrival of the goods, the customer should pay the supplier, but the customer also requested for shipment back to a single side once again provide the original certificate, warranty book and other materials (the actual arrival time has been provided for the party), then the purchase price paid to ; there are many companies or the total package installation requiring owners after payment payment to the supplier, these acts have delayed the payment of the purchase. As customers deliberately delayed, cable products from the hair cycle is generally cash on delivery is 3 to 4 months.
  Third, the payment time the agreement is not clear. If the customer often require project completion, electricity, installation and commissioning after payment, many major projects require project completion even after clearing the balance due accounts, these payments are part of enterprises can not grasp. Especially for long cycle projects, requiring all goods until payment to settle, this payment method will increase the financial pressure on the supply side, so that a large number of supply-side to advance the production of capital. Such as government programs, generally no prepayment, enterprises should scheduling shipments on schedule, they would go after delivery are owed ​​money, greatly increased the company's financial pressure. For example, some transport projects, due to the construction cycle is longer, from the first to the last batch of supplier delivery end, delivery time may be up to a year, such as special circumstances, cycles longer.

 

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