Missing Chance Means Deathward--About JBP's Bankruptcy(2)
Resource from: cbcc-yinx Likes:3065
Jun 13,2005
The Chances Missed by JBP
According to the elder workers, JBP had missed so many chances when it was in troubles. If one of the following chances had been seized, JBP would have developed to a powerful modern beraing enterprise now.
--Acquisition of Ji'nan Auto Standard Parts Plant(JASPP)
15 years ago, JBP acquired JASPP. JBP could have openned a new market by taking advantage of resources of former JASPP. Instead, JBP discarded all businesses of JASPP and made a plant expansion on the site of JASPP. Now auto industry became so hot, which proved indirectly that what the JBP had done is by no means right.
Mr. Wang guanglu, president of the former JASPP, said: "there are great potential in the development of Auto Standard Parts business. The real reason for our being acquired are the problems of management system but the products itself. So it can be regarded that JBP's discarding of auto parts business almost make the acquisition nonsense."
--Failed in Profiting with Railway Bearings
In the beginning of 1990s, JBP was approved to produce 197726 railway bearings. For this kind of bearings were supplied to State Railway Ministry who could keep a stable order and timely payment, so it's a long term and promising profiting program for JBP. But owing to various reasons, JBP didn't invest enough money on this program. This railway bearing program lasted for 10 years. Before the program was forced to cancel, all investment totaled a half of the planning investment. Additionally, JBP's equipments were not suitable for the production of railway bearings and they didn't upgrade their equipments to meet the requirment of railway bearing production. Such a profitable program was canceled quickly.
--Misusing of Government Assistance Fund
In 2000, the Ji'nan government took into effect a policy that Ji'nan government granted Assistance Fund to the local enterprises to move their plants to suburb areas. JBP got RMB86 million yuan's Assistance Fund from government. 86 million yuan was enough for a plant moving activity, so there were much money left for dealing with JBP's problems. However, JBP didn't carry out a complete internal system transformation which could take it out of troubles. Instead, they did some partial changes, built new offices, repaid their debt and operation losses. The fund were decreased by the speed of RMB20 million yuan per year.
For JBP, taking a complete system transformation means lots of lay-off and will cause a short term crisis. So the company gave up the complete system transformation. From 2000 to 2002, JBP adopted many partial changes which included seperation of some operations from their main company and so on. But due to the property right problem of those seperated subsidiaries, JBP's partial change plan failed.
Embarrassment of JBP' Bankruptcy
There is no doubt about JBP's bankruptcy, but there still are some problems should be solved before its bankruptcy. That's JBP's debt problem.
Statistically, the debt of JBP has reached RMB338 million yuan but the evaluated assets of JBP were only RMB45.47 million yuan which could been regarded as insolvency. According to relevant regulations, if JBP wanted to practise its bankruptcy, they had to pay the workers much compensation fees such as contract concel compensation, preserve living fee of workers, preserve medical care compensation etc. which were worth at least RMB86 million yuan. If JBP couldn't pay it, all the cost should be paid by local government.
Additionally, there are three subsidiaries of JBP who are still running normally. Because JBP held almost half of the subsidiaries share and some of the plant site and equipments of the subsidiaries were leased from JBP. JBP's bankruptcy will affect those three subsidiaries directly. So how to deal with the three subsidiaries also should be take into account.
It's a fact that JBP will finally be bankruptcy. But we can see that JBP's bankruptcy can be avoided.
(cbcc-yinx)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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