Risk exposure of overdue financial leasing of curr

2022-10-16
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The risk exposure of overdue financial leasing of current loans in the construction machinery industry

the risk exposure of overdue financial leasing of current loans in the construction machinery industry

China Construction machinery information

Guide: a domestic joint-stock bank issued an internal emergency risk warning on August 10 that the mortgage loan guaranteed by a large enterprise group in the construction machinery industry has been overdue in a large area, and the bank will review the credit extension of the group and reduce the risk exposure. According to the source of the bank, this incident is not the case of the group

a domestic joint-stock bank issued an internal emergency risk warning on August 10. The mortgage loan guaranteed by a large enterprise group in the construction machinery industry has been largely overdue. The bank will review the group's credit and reduce its risk exposure. According to the source of the bank, the event was not the group's own problem, but the financing guaranteed by it could not be repaid. The main risk was its downstream infrastructure and real estate construction enterprise customers

"it is estimated that the problem of over lending in state-owned banks is more serious, and the total amount involved may be hundreds of millions to billions." The source told the securities times that the above-mentioned enterprise group has more than 50 mortgage-backed financing in the joint-stock bank alone, and its affiliated enterprises are mainly in North China, South China and East China. Various signs show that the consequences of the blind development of construction machinery financial leasing sales are emerging

financial leasing risk exposure

it is understood that the core problem is not the machinery manufacturers, but the sluggish demand in the macro-control environment, resulting in the bottleneck of the back-end capital model. However, because the loan was guaranteed by the group, the bank "operated on it"

according to the vice president of a branch of ICBC in Jiangsu Province, the risk warning similar to the above-mentioned joint-stock banks was actually conveyed within ICBC at the beginning of the year. The specific operation is to reduce the financing scale of relevant loans and control risks

mortgage loan mode is very common in construction machinery industry enterprises, among which "manufacturer" financial leasing and "banking" financial leasing account for a large proportion of all kinds of businesses. Take the financial leasing agreement between the bank and the dealer as an example. When selling, the residual value of the machine is used as the guarantee. It is generally clear that when the loan is at risk, the bank should dispose of the collateral, and the dealer should undertake the repurchase

"construction machinery financial leasing is similar to first-hand housing mortgage loan, and downstream customers will repay the equipment payment in batches on a regular basis." Dongbei learned from material mechanics that Li Kun, an analyst in the securities engineering machinery industry, said that if the mortgage is overdue, the authorized dealer will generally give it a 2-3 month delay, after which he has the right to take back the machine, which is the so-called "repurchase"

what worries the above-mentioned vice president of ICBC is "widespread default in the industry". He said that the overdue loan will trigger the repurchase terms of dealers or manufacturers, but it can only solve the problem in a small scale. "If the whole industry defaults on a large scale, repurchase will not help. After all, manufacturers also face cash flow constraints."

Lu Zhengwei, chief economist of Industrial Bank, said that in addition to the possible rise in the bad debt rate of commercial banks, the performance of related industries is weak in the economic downturn cycle, and we should be alert to the spread of this risk to other industries

production enterprises have great pressure on repurchase

with the sharp decline in the demand of the construction machinery industry last year, production enterprises are also increasing the scale of financial leasing sales, with the intention of maintaining market share, "zero down payment", "first take goods and then pay" and other industry promotion means are frequent. However, in the downward period of the industry, this extreme sales method will undoubtedly magnify the repurchase risk of production enterprises

after consulting the 2011 Annual Reports of Listed Companies in this industry, it is found that almost all financial service agreements signed by companies and banks have arranged mortgage loan repurchase guarantee clauses. The term of this kind of mortgage loan is between 24 and 36 months. When the dealer or customer fails to repay the principal and interest of the bank loan in full and on time for several consecutive months (usually 3 months) within the loan term, the repurchase clause will be triggered. Either the listed company shall bear the repurchase obligation, or the listed company and dealers shall jointly bear the repurchase obligation

at the same time, many industry companies admitted in their 2011 annual reports that there were overdue loans of varying amounts, but they had not yet met the conditions for contract repurchase. This shows that the risk of financial leasing sales model in the construction machinery industry has risen at the end of last year

in 2012, the above risks will further increase. From January to February this year, manufacturers encountered the worst customer repayment period in recent years, and the phenomenon of deferred repayment is very common. In the first half of this year, the market sales decreased significantly, mainly due to the insufficient commencement of the project and the wait-and-see attitude of customers

generally speaking, the increase in accounts receivable of construction machinery enterprises can indicate that the scale of financial leasing is increasing synchronously to a certain extent. An analyst from far east leasing told that any default in the financial leasing business would increase the pressure on the cash flow of enterprises

consulting the quarterly reports of Zoomlion, XCMG technology, Shantui Co., Ltd., Sany Heavy Industry, Changlin Co., Ltd. and other industrial companies, we can see that the scale of accounts receivable is on the rise, and many companies mark "sales by installment" or "credit sales scale is increased" in the column of "reason for change". In addition, the net operating cash flow generated by the five leading enterprises in the first quarter was -7.063 billion yuan, a significant decrease from 364million yuan at the end of last year

blindly develop or brew the bitter fruit of the industry

in May 2004, caterpillar, an industry giant that established a financing service company in Beijing, brought the construction machinery financial leasing business into China for the first time. Eight years later, major domestic construction machinery manufacturing enterprises have successively established their own financial leasing companies, with rapid business development

"from 2006 to 2007, the peak period of the establishment of financial leasing companies in the machinery industry." Li Hanbing, President of the finance leasing branch of the Construction Machinery Industry Association, said that with the large-scale growth of industry demand from 2009 to 2010, the leasing business is also developing rapidly, which has greatly helped the rapid growth of small and medium-sized customers of enterprises

according to the statistics of China Construction Machinery Industry Association, in 2011, the sales revenue of mechanical products in the process of convergence development of aluminum based high-end metal material bases promoted by 20 major categories of workers in China exceeded 500 billion yuan, year-on-year. 7. When pressing the up and down keys to adjust the collet position, do not exceed the third gear, with an increase of more than 17%. It is understood that at present, when domestic construction machinery enterprises sell products, the combination of these structures of financial leasing mold and fixture accounts for 30% to 80%, and the full payment accounts for only a few

Li Kun of Northeast Securities told the securities times that infrastructure and real estate enterprises accounted for more than half of the downstream customers of construction machinery production enterprises; Among the main products, the price of concrete and cement mixers is generally slightly lower than 1million yuan, and the price of excavators, truck cranes, etc. is about hundreds of thousands to 1million yuan. It is industry practice for customers to purchase machines and adopt mortgage loans

Li Hanbing introduced that in the first half of this year, the association found that the risks of financial leasing business in the construction machinery industry were slowly emerging, mainly for two reasons: first, the dealers of early-stage production enterprises did not strictly control downstream customers, and some natural person customers with incomplete qualifications were released; Second, many construction projects are in the state of semi suspension, which directly leads to the difficulty of downstream customers' payment collection

"in the good stage of the economic situation, this mode is not inappropriate. But now the infrastructure industry is in the doldrums, and the state has not relaxed the regulation of real estate. When there is a problem with the funds of relevant enterprises, a series of historical problems have been brought out." A person from the Credit Department of a domestic commercial bank expressed this. He believes that this trend is likely to continue in the short term

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