On May 6, 2023, the National Enterprise Bankruptcy and Reorganization Case Information Network publicly announced the voting results of the property management plan of Shandong Ruixiang Tire Manufacturing Co., Ltd. This also means that this two wheel tire factory, which has been struggling for more than ten years, has finally come to a lonely end, with nearly 30 million of its assets waiting to be "divided".
In 2015, with the thunderstorm of Deribo tires, a large number of tire companies fell under the debt implications brought about by interconnection and mutual protection. In 2020, another wave of tire companies fell into a big wave due to the sales impact caused by unexpected events. In 2022, with the upgrading of industries and consumption, many small and medium-sized tire companies fell into the third wave of bankruptcy due to insufficient growth capacity. Shandong Ruixiang Tire, which once dominated the two wheel industry, unfortunately became the "pioneer" of the third wave of elimination.
On March 3, 2023, Shandong Ruixiang Tire Manufacturing Co., Ltd., a well-known two wheel tire manufacturer, was filed for bankruptcy liquidation by Zhongli International Financial Leasing Co., Ltd., ending its short 16 year tire manufacturing career.
According to the available information, Shandong Ruixiang's strength is relatively good. In its 16 years of growth, this tire company's business scope includes the manufacturing and sales of various types of two wheel tires, including electric vehicle inner and outer tires, bicycle inner and outer tires, motorcycle inner and outer tires, and quickly reached an annual production capacity of 10 million sets.
With a production capacity of tens of millions, its brands "Ruixiang", "Ostone", "Wall", and "Aodun" are continuously paving the way for the market. However, the insufficient market share of these brands in the high-end market also laid the foundation for their bankruptcy years ago.
Although from 2020 to the first half of 2022, with the skyrocketing demand for overseas two wheel tires, two wheel tire companies like Shandong Ruixiang barely supported their operations relying on foreign trade orders. But in the second half of 2022, exports in this market began to show a significant decline. The sharp decline in business has led to a surge in exports of two wheeled tires - only manufacturers of tire products with higher quality and technological value can receive limited orders. Obviously, those cheap two wheel tires are starting to sell in large quantities, and many two wheel tire companies are being pushed to the edge of the cliff - unable to grab matching orders, replacement demand has dropped again and again, and the production lines of companies focused on two wheel tires have been forced to stop.
The sharp decline in market demand, coupled with a series of old debts that began in 2016, ultimately prevented Shandong Ruixiang from operating until the dawn of dawn
Although it is unknown whether Shandong Ruixiang will not go bankrupt this year if motorcycle tire exports do not decline in the second half of 2022. But what is certain is that even if they are fortunate enough to survive, companies that focus on production capacity rather than product upgrades may not be able to avoid bankruptcy. After all, in 2016, Shandong Ruixiang exposed the drawbacks of not upgrading its production capacity.
Since 2016, the business status of Ruixiang Tire has been shaken. Contract disputes and disputes over the right to pursue compensation have emerged one after another. On February 25, 2016, with a target amount of 1 million yuan, Ruixiang Tire became a dishonest executor. Since then, Ruixiang Tire has been listed as a dishonest defendant six times, and the total amount of the executed object has exceeded 5.18 million yuan. As of now, about 5 million yuan has not been fulfilled, with a failure rate of 96.4%.
The direction of fate is as expected, and Shandong Ruixiang is gradually being hollowed out under the pressure of debt. The last time Shandong Ruixiang was listed as a person to be executed before being filed for bankruptcy was on February 21st, with an executed amount of 750000 yuan, in stark contrast to its tire production capacity of up to 10 million yuan.
After being filed for bankruptcy, Shandong Ruixiang held its first creditors' meeting for bankruptcy liquidation on April 27, 2023, and voted through offline voting. Among the 25 creditors who participated in the voting, 21 agreed to the company's "Property Management Plan", which involved a total debt of approximately 27.16 million yuan, accounting for 82.03% of the total unsecured debt.
Shandong Ruixiang, which used to be a force in the two wheeled tire industry, is about to be divided up.
Disclaimer: The image materials and articles on this platform come from the internet, so the copyright belongs to the original author. If any infringement is caused to your copyright and interests, please contact us. We apologize deeply and promptly delete it. Article source: Tire Business
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