"Development is the key and foundation for solving all problems." Since the reform and opening up, development has become a consensus among all walks of life, especially in the fields of industries and enterprises. This consensus has been verified once again in Dongxu Group’s resolving the debt crisis.
Dongxu Group, one of the top 500 private enterprises in China, announced on September 29 that the debt restructuring plan was approved by creditors, which means that it began with the liquidity crisis in 2019 and the debt resolution achieved phased results. From an external perspective, the most fundamental reason behind the willingness to vote for creditors is the development prospects that Dongxu Group showed with its "second entrepreneurship" motivation after the crisis. This is where everyone's faith lies. After the announcement of the news from Dongxu Group, it caused a lot of discussion in the capital market, investment and industry. In the eyes of all parties, the adoption of the debt restructuring plan is undoubtedly the best situation.
As for the capital market, Dongxu Group has three listed companies. The implementation of the plan makes the capital's expectations clearer, which is of great significance to safeguarding the interests of investors and market stability.
For the investment community, this debt restructuring plan "no discounts or debt evasion" reflects the principles of rule of law and marketization. will undoubtedly help enhance the current investment confidence of industrial capital and financial institutions in real economic entities.
, and in the display industry, the ripples caused are even greater. The Dongxu Group, born in 1997, has taken it as its mission to solve the problem of "bottom-free cores and screens" that is "bottlenecks". In 2010, Dongxu Group broke the monopoly of foreign giants and was the first in China to realize the domestic production of the fifth-generation LCD glass substrate, saving more than 200 billion yuan for downstream enterprises.
At present, Dongxu Group is the only company in China that masters both electronic-grade glass overflow method and float forming process and realizes industrialization, and is also the only company with a complete set of LCD glass substrate production technology and equipment manufacturing capabilities. Due to Dongxu Group's position in the industrial chain, it is hard to imagine that the collapse of Dongxu Group due to due to debt problems is equivalent to "cutting off one's own arm" in China's optoelectronic display industry.
It can be said that the passage of Dongxu Group's debt restructuring plan is not only a major event and benefit to Dongxu Group itself, but also an upstream and downstream of the entire industry. It is precisely because of the significance of this level that during the debt restructuring of Dongxu Group, local governments have given strong support.
This reminds people of the fact that during the financial crisis in 2008, the Hefei government’s support for BOE’s finally brought back local enterprises. BOE has led more than 120 companies in the display field to Hefei, with a cluster output value of about 170 billion yuan per year. This is very similar to the local government’s support for Dongxu Group this time.
Review the self-rescue path of Dongxu Group since the liquidity crisis in 2019. Development is the core. In short, liquidity problems are encountered in development, and solving this problem must also rely on development. Therefore, Dongxu Group has carried forward the Nanniwan spirit from top to bottom and started the "second entrepreneurship".
Today, Dongxu Group has developed into a comprehensive industrial group covering six core businesses: semiconductor photoelectric display materials, high-end equipment manufacturing, semiconductor silicon-carbon materials, new energy power generation and components, new energy vehicles, and high-end medical glass packaging materials. This has become the cornerstone of winning the confidence of creditors.
With the approval of the debt restructuring plan, Dongxu Group survived.
debt restructuring plan "clear clearance", Dongxu Group's "second entrepreneurship" welcomes new students
ushers in the moment when creditors vote to pass, Dongxu represented by Chairman Li Zhaoting must be filled with emotion.
It has been almost three years since Dongxu Group encountered a liquidity crisis in 2019.
The logic of business is very realistic. Behind the liquidity crisis is the problem with hematopoietic ability and business planning. Facing reality, Dongxu Group must do everything possible to obtain "blood transfusion" support from all parties, while focusing on "blood production" - from early business expansion to shrinking the front to focusing on the main business; strengthen technological innovation, actively explore the market; focus on production line management, and stabilize the supply market.
Dongxu Group's management is very calm. "Blood production" does not mean that you are eager to attack everywhere and do whatever you can recover your blood. Instead, you focus on the frontier of the industry and rely on the advantages of Dongxu Group to do it.
So, in the past three years, the outside world has seen that Dongxu Group has followed the development trend of the new display industry and has successively launched LTPS glass substrates that can be used for high-end LCD displays, OLED carrier plates that can be used for flexible screens, and "King Panda" (second-generation) cover glass that can be used for high-end mobile phones and car displays. Related technologies have been extended to the hot MiniLED back panels.
In the above fields, Dongxu Group broke the foreign monopoly, and related new technological achievements won the China Patent Gold Award, the first prize of Hebei Province Science and Technology Progress, and the first prize of Anhui Province Science and Technology Progress.
When Dongxu Group sits at the negotiating table with creditors with these achievements, both the institutions and the government will be greatly touched. Faced with such a company, whether to choose to coexist with the company or give up is obviously an easy choice.
Of course, Dongxu Group, which grew up in the reform and opening up and market-oriented environment, also understands that creditors cannot be disappointed. Only "no discounts or debt evasion" is the best protection of their own credit and the greatest support for the business environment. When everyone has confidence in private enterprises, China's economy will gain stronger momentum.
So, we see that the adoption of the restructuring plan of Dongxu Group is the result of the joint efforts of all entities such as enterprises, governments, and financial institutions. They are expected to create a win-win sample for the resolution of private enterprises' debts. After the debt restructuring plan is passed, Dongxu Group's credit and market entities will be restored, which creates external conditions for its rapidly growing business. It is no exaggeration to say that this is the new birth of Dongxu Group after its "second entrepreneurship".
is lightly equipped, and the win-win sample of enterprises, industries and localities
debt restructuring plan is passed. This is the beginning of Dongxu's breakthrough and rebirth. The self-"health" ability and external "blood transfusion" conditions will all meet major benefits.
From a business perspective, Dongxu can not only remove financial burdens, but also create relatively good conditions for the possibility of introducing new partners, restoring capital liquidity and restoring corporate operations in the future.
From the perspective of capital, the overall business of Dongxu enterprise is developing positively. The business of its listed companies will be qualified to obtain the position of by institutional investors . The valuation is expected to increase in the future, and listed companies can repay their debts as soon as possible. What is more important is that in addition to restoring the company itself, it is also of great significance to the national display industry security and local industrial transformation.
"Failure of cores and screens" is a long-standing problem in my country's manufacturing industry.
In the past decade, benefiting from the joint innovation of upstream and downstream enterprises in the industrial chain such as BOE and Dongxu, my country's display industry has made rapid progress and has accounted for more than 60% of the world's LCD panel production capacity. However, in the upstream of the industrial chain, my country still has a large amount of raw materials and equipment that depends on imports.
Dongxu has become a leading enterprise that breaks the "bottleneck" problem of upstream of the industrial chain after more than 20 years of independent innovation. Its R&D and production capacity of LCD glass substrates and high-end cover glass rank first in China and forefront in the world. Relevant core technologies have won the first prize, second prize and Chinese patent gold medal.
Dongxu's sustainable and healthy development is of great significance to protecting the security of my country's display industry. The adoption of the debt restructuring plan is inseparable from the guidance and assistance of local governments. This scene of
is similar to the incident that shows that another government-sponsored enterprises in the industry 14 years ago. In 2008, foreign LCD giants cut prices and suppressed them. BOE's financial pressure was huge. With the huge funding of the Hefei Municipal Government, BOE turned danger into safety.
Hefei's assistance triggered the butterfly effect . BOE has completed and put into production in Hefei, ending the "bottleneck" situation where many of my country's LCD panel products rely on imports and safeguarding the security of the national strategic industry.
After Hefei helped BOE for 14 years, Hebei Province provided timely assistance and helped Dongxu, an important supplier of BOE, resolved the debt problem. is a relay race to protect the security of the national display industry chain.
The national industrial chain must be safe, the local economy must develop, and after the Dongxu debt problem is resolved, it can also better serve local industrial upgrading.
Hebei Province's "14th Five-Year Plan" clearly states that it is necessary to "vigorously develop the third-generation semiconductor materials and devices" and "make the new display industry bigger and stronger." Dongxu's core industry is highly consistent with its industrial strategic deployment. Relevant bases have become an important part of the local electronic information industry. In the future, it may help Shijiazhuang to build a new generation of information technology and biomedicine trillion-level industrial cluster.
Looking back, the debt restructuring plan was passed, Dongxu broke through and was reborn, helping local economic development and safeguarding national industrial security. How much power will Dongxu burst out with lightweight equipment in the future? It is worth looking forward to.
