On January 14, the People's Court of Nanhai District, Foshan City issued an auction announcement: a public auction will be held from 10:00 on February 22, 2021 to 10:00 on February 23, 2021.
Valuation is 112.6208 million yuan, starting price is 79 million yuan
The auction subject matter is three land use rights and eight above-ground buildings located in the Jiangxi Architectural Ceramics Industry Base (overall auction). The valuation is 112.6208 million yuan, and the starting price is 79 million yuan.
However, the auction announcement mentioned that there are risks in the above-mentioned objects:
1. The property is in a different location, so it cannot be handed over;
2. The acquisition time and termination date of the three parcels of land are inconsistent. The buyer may need to merge the land when registering the real estate transfer, which may result in a reduction in the term of the land use right;
3. The above-mentioned real estate does not have a real estate certificate that combines house and land, and the buildings on the ground may be constructed across parcels.
The decline of Weichen Ceramics, a Guangdong enterprise
It is reported that the subject matter of the above-mentioned auction is Jiangxi Weichen Ceramics Co., Ltd., a Guangdong-based ceramics enterprise that once led innovation in Jiangxi and was unparalleled in the limelight.
According to data, Jiangxi Weichen Ceramics Co., Ltd. signed a contract to settle in Jiangxi (Gao'an) Ceramics Industry Base in January 2010.
In February 2012, the first porcelain tile line of Weichen Ceramics was completed and put into production. In June of the same year, the second production line was ignited to produce fully polished glaze. As the first ceramic company in the Gao'an production area to use natural gas for production and to establish the first doctoral workstation in the Gao'an production area, the local government has high hopes for it.
In the early days of production, as a Guangdong-based enterprise, Weichen Ceramics Enterprise has lived up to expectations in terms of product quality and product innovation, and has been leading the trend in the production area.
In June 2016, Weichen Ceramics was shut down due to non-payment of electricity bills. Weichen Ceramics' thunderstorm, which created many firsts in the Gao'an production area, caused a lot of attention and various disturbances in the Gao'an production area. One after another.
At that time, "Ceramic Information" learned that the capital chain of Jiangxi Weichen Ceramics Enterprises has always been relatively tight, and the sales situation is not good, especially the continuous use of natural gas, which has led to excessive production costs and no advantage in competition with local enterprises.
Therefore, Weichen Ceramics had to switch to water and gas production starting in 2014.
As a Guangdong-based company, Weichen Ceramics’ product prices and positioning are relatively high, and its products are shipped to Foshan for sale. Faced with fierce competition among Foshan brands, the company’s sales have been poor, resulting in poor operations all year round. normal.
In June 2017, Weichen Ceramics, which had been out of production for one year, was taken over by a local business owner in Gao'an on a lease basis and established Jiangxi Gome Ceramics Co., Ltd., which has been operating normally to this day. Currently, there are 2 production lines producing porcelain tiles, medium plates and polished glaze series products. The newly established Gome Ceramics Company has been keeping up with trends in terms of product structure and market positioning in recent years. Its operating conditions have been very good, and its production and sales situation is relatively stable.
However, it is worth noting that this auction does not include the above-mentioned two production lines belonging to Gome Ceramics, so the auction process is more complicated. If the auction is successful, the subsequent handover will also be a big problem.
(The article is reproduced from Ceramic Information)
