In this case, it is an indisputable fact that local finance is tight.
If the capital chain fails to keep up, it may lead to domino effect and lose everything.
In China, under the dual pressure of the COVID-19 and the sharp reduction of land finance, both the central and local governments have been unable to make ends meet.
However, the growth rate of 2021 fell sharply, almost standing still.
It is absolutely unwilling to go bankrupt unless it is forced to do so.
In 2021, the statistics bureau of Nantong City, Jiangsu Province, released data that the gross output value of Nantong’s construction industry in 2021 will exceed one trillion yuan for the first time, reaching 1056.87 billion yuan.
As early as 17 years ago, there were 2150 construction enterprises in Nantong, including 21 super qualified enterprises and 215 first class enterprises, with more than 1.6 million employees.
In the first half of the year, Henan’s revenue was only 236.2 billion yuan, but its financial expenditure reached an astonishing 573.2 billion yuan, which is quite tight.
This output value scale ranks first among prefecture level cities in China.
From the perspective of income alone, in the first half of the year, the income of 26 local provinces and cities in China had a negative growth.
The comparison is stronger with another group of data.
In April, 83 construction enterprises nationwide went bankrupt and reorganized.
According to the survey, there have been 336 construction enterprises that have gone bankrupt and reorganized in recent months.
We can’t help asking why Nantong’s construction industry fell into such an abyss.
The difficulty of Nantong’s construction industry is beyond imagination.
In the early days, construction enterprises in some areas had a rather difficult time, and there were many bankrupt enterprises.
The most practical reason is that the matured debts cannot be paid off..
Fixing Socket Waved End Nail Plate
However, the reality is that many small and medium-sized construction enterprises, even large general contracting construction enterprises, have collapsed one by one, and the shock brought by them has spread to upstream and downstream enterprises.
Among the 24 super qualified construction enterprises in Nantong, 21 enterprises have completed the output value of more than 10 billion yuan.
The situation was bleak.
From 2018 to 2021, the courts at two levels in Nantong accepted 10257 cases of various construction contract disputes, an increase of 163.9% year on year.
In the words of my friend in Nantong construction industry, from the data point of view, everyone seems to be working hard, but from upstream to grassroots, everyone is too lazy to struggle.
In July, 80 construction enterprises nationwide went bankrupt and reorganized, including 30 in Jiangsu, 10 in Guangdong, 7 in Fujian, 7 in Zhejiang, 6 in Chongqing, 5 in Hunan, 2 in Guangxi, 2 in Henan, 2 in Yunnan, and 1 in Anhui, Heilongjiang, Hubei, Jiangxi, Ningxia, Shandong, Shaanxi, Sichuan, and Tianjin.
His construction site, because a real estate agent defaulted on the commercial ticket, now let alone the payment collection, how long can his own contractor last? It can be seen by the naked eye that the countdown is already.
From the central and local perspectives, the budget revenue of central government funds was 189.8 billion yuan, down 4.2% over the same period of last year; the budget revenue of local government funds at the same level was 2607 billion yuan, down 29.7% over the same period of last year, including 2362.2 billion yuan from the transfer of state-owned land use rights, down 31.4% over the same period of last year.” Budget expenditure of government funds: In the first half of the year, the budget expenditure of national government funds was 5482.6 billion yuan, an increase of 31.5% over the same period of the previous year.
In 2021, the GDP of Nantong will be 1102.694 billion yuan, which means that the output value of Nantong construction enterprises is almost equal to the GDP of Nantong.
Only from the second half of 2021 to the current half year, three construction enterprises with super qualification and four construction enterprises with first qualification have applied for bankruptcy, reorganization and liquidation.
According to the Financial Revenue and Expenditure in the First Half of 2022 on the Chinese government website: “In the first half of the year, the budget revenue of national government funds was 2796.8 billion yuan, down 28.4% over the same period of last year.
To be honest, everyone knows that Nantong’s construction industry is difficult, but I’m afraid the degree is beyond imagination.
Take Henan as an example.
From the perspective of the central and local governments, the budget expenditure of the central government funds at the same level was 204 billion yuan, an increase of 1.2 times over the same period of last year; The budget related expenditure of local government funds was 5278.6 billion yuan, an increase of 29.5% over the same period of last year, of which 3080.6 billion yuan was related to the revenue from the transfer of state-owned land use rights, a decrease of 6.4% over the same period of last year.
As we all know, as a construction enterprise, it is burdened with the employment and survival of countless families.
In May, 78 construction enterprises nationwide went bankrupt and reorganized, including 33 in Jiangsu, 8 in Guangdong, 7 in Zhejiang, 4 in Chongqing, 4 in Fujian, 4 in Hunan, 3 in Sichuan, 3 in Henan, 2 in Anhui, Guangxi, Hubei and Liaoning, and 1 in Jiangxi, Shandong, Shanxi and Shanghai.
Let’s look at the operating revenue of Nantong Sixth Construction from 2018 to 2021, which is from 42.1 billion to 49.2 billion, and looks like it is also increasing year by year.
It is reported that in August, 75 construction enterprises nationwide went bankrupt and reorganized, including 45 in Jiangsu, 12 in Guangdong, 6 in Zhejiang, 5 in Fujian, and 1 in Hebei, Henan, Heilongjiang, Hubei, Jiangxi, Liaoning, and Sichuan.
The livelihood of those who join in the construction project to build houses; Those who build dreams, build the glory of the country; The heaven should be regarded as the heaven and the people as the caretaker; If you undertake this great cause, don’t forget about it.
This group of data can explain the problem very well.
The actual shooting of Nantong construction site has long been a difficult case of Nantong construction.
In June, 20 construction enterprises nationwide went bankrupt and reorganized, including 9 in Jiangsu, 5 in Guangdong, 2 in Hubei, 2 in Anhui, 1 in Hainan and 1 in Zhejiang.
As the leading construction enterprises in Nantong, the top 100 construction enterprises that were announced in May by the Jiangsu Provincial Housing and Urban Rural Development Department have almost disappeared.
Even Guangdong Province, the first economic province, had an amazing gap of nearly 30 billion yuan between fiscal revenues and expenditures.
