A mobile phone factory collapsed in Dong Guan city

On January 4, the president of Dongguan Zhao Xin Communication Company Limited killed himself and it was spread widely on the Internet, and a lot of suppliers were shocked.

Yesterday, the shareholders released a statement and announced Zhao Xin Communication Company entering into liquidation. Luckily, their president is out of danger. On the evening of January 4, the southern reporter linked to the original financial department manager Huang Hua (a pseudonym), and he told that the suicide was true.  There are a lot of companies in Pearl River Delta area bearing many corners debt because of the sluggish economy environment. Later, one of the suppliers Mr. Yang left a massage on his blog saying that we can fully understand you even though you owed us a lot of payment, we sincere hope you will be fine soon.

Shareholder announced the completion of liquidation

Commissioned by the shareholders, the lawyers have arrived at the company, and government has held a meeting to consider whether this company can continue to maintain. The person in charge, after yesterday morning consultation, the shareholders of the law group has shown that the plant will be closed. After the negotiation, the lawyers announced this company termination and liquidation.

Before its closed down, the president had worked hard to maintain the business

Lots of the suppliers and staff know about the news and hurry to its company asking for payment or salary. One of the suppliers says that he stopped providing goods for Zhao Xin in June because it owed me for about 4.5 million Yuan at that time. Xu Yajun, the business representative from Shenzhen Aojing Technology Company Limited, is responsible for the plastic material supplying, and he tell us that Zhao Xin Communication has defaulted his company for 1.8 million. He says that they were partners before, and Zhao Xin always pay us the payment on time, but since in May last year, Zhao Xin Communication has difficulty in pay back payments. But before the suicide of the president, he still paid 65 thousand for us.

There was sign of its collapse
From the beginning of November 2014, the factory has been seriously lack of orders. The workers can have more than two days to rest.Dongguan Zhao Xin Communication Company Limited, founded in August, 2003, is a big mobile phone enterprise specializing in mobile phone’s research and development. It doesn’t have its own brand and processes southeast brand’s mobile phone. In 2010, Zhao Xin Communication also processed tablet computer on a large scale.In July, 2013, Dongguan Zhao Xin Communication Company Limited had more than one thousand workers and they almost worked overtime because of the excessive orders.

Things changed in November, 2014. The staff could off-work at weekends, and some of them were not satisfied with the wage and left the company. In December 2014, there were only 250 workers.

Government claimed that the landlord is expected to pay for the workers.

According to the statistics, Zhao Xin Communication Company Limited has failed to pay the wages since the November 2014. There are 230 million RMB arrears for the staff and 500 million RMB for about 60 suppliers. And the government department will go into its bankrupt and reduce its influence.