Recently, a number of leading concrete companies have released their annual reports for 2022. In the annual report, these concrete enterprises all mentioned the problem of high accounts receivable.
In 2022, the accounts receivable of western construction is 21.343 billion yuan, with a year-on-year increase of 19.19%, accounting for 64.08% of the total assets of the company; the accounts receivable of Hainan Ruize is 1.72 billion yuan, with a year-on-year increase of 8.53%, accounting for 37.82% of the total assets; The concrete accounts receivable of Yunnan Construction and Investment is 4.019 billion yuan, up 4.44% year on year, accounting for 83% of the total assets.
It can be seen that the accounts receivable of the concrete industry in 2022 are not only high but also increasing, and the amount of accounts receivable is huge. It has become one of the most prominent problems affecting the current high-quality development of ready-mixed concrete industry. Details of the 2022 annual report of
each concrete enterprise:
Western Construction:
On April 7, Western Construction released its 2022 annual report. According to the annual report, the operating income of Western Construction in 2022 was 24.856 billion yuan, a year-on-year decrease of 7.69%; the net profit was 551 million yuan, a year-on-year decrease of 34.82%;
during the reporting period, the newly signed contract value was 58.270 billion yuan; By the end of 2022, the total assets of Western Construction totaled 33.303 billion yuan, an increase of 10.
By the end of 2022, the accounts receivable of Western Construction totaled 21.343 billion yuan, an increase of 19.19%, accounting for 64.08% of the total assets. The proportion has increased by 4.
As of December 31, 2022, the total assets of Hainan Ruize Company amounted to RMB4.831 billion. Trade receivables and notes receivable accounted for 83.2% of the total assets (≈ RMB4.019 billion), representing a year-on-year increase of 4. As of December 31, 2022, the total liabilities of Hainan Ruize amounted to RMB3.461 billion, representing an increase of 1.
Hainan Ruize also explained in the report the reasons for the large amount of accounts receivable and the countermeasures:
the company's commercial concrete business has a long construction cycle and a long settlement cycle, the downstream construction units are under great pressure of working capital turnover, and the default of commercial bills is frequent; Landscaping business needs to advance funds in the early stage, and the local government payment approval process is long, and the project progress payment settlement is slow. Influenced by the industry and business model of the commercial concrete business and landscaping business, the Company had a relatively high balance of accounts receivable as at the end of the reporting period, which may bring pressure on the Company's working capital turnover and the impact of provision for bad debts on the Company's net profit.
Response measures: The Company has made provision for asset impairment losses and credit impairment losses in accordance with the Accounting Standards for Business Enterprises, strictly implemented accounting policies and controlled relevant risks.
① For the accounts receivable of concrete business, during the reporting period, the concrete business segment (including branches, subsidiaries and entrusted management companies), as the plaintiff, had a total of 85 new litigation cases, involving a total amount of 22136. In the future, the Company will continue to strengthen the application of legal means and speed up the collection of payments through litigation.
② For the landscape engineering project funds, the Company will speed up the withdrawal of funds, reduce liquidity risk and ensure the stable operation of the Company by strengthening the project settlement and speeding up the acceptance and handover. Why are
concrete enterprises mired in the "quagmire" of accounts receivable? The commercial mixed industry is large, but the enterprises are scattered and the market is chaotic, so it is even more difficult to gain the right to speak in the market.
2. It is too easy to be "found fault". There are too many controversial links in concrete products, from quality, quantity to delivery time, which are prone to disputes, and concrete inevitably produces some defects in these links, so it is often seized, deducted or delayed payment.
3. There are many bills and the management is difficult. The concrete industry generally implements one vehicle, one ticket, and a mixing station has tens of thousands of delivery orders a year, or even more. It is quite difficult to achieve effective management of so many bills.
4. The consignee is frequently changed. Restricted by on-site conditions, the cards on the delivery list are basically migrant workers or low-level managers, who are highly mobile and can not confirm their valid identity when disputes arise.
5. The level of sales targets is uneven. Concrete enterprises sell products to very different objects, including general contracting enterprises, professional contracting enterprises and labor subcontracting enterprises, with a relatively large span, ranging from super general contracting qualified enterprises to no qualifications, from hundreds of millions to tens of thousands of registered capital, and from doctor's degree to primary school.
6. Sales in the concrete industry are all on credit. With the development of concrete industry, there are very few cash transactions or prepayments in sales, and most of them are on credit.
7. The use of the official seal is not standardized, and the signatory of the contract has no valid authorization. Because many projects are undertaken by foreign construction companies, which only send the project department locally, and only use the seal of the project department when signing the concrete sales contract, rather than its legal person seal or contract seal, there are some difficulties in identifying the contract subject when disputes arise.
8. The business level of marketing personnel is low. At present, the professional level of salesmen in concrete enterprises is generally low, their average educational level is less than high school education, and they lack professional knowledge of concrete, relevant knowledge of contract management and legal knowledge.
In addition, 2022 is a year when the real estate industry is facing great changes. Real estate enterprises sometimes explode, and many real estate enterprises are facing debt crisis, which triggers a number of chain reactions. The funds invested in real estate are gradually decreasing, and the financing environment of the industry is still tight. In addition, uncertainties such as the epidemic situation have caused concrete enterprises to encounter greater challenges in repayment. How to solve the problem of accounts
receivable?
2. Establish a customer credit file management system, strengthen the legal subject qualification examination of the partners, carefully select the partners, examine their actual performance ability, and deal with high-quality customers as far as possible to reduce losses.
3. Set up a comprehensive management department of accounts receivable, incorporate the assessment of accounts receivable into the company's performance management index system, improve the enthusiasm of collection, and provide a strong organizational guarantee for the recovery of accounts receivable.
2. Strengthen the management
of the execution process of the accounts receivable contract 1. The management of the invoice. As one of the important bases for settlement, the content of the invoice must be standardized and perfect, the content of the corresponding items must be clear, and the signature procedures of the relevant personnel must be complete.
2. The management of the construction site shall be checked and settled in time, especially for the construction site, the site management shall be strengthened. In case of large deviation such as drawing change and formwork running, the construction party must sign and confirm in time, and settle in time according to the contract node, so as to pave the way for timely payment.
3. Management of statement of account, settlement and reconciliation with the other party in time for the construction site under construction every month. The necessary contents of the statement of account at least include: signature and seal of the authorized personnel of both parties, the balance of arrears at the beginning of the period, the quantity and amount of this settlement, the amount of this month's payment, the cumulative quantity and amount of settlement, the cumulative amount of payment, and the balance of arrears as of this reconciliation. In order to facilitate the company's evidence collection and payment collection.
4. For the collection management of payment for goods, according to the company's credit policy, the company's payment for goods collection system should be established. For the payment that has reached the payment node, the sales handling personnel should collect it in time, take various forms such as interview, telephone, reminder letter, repayment plan, etc., communicate with customers and grasp the dynamics of the other party. Once any abnormal situation is found, report it to the company leaders in time, strengthen communication with relevant internal departments, take effective measures to recover the payment as soon as possible, and reduce the company's financial pressure.
3. Strengthen brand building, become bigger and stronger, and gain the right to speak
in the industry. Commercial concrete enterprises should strengthen brand building, become bigger and stronger, develop in the direction of collectivization, enhance the ability to resist risks, gain the right to speak, and reduce the risk of bad debts receivable. Because of the small scale and poor anti-risk ability of the commercial concrete industry, most of the transactions with upstream enterprises such as sand, cement and other resource enterprises are cash transactions with advance payment, and the downstream enterprises, builders or developers, are often on credit, which is in a weak position. Therefore, in order to reduce the risk of accounts receivable, commercial concrete enterprises must find ways to introduce capital through multiple channels, adopt mergers and reorganizations, become bigger and stronger, develop in the direction of collectivization, strengthen communication and coordination with the same industry, form a joint force, gain the voice of the industry, reverse the current unfavorable situation, and guide enterprises. Reduce the current situation of high accounts receivable.
4. Timely application for arbitration or litigation
for overdue accounts receivable that are difficult to recover 1. Collect relevant evidence for litigation to provide strong evidence support for the company's legal victory, which requires commercial concrete enterprises to do a good job in collecting and keeping relevant evidence in daily reconciliation and settlement work. Within the limitation of action, we should be good at using legal weapons decisively, initiating arbitration or litigation quickly, recovering arrears as soon as possible and reducing losses.
2. Carefully select an attorney. It is necessary to find a lawyer with rich experience in litigation to participate in the legal proceedings of accounts receivable, which will achieve good results in enterprise litigation, speed up the process of recovery of payment for goods and reduce the cost of capital.
Fifth, strengthen the factoring
of accounts receivable, actively communicate and cooperate with banks, and strive for banks to buy out accounts receivable by packaging, so that commercial concrete enterprises can reduce accounts receivable, recover payment safely and efficiently with less capital cost, and reduce the risk of accounts receivable. At present, this work has been carried out in some enterprises, but it is not very mature and common, especially in the commercial concrete industry with high accounts receivable, we should find ways to carry out this business, actively strengthen cooperation with high-quality resources of banks, and effectively reduce accounts receivable. Commercial concrete enterprises should strengthen the management of accounts receivable in a more standardized way and improve the internal control management level of accounts receivable, which is conducive to enhancing the further cooperation space with banks and reducing the credit risk of accounts receivable.
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