Gionee mobile phone is still uncertain after a year of restructuring. On December 5, Shenzhen Jinli communication equipment Co., Ltd., the main operator of Jinli group, was listed as the executee by Dongguan intermediate people’s court, and the subject matter of execution was about 80.65 million yuan. This is the fourth time that Jinli has become an executee since November 18, 2019, and the cumulative execution target is about 320 million yuan.
Shenzhen Jinli communication equipment Co., Ltd. was established in August 2002 with a registered capital of 200 million yuan and the legal representative is chairman Liu Lirong. Gionee mobile phone was once brilliant. Gionee mobile phone is the third largest supplier in 2010, after NOKIA and Samsung, the world’s largest shipper in the world. In 2011, the company has shipped more than 20 million shipments worldwide, making it the largest functional manufacturer in China.
However, in December 2018, Jinli decided to carry out bankruptcy reorganization. According to the reorganization plan framework, Jinli established an asset management company and an operation company after the reorganization. At the same time, Shenzhen intermediate people’s court accepted the bankruptcy case of Jinli communication. It is reported that the total liabilities of Jinli group exceed 20 billion yuan. Why did Jinli group, with a net profit of $760 million a year ago, suddenly collapse?
Gionee mobile phone chairman Liu Lirong publicly acknowledged the financial problems of Kim Li in February 2018. From 2013, he had a deficit for many years, and at the beginning, he lost no less than 100 million yuan a month. In the 2016 and 2017 months, the loss was not less than 200 million yuan, and the accumulated loss was 8 billion yuan. In 2017, the shipments of Jinli mobile phone decreased by 10 million, down from the previous year.
The analysis pointed out Gionee mobile phone’s dilemma has a huge relationship with over marketing. Liu Lirong once mentioned in the interview that the marketing investment of about 10 billion yuan in recent years has had a great impact on Jinli’s capital chain, which also led to the emergence of Jinli’s recent capital chain crisis. As he said, Jinli’s marketing expenses are very high, spending more than 6 billion yuan in two years. Jinli’s advertisements are everywhere in television, video websites, major airports across the country, focus LCD, urban framework and outdoor.
Jin Li, who did not hesitate to spend a lot of money on marketing to learn oppo and vivo, did not get the ideal results. Liu Lirong once said: “Jinli is like this. The enterprise will be safe only if it achieves the scale of global annual sales of 100 million units.” Gionee mobile phone sales in China, in 2017, ranked 14 million 940 thousand, ranking seventh, with a share of only 3%, according to GFK, a research firm. This is half of the target set by Liu Lirong at the beginning of 2017 to sell at least 30 million units in China. In 2018, Gionee mobile phone sales in the first half of the year were only 3 million 730 thousand.
In September, Gionee mobile phone, which has been in trouble stage, decided to stage a comeback. It is reported that Lu Guanghui, the main shareholder, organized agents in many provinces across the country to hold a round table meeting, hoping to start from scratch. The slogan of “gold quality, the world” also stood at the meeting site. Gionee mobile phone website resumed and launched a K3 mobile phone in September 25th. Mobile phone official account of Gionee mobile phone was released again in November 9th, “classic flip phone, a height which is hard to reach” announced the launch of a new model of flip style, A326. Jin Li said that Gionee mobile phone always stood in awe of the classic.
However, a reporter from Beijing Business Daily recently found that there are less than 100 comments on the above two products in Jingdong Mall, and the product performance and sales are not dazzling.
Hong Shibin, an industry observer, said that the shipments of Meizu, Nubia and other mobile phone brands are small this year, but these brands outside the first tier are insisting and waiting for the opportunity of 5g. Jinli may also be preparing for 5g. When the 5g change tide really comes next year, there may be some living space through operator sales.