"East Road logistics" warning

East Road, Shenzhen Logistics Co., Ltd. (DDS Express) has the sudden closure of a number of cities has not only triggered the Pearl River Delta employees and customers pay talks debt collection, but also spread to Express (refers specifically to small pieces of delivery) industry, leading to a similar courier companies reputation.
Experts pointed out that the courier company handling business, pay bills have a certain time lag, resulting in many companies with a "type of financial company" nature of the need to strengthen supervision to avoid the social risks.
Credibility of the missing, the dissolution of the East meeting West,
Processing enterprises in China relies heavily on the professional market distribution, including the logistics company's express business. Almost all of the professional markets, such as Beijing's Zhongguancun, Shenzhen Huaqiang North E Street, with its main business from the wholesale. These professional market stalls is just merchandise display areas, a large number of goods is a purchaser orders, by the Express shipments, payment is also collected by the courier company, referred to the seller.
From Shenzhen Baoan District Xixiang street of the information display, the host Logistics Co., Ltd. in 1997 in Shenzhen City, Luohu District, the establishment of the company, based in Dongguan, and later moved to Shanghai, the Shanghai Head Office is now closed down, and collapse from the Shenzhen take away more than 500 million, withheld payment of more than 2,000 yuan in Shenzhen.
At present, the host Logistics Co., Ltd., Shenzhen, more than 5000 clients money owed about 2,600 million customers mostly in the Futian District, Huaqiang North, Electronics Street. This reporter also from Shenzhen Baoan District Xixiang street office learned that the company owed the rest of the customers in the region of about 45.72 million yuan loan.
Public security authorities have on the East Road Logistics Co., Ltd. Legal Representative Gao Wei, and management of a total of five persons to take coercive measures in accordance with law to investigate.
East Road Logistics Co., Ltd. was a company with more than 6,000 employees and more than 500 cars overnight delivery, and marketing network all over the country cities, in Guangzhou, Dongguan, Hong Kong, Shanghai, Beijing and other places has dozens of branches, 800 number of self-built service network, more than 100,000 square meters of the disposal sites, companies in all sectors of the computer office, created a web query tracking service system.
But now, the host company's home page has not open the. 25 morning, the reporters came to the company's Shenzhen Huaqiang North, shop, here have been left vacant. "Ten years of the company, it happened that's not much, after all, not only worked for small companies in 2023 ah!" In the host company's collapse came three days after a company's customers with emotion, said Mr. Lin, the last host the company's credit also, generally two or three days will be able to receive the payment, Guangdong Province shipped the same day the next day went to.
As a courier company's administrative departments of Guangdong Province Postal Authority has been involved in this event handling. Provincial Deputy Director of Postal Service Integrated Kuang Lisha 25, an interview with reporters, confirmed that the investment management company in East China out of control, so "拆東墻補西墻" misappropriation of money collected in Guangdong Province.
Beginning January 8, Guangdong Province, Postal Service Center continues to receive complaints 12305 East Road, Shenzhen Logistics Co., Ltd. arrears payment collection problem the complaint. January 21, the company sent a letter to the Guangdong Province, Postal Service, said large-scale investment in eastern China due to expansion of the management out of control, leading to the country to the eastern parts of the collection of money able to recover 45 million yuan, for diverting the Guangdong region 19 prefectures and cities in the collection of loans 45.166 million yuan, and overdue wages and deposits of about 18 million yuan.
Shenzhen police have confirmed to reporters on the 25th, including finance director, chairman of the East Road, including senior management has been Baoan, Shenzhen City Public Security Bureau Branch control.
Reporter 26, learned from the Shenzhen Municipal Government Information Office, Shenzhen City's social security department decided to "Shenzhen Special Economic Zone Enterprise Protection of Wages Ordinance," provides that the registration staff to verify the payment of wages after the date of first advance from 27 East Road, logistics companies in arrears Shenzhen wages.
Misappropriation of funds, to enlarge the risk of
Concerned that the host company's collapse exposed the courier industry, there is a certain degree of "threshold is low, the rapid development - low-price competition - low-cost expansion - lack of supervision of funds" and other defects.
Head of Department of Lingnan College, Sun Yat-sen and taxation, said Jiang Lin, from the collection of money to delivery the owner, funds in the accounts on the courier companies to stay for some time. If the monitoring is not in place, express delivery companies for the possible misappropriation of client funds for other purposes, it is very dangerous.
It is understood that China's logistics industry is divided into three levels, the first level is the Post; the second level is the federal, DHL and other multinational corporations; The third level is private logistics companies. More than the number of private logistics companies, small scale domestic and international express delivery giants caught in the survival of low-cost competition is their main means of competition.
Industrial and commercial sector, data show that e-commerce street in Shenzhen Huaqiang North, by the end of 2007 already have a communications and electronic professional markets 39, gathered around the mobile phone-related businesses with more than 1000, employing up to 20 million people.
Lin Jiang said the courier industry in the Pearl River Delta has a large market demand. Large number of processing and manufacturing enterprises in the region, business-to-order is often a fixed price, so some companies have "province, one on one can" mentality, the pursuit of lower prices, and only a problem when the debt crisis will appear.
Reporters in Shenzhen Huaqiang North, electronic city, the new Asian electronic markets around to see where courier companies everywhere, onto the 100 meters there are 56, in front of billboard reads to reach location, fees and so on. In a scramble for business, many courier companies simply a vehicle to open the door to the electronics market Lanshou express.
"A lot of businesses have Huaqiang North East Road, the company's invoice." Customers Xie Jin Hua, said she has worked with the host company for many years, payment is very timely, no one expected that it would close down. When asked why he checked something less than a postal service company, Xie Jin-Hua said the postal company's charges, one thing the Post will take 20 yuan, but the host company as long as 5 yuan.
Shenzhen Academy of Social Sciences, director of city operations center, said Gao Haiyan, these intermediary companies set up shop more money to attract more customers and therefore more opportunities for misappropriation of funds, once a company closing down or executives Xiekuan escape will inevitably lead to social risk.
Potential risks are in urgent need to eradicate
"Express the need to strengthen supervision of the healthy development of the industry." Express Industry Association, Guangdong Province, Deputy Secretary-General WU believes that the rise in China's express delivery industry, less than 10 years, the vast majority of local courier companies is still in its initial stage, small-scale, competitiveness and anti-risk capability is weak, intense competition in today's context, the "visible hand" must play a greater role.
Guangdong Province, Postal Service, Deputy Director of Integrated Kuangli Sha told reporters, "Postal Law" and its supporting regulations "courier business license management approach," a one-year grace period, October 1, 2010 the industry began to express their own market access barriers, including corporate legal conditions, the number of registered capital and employee qualifications and so on. "In this grace period, the host corporate failures, and may have hidden a number of other courier companies similar problems."
Lin Jiang and other experts believe that, in order to avert the emergence of a host company, we should start a few of the express delivery industry, to strengthen the guidance and supervision.
First, we must strengthen the supervision of vicious competition. Lin Jiang said that, for a large number of express SMEs, trade associations should be strengthened to guide and regulate the role of the industry. Recommended the establishment of an industry price, and avoid vicious competition and achieve the industry's healthy development.
Secondly, we must speed up the delivery company's fund regulation. Experts suggest that increased barriers to entry, such as the capital set at 200,000 yuan or more, for example, one million yuan. But also to be made to the accounting treatment of the relevant provisions shall not be diverted capital funds.
Third, we must establish a mechanism for bankruptcy protection. Government aid to behave cautiously and should enhance risk guidance. Lin Jiang believes that closure of the incident not occurred, many of the people "get petty" look in the price; if the Government in the incident take all the responsibility, make these people feel that government reveal all the details. The proposed reference to foreign practices, enterprises can apply to the competent department for bankruptcy protection, the protection period of time instead of by a professional accounting firm to take over the government to exercise the right to conduct checked assets, in the meantime allow enterprises to continue to operate as far as possible, giving enterprises a comeback opportunity.