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Kang Dexin's employees are off work and on vacation from now on. The company offers two ways to go.

In the evening of May 30, Kangde issued a notice that employees have been granted leave arrangements, which will suspend business oriented to long-term layout and poor profitability. For employees involved in this business adjustment, the company will suspend work and vacation from May 31.


Previously, some of Kangde New's subordinate companies which are not profitable have been shut down for holidays.

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When the board of directors was replaced in early March, all the "old directors" including former chairman Zhong Yu and former president Xu Shu resigned, replaced by Xiao Peng, Yuyao of Zhongzhi Department and Hou Xiangjing of Baoneng Department. In addition, in January this year, the designated enterprise of Zhangjiagang Bonded Zone "took over" the most important subsidiary of Kangde Xin, Zhangjiagang Kangde New Photoelectric Material Limited Gong. Division, its collection and payment of the corresponding amount, Kangdeshin's future triggered a variety of speculation in the industry.


"At this stage, the government is inclined to reorganize Kangde's bankruptcy," said a person close to Kangde New. When asked about the specific execution time, the person said: "At present, there are many rumors, can not be confirmed."


Up to publication, the reporter asked Zhangjiagang Free Trade Zone Management Committee for confirmation of this matter, but did not receive a response for the time being.


Employees are paid 1616 yuan a month under the company's vacation arrangement.


On May 29, Li Jie (not his real name), a staff member of Kangde New Company, provided a document on vacation arrangement and negotiation for the termination of labor contract policy to the reporters of Beijing News. Documents show that during the holidays, vacation wages will be paid in accordance with the Jiangsu Provincial Wage Payment Regulations, which is 80% of the minimum wage standard, i.e. 1616 yuan per month, while the wage arrears and severance compensation for the negotiated termination of the labor contract will be paid on August 31.


Li Jie said: "Manpower began to talk with employees, so that the people submitted for layoffs choose to take vacation or accept the termination of the labor agreement. Some companies outside Zhangjiagang have been in arrears since the end of last year. At the beginning of this year, the government assisted Kangdeshin Optoelectronics and Kangdeshin Phil in Zhangjiagang to pay their salaries from January to March. In April, the salaries were mainly paid by our own sales returns, but they were delayed for several days.




Li Jie told reporters that since January this year, about 200 Kangde new employees have negotiated with the company to terminate the labor agreement. At present, almost no compensation has been received, which is equivalent to a blank note. The date of promised compensation is pushed back one by one, and it is useless to win an arbitration case, and the company has basically not implemented it.


On May 30, employees began to negotiate with the company on the abolition of the labor agreement. "We talked about layoffs today," Li Yao (a pseudonym) of a Kangdesin project employee told reporters. "Salaries in March and n+1 compensation for layoffs were paid on August 31. Salaries in May were distributed with employees here on June 15. Salaries were received a few days before April."


Continuous debt defaults have made Kangde's new capital chain even more tense.


According to Kang Dexin's announcement on May 30, 2019, the company is experiencing unprecedented difficulties. Despite the efforts of all parties, there still exists the problem of insufficient liquidity of funds. In order to ensure that the company's core business is not affected, and take the opportunity to adjust its business and product structure, the company decided to suspend part of the business oriented to long-term layout and poor profitability. For the employees involved in the business adjustment, the company will stop work and take vacations from May 31.


At the end of April, Kang Dexin disclosed that as of April 16, 122 lawsuits involving the company and its wholly-owned subsidiaries had been filed, including 35 cases with an amount of more than 50 million suits, 59 cases of labor disputes and 18 other petty lawsuits, involving a cumulative amount of more than 5.5 billion yuan.


Subsequently, Kang Dexin disclosed on May 20 that there were 70 new cases of litigation and arbitration, with a total amount of 936.79 billion yuan (involving the conversion of Euro to RMB at the exchange rate of 7175). On the same day, Kangde New Wholly-owned subsidiary Zhangjiagang Kangde New Photoelectric Material Co., Ltd. added another lawsuit, the amount of the target was 1.472 billion yuan. According to this calculation, Kangde Xin involved more than 7.9 billion yuan in litigation.


At the same time, the capital restricts the company's front-end procurement of raw materials. In the first quarter of 2019, the company's operating income decreased by 3.013 billion yuan compared with the same period last year, and the net profit of the company's shareholders and the revenue were 537 million yuan and - 306 million yuan, respectively. In this regard, Kangde Xin said that the main reason is that the freezing of bank accounts during the reporting period and the continuing shortage of working capital lead to the loss of customer and market share, resulting in a sharp decline in business income.


A person close to Kangde said: "Kangde's new subsidiary, Kangdefield, had a power outage last week without paying the electricity bill, and now it has recovered. After a year, the start-up rate dropped to almost 40%, and there was no money for raw materials. In the early stage, we still have relatively abundant repayments, so we can also pay employees'wages on time, but in the latter, the repayments are less and less. In the first quarter of this year, there was a serious shortage of start-up rates and fewer repayments.


Li Jie told reporters: "May 15 is April salary day, Condfield manpower pay employees on time, the result of that day was dismissed by the company, the company has nothing to say, is unilateral termination of the labor contract."


The reporter then contacted the manpower and said, "That's true. I don't want to say much now. It's impossible to revoke the punishment. Next, I can only apply for arbitration to safeguard my legitimate rights and interests."


Three subordinate companies have ceased to work, "the company is currently disbanded"


Some of Kangdeshin's subordinate companies, which are not profitable, have already stopped work and taken holidays, including Shenzhen Kangdeshin Intelligent Display Technology Co., Ltd. (hereinafter referred to as "Kangdeshin Intelligence") and ShangHai.


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