[TechAssist] Re: Bad news about APEX(positive twist)
- From: Al L <alleathe@xxxxxxxxxxxxx>
- To: techassist@xxxxxxxxxxxxx
- Date: Wed, 29 Dec 2004 09:05:02 -0500
The Japanese went from crap to quality almost over night,and drove up
everybody's economy, and forced us to build good cars. Perhaps the Chinese
laborers are catching on and demanding money,perhaps the Chinese in charge
found out you can't make cheap crap and survive.When the old guard dies
off,maybe Democracy will catch on,and greed and hope will drive them to make
quality stuff at a competitive price.
If the Chinese economy goes down,I can't see it as anything but a good
thing for us,so either way i see a good 2005 coming up.I am encouraged for
the first time in years. Have a good one folks! Al Leatherman
----- Original Message -----
From: <Philstv@xxxxxxx>
To: <techassist@xxxxxxxxxxxxx>
Sent: Wednesday, December 29, 2004 7:11 AM
Subject: [TechAssist] Re: Bad news about APEX
> Since Wal-Mart's CEO and owner passed on (Sam), they're goal has been to
> put
> all other retailers behind them which they have done at the expense of the
> Chinese slave laborer.
> These workers work for next to nothing while the corporations reap huge
> profits. Apex is not the only China based manufacturer. Philips, RCA, and
> Zenith
> have joined in as well as others.
>
> The tariff on CRT's 25" and higher is what drove down the price of
> Pro-jo's
> and LCD sets.
>
> It has caused a major decline in our business (service) and the America
> corporations are taking care of number one, the corporate wallet at
> anyone's
> expense including ours.
>
> Phil Solarz
> RAC - National Product Service
> Phil's Electronics
> C.E.T. GNN3799 - FMIC
> 734-718-0301
>
> In a message dated 12/29/2004 12:24:54 AM Eastern Standard Time,
> wwood_38478@xxxxxxxxx writes:
> Thanks, it is an interesting artical, but I don't
> understand why it's bad news.
> They all need to go down and take wal-mart with
> them.
> Walter
> --- Randy Evans <tvsvc2000@xxxxxxxxx> wrote:
>
>> I thought this article was interesting !
>>
>> Randy Evans
>> VCR SERVICE
>> Delta, Ohio 43515
>>
>> www.nytimes.com
>> Leading Chinese TV Exporter Has Huge Loss
>> By CHRIS BUCKLEY
>>
>> BEIJING, Tuesday, Dec. 28 - China's biggest
>> television exporter announced major losses
>> Tuesday stemming in part from declining sales in
>> the United States and an unfolding financial
>> scandal involving its biggest American customer.
>>
>>
>> The exporter, the Sichuan Changhong Electric
>> Company, announced earlier that it would be
>> reporting its first-ever loss, up to nearly a
>> half-billion dollars, because of unpaid accounts
>> with Apex Digital Inc., a company in Ontario,
>> Calif.
>>
>>
>> A Changhong spokesman, Liu Haizhong, said on
>> Tuesday that Apex Digital owed it $468 million.
>> The spokesman did not specify what period the
>> amount covered.
>>
>>
>> Changhong estimated that it might be able to
>> recover $150 million and that it was making
>> provisions to take losses on $310 million. It
>> also said that Apex had suffered large losses to
>> royalty payments, United States antidumping
>> measures "and adverse business factors and is
>> experiencing considerable hardship making full
>> payments."
>>
>>
>> The announcement of the losses followed a report
>> in a Chinese newspaper of the detention in China
>> of the president of Apex Digital, David Ji, on
>> charges of financial fraud.
>>
>>
>> According to a report in Monday's 21st Century
>> Business Herald, a Chinese-language newspaper,
>> Mr. Ji was detained in the southern city of
>> Shenzhen after an investigation by police from
>> Sichuan province, where Changhong is based.
>>
>>
>> Apex Digital has been a big seller of lower-price
>> televisions, DVD players and other home
>> entertainment products at discount retailers like
>> Wal-Mart.
>>
>>
>> Problems with its largest customer would be the
>> latest blow for Changhong, which has seen its
>> sales in the United States decline. Earlier this
>> year, the Commerce Department imposed 25 percent
>> tariffs on televisions exported to the United
>> States by Changhong and other Chinese makers
>> after it decided they were dumping sets by
>> selling them below a reasonable market price.
>> Apex has also been accused by ignoring royalty
>> payments for patented DVD technology.
>>
>>
>> In the first half of 2004, Changhong exported
>> $200 million in television sets, compared to $600
>> million for all of last year, Mr. Liu said. In
>> recent years, Changhong has made about 90 percent
>> of the television sets China exports to the
>> United States, and Apex has sold about 90 percent
>> of Chinese-made TV's in America.
>>
>>
>> A spokeswoman for Apex Digital, Marietta
>> Schoenherz, initially said yesterday she had not
>> heard any news of Mr. Ji's supposed detention.
>>
>>
>> Later she issued a statement from the company's
>> general counsel, who was not identified, that
>> said that a disagreement between Changhong and
>> Apex was being addressed. The statement also said
>> that the company anticipated Mr. Ji's "return to
>> the United States shortly."
>>
>>
>> Ms. Schoenherz said she could not answer any
>> other questions about Apex's relationship with
>> Changhong.
>>
>>
>> Claims of fraud abound in China's business world,
>> but analysts said this case, because of the
>> companies involved, has the potential to tarnish
>> China's standing in the American electronics
>> market.
>>
>>
>> "Lack of confidence would hurt everyone," said
>> Richard Doherty, the research director of the
>> Envisioneering Group, an electronics market
>> research company in Seaford, N.Y. "It will be a
>> less bad situation if it's just a few rotten
>> apples and not a whole crop."
>>
>>
>> Trading in Changhong was suspended Monday on the
>> Shanghai stock exchange; its stock is down 27
>> percent for the year.
>>
>>
>> Until recently, Mr. Ji and Apex Digital had been
>> among the celebrated stars of China's effort to
>> shift more of its trade from simple manufactured
>> goods to more lucrative electronics products.
>>
>>
>> Mr. Ji, 52, was born in Jiangsu province in
>> eastern China and moved to the United States to
>> study in 1987. He started Apex with a Taiwanese
>> partner in 1997, along with investors from the
>> United States, Taiwan and China. Apex's low-cost
>> products quickly became strong sellers in
>> Wal-Mart and other stores, and in recent years it
>> has dominated some sectors, like DVD players.
>>
>>
>> But analysts said that Apex's presence in the
>> United States had dimmed earlier this year
>> because of its shrinking investment in new
>> products and advertising. As advertising slowed,
>> its shelf space plummeted in recent months, Mr.
>> Doherty, the analyst, said. He estimated that its
>> market presence had dropped 80 percent this
>> holiday season, and he noted that it would be
>> much less prominent in the Consumer Electronics
>> Show, a major showcase for new domestic
>> electronics that opens in Las Vegas in a few
>> days.
>>
>>
>> Changhong's once close relationship with Apex
>> apparently soured after Apex announced it would
>> no longer sell cathode-tube televisions 25 inches
>> or larger. It did so to avoid new Federal
>> Communications Commission requirements that
>> larger televisions carry receivers for digital
>> broadcasts.
>>
>>
>> The move sharply reduced orders to Changhong,
>> said Riddhi Patel, a senior analyst with iSuppli
>> Corporation, an electronics research firm in El
>> Segundo, Calif.
>>
>>
>> "They had a closely integrated relationship, and
>> Changhong's production has been impacted," Ms.
>> Patel said in an interview. At one time, in the
>> 2002, Apex sold three million Changhong-made
>> televisions in the United States in eight months.
>>
>>
>> Earlier this year, executives from both companies
>> denied a report in a Chinese business newspaper
>> that they had been caught up in large financial
>> fraud in the United States. A few months ago,
>> Changhong replaced many of its senior executives,
>> and some analysts have suggested the new
>> leadership might want to sweep aside past
>> business ties.
>>
>>
>> In an interview last year, Mr. Ji denied his
>> company owed Changhong any money, citing a
>> financial arrangement whereby Apex took 10
>> percent cut from sales of Changhong-made
>> televisions but never owned them or directly took
>> money from retailers.
>>
>>
>> In addition, Changhong's boss, Niu Runfeng, took
>> personal charge of dealings with Apex, ignoring
>> normal safeguards in an ambitious attempt to
>> expand sales in America, according to Chinese
>> press reports yesterday.
>>
>>
>> It is far from clear whether the latest claims of
>> financial abuses have any relation to dumping,
>> but analysts said they may revive the accusations
>> that Chinese TV exporters have made reckless
>> deals to increase overseas sales.
>>
>>
>> "This may foreshadow another wave of claims and
>> protests," Mr. Doherty said. "This will be
>> closely followed by companies and lawmakers."
>
>
>
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