On March 7, the National Enterprise Bankruptcy Reorganization Case Information Network announced the bankruptcy documents of Kunshan Fengcai Packaging Technology Co., Ltd. (hereinafter referred to as "Fengcai Packaging"). By the time of bankruptcy, the total accumulated debt of Fengcai Packaging exceeded tens of millions of RMB.

According to the bankruptcy announcement, the Kunshan City People's Court of Jiangsu Province legally declared the bankruptcy of Kunshan Fengcai Packaging Technology Co., Ltd. on the grounds that it could not repay its debts and this situation was ongoing. As confirmed by the asset manager, prior to the bankruptcy, the assets under the name of Fengcai Packaging were approximately 330,537 RMB. The total confirmed liabilities of Fengcai Packaging amounted to about 10,020,000 RMB, which included employee salaries, taxes, and social security, among others.

It is worth mentioning that Fengcai Packaging still has employee claims of about 1.57 million RMB. In other words, even if all its assets were sold, it would not be able to repay all the unpaid wages owed to employees. By the time of bankruptcy, the homepage status of Fengcai Packaging showed "dishonest被执行人", "限制高消费", and "被执行人", indicating the extent of its difficulties. Note: The terms "被执行人", "限制高消费", and "失信被执行人" are specific legal terms in Chinese. If you need them to be translated directly without considering their specific meanings, they would be "executed person", "limit high consumption", and "dishonest executed person". However, these direct translations may not convey the intended meaning in English. For a more accurate translation, they should be rendered as "judgment debtor", "subject to restrictions on high consumption", and "dishonest judgment debtor" respectively.

From the bankruptcy announcement alone, the direct cause of Fengcai Packaging's bankruptcy is insolvency, which is an inevitable consequence that many companies face after reckless expansion, and it is a specific manifestation of its own operational flaws.

In fact, in addition to the lack of financial management risk at Fengcai Packaging, the impact of the external market environment cannot be ignored. Especially factors such as the shrinkage of external demand, high manufacturing costs, environmental governance, and low competitiveness have posed a comprehensive challenge to the packaging industry. Under such circumstances, small and medium-sized packaging enterprises are facing increasingly difficult situations.

In this severe environment, we have noticed that many companies in the industry have been forced into bankruptcy liquidation:

On February 26, 2025, the assets of Rui Zhou Paper and its affiliated company, Hebi Ruilan Paper Co., Ltd., were publicly auctioned on the Taobao Ali Auction Bankruptcy Liquidation Platform.

From December 22 to 23, 2024, Chaohu City Haosen Printing and Packaging Co., Ltd. will hold a public auction on the Ali Auction platform;

On December 1, 2024, the long-established cosmetic packaging supplier Wan Chen Plastic Products (Shanghai) Co., Ltd., which has been in operation for over 30 years and boasts a clientele of top domestic and international beauty brands such as Unilever, L'Oréal, Estée Lauder, LVMH, and Proya, announced its closure.

On October 8, 2024, Taiquan Packaging and Printing Co., Ltd. in Shunde District, Foshan City, was declared bankrupt by the Shunde District People's Court of Foshan City.