On June 3, 2024, Just Electronic Technology (Dongguan) Co., Ltd., e-cigarette manufacturer, announced its self liquidation. This decision came after significant financial losses and operational challenges caused by the actions of its former major overseas client, JFT Co., Ltd.
Company Background
Just Electronic Technology (Dongguan) Co., Ltd. has been a key player in the e-cigarette industry for over a decade. Known for providing OEM and ODM services, the company also manufactured products for the well known brand JUSTFOG.
Details of the Announcement
The self liquidation announcement was issued on June 3, 2024. According to the company’s statement, severe operational and financial difficulties led to this decision. Despite extensive efforts to find solutions, the company could not sustain its operations due to the substantial losses incurred.
Financial Losses
Just Electronic Technology reported losses exceeding 60 million yuan(Approximately 8.3 million USD). These losses were primarily due to JFT Co., Ltd.’s malicious termination of contracts and withholding of payments. The financial strain made it impossible for the company to continue its operations.
Liquidation Process
Starting from June 3, 2024, Just Electronic Technology will begin the liquidation process. The liquidation team will follow legal procedures to clear, evaluate, and dispose of the company’s assets and address creditor and debtor issues.
Asset Evaluation and Disposal
The liquidation process will involve a thorough evaluation of the company’s assets. This step is crucial to ensure that all assets are accurately accounted for and disposed of in a manner that satisfies legal and financial obligations.
Creditor and Debtor Issues
Addressing creditor and debtor issues is a key part of the liquidation process. The company will work to resolve outstanding financial obligations and ensure that all parties are treated fairly during the liquidation.
Role of JFT Co., Ltd.
JFT Co., Ltd. played a crucial role in Just Electronic Technology’s operations as a major client. The termination of contracts and payment issues were pivotal factors in the financial difficulties faced by Just Electronic Technology.
Future of the Employees
Employees of Just Electronic Technology face uncertain futures due to the liquidation. Support measures and assistance programs may be necessary to help them transition to new opportunities.
FAQ
What led to the bankruptcy and liquidation of Just Electronic Technology (Dongguan) Co., Ltd.?
Just Electronic Technology decided to self-liquidate due to severe financial losses and operational challenges. The primary cause of these difficulties was the actions of their former major client, JFT Co., Ltd., which included the unilateral termination of contracts and withholding of payments.
Who is JFT Co., Ltd., and what role did they play in this situation?
JFT Co., Ltd. is the South Korean parent company of the JUSTFOG brand. They were a major client of Just Electronic Technology. Their actions, including contract termination and payment withholding, significantly contributed to Just Electronic Technology’s financial struggles.
What is the financial impact of this liquidation on Just Electronic Technology?
Just Electronic Technology reported losses exceeding 60 million yuan(Approximately 8.3 million USD) due to the issues with JFT Co., Ltd. These substantial financial losses made it impossible for the company to sustain its operations.
What will happen during the liquidation process?
The liquidation process will involve the thorough evaluation and disposal of the company’s assets, addressing creditor and debtor issues, and ensuring all legal procedures are followed. This process aims to clear the company’s financial obligations and wind up its operations systematically.
