Textile "Cherry Blossoms" Withered And Changed 890 Million

"The reorganization conference has been opened last week, and it may be formally completed next week."

Yesterday, the Shandong cherry Textile Group Office official told this reporter that Shandong Ruyi group has begun to take over Yinghua group, and Ruyi group office also introduced that the merger of Sakura group is already "a nail in the face", "Sakura group has been insolvent, restructuring will repay 890 million of its liabilities, or even more."

Ruyi will also invest 1 hundred million after restructuring.

According to the official website information of Shandong Sakura Textile Group, its total assets amounted to 1 billion yuan, holding 11 shares, and participating in 11 subsidiaries, operating yarn, cloth, clothing, textile and chemical industry, home textiles, investment and development. It belongs to one of the 200 key enterprises in Shandong and 37 key export enterprises. It ranks among the top 10 in the national cotton textile industry.

Ruyi group's public information shows that the group is a large Sino foreign joint venture with multiple shareholdings. The textile industry has made outstanding contributions to enterprises, the top ten textile enterprises in China's textile industry, the most competitive ten enterprises in China's wool textile industry, and one hundred key enterprise groups in Shandong province. It has six major industrial groups, including rabbit hair spinning, textile and garment, cotton textile, cotton printing and dyeing, knitting, fiber, denim, real estate, hotel management and other industries. At present, the total assets are 5 billion 500 million yuan and nearly 20 thousand employees.

A netizen Post said that Ruyi group will replace senior management after the reorganization of Sakura group.

Subsequently invest 1 hundred million, establish new factory in the development zone.

Diverted 2000 employees from the original Sakura group to Laixi Ruyi branch.

High speed expansion of "exhausting" cherry blossoms

Why does a 1 billion scale capital spinning enterprise lose money instantly? Reporters found in the survey that as early as the end of last year, there was an announcement on the Internet. Last year, there were problems in the financial aspects of Cherry Blossom group, and the layoffs, the suspension of the Kampuchea project and even the sale of land have shown serious loopholes in its capital chain.

However, those close to the company said that at present, the rapid expansion of Sakura group has also become the fundamental reason for its collapse because of the gradual compression of the profit margins of textile enterprises.

Public information shows that the company has invested 320 million yuan to purchase more than 500 sets of advanced equipment at home and abroad, forming a 40 thousand spindles high production and high density one-stop production line.

In the expansion of the industrial chain, a complex industrial chain integrating textile, knitting, printing and dyeing, textile machinery, home textiles and garment processing has been formed, and the expansion trend has not been adjusted with the deterioration of the external environment of the textile industry.

In December 26th last year, Shandong Cherry Blossom Technology Co., Ltd. Industrial Park project laid a foundation in the city economic development zone.

"Cherry Blossom Industrial Park" covers an area of 481.2 mu. At the same time, Sakura textile is also combined with the provincial sea group, Galaxy Group and Xinguang Group to build factories in Kampuchea.

"To maintain the momentum of high-speed expansion of Sakura textiles, it is difficult to continue to invest solely on its own annual sales income of 1 billion 125 million yuan (06 years) or the level of industry profits. Therefore, a huge amount of bank loans has become a major source of funding."

The first textile editor, Wang Qian, believes that we should not ignore the fatal lethality of capital chain breaking for large enterprises eager to expand.

Survival difficulties in cotton spinning industry

For the Sakura group, which is mainly owned by cotton spinning, the pressure of profit squeeze and cash flow is undoubtedly serious, which may be a big gap in the breakup of enterprise capital chain.

A survey showed that as of the end of February this year, domestic cotton spinning enterprises, yarn and cloth inventory reached 23.28 days, 33.85 days, a record high in nearly three years.

The National Bureau of statistics also pointed out that in the 1~2 month of this year, the loss of cotton spinning enterprises above Designated Size reached 20.64%, a sharp increase of 6.8 percentage points from 1~11 months last year, while the deficit of loss making enterprises increased by 55.43% to 1 billion 148 million yuan.

It is worth mentioning that the market is regarded as a window to observe the cold and warm of China's textile industry. 2698.HK has recently been "stopped producing 2 million spindles".

The annual report of the largest cotton textile producer in China showed that its turnover in 2007 was 18 billion 590 million yuan, down 6.2% from the previous year, and its gross profit was significantly reduced by 19.9%, which was only 2 billion 662 million yuan. In 2006, this figure was 3 billion 323 million yuan.

As for the reasons for the decline in operating performance, Wei Qiao textile said in its annual report, "since 2007, the appreciation of the renminbi, the adjustment of export tax rebate policy and the rising price of raw materials have posed some challenges to the Chinese textile industry.

The market is facing fierce competition because of the shrinking export and the rising cost of production.

In the face of weakening demand and deteriorating market environment, Wei Qiao's price reduction strategy also lowered its gross profit margin.

Ministry of Commerce: stabilize cocoon silk export and avoid big landslide

Yesterday, the Ministry of Commerce released the latest data show that the 1 quarter of this year, cocoon silk prices showed a steady upward trend.

Wang Beiying, deputy inspector of the market operation Department of the Ministry of Commerce and deputy director of the National Cocoon Silk office, said that this year's goal is to stabilize the export of cocoon silk and avoid big landslides.

According to China's cocoon silk price index, the index of cocoon silk price in 1~3 months was 86.39 points, 87.54 points and 90.20 points respectively, with the increase of 0.48%, 1.33% and 3.04% respectively.

The Ministry of Commerce introduced that at the beginning of this year, most of the main sericulture areas in southern China suffered from low temperature and freezing rain and snow. The growth rate of spring cocoon production slowed down, and this also contributed to the continuous rise of cocoon silk prices in the 1 quarter.

Cocoon silk prices are expected to remain stable in the near future.

China is a big country in international trade of cocoon and silk products. During the short term fluctuation of domestic prices last year, the price of domestic and foreign silk products and the prices between the upstream and downstream products could hardly be linked up at a time, which would cause foreign businessmen to wait and see and export orders to decrease.

In addition, from the export enterprises, when the raw material price is low, the contract is signed externally. When the price of the raw material is sold, the price has risen, but the contract signed abroad must be fulfilled. This is easy to create.