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    Continued Appreciation Of The RMB, The Prospect Of Textile Listed Companies Is Worrying.

    2008/4/11 14:05:00 19

    The Continued Appreciation Of The RMB And The Prospect Of Textile Listed Companies Are Worrying.

    At present, among the more than 170 listed companies that have disclosed quarterly reports, about 10 of the companies' performance is due to the appreciation of the renminbi and other reasons, resulting in a decline or even a loss in exports and overseas businesses.

    According to the statistics of the General Administration of customs, China's exports grew by 26.6% in January, while the export growth rate dropped to 6.5% in February. In January, -2 exports totaled 196 billion 990 million US dollars, an increase of 16.8% compared with the same period last year.

    The standard share forecast declined by more than 50% in the first quarter.

    The main sewing equipment of the company increased by 18% last year, accounting for about 1/3 of its total business revenue. But in its 2007 annual report, the company disclosed that the continued appreciation and exchange losses made the company's financial expenses rise by 193.75% over the same period last year.

    ZOJE shares, which belong to the same industry, also declined in the first quarter net profit of 60%-80%.

    In the textile and garment industry, Mei Xinda and black peony also experienced a similar "fate". Appreciation of the renminbi has made the company's performance worse.

    Mei Xinda accounted for more than 50% of foreign income. The appreciation of the local currency suppressed the growth of export revenue, and at the same time led to an increase in the company's financial expenses. The loss was expected to be 7 million -900 yuan in the first quarter. The black peony of the main denim and clothing is also expected to lose in the first quarter.

    Some industry researchers believe that on the one hand, the domestic textile industry is fiercely competitive. Meanwhile, the appreciation of the renminbi and the slowdown of the US economy make the export growth rate of the industry in a declining channel, and the prospect is not optimistic.

    //cn.da

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