Henan Private Textile Enterprises Generally Encounter Difficulties

A few days ago, the Henan SME Service Bureau organized a research team, which was divided into 5 research groups and 18 provinces and municipalities in the province to carry out research and field visits to 118 enterprises in dozens of industries such as textile, food processing and agricultural products processing.

Judging from the survey, the small and medium-sized enterprises in the province continued to maintain a healthy and steady development trend, but some new situations also appeared. Private textile enterprises generally encountered difficulties, and the growth rate dropped significantly, which was 10.15 percentage points higher than the national deficit.

According to the survey report, the reasons for Henan's private textile enterprises generally encountered difficulties are "financing difficulties", "difficult land use", "difficult electricity consumption" and increased taxes and fees.

Under the combined effect of a series of macroeconomic factors, such as the continued appreciation of RMB, lower export tax rebate rate, rising prices of raw materials and energy, wages and social security funds, Henan textile industry has experienced unprecedented difficulties.

By the end of June, 30% of the textile enterprises in the province had an average profit margin of less than 3%, while 60% of the enterprises had an average profit margin of only 0.73%.

In the province's textile enterprises above Designated Size, there were 124 loss making enterprises, an increase of 8.77% over the previous year, with a deficit of 10.39%, which was 10.15 percentage points higher than the national deficit.

For example, Xiangcheng Cotton Textile Co., Ltd. is a top class company in the same industry in the whole province. The equipment is first class in China, and some key equipment is world-class, with a spinning scale of 100 thousand spindles.

In 2007, it realized a profit of 1 million 600 thousand yuan, about 3000000 yuan in taxes and a flourishing production and marketing.

But since 2008, the main raw material cotton has increased by 700-1000 yuan per ton compared with the same period last year, and the wage of workers has increased by 100 yuan per person per month, and the electricity price has risen by 0.0306 yuan per ton, and the cost of ton yarn has increased by 500 yuan.

In 1-6, the company only achieved 10 thousand yuan in profits and was at the edge of losses.

What is more serious is that the sales of products are not smooth now, even if the price is reduced, the products will not sell well.

In July of this year, the company had shut down 25%.

The survey found that most of the above 1194 textile enterprises in the province lack financial support and business difficulties.

Some are unable to pay for water, electricity, gas and co-ordinate payments, and will be forced to stop production.

What's more, continuous pay is difficult.

Small textile enterprises in Xinye County, which are more concentrated and larger in Henan textile industry, have lost 1 / 3.

The chief executive of Changtai Textile Co., Ltd. said, "in 2008, textile enterprises should not make a profit, do not lie down, and survive."