Lian FA Textile Breaks The Low Profit Dilemma In The Textile Industry

As we all know, the profitability of the textile industry is low.

Therefore, in the declaration of national science and technology plans and the declaration of high and new technology enterprises, textile enterprises have not suffered a lot.

Often the quality assets of the enterprise are stripped out, and a gateway is established.

However, through the introduction of all kinds of advanced equipment, Jiangsu Lian FA textile Limited by Share Ltd has built three levels of technological innovation system, such as front-line staff post innovation, plant R & D center technology and product innovation, enterprise and university's innovation of production, learning and research, so that the profit of products has been increasing continuously, far exceeding the average level of the industry.

In 2009, the company consolidated gross profit margin increased by 4.59 percentage points to 22.78%, the yarn dyed fabric gross margin increased 4.64% to 22.72%, and the shirt gross margin level increased from 22.41% to 26.8%.

Beginning in 2003, "lien Fa" started the construction of the new factory area, and also opened the prelude to the second round of equipment improvement.

In the next 5 years, "lien Fa" invested nearly 700 million yuan to complete the batch elimination of the original equipment, and imported more than 4000 sets of advanced international machinery and equipment from Japan, Germany, Switzerland and other countries, and more than 700 sets of the world's most advanced high-speed air-jet looms and the world's top rapier looms.

In 2008, "lien Fa" took the lead in introducing the technology of shirt hanging water production and liquid ammonia finishing in Jiangsu, which not only increased the productivity of labor production by more than 30%, but also effectively improved the stability of product quality.

Through the integration of industrialization and information technology, two orders, production and sales will be realized to form a personalized "three power project", that is, electronic scheduling, electronic technology, electronic scheduling, on-line detection and online quality collection, and the CAD of technology design will reach 100%.

Kong Xiangjun, chairman of the board, said: "Lian FA textile is like a high-speed core 2 dual core computer, and the core of these two constantly driving enterprises to move forward is the R & D center and testing center of the enterprise."

The company's R & D center has 550 sets of world-class textile testing instruments, including 186 innovative patents and 10 software rights. It has been recognized as the engineering research center of Jiangsu yarn dyed textiles and the Jiangsu provincial enterprise technology center. It has jointly established the R & D center with the Donghua University, the highest school of Chinese textile industry, and has set up an "enterprise academician workstation" with Academician Mei Ziqiang of the Chinese Academy of engineering. It has been certified by internationally recognized ITS testing firms, American LIZCLAIBORNE, HAGGAR, PVH and other companies.

There are more than 50 kinds of scientific and technological achievements coming out from here every year, and the technological achievements of "cheese low warp bath constant bath ratio dyeing technology", "super high density and high elastic fabric" have reached the leading level in China, and independently developed more than 1000 new dyed fabrics.

In 2008, the "CVC silk yarn dyed fabric", "cotton real silk XLA yarn dyed fabric" and "cotton silk T400 yarn dyed fabric" developed independently by the company are all at the leading level in China and won the 2008 China Textile Industry Association's "product development contribution award".

The national standard "yarn dyed weave cloth" and the national standard "cotton yarn dyed fabric", which were presided over by the Jiangsu textile development Limited by Share Ltd, have been promulgated and implemented by the national development and Reform Commission, the General Administration of quality supervision and quarantine and the Standardization Committee.

And the company invested about 10000000 yuan to establish a testing center, just to maintain the operation of the center staff wages, a year of about one million yuan, responsible for the final product quality inspection before leaving the factory, the center passed the approval of the China National Accreditation Committee (CNAS).

The textile enterprises that are willing to invest so much are few in the world.

Tang Wenjun, chief engineer in charge of technology research and development, said: "all 100% of our products can be exported after testing, which is fully consistent with international standards such as AATCC, ISO, ASTM, JIS and so on. It is the first" export exemption "enterprise in Northern Jiangsu and Northern Jiangsu.

From cloth to garment, there are 30 more testing procedures.

No wonder the "Lian Fa" shirt is still selling at a higher price.

Lian FA shares are promising analysts.

"Lian FA shares are a good stock," said Qu Jia analyst, first pioneering securities.

Apart from having to share stocks, in the eyes of employees and consumers, Jiangsu Lian FA textile Limited by Share Ltd is still a good company.

In 2009, it achieved operating income of 1 billion 529 million yuan, an increase of 7.48% over the same period last year, and net profit attributable to the parent company was 161 million yuan, a sharp increase of 76.72% over the same period last year, and its business performance has reached the best results in history.

The main reason for net profit growth is much faster than revenue growth is the improvement of production efficiency brought about by technological pformation, the steady reduction of raw material prices, and the increase in the export tax rebate rate in 09 years, as well as the slowing down of Renminbi appreciation.

The compound growth rate of revenue reached 31.43% in 06-09, and the compound growth rate of net profit reached 26.44%.

Compared with the listed companies in the same industry, the consolidated gross profit margin of the company is stable, higher than the industry average, second only to A (8.98,0.02,0.22%).

In 2009, the consolidated gross profit margin of the company was 22.78%, which was mainly due to the relatively orderly competition in the market because of the positioning of the company's products in the high-end products. In addition, the added value of the company's technology and brand was relatively high, and the unit price was relatively high. The company had a larger production scale, a large amount of material procurement, a good commercial credit, a strong bargaining power for the upstream suppliers, and some cost rising pressure could be pmitted to the upstream suppliers. At the same time, due to the company's good cost control advantages and complete industrial chain advantages, the production cost could be effectively reduced.

During the reporting period, although the total cost of the company increased year by year, the period cost rate was lower than the industry average and comparable companies, showing the company's good cost control ability.

Thanks to the company's good profitability and fast turnover capability, the company's ROE index is far ahead of the industry average, ranking first.

Chu Jia Jia, the first pioneering securities company, believes that the company has a fast turnover of assets and a cash flow of operating activities. It is estimated that the 10-12 year operating income of the company is 1 billion 722 million, 1 billion 959 million and 2 billion 217 million yuan, up 12.6%, 13.8% and 13.2%, respectively. The net profit attributable to the parent company is 179 million, 203 million and 236 million yuan. The growth rates are 10.8%, 10.8% and 10.8% respectively.

In fact, the growth of the company is just beginning. The goal of the company is to be a world-class shirt supplier and a top class shirt and clothing brand in China.

There is still plenty of room for development.