Textile Profits In The First Three Quarters Were Not Affected By Rising Cotton Prices.

On October 9th, Ms. Chen, a securities affairs representative of the seven wolf industrial Limited by Share Ltd (002029.SZ), told reporters in a telephone interview that the increase in raw material (cotton) prices did not affect the company's profit growth.

Expected first three quarters of the company

Li Yanhua, an analyst with GF Securities, said that although the raw materials (cotton and so on) were soaring this year, the overall revenue and profit growth of the textile and garment industry still maintained a relatively fast pace.

Ms. Chen told reporters that as the price of raw materials (cotton) rose, the company had adjusted its sales price accordingly.

It is expected that the net profit of the first three quarters of this year will increase by 20%-40% compared to the same period, while the main revenue in the first three quarters of 2009 will be 1 billion 460 million yuan and net profit 130 million yuan.

On the same day, Mr. Peng, director of the Limited by Share Ltd (002083.SZ), the largest textile enterprise in China, said in an interview with reporters that under the background of rising raw materials, the company's net profit this year is expected to grow by 30%-50% over the same period last year.

He said that the company has a certain amount of cotton reserves, reserves can generally reach 4 to 5 months of total consumption, while the company conducted a price adjustment in the second quarter, sales prices rose by about 5%.

The company's export volume is about 80%, and if cotton prices continue to rise, the company may continue to raise its selling price.

Mr. Peng added that the company in 2009

Li Yanhua told reporters on the phone that clothing and textile enterprises are mostly brand enterprises.

The research report released by Bohai securities in October 9th showed that cotton prices hit a record high in the three quarter of this year. At the end of September, the main contract of domestic cotton futures of Zhengzheng merchants company closed at 22105 yuan / ton, up 5275 yuan / ton this year, or 31%.