Analysis Of Production And Operation Of Wei Qiao Venture Group In 1-10

Since the beginning of this year, with the slow recovery of the world economy and the continuous improvement of the domestic economy,

Main problems in operation:

(1) the continuous rise of cotton prices has become a top priority for cotton textile enterprises.

Since the launch of new cotton in early September this year, cotton prices have gone up and up, and seed cotton prices have risen from 7.4 yuan to 7.6 yuan per kilogram in September, which has soared to 14 yuan / kg, and 15 yuan per kilogram of cotton and three grade lint from 15 thousand yuan / ton to 31500 yuan / ton.

In less than two months, cotton prices doubled and hit the highest price ever.

The Group believes that cotton prices rise too fast in the short term, mainly based on the following five reasons: first, the reduction of cotton planting area, and the serious reduction in production caused by natural disasters, resulting in less production than expected, and tight cotton resources; two, the textile market is in good condition, and the demand for cotton is large, resulting in imbalance between supply and demand.

The three is the speculation in the futures market, which drives the price of the cotton spot market to rise too fast; four is global inflation, and the international commodity prices have risen sharply; five, the labor cost of the rural areas has risen this year, and picking up a kilogram of cotton will cost 1 yuan.

It can be said that the current cotton prices have been very abnormal. Such high cotton prices have brought great pressure to the downstream industries such as spinning, weaving, clothing and so on, and are also faced with huge operational risks.

Judging from historical experience or rules, cotton prices are very low in high price years.

For example, when the international cotton price came to a peak in 1995, there was a sharp drop in the short term, and the domestic cotton price was also the same as in 2004. There was a sharp drop in the short term, and another high price. This high price support for a very long time is also very small.

Once the skyrocketing crash is repeated again, the danger to the entire industry will be incalculable.

Although the impact of this round of cotton prices on textile enterprises is different, in the long run, all links in the entire textile industry chain are closely linked.

"Cotton is cheap but it hurts farmers, but cotton is expensive."

All cotton fields are expected to have a reasonable price in the cotton market so as to avoid violent fluctuations so as to stabilize the cotton market and ensure the healthy development of the cotton industry.

(two) RMB exchange rate.

Since the central bank announced the resumption of RMB exchange rate reform and RMB exchange rate flexibility in June 19th this year, the RMB exchange rate has risen to 3% against the US dollar, so far it has appreciated by more than two. This has brought about two adverse effects on the textile and garment industry. First, it has further reduced the profit margins of the enterprises; the other is that the appreciation of RMB has increased the cost and price of our textile and clothing, thus weakening the competitive advantage of China's textiles in the international market to a certain extent, and the export will be restrained.

The US quantitative easing policy has further increased the uncertainty of the industry's exports.

(three) raise interest rates and raise reserve requirements.

As domestic inflation expectations have been strengthened, the central bank has increased interest rates and raised the deposit reserve ratio recently, and the trend of monetary policy adjustment has emerged.

The purpose of these measures is clear, mainly to prevent inflation, but to a certain extent, it will also increase the inflow of international hot money.

Because other countries in China are cutting interest rates, which will accelerate the pressure of RMB appreciation.

The continuous adjustment of monetary policy will not only increase the production cost of textile enterprises, but also make enterprises' funds tight.

At the same time, raising interest rates will accelerate the appreciation of the renminbi, and will also have an adverse impact on the export of textile and clothing.

(four) export environment.

Since the financial crisis, the unemployment rate in the United States has remained high. According to the latest statistics in October 8, 2010, the unemployment rate in the United States is still at 9.6% level, and the US consumer confidence index is also on the decline. It is foreseeable that the demand for textile and clothing in the US market will slow down.

Meanwhile, at the end of September, the United States joined forces with other countries to put pressure on China. The EU also joined the "RMB exchange rate war". China's textile and garment industry will still face the pressure of RMB appreciation, and the export environment is not optimistic.

Trade protectionism will be an unavoidable problem in the process of global economic recovery, and the risk of encountering international trade friction is still high.

In addition, domestic labor, energy and other factors of production prices also showed an upward trend, the cost pressure of textile enterprises will increase significantly.

Several suggestions to promote the healthy development of the textile industry are as follows:

(1) adopt various effective measures to guarantee the supply capacity of cotton.

The most fundamental factor this year is the contradiction between supply and demand.

To solve the contradiction between supply and demand of cotton, it is essential to stabilize the cotton planting area.

In recent years.

The benefits of cotton planting are reduced, cotton is used more, labor intensity is great, prices are always lower, it is better to grow wheat and corn than to go out to work.

It is suggested that the state should increase the subsidy for cotton seed as soon as possible, enhance the enthusiasm of cotton growers and ensure the planting area.

At the same time, it is suggested that the state increase cotton import quotas, or encourage enterprises to carry out import processing trade, implement the self processing system of processing trade, and open up processing cotton, so that enterprises can import cotton in time, grasp the initiative of the cotton textile market, fundamentally stabilize cotton production, and protect the interests of cotton farmers.

It is suggested that the state should take effective measures to reduce cotton futures prices as soon as possible, keep cotton prices stable, reduce people's expectations of rising cotton prices, eliminate the wait-and-see and reluctant sale mentality of cotton growers, cotton processing plants and cotton traders, reduce cotton hoarding, and let cotton flowers really flow in the market, so as to keep the cotton market stable and prevent the phenomenon of skyrocketing and plummeting.

(two) improve tax policy as soon as possible and lighten the burden of corporate tax burden.

Cotton textile enterprises in the current value-added tax deduction, the purchase tax rate of cotton is 13%, the final product sales tax rate is 17%, long-term existence of high levy and low deduction problem, enterprise tax burden heavy, low profit level.

It is suggested that the state should improve the tax policy of the deep processing enterprises of agricultural products as soon as possible, implement the equal input and output tax and raise the profit level of enterprises, so that enterprises can subsidize the increased profit portion to the workers' income, so that enterprises can have a substantial increase in the wages of workers, better benefit farmers and increase farmers' income. On the one hand, it can improve the employment situation, help enterprises and social stability, on the other hand, improve the consumption ability of workers and farmers, stimulate domestic demand, and solve the problem of unfair distribution of society. It can effectively alleviate the problem of excessive income gap between labor-intensive industries and monopoly industries.

Since the beginning of this year, Wei Qiao venture group has increased its wages for five times, increasing wages by 500 yuan per person per month.

In the next two years, the annual salary of ordinary workers will reach 30 thousand yuan.