Home Textile Industry: The Main Business Is Developing Rapidly And Opportunities Are Coexisting.

In recent years, with the rapid development of China's economy and the deepening of the pfer of the global home textile industry, China

The overall competition of China's home textile industry is relatively full. Because of the initial stage of development, the competition pattern is mainly manifested in: strong regional characteristics; low concentration of industry brands, and homogeneous competition between middle and low grade products, mainly relying on price competition; and the competition environment of middle and high-end products is relatively relaxed.

With the listing and financing of a number of leading enterprises in the industry, a new round of rapid expansion can be expected, with the strength of the capital market, the stronger the stronger will be in the home textile industry.

Rapid development of main business

Since September 2009, home textiles

Shenzhen fuanna home furnishing Limited by Share Ltd, 2010, has seized the favorable opportunity for rapid growth of the industry. Through the rapid expansion of the extension type and the control of operating costs, the main business revenue and profits have been developed rapidly.

The successful completion of the objectives and tasks set out at the beginning of the year achieved 106730.14 yuan in business income, an increase of 34.80% over the 2009 year, and a total profit of 161 million 220 thousand and 200 yuan, an increase of 48.59% over the same period last year. The net profit attributable to shareholders of listed companies was 127 million 757 thousand and 800 yuan, an increase of 48.37% over the same period last year. Net profit after deducting non recurring gains and losses attributable to shareholders of listed companies was 127 million 970 thousand and 500 yuan, up 61.94% over the same period last year.

The achievement of the above goals has benefited from the long-term brand marketing strategy and strong product research and development strength of the company, and the sales network has been expanding. With the successful listing of the company, the popularity and reputation of the products have been continuously improved.

The gradual recovery of the domestic economy has made the fourth quarter performance significantly improved, and the annual target has been successfully realized.

The product sales mode of Limited by Share Ltd is divided into retail and wholesale.

The wholesale link is to sell the product and arrange the production plan with the sales order.

The order signed in 2010 mainly came from franchisees and export businesses.

Combined with production capacity, the company will arrange production and delivery in time after confirming and signing orders with customers.

During the reporting period, the number of company orders increased from last year, and the performance is good.

As of December 31, 2010, the total assets of Shenzhen fuanna household Limited by Share Ltd, the owners' equity and net assets per share attributable to shareholders of listed companies were 1 billion 450 million 754 thousand and 200 yuan, 1 billion 118 million 526 thousand yuan and 8.35 yuan respectively, representing an increase of 14.51%, 7.32% and 17.49% respectively compared with the same period last year.

The decline in net assets per share is due to the implementation of the 2009 profit distribution and capital reserve fund conversion plan in accordance with the resolution of the shareholders' meeting. The total share capital is 103000000 shares in December 31, 2009, and the capital reserve fund is converted into capital stock, and every 10 shares are converted to 3 shares. The total increase is 30900000 shares and the net asset per share is diluted.

During the reporting period, the consolidated gross profit margin of the company's main business was 47.24%, up 3.36 percentage points over the same period last year, mainly due to the expansion of advertising investment by Shenzhen fuanna home furnishings Limited by Share Ltd.

As brand awareness and reputation continue to improve, and through technological innovation to promote value-added products, so that the company has mastered the pricing power of the market.

Shenzhen fuanna home furnishings Limited by Share Ltd also through bulk purchase, scale operation to reduce costs, offset the adverse impact of rising prices of raw materials.

In 2010, the total sales cost of the company was 268 million 82 thousand and 500 yuan, an increase of 42% over the same period last year, which is 7.2 percentage points higher than that of the sales revenue. The main reason is that the company has increased its advertising and publicity expenses in order to expand its popularity and reputation, an increase of 26 million 372 thousand and 600 yuan over the same period last year, an increase of 118.05%.

The second is the expansion of sales network, which makes sales staff increase, rental fees and travel expenses increase.

Finally, with the increase of business income, other related expenses are also growing, including pportation charges increased by 4 million 634 thousand and 100 yuan over the same period last year, an increase of 29.57%, and the renovation and maintenance costs increased by 4 million 242 thousand and 100 yuan over the same period last year, an increase of 36.32%. Container display fees, picture printing fees and promotional special fees increased by 3 million 880 thousand and 500 yuan over the same period, an increase of 26.95%.

Another listed company, the Luo Lai home textile Limited by Share Ltd, achieved operating income of 1 billion 818 million 814 thousand and 600 yuan in 2010, an increase of 58.81% over the same period last year, and realized a total profit of 283 million 191 thousand and 500 yuan, an increase of 43.80% over the same period last year. Net profit attributable to shareholders of listed companies was 209 million 705 thousand and 300 yuan, an increase of 43.14% over the same period last year. Net profit after deducting non recurring gains and losses attributable to shareholders of listed companies was 201 million 733 thousand and 100 yuan, up 44.94% over the same period; net cash flow from operating activities was 132 million 187 thousand and 100 yuan, an increase of 1.5% over the same period last year.

During the reporting period, the main business and structure of Roley home textiles Limited by Share Ltd, the main business profitability has not changed significantly.

As the price of raw materials increased, the sales price of products increased correspondingly at the end of the reporting period, but the annual average did not change much.

During the reporting period, the gross profit margin of the company's main business was 39.34%, down 0.44 percentage points from the same period, mainly due to the increase in raw material prices during the reporting period.

Roley home textiles Limited by Share Ltd 2010 annual non recurring gains and losses accounted for 3.80% of net profit, mainly because the company received 9 million 183 thousand and 800 yuan of government reward funds in Nantong and Shanghai this year.

During the reporting period, the cash flow of investment activities increased by 1134.53% over the same period, mainly during the reporting period, which received 17 million 781 thousand and 800 yuan of interest from the raised capital while less interest received from the fund during the same period.

The cash flow outflow of financing activities increased by 301.17% over the same period last year, mainly due to the larger cash dividends paid during the reporting period compared with the same period.

In 2010, the receivables turnover rate fell 1.20 times.

The main reason is the increase in direct businesses and supermarkets, and accounts receivable increased by 49.68% over the same period last year.

The inventory turnover rate increased by 0.25 times during the reporting period, basically within the normal range.

The ratio of total assets to total assets was 24.43%, the absolute amount increased by 198 million 100 thousand and 700 yuan, an increase of 76.06% over the same period last year. The increase in inventory was mainly due to the increase in the volume of production and sales during the reporting period, and the increase in the scale of the direct market, and the corresponding increase in inventory.

During the reporting period, a wholly owned subsidiary, Shanghai Luo Lai Home Textiles Co., Ltd. and Shanghai Shang ma ke household goods Co., Ltd. continued to assume the functions of the sales company, operating well, increased sales revenue, and at the same time led to increased sales costs, compared with net profit declined last year.

Shanghai Yin te Brand Management Co., Ltd. is in good condition, expanding sales channels in supermarkets, and achieving profitability in the reporting period.

Due to the recovery of international economy, sales and profits of Hongkong Luo Lai increased year by year.

Shanghai Rover Agel Ecommerce Ltd has basically achieved the expected profit target.

Shanghai Luo Lai Home Textiles Co., Ltd. a wholly owned subsidiary of Dongguan Luo Lai household textiles Co., Ltd. was established in July 2010, operating household textiles, 2010 is the actual operation of the first year, due to the higher cost of start-up costs, is temporarily at a loss.

Roley's home textile Limited by Share Ltd plans to sell 1 billion 362 million yuan in the reporting period for the completion of the business plan this year. The actual sales amount is 1 billion 818 million yuan, the planned quota is 456 million yuan, the planned net profit is 183 million yuan, the actual net profit is 212 million yuan, and the planned profit index is over 29 million yuan.

Future challenges and opportunities coexist

With the development of economy and income, the acceleration of urbanization, the improvement of housing conditions and the change of consumption concept, the domestic textile industry is expected to maintain a relatively high growth momentum.

With the continuous improvement of people's living standards, domestic textile consumption continues to escalate, and the proportion of high-end home textile products will continue to rise. The domestic and middle grade home textile products are facing huge market opportunities.

The core brand "Roley" products and other agency products of Roley home textile Limited by Share Ltd are positioned in this market, which can better cater for this trend and has broad market prospects.

With the improvement of the maturity of the industry, some enterprises with less R & D investment, less brand building and weaker channel capabilities have made the development of enterprises more difficult.

In 2011, Shenzhen fuana home appliances Limited by Share Ltd will continue to maintain the expansion of the marketing channels of the entity, expand the network sales, expand the sales of new channels, further improve the marketing network system, continue to strengthen the multi brand strategy, continue to become a strong brand of fuana, make the brand of great jasmine, make the brand of Saint flower, cultivate the brand of network sales, and seek cooperation opportunities with other high-end brands.

At the same time, the company will strengthen the procurement, storage and delivery management of raw materials, continue to play the integration ability of ERP system for production, logistics and sales supply chain management system, improve efficiency and control costs. With market demand as the guide, we should strengthen the R & D and application of new materials and technologies, improve the technological content and environmental protection performance of products, and constantly break through in the material selection, technology and cultural connotation innovation of products, and develop towards high quality and high added value.

In 2011, it planned to sell 1 billion 350 million yuan, an increase of 25% over 2010 and a net profit of 165 million yuan, an increase of 30%.

Shenzhen fuanna home furnishings Limited by Share Ltd persisted in the way of high-end brands, developed different products, opened up a number of regional markets, and offset the impact of macro-economic cyclical fluctuations by altering complementary business cycles in different varieties and regions.

In view of the fact that the domestic textile industry is a new hi-tech industry with huge market potential, the company, with the help of strong research and development capabilities, avoids some saturated products and focuses on developing high-tech products that consumers are in urgent need of, so as to meet the needs of the market.

In 2011, the Limited by Share Ltd will continue to optimize its organizational structure and improve its efficiency in the process of rapid development.

This year, the company's guiding ideology is to strengthen the national market and create a strong brand position in more regions, improve market share, improve the overall management efficiency of the company, thereby improving the operation efficiency of capital and assets, strengthening the construction of corporate culture, enhancing the core competitiveness of the company, and striving to achieve sound and rapid growth.

In 2011, it planned to sell 2 billion 357 million yuan, an increase of 29.63% over the same period, and a planned net profit of 281 million yuan, an increase of 32.72%.

In 2011, the Limited by Share Ltd still faced many risks and difficulties.

The main reason is that the market competition is more intense, the price of raw materials and labor costs continue to rise, and the state's macro-control on real estate and credit has been further intensified.

Roley home textile Limited by Share Ltd will make timely sales forecast plan, and do stockpile plan with suppliers in light season or low price according to actual demand.

Minimize unnecessary inventory at high prices.

In marketing, we should eliminate the low Maori varieties, increase the intensity of new product promotion and brand awareness, and promote the sales of new products and enhance the added value of brands.

Do a good job in human resources reserve.