Double Star: High-End New Shoes, Stimulating Export Growth By 25%

The textile industry association of China recently announced that in 2007 1~5, the average profit margin of textile enterprises above designated size was 3.66%, and the main business revenue reached 10709 billion yuan, an increase of 24% over the same period last year, with a total profit of 39 billion 190 million yuan, an increase of 43.86% over the same period last year.

It is noteworthy that China's textile and clothing exports continued to maintain strong growth momentum in the first half of the year, achieving a trade surplus of about 50 billion US dollars, almost occupying half of China's overall trade surplus.

In order to show the survival of textile enterprises in China in the first half of this year, some leading and medium-sized textile enterprises were interviewed.

On the whole, despite the overall dilution of the profit margins of small and medium-sized textile enterprises, the economic performance of textile leading enterprises in the first half of this year still showed an overall trend.

Double Star Group: high-end new shoes to stimulate export growth 25%, the star group is responsible for the import and export trade of shoes products Liu Xiaojie introduced, in the first half of this year, the group exported about 6 million pairs of shoes, the total export amount reached 20 million US dollars, higher than last year's 15 million dollars.

From the export area, the United States occupies 60% to 70%, the European Union accounts for about 20%, and the rest of the world accounts for about 10%.

From the perspective of export varieties, canvas shoes, safety shoes, leather shoes and other varieties are mainly included. Canvas shoes are mainly exported to the United States, accounting for about 60% to 70% of the total exports of these products. The safety shoes are mainly exported to the European Union, while other footwear products are mainly exported to Japan, the Middle East and other countries and regions.

Miss Liu analyzed that the export situation of double star shoes in the first half of the year was better than last year, mainly due to the export promotion role of the safety shoes launched by the group in the second half of last year. The added value of this kind of shoes is relatively high, and the export profit margin is relatively high.

Turning to the negative impact of the state's lowering the export rebate rate on the export of footwear products, Miss Liu said: "the double star group is mainly adopting measures to raise prices, but the price of footwear products is not large enough, up to about 1%.

The policy effect of reducing the export tax rebate rate of footwear products by 2 percentage points will begin to appear in the second half of the year.

She predicted that, according to the export volume of the second half of last year, if the price increase measures were not taken, the impact of the export tax rebate reduction on the export of double star shoes is expected to reach 500 thousand to 600 thousand US dollars.

To actively respond to the negative impact of "bad profits" on enterprises, Liu Xiaojie said: "in the long run, exploiting customer resources and developing new products with high added value will be a major move.

In view of the fact that the major customers of footwear products are mainly concentrated in the United States and the European Union, the double star group plans to participate in various exhibitions at home and abroad as far as possible in the second half of the year, especially international exhibitions, so as to develop more high-quality customer resources in the United States and the European Union.

Sunshine Group: expanding the proportion of domestic sales to enter new energy sources from Jiangsu sunshine group, as a large domestic high-grade thin fabric production base, the group is preparing to export fabric proportion from the current 70% to less than 50%, so as to ease export pressure.

As a leading wool spinning enterprise, as of July 3rd, the group has provided a total of about 140 million yuan worth of dress materials and processing gowns and dress shirts contracts for the military agency.

To enhance the comprehensive competitiveness of enterprises, the group has officially entered the field of solar energy, and relies on the world's leading photoelectric conversion technology to become a new star in the field of new energy.

It is reported that the newly established Jiangsu Sunshine Solar Power Co., Ltd. mainly studies and produces new and efficient nano photovoltaic cells and components.

At present, the new company's thermal photovoltaic battery chip pilot has been successful.

In addition, Jiangsu Sunshine Group also holds 65% of Ningxia sunshine Silicon Industry Co., Ltd., the annual production scale of polycrystalline silicon is 4000 tons, and the annual capacity of the first phase project reaches 1000 tons.

Small and medium enterprises: the policy "profits" squeezing profits, it is understood that as a result of the state cut export tax rebate rate of 2 percentage points, some small and medium-sized textile enterprises resulting in annual losses of up to hundreds of thousands or even several million yuan.

"Since July 1st, the state has lowered the tax rebate rate of garment export by 2%, which seems to be not much, but the profit from garment export is not high enough. The export tax rebate adjustment will have a great impact on garment export enterprises."

The head of a small garment enterprise said in an interview with reporters.

According to him, as early as 4 and May this year, enterprises heard the wind down on the export tax rebate rate, so enterprises generally did not dare to pick up the export orders for half a year. Even if orders were received, they would try to choose the RMB settlement order.

The head of a medium-sized garment export enterprise calculated to reporters: "the national export tax rebate rate decreased by 2 percentage points, equivalent to 1 US dollars to reduce 2 cents. According to the export orders of 16 million to 20 million US dollars per year, the enterprise will lose 2 million 500 thousand to 3 million yuan a year, and the company's net profit is no more than 9 million yuan."

In addition, the continued appreciation of the renminbi has further occupied the narrow margins of foreign trade profits of small and medium-sized textile enterprises.

According to a textile Limited by Share Ltd in Shanghai, the continued appreciation of the renminbi will be reduced by about 160 thousand yuan a month, excluding the negative effects of its import cotton offsetting.

Experts pointed out that because clothing and fabric exports from the quotation order to submit documents generally need half a year, the continued appreciation of the renminbi increased the difficulty of business quotations.

In the second half of this year, we must speed up the pace of export regulation, and Wu Di, deputy director of the China Textile Industry Association, pointed out that the growth of textile enterprises is still the main theme in the second half of the year, but the growth rate will gradually slow down. Meanwhile, the pace of industrial adjustment will accelerate.

He predicted that the output of textile enterprises will increase steadily and profitability will be improved. The annual export growth of textile and clothing is expected to be 16%, lower than last year's level, while the average profit margin of textile enterprises will be maintained at around 3.89%.

Industry experts believe that China's textile industry in the second half of this year is likely to bear the critical cost of enterprises, and the entire textile and garment industry will face a new reshuffle, when a considerable number of small and medium-sized enterprises will be eliminated.

In view of the expiry of the Sino EU textile trade agreement at the end of this year and the expiration of the Sino US textile trade agreement at the end of 2008, domestic textile and garment enterprises have increased exports to the restricted areas of Europe and America.

According to the statistics of China Textile Industry Association, in the 1~5 month of this year, domestic textile enterprises accumulated 19 billion 40 million dollars in textile and clothing exports to the United States and the European Union, accounting for about 1/3 of the total export volume.

In this regard, Wu Di put forward advice and suggestions to domestic textile enterprises: "to maintain restraint, strengthen self-discipline, and avoid the high concentration of exports caused by blind exports, resulting in new trade restrictions."

He said that in addition to corporate self-discipline, the monitoring function of the industry early warning mechanism needs to be strengthened.