It Is Difficult To Get &Nbsp Across The Mountain, And The Pformation Route Of The Yangtze River Delta Textile Enterprises Is Endless.

The Securities Times reporter recently went to Shanghai, Zhejiang and Jiangsu textile and garment enterprises, and found that the survival of enterprises under the scale has become increasingly difficult. Recently, the phenomenon of "passive default" caused by the tightening of money has also appeared frequently. The complexity of the external situation has made the reduction of export proportion gradually become a trend. "Export to domestic sales" or further aggravate the cost war and price war in the domestic market.

Most enterprises believe that, in response to the call of the state to accelerate the pformation and upgrading, they look forward to easing monetary policy in the second half of the year, applying new textile technology and materials, and yearning for more high-quality white-collar workers to join the spinning industry.

Outlook for home textile industry is pessimistic.

In the morning of July 28th, Nantong, the largest home textile center in China

In a big block, if the private car is not at the door of the business owner, it is mistaken for an empty city which is still under construction and no merchants have settled in.

This contrasts strongly with China's largest and even known as Asia's largest home textile center.

Most of the time, apart from several prominent local companies, thousands of merchants who sell over $1 million can get a customer to enter the store and make inquiries and pactions.

Most neighborhoods in the home textile city can see stores that have been closed down.

"We have been playing cards all morning in the shop for six months. The second half of the year is still estimated to be" exercise skills. "

Textile enterprise manager with an annual sales of about 15 million yuan in Nantong Home Textile City reluctantly said, "last year, the home textile industry was not particularly prosperous, mainly affected by the fluctuation of upstream cotton prices.

Home textile industry dealers across the country are also showing a marked decline in their willingness to take delivery.

Although sales figures for the first half of this year were not fully counted, the estimated year-on-year decrease was more than 50%.

This year's sales volume is good if it reaches 5 million. "

"However, 5 million of sales may still be small profits or even losses for enterprises."

He said that the vast majority of enterprises need to stock up for customers' enquiries. Due to the fall in cotton prices, home textile fabrics fell by more than 1 yuan per meter in July compared with last month (taking narrow fabrics as an example). The high cost and low price reduced the profits of enterprises. Last year profits (excluding labor and housing rent) were close to 7%, while the first half of this year was estimated to be around 3%.

In terms of 5 million sales, the profit is 150 thousand yuan, and the cost of operation of the enterprise must be very precise before it can be guaranteed.

Apart from this company, more than 20 small and medium-sized home textile enterprises visited by the reporters in Nantong home textile city are pessimistic about the outlook for the second half of the year.

The reasons are mainly in the absence of export orders, the pressure of competition in the domestic market, the difficulty in judging the fluctuation of raw materials, the tight funds and the rising cost of human resources in the course of RMB appreciation.

At the same time, downstream vendors are also facing these pressures.

Grey cloth industry expansion difficult

In another concentrated area of China's textile industry, most enterprises in Wujiang's China Eastern Silk Market have also experienced the most difficult year in history.

The market is full of textile industry chain and the majority of weaving enterprises.

"During the financial crisis, we were not so hard."

The general manager of a leading textile group company said that the wages of ordinary employees rose from 2600 yuan to 3700 yuan this year, and the wage increase in the Eastern market (000301) is expected to be close to 20%.

After 1/3 years, the price of grey cloth did not rise. Although the development and production strength of new products were increased, the order in the first half of the year was still down by a year-on-year.

In the past, overseas orders which accounted for 30% of the group's orders were almost none this year.

He said that there were few new customers in the order, mainly concentrated on old customers.

After the market has been converted to domestic demand, demand has been reduced and no increase has been made. Moreover, as the whole environment is not booming, new customers are prone to risk.

However, due to the good year of textile industry last year, most of the profits of grey fabric enterprises have increased considerably. Therefore, there are no enterprises failing to be seen in the Eastern market.

For example, the net profit of most enterprises in the market can reach 10%.

Wujiang branch of the Bank of China (601988), a branch governor, said that because the local textile business owners have long-term experience and experienced several adjustments in the industry, the possibility of large-scale bankruptcy is unlikely.

From the analysis of bank loans, the loan maintained an incremental pattern, but slowed down compared with last year, which restricted the development of the textile industry, but it was only aimed at enterprises with expansion intention.

Transformation and upgrading should proceed from reality.

For the "pformation and upgrading" of textile enterprises, Li Jinbao, chairman of Shanghai Ke industry limited company, told reporters that "pformation and upgrading" is easy to say, but how to do it is a threshold for enterprises.

At present, the production and operation mode of textile enterprises in China is mostly dominated by processing, too fast to enter into pformation and upgrading, which may lead to risk of rash, but affect the basic survival of enterprises.

Reporters in Shaoxing Keqiao China Textile City (600790) visit the old market, Ceng Xianghua, chairman of Shaoxing Dian Bo Textile Co., Ltd. said that textile and garment enterprises do need to pform, especially at present, under the pressure of funds, orders, costs and so on. If there is no positive and effective pformation, enterprises will not be able to continue.

But pformation itself also needs ample financial support, and government departments should have relevant supporting measures.

Later, he produced a material printed on the "China Light Textile City creative industry base to enter the enterprise reward returns", and told reporters that the Shaoxing science and Technology Bureau will make a one-time subsidy of 50 thousand to 200 thousand yuan for the successful enterprises.

Experts believe that the pformation and upgrading will help Chinese enterprises to get rid of the low-end image and enhance their competitiveness, but pformation is not just a pfer of production base or conversion of production varieties.

Gao Yong, vice president of the China Textile Industry Association, believes that the growth rate of China's textile exports will slow down in the next 5 to 10 years. While stabilizing and expanding the share of the international market, efforts should be made to increase the added value of products and pform the export products from middle to low grade to middle and high grade.

Needless to say, the pformation of textile enterprises to high-end products still needs R & D capability and capital support.

In this regard, Sally Wu, a self-employed businessman on the two floor of A District, Keqiao, told reporters that the pformation and upgrading of funds and powerful enterprises can enhance competitiveness. For those with weak funds, it is fundamental to maintain the operation of enterprises. Transformation and upgrading require strong funds to support them.

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Capital chain strained enterprises passive default

Since the beginning of this year, the central bank's monetary policy has tightened frequently. Raising interest rates has raised the financing cost of enterprises such as enterprises and other capital demand sides. At the same time, the rise of the reserve ratio has also greatly reduced the position of commercial banks, and some small and medium-sized enterprises relying on credit have been struggling.

Li Jinbao said that the poor financing channels will inevitably lead to prolonged production and delivery cycles for some enterprises, and the increase in labor costs has reduced the manpower of enterprises, thus exacerbating the possibility of "delay" in delivery.

The breach of the capital chain on the brink of rupture has gradually increased in recent years.

According to the reporter's understanding, there are also related situations such as the increase of deposit ratio, the delayed payment of goods and other disguised default situations.

Moreover, the greater the proportion of domestic sales, the more obvious the risks.

Lin Haiyan, director of Shanghai Zhong Yan Industrial Co., Ltd., told reporters that he was mainly exporting some functional clothing, the phenomenon of delay in payment was not obvious, and the concern for funds was also lighter.

And many of her friends who are selling domestic products are in financial difficulties because of their arrears. This will also produce chain reactions, which will have an impact on the upstream and downstream businesses.

Xu Xi, general manager of Shanghai Sheng Ding hat industry Co., Ltd., said that because the scale of the enterprise is not large enough, its own capital can turn around.

Despite the tight environment, the purchase and customer deposits remained at the original level of 30%, and there was no default on delivery or payment.

Sally Wu, a Keqiao joint market, said that the surge in cotton yarn last year led to a reduction in foreign trade orders, and some customers even cancelled orders temporarily. This is also a disguised "breach of contract".

She said that some orders were reduced in proportion of ingredients, some were reduced in orders, or changed to other components.

Li Jinbao also told reporters that after the pfer of some upstream industries to the central and western regions in recent years, the increase in pportation time and cost, as well as the differences in service concept, have in fact increased the phenomenon of "passive default" of textile enterprises in the Yangtze River Delta.