Textile Companies Intensify Their Efforts To Consolidate &Nbsp And Strive To Avoid Frequent Equity Market.

The low foreign trade situation and the rising cost of raw material cost have severely damaged the profitability of the textile and garment industry since 2011.

Flush data show that as of April 22nd, 23 textile and apparel listed companies which have announced first quarter earnings forecasts, 16 of them showed sharp decline in performance or net profit as losses.

Due to the time of economic recovery, the reorganization and integration of textile industry is beginning to emerge, and property rights pactions are also active.

Industry integration continues to accelerate

Textile and silk were once the traditional dominant industries, but poor performance increased the determination of all shareholders.

Jiangsu property exchange April 18th announcement shows that Jiangsu Xinhao Holding Group Co., Ltd., Jiangsu's Xintian Enterprise Development Co., Ltd. offers a price of 14 million 194 thousand and 200 yuan, and intends to hold Jiangsu's Yu Lun.

The poor performance of Yulun textile increased the "intention" of SOHO holdings.

According to public information, Yulun textile mainly produces four series of yarn and poplin, such as pure cotton, chemical fiber, blended spinning and air spinning, but because of its poor management, since March 2011, it has repeatedly auctioned looms, warping machines, winding machines, roving machines and other textile equipment.

According to the audit report, Yulun textile realized business income of 92 million 457 thousand and 200 yuan in 2011, with a net profit of -29.97 million yuan and a total assets of 422 million yuan in 1-5 months.

Compared with the 10 million yuan contribution, SOHO's premium to Yulun textile is 42%.

However, Yulun textile management still has confidence in the company. Zhu Jinan, the company's legal representative, has clearly indicated that he will exercise the priority of pferee and participate in the acquisition.

But the other 4 shareholders gave up the priority right of assignee.

At the same time, Shijiazhuang

According to the exchange information, equity trading in textile companies on the property market is increasing.

Recently, COFCO has sold 10% stake in Beijing Xinli Wool Textile Co., Ltd., China's clothing sells 70% stake in Foshan Zhongfu textile printing and dyeing Co., and the equity pfer of Beijing Jing Guan towel Co., Ltd., all of which have aroused market concern.

Cost pressures remain to be eased.

The rising cost of raw materials and labor, as well as the downturn in foreign trade and the appreciation of the renminbi are the main reasons for the continued failure of the chemical fiber and textile industry.

In the first quarter results report or notice issued, China clothing, Changshan shares, Xun Xing shares, Mei Xinda and many other listed companies from the profit to loss.

Chinese clothing is expected to lose 7 million 500 thousand to 8 million 500 thousand yuan in 1-3 months, while the company had a profit of 305 thousand and 300 yuan last year.

Chinese clothing said that the first two quarter of 2012, the international and domestic market demand was sluggish, leading to the company's export business failed to achieve the desired goal.

As domestic raw materials prices and labor costs rise, coupled with the appreciation of the renminbi, so that the gross profit margin of the company's exports declined.

The performance of the listed companies of textile and garment sector is worrying.

Flush data show that the first quarter results have been released for textile.

Insiders say that the low price of products and the rising cost of raw materials have constituted a double attack on the plate profits.

Changshan shares said that in the first quarter, the market situation of the cotton textile industry continued to be weak, and the price of cotton textile products was greatly reduced compared with the same period last year. The gross profit margin dropped sharply, resulting in a large loss.

The industry believes that the textile sector's performance needs to wait for cost pressures to ease and the global economy to pick up.