Xingye Leather Is Forcing Quanzhou Leather Industry To Move Towards Shuffle.

As a major force in Quanzhou's leather industry, Anhai, Jinjiang, has 63 small and medium-sized leather enterprises that are still in the predicament of capacity restructuring.

The split between the two heavy days will undoubtedly further promote the competition in the leather industry in Quanzhou and China, and further enhance the concentration of the industry.

Sounding the horn of strength

This listing, Xingye leather raised a total of more than 700 million of the funds, and took the opportunity to launch a large-scale expansion plan.

These include two items, namely, "1 million 200 thousand years of raw leather processing, 300 thousand cattle blue wet skin" and "1 million 500 thousand high-grade leather finishing finishing new technology processing" in two years, with a construction period of 2 years.

It is estimated that the production capacity will reach 200 million 200 thousand times the annual production capacity of leather shoes and 10 million 800 thousand feet of high-grade bag leather, which is more than 2 times the current capacity.

Xingye leather is a leading enterprise in China's leather industry. It is mainly engaged in the development, production and sales of medium and high grade cattle top shoe upper leather, and occupies the first place in the market segment of cattle head shoe upper leather.

The industry estimates that, with the upgrading of downstream consumption, the leather market has a large space. In the next three years, the demand for Chinese cowhide upper leather will maintain an annual growth rate of about 7%. Leather for luggage and bags will also maintain an annual growth rate of about 5%.

The expansion plan of Xingye leather industry is the first to sounded the horn of the industry.

In addition, the concentration of leather industry in China is relatively low, and the trend of future industry concentration is obvious.

On the one hand, due to the integration of sports shoes, bags and other downstream integration needs to enhance the concentration of the upstream; on the other hand, due to the improvement of environmental protection requirements, thereby promoting the entry threshold of industry, as the industry benchmark, Xingye leather will undoubtedly become the biggest beneficiary.

The above two major investment projects will lead to a substantial expansion in capacity. It is estimated that the operating income of Xingye leather 2012~2014 is 1 billion 770 million yuan, 2 billion 390 million yuan and 3 billion 340 million yuan respectively, with a growth rate of 38%, 35% and 40% respectively.

Compared with other small and medium sized counterparts, Xingye leather uses the "cost plus" mode to product pricing, which has the right to speak in larger industries.

"Xingye leather, as a leading enterprise in the industry, has an obvious first mover advantage in terms of technology, scale and brand influence. The listing will stand on a higher competitive platform and further widen its gap with its competitors."

Huang Yongsheng, chief financial officer of Quanzhou Huatai Securities Business Department, believes that the biggest pressure on Xingye leather itself will be uncertain raw material cost.

In addition, in recent years, with the rapid development of microfiber, its excellent properties have increased the substitution of dermis and have the price advantage, which has a great impact on the leather industry.

The industry is sad and happy.

It is worth mentioning that at present, the leather industry in Jinjiang is still in the low period of industrial restructuring. The force of Xingye leather will probably force Quanzhou and even China's leather industry to accelerate its pace towards shuffling.

It is understood that Xingye leather is the second domestic enterprises to visit the capital market and the first listed company in Quanzhou leather industry.

At present, Feng an leather is also accelerating the pace of listing.

This also means that the industry will enter a higher level of competition.

This is undoubtedly an invisible pressure for the 63 leather SMEs in Anhai, Jinjiang.

"At present, the leather industry in Quanzhou is in a historical crisis.

In addition to Xingye and Feng an leather production capacity of more than 300 thousand sheets per year, most of the leather enterprises in Jinjiang almost stopped production of the original leather processing.

It can be said that the current Jinjiang leather industry is in a dilemma. Apart from environmental pressures, the whole industry has entered a period of adjustment due to the high storage pressure of downstream sports shoes.

Chen Ronghui, the Quanzhou Leather Industry Association, said with emotion.

But in Chen Ronghui's view, Xingye leather also proves that pollution is not untreatable, and this brings some new breath to the gloomy atmosphere of the whole industry.

Chen Ronghui told reporters that Feng an has been on the market for two years.

However, insiders pointed out that the leather with "pollution" top hat is quite special. Any enterprise must be on the road of capital, and it is doomed to be a long road.

Xingye leather has been in the process of preparation and listing for 8 years.