Textile And Garment Industry: Declining Profits, Streamlining Business And Reducing Staff

The haze of profit is falling.

The whole supply chain is permeated with pressure from upstream fabric enterprises to garment enterprises.

With the pressure of raw materials, financing, labor and other costs rising sharply, the profits of textile and garment enterprises are constantly squeezed.

The first textile network data show that in the 1-2 month of this year, China's major textile enterprises realized a 726 billion 200 million yuan income, up 19.6% over the same period last year, and realized a total profit of 33 billion 400 million yuan, down 2.35% from the same period last year.

Among them, the profit of cotton spinning / processing industry dropped by 5.1%, and the profit of chemical fiber manufacturing enterprises dropped by 52.4% compared with the same period last year.

Under such circumstances, many textile and garment enterprises have chosen the way to lay off workers.

According to the statistics of China's new network, nearly half of the 73 listed companies in the textile and garment sector have streamlined personnel.

YOUNGOR streamline business

In last year's annual report, the number of YOUNGOR's staff decreased significantly.

Data show that in 2011, the number of employees in YOUNGOR decreased by 17199, which led to speculation in the industry.

Recently,

Exclusive reply to the interview, said that the reason is that YOUNGOR sold its wholly owned subsidiary, resulting in a significant reduction in personnel.

"The total number of incumbency employees announced in the 2010 annual report is 41903, including the number of employees of new Malaysia clothing group (Hongkong) Limited (hereinafter referred to as" new Malaysia clothing ").

As a result of the pfer of 100% of the shares of new Malaysia garments to Shengzhou Sheng Tai dyed Weaving Technology Co., Ltd. in 2011, the new Malaysia garments were no longer included in the company's consolidated statements at the end of 2011, and their employees were no longer counted in the total number of in-service employees.

A related official of YOUNGOR pointed out to reporters.

"If we remove 17233 employees from new Ma clothing, the number of employees will be 24670 at the end of 2010, which is not much different from that of 2011 in the same year, and there is no big difference in layoffs."

It is reported that in 2008, YOUNGOR spent $70 million on new Malaysia clothing.

In June 2011, YOUNGOR announced that it would sell the company at a price not less than US $80 million.

This also means that during the 3 years of YOUNGOR's acquisition of the garment production enterprise, the company did not bring obvious benefits to YOUNGOR.

Before calling YOUNGOR's securities department staff, he pointed out that the sale of new Malaysia clothing OEM business, which will contribute little profit and the bottom of gross profit, is more conducive to concentrating resources and energy to do well in the brand clothing industry.

The current profit of YOUNGOR's clothing sector mainly comes from the contribution of brand clothing. The profit of the new Malaysia business is less than 2%, and with the appreciation of RMB and the increase of labor cost, this business does not have sustainable profitability and development space.

Therefore, the sale is conducive to the realization of the strategic goal of "brand pformation from production management to brand operation".

Half of garment and textile enterprises are reduced

The practice of YOUNGOR's streamlining of its company has reflected the downturn in the textile and garment industry.

Previously, as a strong competitor of YOUNGOR, the clothing of Shanshan has been doing the work of "putting away the burden", and YOUNGOR has been doing the extension of the whole industry chain.

As the industry slowed down, YOUNGOR also had to start throwing away the "burden".

This is more common in small companies in the industry.

According to last year's annual report, 73 listed garment enterprises were in a minority, but ST, Germany, cotton and ST Xinlong listed companies last year's net profit fell by 1612.88% and 1070.64% compared with the same period last year.

Huafang textile company, a heavily losing listed company, lost about -3 billion yuan last year.

Reporters call Hua Fang textile, the company's securities department staff pointed out to reporters that the difficulties faced in 2011 must exceed 2008.

In 2011, the entire textile industry was desolate, and textile raw materials fell sharply from the peak of the beginning of the year, and some of the products fell even at 1/3.

The cotton market at home and abroad showed a roller coaster pattern.

Huafang textile management said that textile enterprises should have a deep understanding that the rising cost of essential elements has certain inevitability and persistence. "The textile industry has entered the most critical period of pformation and upgrading."

In 2011, the raw materials market really hit the whole textile industry.

Last year, a total of 36 textile and garment companies were reduced due to the development of the whole industry.

The number of employees decreased by more than 1000, respectively, including Huafu color spinning, ST de cotton, Jihua Group, Xinye textile, Xun Xing shares and Changshan shares, which decreased by 17199, 3314, 3131, 1837, 1478, 1317 and 1210 respectively.