Huafu Color Spinning In The First Half Net Profit Fell By Nearly 80%

Cotton price "roller coaster" market has more than a year, cotton prices rise and fall, constantly squeezing.

Profit margins.

Today, Huafu color spinning reported that the company achieved net profit of 51 million 178 thousand and 400 yuan in the first half of the year, down 78.78% and 0.06 yuan per share.

For the decline in performance, the company explained that the decline in yarn price in the first half of the year was the main factor leading to a decline in gross profit.

The company's interim report also showed that during the reporting period, the company achieved operating income of 2 billion 791 million 576 thousand and 600 yuan, a year-on-year decrease of 0.84%, and a basic earnings per share of 0.06 yuan, down 79.31% compared to the same period last year, with net assets of 3.58 yuan per share.

It is understood that the first half of 2012 cotton prices continued to decline, from 20000 yuan / ton continued to decline, to June 30th, cotton prices in the 18500 yuan / ton, around the world

It's about 4000 yuan / ton.

In the same period of 2011, cotton prices rose from 27800 yuan / ton to 33000 yuan / ton and then dropped to 24700 yuan / ton, and cotton prices went out of the first and then down.

At present, Huafu color spinning is affected by the spread of domestic and foreign cotton prices, which makes it difficult for the company's inventory to digest.

At the same time, other cotton spinning enterprises are also facing the same problem.

A person in charge of cotton enterprises said that the price of cotton abroad is relatively low, and the domestic cotton yarn can not get out. Although the company can still maintain it now, many businesses around it have gone bankrupt because cotton textile industry still relies on export. Now the whole cotton spinning industry is under too much pressure.

Although the interim performance of Huafu color spinning is not optimistic, some analysts are optimistic about the company's performance in the second half of the year.

The person believes that, with the marketing efficiency and the release of new capacity, it is expected that the company's orders will pick up compared with the second half of last year. In addition, this year's low price cotton stocks will be sufficient, and the profitability improvement will also be released quarterly. It is expected that the data will improve in the second half of the year, and later investment opportunities will be closely related to the cotton price trend and performance improvement nodes.

Another industry pointed out to our reporter that the textile industry is at a low point now, but it is also a turning point in the textile industry.

In the future, the competition of textile industry will no longer be the competition of output, but the competition of quality.

Huafu color spinning Limited by Share Ltd formerly known as Anhui Fei Ya textile development Limited by Share Ltd, founded in 1993, headquartered in Shenzhen, China, is a global focus on the operation of high-end new yarn manufacturers and suppliers.

The company's business scope includes: textile, yarn, fabric and other textile, printing and dyeing products manufacturing, import and export trade; cotton planting, processing and marketing; fiber and

Technical research, color design, information consultation, raw and auxiliary materials, machinery and equipment and accessories and technology import and export required by enterprises (except for goods and Technologies Prohibited by the state and prohibited by the state).