Strong Wings Honed Against The Wind

Nantong Shuanghong Textile Co., Ltd. is a high-quality base of China's chemical fiber blended yarn, with 200000 spindles. The company adheres to the enterprise's scientific development strategy of "setting a benchmark and making high-quality products", focuses on the main business goal of producing high-grade knitting and yarn dyed yarn, and takes the road of "lean, specialized, branded and differentiated". Through in-depth technical innovation, product innovation, management innovation, mechanism innovation and other activities, enterprises seek multiple breakthroughs in development.

In the first half of 2012, the overall production of Nantong Shuanghong Textile Co., Ltd. was full load, the production and sales were balanced, and the benefits were meager. In the first half of the year, the enterprise realized sales revenue of 684 million yuan, an increase of 8.06% over the same period last year, and the average production and sales rate reached 100.5%, but the profits and taxes decreased significantly, with the total profits and taxes of 32.63 million yuan, down 52.45%.

Seeking "opportunity" in "danger" to solve difficult problems

Ji Yijun, general manager of Nantong Shuanghong Textile Co., Ltd., said that in recent years cotton spinning The industry has experienced a period of rapid development. The overall level of equipment in the industry has improved, and the total scale has increased rapidly, but it has also brought drawbacks. The disorderly competition among enterprises and the homogenization competition of products are serious, the quality of enterprise personnel and management level are difficult to follow up, the cost of raw materials, labor, production and financing are all significantly increased, and the embarrassing phenomenon of cotton price inversion at home and abroad makes many enterprises difficult to move forward.

Shuanghong Company is also facing such difficulties, and its operation has been affected a lot. Ji Yijun, the general manager, said that the more serious the situation is, the better the work will be. It will be worse to wait and see. For the current difficulties, Nantong Shuanghong not only did not give up, but also took many measures to actively solve the problems. In the "No. 1 Document" of the company at the beginning of the year, it clearly pointed out that the two main tasks of this year are quality improvement and potential tapping. Continuous breakthroughs in product quality have been made to achieve steady growth and always maintain the leading position in the industry. In terms of enterprise management, we need benefits from innovation, and strive to tap potential and increase efficiency through method improvement, process reengineering, personnel diversion and post merger.

The technological transformation never stops

In the first quarter, Shuanghong Company implemented several technical engineering transformations, and some machines of workshop equipment needed to be relocated. Most machines were installed at the end of April, which affected the output in the first quarter. On the whole, the output in the second quarter was 642.74 tons more than that in the first quarter, and the sales volume in the second quarter was 1571.8 tons more than that in the first quarter. The profit declined.

General Manager Ji Yijun always believes that crisis and opportunity go hand in hand. In the face of difficult situation, Shuanghong Company has never stopped the transformation of equipment.

Since this year, Shuanghong Company has invested 18 million yuan to renovate 12 spinning long cars and expand the capacity of the engineering center test workshop. In addition, we will carry out large-scale replacement in a planned way to improve equipment level and lay a solid foundation for further improving product quality; Continuously refine the original products, meet high-end customers, and try to avoid vicious competition of the same grade and homogeneity; Widely apply new raw materials, new processes and new methods to develop new products; Innovate marketing strategies, constantly open up new markets and form new economic growth points.

All modifications are aimed at improving product quality and reducing operating costs, striving for greater profit margins. Shuanghong Company pays special attention to reducing the purchase cost of cotton and other textile materials in operation. Because the cost of raw materials basically accounts for more than 70% of the total production and operation costs of enterprises, the purchase of raw materials, especially cotton, is particularly important for the survival and development of domestic cotton textile enterprises. In production and operation, it can expand the use of foreign cotton and reduce the proportion of raw material cotton, Increase the proportion of chemical fiber and other non cotton fibers to reduce the cost of raw material procurement.

Product updates account for market

Due to multiple adverse factors, many cotton textile enterprises in Shandong, Henan, Anhui and other places have gone bankrupt. In the second half of the year, the national cotton textile industry may face a more difficult situation, and the overall reshuffle of the industry will be inevitable. Ji Yijun, the general manager, said that those enterprises with excellent product quality, less labor, higher product added value, and their own characteristics will eventually survive the "severe winter", and will live better.

Turning to the product development of the enterprise, Ji Yijun, the general manager, said that people's choice of textiles was no longer limited to traditional cotton, polyester, viscose, wool, linen and other fiber fabrics, but more consideration was given to comfort, functionality and environmental friendliness. We will continue to improve the product grade, implement differentiated competition, constantly develop new processes and launch new products to deal with the risk of product renewal. The main direction is to develop new fiber yarns with functional, differentiated, comfortable and environmental characteristics, fully consider the processing performance of fibers, widely use new fibers for pure spinning and blending, and maximize the application field of new fiber yarns. At the same time, new spinning technologies such as compact spinning, siro spinning, vortex spinning, rotor spinning and embedded spinning are closely combined and applied to develop new structured yarns and occupy the market commanding heights.

Shandong Hongcheng Group Co., Ltd. strives for progress while maintaining stability

Shandong Hongcheng Group Co., Ltd. focuses on the textile industry, and gradually develops commerce, service industry, real estate and other fields, realizing the transfer and penetration from a single textile industry to other industries, promoting the complementary advantages between industries, and enhancing the core competitiveness of enterprises.

From January to June this year, Shandong Hongcheng Group Co., Ltd. produced 3839 tons of cotton yarn and 11.39 million meters of cloth, achieving sales revenue of 499.3 million yuan and profits and taxes of 26.78 million yuan. Among them, sales revenue increased by 18.72% year on year, and profits and taxes increased by 37.39% year on year

Seize opportunities in adjustment

Since this year, the textile market has been beset with difficulties, with declining export shares and fierce competition in the domestic market. Under such a severe situation, Liu Ming, chairman of Shandong Hongcheng Group, knows well what "adjustment" means for enterprises.

During the operation of the enterprise in the first half of the year, Liu Ming, the chairman of the board of directors, led the enterprise to decisively adjust its operation strategy and seize opportunities by seeking advantages and avoiding disadvantages. The proportion of domestic and foreign sales in the sales market was adjusted from 30% of the original domestic sales and 70% of the export sales to 80% of the domestic sales and 20% of the export sales. Focus on the development of domestic well-known brand customers to improve market share.

Adjust the industrial structure, develop diversified industries, and transform the operating industry from a single type to a diversified type. At the same time of refining and strengthening the main textile and home textile industries, implement the comprehensive industrial transformation of "retreat from two industries to three", gradually enter the fields of commerce, service industry, real estate, etc., realize the transfer and penetration from the single textile and home textile industry to other industries, promote the complementary advantages between industries, and enhance the core competitiveness of enterprises.

The management mode has changed from traditional to innovative. On the basis of inheriting the traditional management experience, we should strengthen the enterprise management with the idea of reform and innovation, deepen the assessment of the target gross profit of the production workshop, and connect production with the market seamlessly; Actively implement new measures such as ERP management, H1 internal control quality standard, economic activity analysis, distribution system reform, etc., mobilize the enthusiasm of all staff in production work, and improve the overall management level of the enterprise.

Seeking development in stability

Under the strong effect of "adjustment", in the first half of this year, the market share of Hongcheng Group expanded, and the number of domestic well-known brand customers expanded from several in the past to dozens, especially taking yarn dyed fabrics as the main direction of attack, realizing the "one-stop" of yarn dyed fabrics from development to production, and the market adaptability was significantly enhanced. In the first half of the year, 800000 meters of yarn dyed fabric were produced, 320000 meters more than the same period last year, an increase of 67%; The backward production capacity in the old production area was shut down, and the company's production organization structure was optimized; The implementation of H1 internal control quality standard has improved customer satisfaction; Accelerate the construction of key projects, deeply economize and tap the potential, promote safe production and a series of homeopathic adjustments. The enterprise has achieved three 100% of the recovery rate of payment for goods, the contract performance rate, and the production and marketing rate.

In response to the new market situation, Liu Ming will lead Hongcheng Group to focus on the six main lines of work, namely, "focusing on production, expanding the market, key project construction, innovative management, safe production, and style construction", and all staff will focus on serving the market at the center to actively complete the company's production tasks and objectives for the second half of the year.

Jihua 3542 Textile Co., Ltd. has flexible adjustment strategies

Jihua 3542 Textile Co., Ltd. is a comprehensive textile enterprise integrating spinning, weaving, clothing and bedding production and operation. In the face of the current difficult situation, the company timely grasped the market direction and changed the operation strategy in actual operation to ensure the realization of the company's production and operation objectives this year.

In the first half of 2012, Jihua 3542 Textile Co., Ltd. realized an operating revenue of 1.033 billion yuan, 57% of the annual budget, an increase of 301.11 million yuan or 41% year on year; The total profit was 3.63 million yuan, only 10% of the annual budget, a year-on-year decrease of 11.61 million yuan, or 76%.

"Strategy" transformation to achieve goals

In the face of the current severe market situation in the textile market, Chairman Zhang Ming said that the company timely grasped the market direction and changed the operation strategy at any time during the operation to ensure the realization of the company's production and operation goals.

The textile industry is labor-intensive and one of the industries with the highest degree of marketization in China. In order to enhance its competitiveness, Jihua 3542 Company extended its main business structure adjustment to "two ends". One is the control of the upstream raw material market and the extension of trade, the other is the extension of the production and processing trade of home textile products. At present, there are tens of thousands of textile production enterprises in China, with the production capacity of more than 100 million spindles. The demand for conventional varieties of domestic textiles is seriously saturated, and the market competition is fierce. In order to avoid homogeneous competition among enterprises, Jihua 3542 Company has accelerated the pace of product structure adjustment, realized "differentiated" production and sales, highlighted functional and high value-added products, increased the production of multi-functional and environment-friendly products such as bamboo fiber, hemp, COOLMAX, cotton wool blend, and avoided homogeneous competition with other enterprises. In terms of market structure adjustment, the company's production and operation strategy in 2012 will focus on civilian textiles, supplemented by military textiles and foreign trade markets. The proportion of civilian textiles, military textiles and foreign trade market was adjusted from 80:5:15 in 2011 to 90:5:5.

In addition, Jihua 3542 Company has realized the transformation of its main business. While strengthening and refining its main textile business, the enterprise has gradually realized transformation and upgrading into logistics trade, home textile products deep processing and other fields, forming a new economic growth point for the enterprise.

Industry problems need to be solved urgently

The difficulties faced by the textile industry are well known, but how to solve them has made many people sigh. Zhang Ming, Chairman of Jihua 3542, has some opinions on this.

Zhang Ming suggested that we should first solve the problems related to the tax system and tax rate. Effectively solve the "high levy and low deduction" phenomenon that has long plagued the development of the textile industry (VAT collection of 17% and deduction of 13%), and include the textile industry in the pilot scope of the Administrative Measures of the State Administration of Taxation on the Verification and Deduction of Input VAT on Agricultural Products in Some Industries; The pilot project of levying value-added tax instead of business tax will be expanded to the field of productive services in the textile industry; Increase the export tax rebate rate of the textile industry.

Secondly, measures should be taken to narrow the price gap between domestic and foreign cotton and accelerate the reform of cotton circulation system. It is suggested that financial subsidies should be adopted when national cotton stocks are put into storage, and price limits should be implemented to stabilize domestic cotton prices and narrow the price gap between domestic and foreign cotton. At the same time, it is necessary to deepen the reform of the cotton circulation system, improve the cotton macro-control mechanism, until the double management restrictions of cotton import quotas and sliding allowance taxes are eliminated, so as to realize the marketization of domestic and foreign cotton prices, and give play to the regulatory role of the market mechanism.

Finally, control energy prices. Especially for monopoly energy, the rise of these energy prices makes textile enterprises miserable, and the government departments should intervene in the rise of the prices of monopoly enterprises' products. Take Jihua 3542 Company as an example. Every year, the company has to pay about 60 million yuan for electricity. Every penny increase in electricity price means that the cost of the enterprise increases by more than 1 million yuan.

The situation is more severe in the second half of the year

As for the situation in the second half of the industry, Chairman Zhang Ming believes that Economics The situation is still not optimistic, and the downturn in international demand will continue; The continuous increase of labor and other production costs, difficulties in financing and other issues are difficult to completely improve in the short term, the difference between domestic and foreign cotton prices still exists, and the development environment of the textile industry is still grim. After both the deposit reserve ratio and interest rate have been lowered, more "stable growth" measures are expected to be introduced, which may promote the domestic economic situation in China to stabilize and improve, and become an important support for the industry to run better.

On the whole, textile enterprises will still be in a difficult situation in the second half of the year. The situation of textile exports will remain grim. The overall benefit growth of the industry will decline significantly compared with the previous year. The loss area and amount of enterprises will be expanded. More small, medium-sized and micro textile enterprises will face the risk of being eliminated.