Cotton Joint Venture In China

China clothing Limited by Share Ltd (China clothing, 000902) announced last night that it was a controlling shareholder. China spinning Federation The Limited by Share Ltd (hereinafter referred to as "China Textile Alliance") intends to invest 2970 US dollars to set up China Textile Alliance Zimbabwe limited. Among them, the Sino spinning joint venture is invested in cash with a shareholding ratio of 99%; the operation director and director of Zimbabwe Cotton Corp (COTTCO) onas Chindan.

Chinese apparel said that the joint venture project is an agricultural project actively encouraged and supported by the two governments. The production and supply of textile raw materials conform to the development plan of the textile industry of the main industry of the company and support the textile processing and trade development of China Textile Corporation.

It is worth noting that Chinese clothing is considered international. Cotton market In the long run, the international cotton price is still higher than its cost price. In addition, the good relations between China and Zimbabwe, and the cotton resources that have the advantage of the whole country, have laid the foundation of cooperation for this project. The project investment of the cotton joint venture company is basically working capital, and the cotton resources are refunded through international trade means. Therefore, the withdrawal of capital is easier and the exit risk is relatively small. After entering the acquisition period, the project needs 1 million dollars in operating capital.

In addition, Chinese clothing said that the Zimbabwe project is the foundation and tentacles for the development of Africa Business in the China Textile Alliance. Through the implementation of this project, it will promote the import and export business of mechanical and electrical products and textiles.

According to the semi annual report released last night, the first half of the year Chinese clothing Net profit loss of 18 million 905 thousand and 400 yuan, an increase of 215.44% over the 5 million 993 thousand and 300 yuan in the same period last year. As for the expansion of losses, China's clothing industry is mainly due to the instability and uncertainty of the world economy. China's economic slowdown is slow. The international and domestic demand for the two markets is sluggish. In order to avoid the risk of overstock, the first half of the year is cautious and wait-and-see on import and export business, and controls the volume of import and export business. The rising cost of raw materials and labor in China and the fluctuation of exchange rate have reduced the gross profit of export. In addition, the men's clothing brand of our company is still in the initial stage of trial promotion, and some of the previous expenses have occurred, resulting in a loss in the first half year.

The largest shareholder of Chinese clothing is China Hi-Tech Group Corporation, which is actually controlled by the SASAC of the State Council.

Yesterday, Chinese clothing edged down 0.97% to 7.13 yuan / share.