Cashmere Industry To Raise Investment And Build Up The Whole Industry Chain Of Cashmere Industry

51 years old

Ma Sheng Guo, the chairman of the board, is surprisingly low-key. Apart from occasional remarks at the shareholders' meeting by the media, the network can hardly find its half relationship with the media.

In contrast to its low profile, the cashmere industry completed its backdoor in January 2008. The company's performance has come to an inflection point. It has grown all the way. In recent years, it has developed from a small regional company in Ningxia to a leading manufacturer of cashmere products in the global layout, the whole industry chain, and the right to price the international industry.

Especially valuable is that the performance of the silver cashmere industry in the capital market was deeply recognized by investors. The stock price rose from around 4 yuan in early 2008 when it was backdoor, and after a record high price of 19.45 yuan in 28 September 2010, after the 10 increase of 5 and 10 to 10, the stock price of the company still kept about 10 yuan, and the price of the duplicate price exceeded the 30 yuan.

In the context of continued market downturn, the cashmere industry has returned its investors in the most direct and practical way.

In August 23rd, the company issued a notice on the issue of rights issue, and decided to sell 3 shares to shareholders every 10 shares at the price of 3.89 yuan per share. It is estimated that the amount raised will not exceed 650 million yuan. The rights raised will be used for the technical pformation of multi component special textile high-grade textiles and the repayment of short-term loans to banks.

After the rights issue is completed, the cashmere production chain layout will be further improved.

Focus on cashmere performance all the way up

In the past 18 years, the cashmere industry has been concentrating on the cashmere industry.

Ma Shengguo's first "grasper" is to grasp the core of the industry cashmere resources.

Cashmere is known as "fiber jewel" and "soft gold", which shows that its cashmere is scarce.

According to statistics, the annual output of the world's original velvet is about 1.6 ~ 17 thousand tons, and China accounts for 75%. Especially in the context of large-scale environmental protection in China, its output can not be greatly improved in the near future.

In 2009, the cashmere industry acquired 3000 tons of raw silk, accounting for 30% of the domestic market output, and 18% of the world's output, ranking the first in the country. After the completion of private placement in 2011, the company's share in the raw silk market will further improve.

The breakthrough point of the cashmere industry is not to choose the domestic downstream market which is highly competitive when it is still growing up, but to provide intermediate products to the international giants. This precise positioning has made the company's second "starting point": strength accumulation.

Such as 2004 companies, 7 consecutive years has become the first industry of combed cashmere and cashmere export industry; in 2009, it ranked the third largest export enterprise of China's cashmere products; the first foreign exchange earning company in Ningxia was the first in the same industry; it was selected by the China Textile Industry Association for 2009~2010 years, and the competitiveness of China's wool textile and wool knitting industry was 10 strong; it was approved by the State General Administration of quality supervision and quarantine for a class of enterprises of national export industrial products.

Speaking of this seemingly relaxed position, Ma Sheng Guo talked about such an example:

By the end of 2004, there was no international market.

Skyrocketing 30%, from 70 US dollars per kg to 90 US dollars, domestic prices also followed suit. At this time, there were more than 70 tons of supply contracts between cashmere and Schneider Inc in Italy, but stocks were far from enough.

As a result, when Schneider was informed, he pferred 80% of his order to the cashmere industry, and supported the integrity of the cashmere industry in advance for 3 years in a row.

Up to now, the market share of the cashmere industry has reached 70% in Italy.

Quality assurance is the third "starting point" for the cashmere industry to stand out in the fierce competition. Ma Sheng Guo laughs at the internal meeting: "I am willing to spend money on technology input."

In 2009, the company and Xi'an Polytechnic University jointly assumed the national science and technology support project of "key equipment and key technology research and development and application of cashmere processing". In 3 years, 5 technical difficulties were tackled, and the cashmere rough processing industry was upgraded to the finishing industry. The fiber damage rate of cashmere carding was reduced from 6.5% to 6.5% in the past 12.8% years, and the profit of the cashmere products could be increased by more than 2800 yuan. In 2010, the Ningxia cashmere engineering technology research center established by the company was approved by the science and Technology Department of the Ningxia autonomous region.

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All efforts are manifested in tangible performance.

Ma Shengguo said, "regulators are advocating that the listed companies become the cornerstone of China's securities market, and we are aiming at those goals."

The first full accounting year after the reorganization was completed in 2008. The cash income of the cashmere industry increased by 80% compared with that of ST cashmere produced before the restructuring, and the profit was changed from 78 million to 35 million.

Its performance rose all the way, earning 760 million in 2009, 38 million 980 thousand in profits, 1 billion 180 million in 2010, 7677 in profits, 1 billion 800 million in 2011 and 160 million in profits.

It can be seen that the net profit growth rate of the company from 2010 to 2011 years is 90.86% and 123.13% respectively, thus achieving a doubling growth.

According to the May 2012 performance forecast, the company's annual net profit is expected to reach 130 million to 140 million, an increase of 90% to 105% over the same period last year.

Raise investment power industry chain Rio Tinto downstream

After fully demonstrating its rapid development to the market, the Bank of China began to use the capital market to prepare for continued efforts in the downstream sector.

At the beginning of 2011, the private placement and the rights issue appeared on the surface that the two investment projects were mostly technological pformation, capacity exploitation and improvement of financial structure, but in fact, behind the above actions were to improve the whole industrial chain of cashmere, and fully expand the power of downstream channels.

First, grasp the survival of the first line international brand.

After borrowing the shell, Ma Sheng Guo has clearly expressed the attitude of "wait-and-see + research" to the downstream market. In fact, the cashmere industry is no stranger to the terminal market. They only quietly accumulate their strength. Its core technique is to gradually grasp the valuable experience of the 100 year old cashmere clothing company in establishing a marketing system and building an international brand by acquiring overseas brands.

For example, in 2009, the company invested 100 million in the acquisition of the 100 year old cotton mill in the United Kingdom. The business and assets of Duncan cotton mill, besides manufacturing, know-how, sales channels, R & D institutions, also included "Todd Duncan" (Todd&Duncan) and "Brown Alan" (BrownAllan), which originated from Scotland's cashmere products brand, and stood at the top of the world.

Second, starting with high quality yarns, entering the domestic market with first-class quality.

The simultaneous action is to further expand the supply of yarn.

As the foothold of private brand building, quality and variety of yarn are the core carriers of terminal manufactures.

On the rights issue project launched in 2012, the company will make use of the 140 million equity fund and the favourable Euro loan conditions to invest in the multi component special textile high-grade textile spinning pformation project, which costs 409 million yuan, and will continue to impact the yarn.

According to company management, since 2011, yarn has gradually entered the final cashmere manufacturer, instead of passing through middlemen.

Especially in the Hongkong market, the market share of the company reached second.

"This is the best way to improve customer quality. We have become a yarn supplier from the supplier of raw materials.

In the past, our biggest source of profit was cashmere material, which is about to change. "Ma Shengguo believes that this change has made the best technology and product guarantee for the company to enter the terminal.

In 2011, the Bank of China's own brand road was officially launched.

In that year, the company announced the construction of Philosofie, a private brand. In the plan to raise 290 million yuan in the year, the company clearly proposed 180 million of the domestic marketing system for cashmere products.

In the process of cultivating this brand, Ma Sheng state is striving for perfection. The company not only recruited 4 internationally renowned designers from Italy and Hongkong, but also jointly launched research with Hong Kong Polytech University to plan the brand positioning, marketing and sales network of "Fei Luo Fei Fei", and gradually opened 10 image stores in Yinchuan, Lanzhou, Xi'an and Tianjin.

"Frankly speaking, the formation of brand needs a long process. We are still in the training phase. I believe that sharpening is not a mistake."

In fact, the company secretaries Chen Xiaofei has said that by 2013, the company will build 165 retail outlets to form a nationwide marketing network.

It is worth noting that since the listing of 5 years, the company has only conducted a private placement of 290 million yuan, and its rapid growth process has resulted in over reliance on bank loans. The asset liability rate has exceeded 70%, which has restricted the company's future expansion of the downstream market, and the financial cost of up to 120 million yuan has also affected the company's profit performance.

In the rights issue financing, about 500 million yuan will be arranged to repay the loan. The annual financial cost will be saved by 30 million yuan. The financial structure will be greatly optimized. It will also create room for further improvement in the construction of the domestic terminal market.

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New positioning global industry leading role

As the leading resource of global cashmere, China, especially Ningxia Lingwu, which purposeful to build the cashmere Industrial Park in China, already has the overall ability to undertake the great shift of the international cashmere industry. As the most large-scale cashmere industry in the park, it will play a more important role.

Public information shows that in 2008, the Ningxia textile and Textile Bureau proposed in the "Ningxia textile industry development plan heading for 2010" that the cashmere industry in 2010 will strive to achieve sales of 10 billion yuan and industrial added value of 3 billion yuan.

In the past 3 years and more, Ningxia is planning to "renovate": Ningxia will be built as the world's largest and world class cashmere deep processing base, and the annual output value of cashmere industry will exceed 20 billion yuan.

In such a great change, the strategic positioning of the cashmere industry has a clear international vision, that is, the most profitable manufacturing links in the cashmere industry.

Similar to that of IT, the Bank of China has gone through the way of raw material supply and overseas OEM. Apart from consolidating the profit of raw materials, its next step is to strive to make efforts in the European market and the Chinese market. On the one hand, it is "resolute to go out" and the other is "consolidating the base areas".

The so-called "decisive go out", Ma Sheng Guo explained that it is relying on "Todd Duncan" and "Brown Alan" two international brands, the impact of the international market.

It is understood that Todd and Duncan have long supplied world-famous brands such as Louis Weedon, Prada, Chanel, Hermes and other cashmere products, while Brown Alan has been producing and selling in Italy.

"Our intention is to make good use of the influence of these brands over the past hundred years to contribute a good international reputation to the cashmere industry."

The so-called "consolidation of the base area" relies on "Fei Luo Fei Fei" to attack the domestic market.

Regarding Philo Sophie's high-end positioning, Ma Sheng Guo has admitted that the high-end concept is a summary of the domestic industry's collision lesson, and this private brand 80% raw material is produced and purchased in China. 20% shows the design content with strong theme, and chooses to produce and purchase in Germany.

And the domestic market mode presents the situation of three formats of franchised stores, e-commerce and department stores.

After consolidating the raw material industry, the cashmere industry is heading for the terminal market. Ma Shengguo has not made much assumptions about the strategic adjustment.

His explanation is surprisingly simple:

Participating in global competition is the theme of Chinese companies in the coming decades. I do not expect to have a final conclusion on the occasion, to enjoy this kind of competition with the international giants of the hundred years, so that the cashmere industry will compete with the excellent European enterprises, and to repay the vast majority of China's capital market with solid achievements.

This process is the most important.