Medium Term Inventory Of Textile And Garment Enterprises Is As High As 67 Billion 166 Million Yuan.

Since the fourth quarter of last year, textile

Enterprises began to be plagued by soaring inventories, which continued to the first half of this year.

According to statistics, as of August 29th, the listed data of 80 listed companies announced by the textile and garment industry showed that the inventory of the 80 companies in the first half of the year amounted to 67 billion 166 million yuan.

Inventory is high.

Although the textile and garment enterprises began to control high inventory from the fourth quarter of last year, the stock of the whole industry remained high until the first half of this year.

According to statistics, as of August 29th, of the 80 textile and apparel listed companies, 66 companies had more than 100 million yuan in inventory, and 11 companies had an inventory of over 1 billion yuan, such as YOUNGOR (600177), black peony (600510), red bean (600400), Jihua Group (601718), Huafu color spinning (002042), Baron East (601339), URI Japan share (002083), Mei Bang dress (002083), Rutai A (002083), Semir apparel (HEX), Changshan stock (HEX).

According to the Securities Department of textile listed companies, the high inventory is mainly due to the dramatic changes in cotton prices last year, and companies bought a lot of raw materials at low prices.

However, with the sharp reduction of orders this year, a large number of raw materials have been backlog.

It is understood that since March, domestic textile prices have dropped sharply.

Raw cotton and viscose have fallen to nearly 10000 yuan in the earlier period, and yarn prices also fell. Last week, the price of 32 pure cotton yarns in Qian Qing market was 31000~32000 yuan / ton, which fell by 1250 yuan in one week, compared with 40000~42000 yuan / ton in early March, which shrunk by more than 9000 yuan.

The head of textile enterprises said that the market was quite hot last year, and the manufacturers were generally bullish and purchasing raw materials in large quantities.

Nowadays, high inventory becomes a problem. Many enterprises sell and sell at a loss.

Data show that in the first half of this year, the total raw materials of 64 textile and garment companies listed as high as 8 billion 99 million yuan.

Among them, 18 companies have more than 100 million yuan of raw materials, and the raw materials of Huafu color spinning are up to 1 billion 125 million yuan.

According to the report of Huafu color spinning, during the reporting period, the company faced the market dilemma of the domestic and foreign cotton price differential, the terminal price reduction and the later inventory.

During the reporting period, the company achieved operating income of 2 billion 791 million 576 thousand and 600 yuan, down 0.84% from the same period last year, and realized net profit of 62 million 209 thousand and 400 yuan, down 74.39% from the same period last year.

Among them, the net profit attributable to parent company was 51 million 178 thousand and 400 yuan, a decrease of 78.78% compared with the same period last year.

It is understood that some textile enterprises have to lose money in order to maintain capital turnover.

Once funds can not be supplied, enterprises will face bankruptcy crisis.

To ensure the supply of funds, enterprises also need to pay attention to whether their inventory turnover is up to standard.

According to statistics, there are 24 households in the first half of this year.

The inventory turnover rate of clothing listed companies has increased to varying degrees.

Among them, 7 companies had an increase in inventory turnover of more than 50%, and more than 4 of the company's inventory turnover increased by more than 100%. The 4 companies were *ST Far East, ST mid cap A (000018), ST de cotton (002072) He Hua Fang textile (600273), and the inventory turnover rates were 150771.43%, 146.69%, 114.93% and 114.93% respectively.

Inventory discount now.

Nowadays, the textile and garment industry not only has to bear the raw material inventory problem caused by the fluctuation of cotton prices, but also faces the problem of declining orders and increasing clothing inventory.

Xiong Xiaokun, a light industry researcher at CIC, told reporters: "compared with last year, overseas markets, especially in Europe and the United States, suffered a sharp decline in orders and a sharp decline in orders. In some varieties, overseas orders fell by more than 70%, and the textile factories in the eastern coastal areas were seriously inadequate, which to a certain extent affected the company's inventory."

A clothing company official said that inventory is a common phenomenon in the clothing industry, and the main reason is the market downturn, which is more than the manufacturers' expectations.

According to the data, stock of YOUNGOR, Hong Kong Group, Jihua Group, Mei Bang dress and Semir clothing all exceed 1 billion yuan. Besides the inventory of American bond clothing is less than that of last year, the stock of the remaining 4 companies is all higher than that of last year.

"Because the fashion of clothing is strong, therefore, the clothing inventory is best to digest in 1 years, many businesses have to discount, or even sell clothes at a loss in order to get rid of inventory."

Wang Qian, editor in chief of China's first textile network, told reporters.

Reporters found in the survey, the discount clothing often appeared in previous years is not limited to short code short, even the new discount this year just listed is also very large, often on the shelves soon, it will play 6 or 30 percent off discount.

Wang Qianjin told reporters that the reason why clothing stocks are high is the over expected sales volume of garment manufacturers.

Especially the sports clothing brand, this year, Lining, Anta and other domestic sports goods brand has shown signs of slow growth.

A brand agent revealed that this year's sports brands such as Lining, kappa and so on are more than 30%.

Even Anta, which had the smallest inventory, increased its stock to 26.13% last year.

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According to a reporter's interview with a Lining store, Lining, who hit 20 percent off in the past year, dropped the discount to 30 percent off in the summer.

In addition, reporters in the network discount stores, you can see 4, 50 percent off discount price.

Lining, listed in Hongkong, said in a notice of "business operation and financial situation report" that in order to deal with the harsh environment of the industry and avoid new inventory pressure on the retail terminal, the Group actively took the initiative to communicate with the distributors and control the order arrangement. Therefore, the order amount in the fourth quarter of 2012 was further reduced compared with the same period last year.

Data show that in the fourth quarter of 2012, at the Lining Products dealer ordering meeting, the order amount and order quantity of Lining clothing products both dropped, and the drop was over 20%.

According to financial reports, in 2011,

Net profit was only 3 million 858 thousand, down 65.2%.

For Lining's problems, analysts said that Lining's previous brand positioning was not clear, though he wanted to be close to the first-line brand, but ultimately he could not get the trust of consumers.

This person said that Lining's domestic foundation was unstable and eager to occupy the international market. This development is problematic.

In the meantime, the failure of Lining dealer in Spain illustrates the failure of Lining's internationalization.