Main Industry Deficit Subsidies Into "Staple Food" Feng Bamboo Textile Business Profits Tumbled

When the China Daily is about to end, Feng Zhu

(600493) the pcript of the first half of 2012 was released yesterday, and the net profit of the current year was 1 million 240 thousand yuan.

However, such performance has benefited from the government's subsidy.

In fact, the profit of the old knitting dyeing and finishing enterprise decreased by 451% in the first half of the year, and the net profit after deducting non recurring gains and losses was 900% over the same period.

According to the China Daily, the operating income of Phoenix Bamboo textile in the first half of the year was 412 million yuan, down 6.99% compared with the same period last year, and the loss of operating profit was 32 million 788 thousand and 200 yuan, down 450.89% compared with the same period last year. Net profit was 1 million 237 thousand and 700 yuan, up 24.68% over the same period last year.

In the case of declining revenues and operating profits, Phoenix Bamboo textile still achieved a slight profit, thanks to a government subsidy received by the company in June.

According to the announcement, the local government decided to award 30 million yuan for the upgrading of the textile industry and the clothing industry.

This extra income is nothing less than the help of Feng Zhu textile, which makes the company's current financial data not so ugly.

For the main industry losses, Feng Bamboo textile interpretation mainly because the international market is affected by the economic impact of the environment is poor, domestic cotton, cotton yarn and other raw material price price difference between the domestic and foreign is bigger, the competitiveness of enterprises is affected; in addition, there is also the difficulty of financing, labor costs rise and so on.

Reporters noted that as early as 2011 Annual Report, Feng Bamboo textile has also explained the decline in performance, the company proposed to consolidate the old customers to develop new customers, strengthen the overseas market development and a series of measures.

Unfortunately, in the first half of 2012, the two main markets of Feng Bamboo textile, Fujian's local market and foreign markets, were not entirely satisfactory, with revenues falling by 30.58% and 11.46% respectively.

"The whole industry is depressed, and we have disclosed the specific reasons."

Chen Meizhen, a representative of Feng Bamboo textile and securities business, said yesterday in an interview with popular Securities newspaper: "the second half of this year depends on the industry situation, and we are also making adjustments."

Chen Meizhen did not explain much about the market situation of Fujian market which is quite different from other domestic markets.

There are different needs.

"Gold reform offers short term hard cash"

Tan Ke, a Dongxing Securities researcher, has previously analyzed that the mid stream industry of Phoenix Bamboo textile industry is less likely to demand volume in 2012, and the whole is not optimistic.

In 2012, the possibility of raw material prices going up again is also very small. It is very difficult for the middle reaches manufacturing enterprises to improve their performance through hoarding goods.

The failure of performance has also made the performance of the two grade market of Phoenix Bamboo textile industry remain low.

However, during the first half of August to the middle of the month, the textile industry of Feng Zhu changed its declining trend this year, ushered in a wave of rising prices, rising nearly 30% in half a month.

"The news of Quanzhou gold reform news has promoted a strong number of concept stocks, including phoenix bamboo textile."

A market participant analyzed it in his blog.

In May this year, the Fujian provincial government issued the notice on the eleven measures for the development of financial services in the real economy. It explicitly proposed to promote the construction of Quanzhou's national financial service entity economic comprehensive reform pilot area, and supported Quanzhou in its own initiative before the state approves the establishment of a national financial service entity comprehensive economic reform pilot area.

Although the gold reform plan is still in the process of approval, but the news from the market has repeatedly pointed out that the possibility of the approval of the scheme is increasing. At that time, Quanzhou will become the third national financial reform and innovation comprehensive experimental area after Wenzhou and the Pearl River Delta.

Information shows that

With 30 million yuan shares in Shanghai Xingye Venture Capital Co., Ltd., the investment income in the first half of this year was about 3000000 yuan, which should not be ignored for the current performance.

This also makes phoenix bamboo textile become a member of the golden reform concept stock, and many investors also have high hopes.

"The Quanzhou plate has experienced varying degrees of rise, but it is not easy to say whether it has any effect on the company. There is no time for it to be seen, nor is it easy to judge."

Chen Meizhen said.