Victor Loss 60 Million Textile Enterprises Survival Pressure Is Huge

Victor elite (600152) announced recently that it expects to reduce the company's net profit by 6000-6500 yuan in 1-9 months in 2012. For the reason of loss, the company explained that the main business was due to the greater operating pressure due to the market environment, resulting in the current company.

The main business is in a state of loss.

In fact, the textile industry is really having a bad time.

The announcement shows that by the macroeconomic impact at home and abroad, the rise in labor costs, the appreciation of the renminbi and the shrinking external demand, the main textile main business of VIC has suffered a great deal of operating pressure and is undergoing a period of adjustment and pformation.

Recently, Smith Barney shares were questioned about the serious problem of inventory backlog.

An internal document from the China Federation of textile industry shows that in 2012, the total number of Chinese textile industry has increased from about 13000000 in 2000 to around 20 million. However, what is worrying is that this huge employment industry is encountering a difficult stage.

Sharp drop in volume and small profit margins make some enterprises face enormous pressure to survive.

At present, the textile industry is really troubled by such problems as increased operating costs, sharp reduction in trade volume and narrowing of profit margins.

Sun Huaibin, spokesman of China Textile Industry Federation, said that labor costs and capital costs increased year by year, energy prices continued to rise, and pressure on small and medium-sized textile enterprises continued to increase.

Data show that in the first half of July this year, the growth rate of textile production continued to slow down, and 37 thousand Textile Enterprises above Designated Size reached 3 trillion and 146 billion 710 million yuan in total industrial output value, an increase of 10.9% over the same period last year. The growth rate dropped by 18.8 percentage points from the same period last year, representing a 3.8 percentage point drop compared with the first quarter of this year.

At the same time, domestic and foreign market price inversion is still an important factor affecting the recovery of textile industry.

"Whole

The bottom has not yet arrived, "Zhang Bin, an analyst with state securities (600109), said that industry consolidation is in progress, but the overall improvement will take time to observe.