Slowdown In The National Garment Industry, Smes Face Shuffle

As of October 31st, there were 82 households in China.

The company announced three quarterly results.

Data show that the impact of cotton prices and other factors on textile and garment enterprises eased, however, overall, the three quarter of textile and garment enterprises revenue growth continued to slow down.

Although the overall profitability of many enterprises, but the industry believes that the overall pressure on the textile and garment industry is still very large, the growth rate may slow down in the second half, small and medium-sized enterprises or will face a shuffle.

68 companies make profits

The latest news from the industry shows that the adverse effects of cotton prices and other unfavorable factors on textile and garment enterprises have been eliminated. A certain scale and strength of textile and apparel listed companies first regained their vitality.

Of the 82 textile and apparel companies that announced the three quarterly report, 68 realized profits and 14 reported losses.

The data show that of the 68 listed companies that make profits, 25 companies belong to the parent company's net profit of more than 100 million yuan. The net profit of 15 companies belonging to the parent company is more than 200 million yuan, and the net profit of the 7 companies belonging to the parent company is more than 400 million yuan, and the net profit of 3 companies belonging to the parent company is more than 600 million yuan.

Among them, the top three of the net profit companies are YOUNGOR, Mei Bang dress and Jihua Group. The net profit of their shareholders belonging to the parent company is 1 billion 85 million yuan, 752 million yuan and 608 million yuan respectively.

Upgrading terminal sales is the key

according to

The three quarterly report, the company's net profit increased by 39.30% over the same period, and the growth rate of revenue in the third quarter continued to slow. In the first three quarters, the company achieved operating income of 2 billion 513 million yuan, an increase of 19.71% over the previous year. The net profit attributable to shareholders of listed companies was 402 million yuan, an increase of 39.30% over the same period last year, and its net profit growth rate was higher than the income growth rate. The reason is that the gross profit margin of the company increased and the investment income of financial products increased significantly.

According to the three quarterly bulletin of 2012, the company realized operating income of 1 billion 782 million yuan from 1 to September, an increase of 20.5% compared with the same period last year, operating profit of 533 million yuan, a decrease of 28.5% over the same period last year, and the net profit of its parent company owners was 471 million yuan, an increase of 30.4% over the same period, achieving 0.82 yuan of earnings per share.

Data show that the three quarter revenue growth slowed down.

In the three quarter, the single quarter revenue was 591 million yuan, an increase of 14.8% over the same period last year, and the growth rate slowed down significantly. Net profit was 133 million yuan, up 5.7% from the same period last year, lower than expected, mainly due to the weakness of terminal sales.

The industry expects that the sales of spring and summer wear in 2012 will be around 60% at the end of the three quarter, which will affect the stock and delivery capacity of franchisees.

In order to enhance the enthusiasm of the franchisee, the nine Mu Wang strengthened its support for the franchisee and eventually increased its accounts receivable by 99% compared with the beginning of the year, reaching 236 million yuan.

Development pressures still exist

Some people in the industry have analyzed the overall performance of the three quarter of this year, and the turning point of textile manufacturers' performance may have arrived.

However, more analysts believe that the pressure on the development of the textile industry still exists, for example, labor costs and capital costs increase year by year, and energy prices continue to rise.

Shi Zhengzhi, Secretary General of textile and clothing association, analyzed that the domestic textile and garment industry had more than 6000 yuan per ton in cotton raw materials compared with those in Southeast Asian countries. In terms of labor cost, the average monthly wage in Southeast Asia was only seven hundred or eight hundred yuan, while the average monthly wage level of Quanzhou enterprises was no less than 2500 yuan. In addition, the products exported to Europe by Southeast Asian countries did not need to pay customs duties, and China's textile and clothing products exported to Europe had to pay 12% more tariffs, including Quanzhou.

"In any case, these circumstances determine that the survival and performance growth of Quanzhou's textile and garment industry will be very difficult for a long time to come."

The industry estimates that the overall growth of the textile industry in the second half of this year will decline sharply compared with the previous year, and many small and medium-sized enterprises will face a shuffle.