RMB Appreciation Costs Rise, Shoes And Clothing Industry Shadow

China apparel Limited by Share Ltd is mainly engaged in the design, production and sales of textile and garment products.

The company was listed on the Shenzhen stock exchange in April 8, 1999.

By June 30, 2008, the total assets of the company were 1274870812.63 yuan and net assets: 325250592.35 yuan.

First, performance analysis chart: Bush helped Phelps fall in danger: Zhang Xiangxiang: he told the former Olympic champion carrying shoes IOC to announce the first doping case in Beijing Olympic Games. Guo Jingjing took photos with the stars. My Olympic dream 24 hours live interaction: which Olympic figures moved you during the reporting period, the company achieved operating income of 964775715.46 yuan, an increase of 12.29% over the same period last year.

However, the company's operating profit during the reporting period was -12577689.53 yuan, which increased by -1359165.83 yuan in the same period last year. Net profit was -12.486221.42 yuan, an increase of -124.52% compared with the same period last year, and a significant decline has occurred.

The main reasons are as follows: first, the rise in raw material prices and the rise in labor costs have led to rising costs; secondly, the problem of RMB appreciation has not yet been achieved in the pformation of the company's development; in the final report, the A share market has plummeted, resulting in a large shrinkage in the value of the trading financial assets held by the company, resulting in a great change in the fair value, which also greatly reduced the profits of the company.

We can also analyze the company's main business during the reporting period: the company's clothing revenue realized during the reporting period is 962 million 151 thousand and 500 yuan, an increase of 12.25% over the same period last year, and the operating cost is 921 million 632 thousand yuan, an increase of 12.75% compared with the same period last year. The gross profit margin is 4.21%, an increase of -0.43% compared with the same period last year.

It can also be seen that the gross margin level of the company is quite low.

So net profit will be very few.

Two, main financial indicators analysis (1) solvency analysis: first, the reporting period of the company's liquidity ratio: 1.1598, the beginning of 1.2230, the reporting period has a slight decline in the index, mainly because the company's reporting period of the current liabilities than the current assets at the beginning of the relative increase.

At the same time, it should be noted that the monetary fund of the reporting period is only 57256857.35 yuan, only about 50% of the initial period, while the short-term loan is 382842421.91 yuan, which is almost the same as the beginning of the period. This fully shows that the short-term debt repayment pressure of the company is very great.

Secondly, the asset liability ratio of the company during the reporting period is 61.15%. This shows that the long-term solvency of the company is still in a relatively normal range.

(two) the inventory turnover rate of the company during the reporting period of asset management capability is 4.89, compared with 4.43 in the same period last year. This is mainly because the cost of the company during the reporting period is faster than that of the same period last year.

(three) cash flow analysis and reporting period net operating cash flow is -27461254.59 yuan, compared with 1454261.79 yuan in the same period last year, a decrease of 1988.33% over the same period last year.

It is mainly because the cash related to other business activities has been greatly reduced, that is to say, the return of tax and fee has been reduced, the price of raw and auxiliary materials is rising, the cost of labor is rising, and the increase of the tax and fee is due to the increase of the cost of the labor.

So the company is facing great pressure.

Three, the difficulties facing the future, the pressure of appreciation of the people still exist, the CPI index is still in a very high position, it is difficult to decline, but the price of clothing can not rise simultaneously, which brings great challenges to the company's operation.

In addition, according to the joint circular issued by the Ministry of Finance and the State Administration of Taxation on lowering the export tax rebate rate for some commodities, the export rebate rate of the main products of the company's products is reduced from 13% to 11%, and the export tax rebate rate of cashmere products has been reduced from 11% to 9%, and has been implemented since July 1, 2007.

The export tax rebate rate adjustment will have a negative impact on the company's future performance.

Faced with difficulties, companies need to pform their development ideas and find new growth points.