Jiangsu Sunshine: Clothing Orders Reduced By 10%

"The impact of the economic crisis should be very serious, but we are confident that we can withstand the cold winter."

Speaking of Xu Weiming, Jiangsu sun Dong Fang, in the economic crisis triggered by the subprime mortgage, the world's largest woolen raw material production enterprise also encountered severe winter.

"The impact is mainly on exports, foreign consumption is weak, and some cooperative enterprises' demand for woollen textile raw materials has also declined, which will certainly bring greater pressure to the operation."

Although the pressure is high, but Xu Weiming's interview with the tone is still with a passion: "the crisis is sure to pass, if even our industry leader can not survive, the entire wool textile industry can not stand."

Export demand is reduced by 10%. "From the sales volume, our exports and domestic sales are about half and half, and domestic sales have little impact, mainly because of weak demand for exports."

Xu Weiming said, "sales of domestic departments are not big, because we have received a large list of military uniforms, which is very stable and can not be affected by the economic crisis. This has also played an important role in our performance stability.

The crisis in foreign economies, the real economy will be affected, the consumption capacity will also be discounted, conduction to our business is the reduction of export demand.

According to Xu Weiming's introduction, Jiangsu's sunshine is mainly exported in two ways, one is woolen raw material, the other two is clothing.

"Woolen raw materials are mainly sold to some international apparel companies such as BOSS. Clothing is for their processing and production. Now two aspects are expected to be affected."

In the sunshine performance tables of Jiangsu, woolen raw materials account for about 63.7% of the total revenue, while clothing accounts for 24.13%, while two accounts for 87.8% of total revenue, while foreign sales account for 54.33% of total sales. According to this ratio, the loss of foreign trade wool and clothing will affect half of the business revenue.

"How big the impact is, we can not see very clearly now, the number of orders has probably decreased by 10%, and the price may also drop."

Xu Weiming said that the current economic crisis is mainly concentrated in the financial field, and there is still a certain time to pmit to the real economy. The size of the impact will take some time to understand in detail.

"The order we are making now is fixed in the first half of this year. The order for next year will probably be determined by December. It will take about a year to know exactly how big the impact will be."

In Xu Weiming's view, how cold and cold this winter will affect the performance of the company.

"Our most optimistic estimate is that the main export markets, the US and Europe will fall to the bottom in the first half of next year and start to warm up in the second half of the year. If so, the company will recover from the crisis performance in the second half of the year."

Li Zibin, President of China Association of small and medium enterprises, has also confirmed a similar view: "the fourth quarter of this year and the first quarter of next year, the days of SMEs will enter the most difficult part."

Fan Jianjun, the Financial Research Institute of the development research center of the State Council, believes that the United States can recover quickly from the impact of the economic crisis: "the financial crisis's damage to the real economy of the United States is far less terrible than we imagined. The experience and ability of Americans in dealing with the financial crisis has forced us to believe that it has the strong ability to recover from the crisis."

"As long as we support this period of time, we will be able to achieve great development. In terms of operational data, although we are beginning to have some impact, our performance has increased slightly over the same period last year, which has also brought us confidence in resisting winter."

Xu Weiming said.

The efficiency and the added value of winter came, and how textile enterprises keep out the cold, Xu Weiming thought that efficiency and added value were the key.

"There are mainly two problems: one is the reduction of orders, the other is the decrease in prices."

Xu Weiming said, "the reduction of orders can enable us to find new business partners, and the reduction in prices will have to be reduced by increasing efficiency and increasing the added value of products."

In Xu Weiming's view, the textile industry is a labor-intensive industry, and people's homework is very large.

"Management is going up, and efficiency can be improved a lot."

What we need to do next is to adopt a better management and collaboration method to improve our efficiency and reduce the cost of products. "

Xu Weiming thinks this is a good thing once and for all.

"Now it is the economic crisis that forces us to do this, but doing it well is also very good for our future development.

After such a cold winter, all aspects of efforts will be highlighted, and the growth of the company will be very fast.

The improvement of management seems too dogmatic, while technical added value is more realistic.

"Improving the added value of products and applying some new materials and processes can properly eliminate the impact of price decline."

Xu Weiming said that in the wool spinning industry, the special process and materials bring huge economic benefits.

"We have a woolen fabric, which is made of the best wool and is produced by advanced technology. It is identified as soft gold by the market, and the selling price is more than 3000 yuan per meter."

Xu Weiming said that this product is the most upscale material product of the company at present. "The suit made of it is worn for two days, and then it is hung on the rack and levelled again overnight."

In fact, there is no need for such a high-grade raw material. "As long as we make some simple improvements in the present technology, the added value can also be greatly improved."

Xu Weiming told reporters that in addition to wool, we need to add some fiber materials when making fabrics. "We can use some new fiber materials to improve the quality of products."

There is room for improvement in the process.

"After the production of woolen raw materials, and after finishing treatment, we can add some functional finishing procedures, so that the products produced have the function of wrinkle removal and oil stain resistance."

Xu Weiming believes that these simple added value can enable the company's products to resist the risk of falling prices in the short term.

"Although these new technologies are adopted, the price may drop a little, but the rate is much better than that of no use, and the loss is much smaller."

In view of the strategic pformation of "export to domestic sales" put forward by many garment enterprises, Xu Weiming said: "the sun will also work hard in these areas, but it is hard to say how big the effect is. After all, the domestic market is so big and the consumption power is not very strong. So many textile enterprises want to share a cup of cake, but the effect is not so ideal."

The future of polysilicon is in the Jiangsu sunshine performance chart, and new energy is a prominent territory.

"Ningxia sunshine silicon product line has been completed, and is currently undergoing intensive debugging. It is expected that trial production can start next month and will be formally supplied by tomorrow January."

Xu Weiming said.

In July 24th, the Jiangsu sunshine announced that Ningxia sunshine in January 2009 -12 supplied Hareon Polytron Technologies Inc 1000-1200 tons of solar grade polycrystalline silicon, with a total value of about 2 billion 700 million yuan.

In the 1-6 month of 2009, when Ningxia sunlight sent to hareen technology, according to the agreed price, hareun technology all took delivery of the goods, and in July July, the supply of goods started to be deducted. The same proportion was deducted according to the agreed proportion in the deposit paid by Hareon technology, and the rest was carried with the money to pick up the goods.

However, Xu Weiming is also cautious about the future of the polysilicon Market: "we mainly produce raw materials, and downstream businesses also need to stick rods and slice them into solar cell exports.

If the impact of foreign economic crisis, resulting in reduced demand for solar products exports, our sales situation also has an impact.