The Price Of Leather Raw Materials Is Afraid.

< p > recently, < a > Gansu Hong Liang leather Limited by Share Ltd Limited by Share Ltd < /a > high stored goods became a hot topic. In the prospectus, Hong Liang leather prompted the risk of inventory. As of June 30, 2013, the book value of the company's stock was 1 billion 87 million 126 thousand and 600 yuan, accounting for 62.72% of the total assets, accounting for a relatively large proportion, of which 90% were raw material and semi finished products.

Some financial experts believe that high inventory will bring greater risks to enterprises, and it is the intention of enterprises to conceal the true operating conditions.

In the future, if the net realizable value of the company's stock is lower than the book value, the company's < a > inventory < /a > there is an impairment risk, or the damage and loss due to improper storage of stock will have adverse effects on the company's business performance.

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Li Yuzhong, executive vice president of China's < a target= "_blank" href= "http://www.91se91.com/" > leather < /a > Association, said that in recent years, the price of leather raw materials has been on the rise. Therefore, the stock of some strong leather enterprises is increasing year by year, which is the characteristic entrusted by the industry. P

Gao Cunhuo is an inevitable measure for the dominant enterprises to grasp the pricing power and create a complete industrial chain, but high inventory is a double-edged sword. As a leading industry in the industry, on the one hand, it should reserve raw materials based on industry experience and its own development. On the other hand, we should try our best to minimize risks and ensure the healthy development of enterprises.

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< p > < strong > raw material reserve has become the competitive advantage of the industry. < /strong > < /p >

< p > at present, the leather products in the market are divided into natural leather (leather) and synthetic leather (synthetic leather).

The advantage of natural leather is obviously greater than that of synthetic leather. With the improvement of national living standards, the demand for leather products has been improved, the overall demand is increasing, and raw materials are not available.

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< p > < a > href= > http://sjfzxm.com/news/index_s.asp > Leather > /a > the raw material of upstream is mainly from animal by-products.

It can be divided into cow leather, sheep leather, pig leather and horse leather according to the source of raw materials. At present, leather and semi finished products (collectively referred to as raw materials) are mainly derived from the important raw material distribution centers and imported leather products.

Judging from the fluctuation of raw material prices in recent years, the price of raw materials has been rising steadily.

In this regard, Li Yuzhong believes that, on the one hand, raw material is an accessory to animals. With the increase of meat prices, the cost of raising several people has increased, and the price of raw materials has been rising.

On the other hand, due to the expansion of domestic market demand, the supply of raw materials is in short supply.

For a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > surface leather, leather shoes upper leather accounted for 65%.

Since 2007, the supply of cattle has been declining in China, and has not yet been restored.

Because the domestic cattle breeding is dispersed, growing and the slaughter period is longer, cattle slaughter has been on a downward trend, thus driving up the overall price of raw materials.

How to purchase and store a large number of raw materials has become a strategic problem for some enterprises.

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"P >" because the domestic livestock breeding and slaughter areas are scattered and the cortex is uneven, it is difficult for the leather enterprise to purchase. In addition, the raw material resources are limited regeneration and the supply is short, and the supply of raw materials has certain periodicity.

Therefore, the control ability of raw material resources has become an important competitive advantage of leather industry. "

Li Yuzhong emphasized.

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< p > the company has made risk hints in the prospectus. The raw materials needed for the production of cattle are mainly from China. The animal husbandry and cattle industry in China has the following characteristics: the breeding area is dispersed, the concentration of industry is lacking, the growth cycle of cattle is longer, and the slaughter period is longer, which reflects the difference and imbalance of the breeding area. The slaughter quantity of cattle has obvious seasonal seasonality.

Due to the influence of domestic residents' living and consumption habits, slaughtering volume is generally larger before and after new year's day and Spring Festival. The number of cattle and fattening cattle has been decreasing in recent years. In 2005, the number and amount of slaughter were 140 million 435 thousand and 52 million 876 thousand and 300, respectively. In 2009, it dropped to 107 million 265 thousand and 46 million 22 thousand.

Based on the above factors, if tannery enterprises lack stable procurement channels, experienced procurement teams and a certain scale of raw material reserve, they will be faced with unstable or short supply of raw materials.

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< p > > Xingye technology and < a href= "http://sjfzxm.com/news/index_s.asp > > Hong Liang shares < /a > public data show that since 2010, the two leading enterprises have been showing rapid growth in inventories, and by the end of the three quarter of 2013, Xingye technology has reached 940 million yuan, and the stock of Hong Liang has reached 1 billion 300 million yuan by November 2013.

There are similar descriptions in the two prospectus: due to the longer procurement cycle and longer production cycle, and the increasing demand for regular reserves due to the increase in temporary orders and production scale, the company needs to store more stocks.

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< p > < strong > based on the advantages of producing areas, active reserves < /strong > < /p >

< p > in view of the particularity of leather industry, experts in leather industry generally think that which enterprise has strong purchasing power, abundant stock reserves and strong control over raw materials and leather products, which means that the bargaining power of downstream is strong, so that it can control the production to a certain extent, and its gross profit margin will increase.

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< p > Li Yuzhong also said that although the stock of raw materials is a unified strategy of leather enterprise management, in fact, the products produced by leather enterprises are different and their purchasing strategies are different.

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< p > Hong Liang shares are located in the main breeding base and raw leather trading center of Northwest China, so the main raw materials are domestic raw materials.

Gansu is the main tea horse market in the northwest. It is a must for the mainland to Xinjiang, Tibet, Qinghai and Ningxia. It is rich in Qinchuan Yellow cattle hide, yak skin, sheep skin, beach sheep skin, goat skin and so on.

At present, the leather shoes for domestic women's shoes are mainly made up of women's shoe upper leather and men's upper leather.

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< p > Hong Liang shareholding is a leading national leading enterprise in agricultural industrialization. It has advanced domestic production lines from raw materials to finished leather and abundant tanning technology.

According to "China Leather" magazine "cattle shoe upper leather manufacturers annual rankings", Hong Liang shares from 2010 to 2013 cowhide women shoe upper leather production and sales for many years the first place in the industry.

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< p > besides, Li Yuzhong also said that raw leather is not as good as half finished products, whether imported raw material or domestic purchase, because raw leather has certain biological activity, and it will rot if it does not undergo antiseptic treatment.

Therefore, the raw material reserve of leather products is far higher than that of raw leather.

In the process of processing, the enterprise processes the raw leather into blue as a semi finished product to store it, which is convenient for storage, and is convenient for management and does not affect downstream production.

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< p > < strong > advance layout to build a complete industrial chain < /strong > /p >

< p > Li Yuzhong believes that the previous leather industry in China used to be scattered small workshops, and there had not been too many intensive large enterprises.

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P, an expert in the Department of material and leather engineering of Sichuan University, also said that from the perspective of customers of downstream shoe factories, it is more desirable for leather enterprises with certain economic strength to store enough stock and provide timely supply to shoe factories.

Because the shoe factory orders every time is very large, especially women's shoes.

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< p > "because women's shoes are various, variety and rapid change, there are different needs in different seasons.

Therefore, the provisional order is very common and needs immediate supply.

If the stock of raw materials is insufficient, it will not be able to meet the needs of customers.

Moreover, the quality of raw materials is even higher in the aspects of grain size, smoothness and fullness.

The experts believe that.

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In the past few years, P has realized that raw materials have been rising, and raw material resources have been allocated in advance.

It is understood that at present, there are two main ways to purchase raw materials: one is to purchase fur directly from farmers, and the other is to buy blue from suppliers. Two

Through the development of recent years, the competitiveness of Hong Liang's products has been constantly strengthened and is increasingly welcomed by downstream shoe factories.

The shoe upper leather products of Hong Liang's stock have been widely used in Daphne, AOKANG, BELLE, Staccato, kissing cat, AOKANG, incom, Kangnai, red dragonfly, Saturday, Teenmix and so on.

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< p > the report issued by Everbright Securities said that in the context of continuous rising prices of raw materials, Hong Liang shares benefited from the advance of raw material reserve mode and brought about a rise in gross margin.

The company has a higher R & D capability, and has certain pricing power for the new products of women's shoe upper leather.

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< p > Haitong Securities issued research report also believes that Hong Liang shares now have a complete industrial chain from raw leather to finished leather, the front end to build procurement channels, control product quality and reduce costs, the back-end strengthen independent research and development and active sales, strong market responsiveness.

Not only that, the company also has a wealth of product lines, has three products six series of more than 30 kinds of products, product line is relatively perfect, growth trend is better.

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< p > according to Li Yuzhong, Hong Liang shares is a good development enterprise in leather industry. The indicators in all aspects are very good and the development speed is fast. "The company's raw leather resources are mostly made in China. With the increase of per capita consumption level, the domestic leather resources will be increasingly scarce because of the dispersion of livestock breeding and the slaughter of cattle in the upper reaches of the tanning industry. The company will have stronger control over the domestic raw leather resources."

Li Yuzhong said.

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< p > China Leather Industry Association also predicts that the leather industry will have a good development prospect both in terms of industry characteristics and our 12th Five-Year plan. It is expected that both leather and manufactured goods will have a growth rate of 10%.

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< p > 2011 "leather industry 12th Five-Year planning guidance" is expected: 2011-2015 years, China's leather industry will maintain an annual average 10-11.85% sales growth, with an annual average growth rate of 4%, it is estimated that to 2015 young leather production will reach 912 million square meters, of which the yield of leather upper leather can reach 207 million square meters.

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< p > in fact, a > Chinese leather industry < /a > 2013 still has more than 10% production and sales growth.

In April 2013, Salvatore Melkoliano, executive director of the Italy tannery Federation and chief executive officer of the Italy's National Leather Industry Federation, revealed to the media that the Chinese market is still growing.

"The Chinese market has the requirement to improve product quality and design, so we are still optimistic about China's business."

Salvatore Melkoliano said.

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