Where Is The Huafang Textile Road, Which Is Not Good In Its Main Business?

Huafang textile (600273.SH), which is in the process of restructuring, announced its 2013 performance last night. Following the double drop of operating income and net profit in 2008, 2009 and 2011, Huafang textile company once again faced an embarrassing situation in which revenue and profits both declined in 2013, with a net loss amounting to 32 million 514 thousand yuan, down 312% from the same period last year.

Huafang textile said that the already small profits have been squeezed further, and the main business is facing some difficulties. On the other hand, the "sideline" such as battery manufacturing and warehousing, which was highly regarded by Hua Fang textile industry, also performed poorly. Its operating income decreased by 39.36% and 32.69% respectively compared with the same period last year, which directly reduced the overall performance of Huafang textile.

　　 The main cotton spinning industry

Almost from the beginning of 2003, the performance of Huafang textile has been in a relatively floating state. In addition to the 107.04% increase in the main business of the first year of listing, there has hardly been a trend of rapid growth, and since 2008, there has been a sharp drop in performance.

This is closely related to the "cotton spinning industry" and even the textile industry's "declining day".

According to the statistics of the Ministry of industry and commerce, in 2013 1~9, the industrial added value of textile enterprises above designated size increased by 8.6% over the same period last year, and the growth rate dropped 2 percentage points year-on-year, showing a trend of continued slowdown.

But for large textile enterprises, especially cotton spinning enterprises, the internal and external differences in cotton prices are the real pain. As a senior executive of Huafang textile told reporters, the whole textile industry has been stagnant, and the cost is facing double pressures of cotton prices and labor. "Cotton prices and the international market are totally out of line, the price difference is too big, and the enterprises can not make profits."

In order to prevent the ups and downs of cotton prices, China began to implement the temporary cotton purchase and storage policy in 2011, and the China cotton reserve management company is responsible for storing and storing cotton. This policy has played a significant role in stabilizing the cotton market, ensuring market supply and safeguarding the interests of cotton farmers in a period of time.

However, a number of interviewed textile executives told reporters that for enterprises, the situation of cotton price difference between home and abroad has not improved significantly in recent years, and there is even an expanding trend.

An unnamed textile company executive said frankly that the domestic cotton price was the highest when more than 30000 yuan / ton, the recent price is also more than 20000/ tons, and the international market cotton price is less than 15000 yuan / ton, "the cost difference is too big."

According to the Ministry of industry data, since 2013, cotton prices in China have been maintained at 19000 yuan / ton under the temporary purchasing and storage support, and the price difference with the international market has been maintained at about 4000 yuan / ton.

In addition, the rising cost of labor has become an "unbearable weight" for textile enterprises. The above Huafang textile executives say that the wages of workers in the past one or two years are around 1800~2000 yuan, but they are growing at an annual rate of more than 20%. Now, 3000 yuan per month is not necessarily attracting people.

" Cotton price And labor costs remain high, and many international orders are transferred to other areas. We have been waiting for this year's cotton purchase policy to be replaced by direct subsidy, hoping to get some cushion. The executive said.

Except for 2010, from 2007 to 2013, the main business income of textile products such as cotton textile products of Huafang decreased year by year. The decline in 2011 ~2013 was 15.54%, 20.12% and 4.07% respectively.

　　 Sidelines with unknown prospects

In 2009, Huafang textile gained 70% of Jiangsu's new energy limited company's equity in the form of capital increase. The latter's main business is R & D, production and sale of lithium iron phosphate power battery. As a result, Huafang textile has officially entered the field of new energy lithium power.

At that time, because of the stagnation of main business, Huafang textile hoped to expand the new energy business out of the mire, find new business growth points, and even put forward the idea of making bigger and stronger in this field and striving for "reconstructing a Hua Fang".

But the fact has given a heavy blow to Huafang textile. Just a year later, Huafang textile announced in its 2010 annual report that its operating income of lithium iron phosphate power battery was 2 million 490 thousand yuan, and its cost was as high as 5 million 988 thousand yuan. After six months, it announced that it would be ready to transfer 70% of Alex Hua Tian's company's subsidiary company, which is responsible for the lithium battery business, at a price of 8 million 140 thousand yuan.

But today, Huafang's "sideline" ranks still include battery manufacturing, sewage treatment, warehousing and other industries.

One approach Huafang textile Insiders told reporters that the whole market of lithium iron phosphate battery is not mature enough, and the whole industry is generally in a state of loss.

"The main reason is that its price is relatively high, the cost of its application is too high, and on the other hand, there are still some technical problems, which are difficult to popularize. Huafang textile has no technical accumulation and experience in this field. It may be a little too fashionable to rush into the field before.

First textile network editor in chief Wang Qian also told this newspaper analysis that many textile enterprises enter the field of new energy to try some "quick money" suspicion, "or should focus on the main business to expand the new business".

with Ru Tai textile Limited by Share Ltd (000726.SZ), for example, takes the pure cotton shirt fabric as its main business, and at the same time goes upstream and downstream. Its industrial chain runs through cotton growing, spinning, dyeing, weaving, finishing and garment making.

In contrast, Huafang textile is ranked as the leader of domestic cotton spinning enterprises. However, in recent years, it has only the advantage of scale, and there has been a relatively backward trend in product quality and business operation.

"In the past few years, when the market was relatively good, we all worked together, but the positioning of Huafang textile primary products had not been improved. The extension and deep excavation of the products did not do much homework. The external environment changed and the main industry would be in a very awkward position. We should first make an essay in the main business and talk about others. Wang Qianjin said.

At the end of 2013, Huafang textile announced that all assets and liabilities owned by the company would be replaced by the equivalent portion of the 100% stake of Jiahua energy owned by 96 trading parties such as Jia Hua group and concerted action. After the reorganization is completed, Huafang textile will no longer be engaged in the cotton spinning business, and the main business will turn into steam heating. At present, the reorganization has been accepted by the China Securities Regulatory Commission's administrative licensing application.