Four Main Losses Of Main Business Of Jilin Chemical Fiber Enterprise

Involvement in the domestic textile industry has been in a low ebb, and the pace of transformation and upgrading has been slow. Viscose fiber production enterprises, Jilin Chemical Fiber Co., Ltd. made poor achievements last year. Jilin chemical fiber February 25th annual report released in 2013 shows that the company achieved operating income of 1 billion 395 million yuan, down 9.98% compared to the same period last year. Net profit attributable to shareholders of listed companies was 394 million yuan, while in 2012 the profit was 9 million 922 thousand and 700 yuan, down 4066.04%. In addition, it is worth noting that the net cash flow from operating activities decreased by 331.79% compared with the same period last year.

　　 Four successive losses of main business

This is the first annual report of Jilin chemical fiber in 2012 after turning a profit into a surplus and lifting the delisting warning. Obviously, the operation of Jilin chemical fiber has not been as good as expected in the past year.

Jilin chemical fiber is affected by international and domestic market. The market price of conventional viscose staple fiber and regular pulp has always been at a low price in 2013, resulting in a loss. Moreover, the company has not carried out equity financing for a long time, making the company's financial expenses up to 143 million 208 thousand and 500 yuan, up 13.96% over the same period last year. The above causes led to the huge loss of the company in 2013 and delayed the transformation and upgrading of the company. Jilin chemical fiber secretaries Xu Jianguo told this reporter that the company is making every effort to improve the company's current business situation, and strive to achieve profitability in 2014.

After losing for two consecutive years in 2010 and 2011, according to the relevant regulations, the Shenzhen stock exchange has handled the "delisting risk warning" specially for Jilin chemical fiber. In the following year, Jilin chemical fiber realized losses and profits, and the Shenzhen stock exchange cancelled the risk warning of stock trading delisting.

It is worth mentioning that, Jilin chemical fiber in 2012 can turn a profit, not because of the company's product revenue realized; instead, the company achieved operating income of 1 billion 549 million yuan in 2012, a decrease of 33.12% compared with the same period last year, the company sales in 2012 1 billion 446 million yuan, compared with 2011 also reduced by 35.2%.

Jilin chemical fiber annual report shows that the company can turn a profit in 2012, thanks to the company received 188 million yuan of government subsidies in 2012 and 10 million 337 thousand and 500 yuan to sell 3 million 270 thousand shares of Bank of communications. These two non operating revenues have reversed the loss of Jilin chemical fiber for two consecutive years, making it a total profit of 9 million 920 thousand yuan in 2012.

Excluding operating income factors, 2013 has been the fourth year of continuous loss in Jilin chemical fiber main business. For four consecutive years in a state of loss, is the company considering transformation? With this question, our reporter dialed the telephone of Jilin chemical fiber secretaries Xu Jianguo.

"Transformation of a company is not easy, nor does it mean that transformation can succeed in transformation. The company is also making efforts in this regard in considering transformation and upgrading. Xu Jianguo told our reporter.

　　 Preparation for 900 million yuan increase

In order to get rid of the deficit and achieve profitability in 2014, Xu Jianguo said that the company is making full efforts to adjust the company's business, and the internal company is developing towards bamboo fiber. In the external field, the company is working hard to find partners and strive to achieve profitability and avoid the risk of delisting again.

"The company is already putting bamboo fiber into operation. Although the price of chemical fiber industry is not very prosperous, there is still a gross profit for bamboo fiber." Xu Jianguo said that although the gross profit of bamboo fiber is not high, but because of the adjustment and upgrading of the company, the introduction of some advanced production equipment, so that the cost of bamboo fiber production dropped a lot, so bamboo fiber is still profitable.

It is understood that the company's annual output of 95 thousand tons of bamboo fiber pulp upgrading technology transformation project has been completed 90%. Jilin chemical fiber said that the production of 95 thousand tons of bamboo pulp meal will effectively reduce the production cost of bamboo pulp and bamboo pulp, improve the production efficiency and quality of bamboo pulp and bamboo pulp, and expand the competitive advantage of the company in the field of bamboo pulp and bamboo fiber, which will help the company to improve its business performance. In 2014, the company will make full use of the 95 thousand ton project bicycle trial run and on-line test to achieve the scheduled use state.

Previously, Wang Yuping, Secretary General of the China Chemical Fiber Industry Association, told the media that bio based fibers will be a bright spot in the chemical fiber industry in 2014. The state will focus on supporting development, with special financial support. The news is particularly timely for the transformation of Jilin chemical fiber.

In addition, Xu Jianguo also revealed that the flame-retardant fiber developed by the company has been in use, and European customers have a high degree of satisfaction. Although it has not yet reached the stage of mass production, Xu Jianguo believes that as China's only company specializing in the export of flame-retardant filament to Europe, the product will have a good development after mass production in the future.