The Development Of The Silver Cashmere Industry Has Been Steadily Developing In The Past And Present.

Silver cashmere industry: hustle and bustle and calm

In recent months, cashmere production giant BOC cashmere industry (000982) can be described as "news constantly". First, in August last year, due to major matters suspension, the company's major shareholder became a member of the grand game privatization Committee in September, and then received the notice of the Commission's investigation in January 29th this year. Following the announcement of the company's February 5th announcement, Ma Shengguo, the chairman of the responsible company, has resigned from "lightning", and the new chairman Li Weidong immediately took office.

What will be the impact of the cashmere industry investigation and the high-level personnel changes on the production and operation of the company? What is the progress of the fixed investment increase of 2 billion 300 million yuan last year? What is the real reason for the company's 2014 profit drop of up to 60%~70%? The reporter took a series of questions that investors most concerned about, and visited the Bank of China's cashmere industry in Lingwu City, Ningxia in February 7th, and interviewed the company executives.

The silver cashmere industry is not calm lately.

In 2008, after successful listing of snow cashmere, the performance of the cashmere industry increased rapidly. In just 5 years, the company's operating income increased from 3 billion 110 million yuan in 2008 to 3 billion 110 million in 2013, and the annual compound growth rate reached 33%. The net profit rose from 281 million yuan in 2008 to 281 million yuan in 2013, and the annual compound growth rate exceeded 54%; while the operating performance increased rapidly, the share price of the two market of the silver cashmere industry continued to rise, and the stock price of the reinstated stock rose more than 10 times than the lowest point in the market in 2008.

However, after several years of quiet development, the cashmere industry started an uncomfortable journey in the capital market.

In September 2013, on the second day after the company's issuance, the media published negative articles, questioned the company, and verified by the relevant intermediaries. The final findings were published on the SFC website in September 27th of that year. The company was finally surprised. The $2 billion 300 million additional issuance was also successfully released in March 2014.

In August 25, 2014, the cashmere industry announced that it was suspended due to major issues.

In February 6, 2015, the Bank of China announced that the company received the "investigation notice" issued by the SFC in January 29, 2015. The company was investigated by the SFC on suspicion of information disclosure violation. The main person responsible for the matter is the former chairman of the board. The company has resigned and the major issues that the company is undertaking will continue to push forward according to the plan. The company held a board election in February 4th to elect Li Weidong as the new chairman.

A series of turmoil has led many investors to worry about the future development of the cashmere industry. What impact will these storms bring to the normal operation of the Bank of China?

First line visits workshop

With the doubts of many investors, after nearly an hour's drive, the reporter came to the Lingwu industry. Eco textile Park. Entering the park, the first thing to come into view is a beautiful factory building and the soon to be completed office building. This is quite different from what the reporters saw six months ago, when most of the parks were under construction. At the time when reporters felt great changes, Li Weidong, the new chairman of the company, seemed not satisfied: "if it wasn't for an accident that delayed construction for at least 6 months, maybe today's Park is another new phenomenon."

According to Yang Xiaojun, deputy general manager of the company, Lingwu eco textile park is the company's 2 billion 300 million yuan fundraising project to raise additional funds. There are six major projects, including an annual output of 2 million 200 thousand meters cashmere and high-grade wool products. Fabric Construction projects; annual output of 5 million tons of cashmere sweater construction projects; 30 thousand spindles high count worsted wool yarn project; 20 carding 20 spinning cashmere yarn project; annual production of 2 million 100 thousand high-end cashmere dress construction projects; and 30 thousand spindles worsted high grade special linen yarn, 13 million meter high-grade linen fabric construction project.

For the latest progress of these projects, Yang Xiaojun said that the annual output of 5 million tons of cashmere sweater construction projects has been put into operation, 20 carding and 20 spinning. Cashmere The yarn construction project has been put into operation in 5 lines, and the remaining production lines will soon be put into production. According to the normal progress, the 6 major projects planned for the park are expected to be put into production by the end of 2015, which will bring considerable economic benefits for the company.

Due to the weekend of the interview, reporters were worried that they could not see the production site. Li Weidong walked into a bright modern production workshop with reporters. This is the first large-scale production workshop of 5 million tons of cashmere sweaters per year. According to the person in charge of the workshop, there are more than 700 production workers in the workshop. All the computerized flat knitting machines are imported from Japan. Tens of thousands of cashmere sweaters are made from raw materials to finished products every day. All the cashmere sweaters that are being produced on the production line are now supplied to UNIQLO products. Due to too many orders, the workshop has been in full operation for a long time and is worried about how to spend the Spring Festival this year.

Subsequently, the reporter visited 20 combs and 20 spins, producing 2 million 100 thousand high-end cashmere products annually. Clothes & Accessories And so on, whether it is a roaring machine, equipment that is waiting to be installed in a tight schedule, or the samples of high-grade woolen fabrics and linen fabrics that are about to come out, all seem to indicate that the investment projects are in good order. Chen Xiaofei, a company secretaries, told reporters: "if we come again this summer, maybe we can move to the new building in the park. The office space will become a training school for the training of new employees, and the company needs a large number of skilled workers."

The decline in performance is due to short-term factors.

After many years of rapid growth, the performance of the cashmere industry was the first to face a sharp decline in 2014. According to the announcement of the performance of the Bank of China, the net profit attributable to shareholders of listed companies between January 2014 and December was 80 million yuan ~1.12 billion yuan, down by 60%~70% compared with the same period last year.

For the reasons for the decline in performance, Li Weidong said that the main factor leading to the decline in the performance of Listed Companies in the 2014 year is the huge amount of training expenses for new employees. After all the Lingwu eco textile park has been put into operation, it needs about 7000 new employees, which is more than 2 times the number of employees in the original company (about 3000 employees).

"We recruited and trained about 5000 new employees in 2014. During the training period, in addition to giving 2000 yuan subsidy to each employee, there are also expenses for accommodation, hiring teachers and so on. The average cost of training for each employee is around 15000 yuan. The huge training cost directly lowered the performance level of the company in 2014. With the gradual commissioning of the new projects in 2015, the new staff trained last year will be put into use to create benefits for the company, and the company's performance will also rise gradually." Li Weidong said that after the completion of the new project, the company's capacity will be greatly alleviated. With the growth of sales volume, the company's performance will also go to a higher level.

Government or increase support

Li Weidong briefed reporters about the project of building a knitting factory in the eco immigrant area by the Bank of China. In response to the call of the government to solve the problem of ecological emigration employment, the Bank of China has set up knitting factories in 5 immigrant areas, such as wolf skin, Liang, min, Yue, Hu, Hong Guang and Haiyuan, with the total investment of 800 million yuan ~10 billion yuan, and the output value will be 1 billion 677 million yuan, and the profits and taxes will be 247 million yuan to solve the problem of over 5000 working people.

Reporters learned that the future local government is likely to increase support for the cashmere industry. According to relevant sources, Guo Baichun, vice mayor of Yinchuan, will be airborne to the Bank of cashmere industry and vice secretary of the Party committee. The deputy mayor, who has the background of central enterprises and is known as a reorganizing expert in the industry, should have a clear intention to support the silver cashmere industry.

The reporter interviewed Guo Baichun, vice mayor of Ningxia. He talked about some views of the Bank of China Industry: first, new and old alternation and personnel turnover are a normality in the development of the enterprises; two, the cashmere industry as a listed company. In recent years, under the supervision of the securities regulatory department, the corporate governance structure has been promoted very rapidly, and the departure of one or two people will not have a great impact on the listed companies. Three, the cashmere industry is a leading enterprise in the pillar industries of the autonomous region, and the three level government of the autonomous region, city and county will continue to support its development.