Textile Business Is Subject To Greater Policy Implications.

Because of the difficulties in using cotton, there are hundreds of them recently.

Enterprise petitions increase reserves

The amount of delivery.

But on the contrary, there are also "pride" in the industry.

The impact of the launch on the company is limited.

The listed companies in the original textile industry are now seeking pformation.

On the whole, the textile enterprises as the main business on the A share have been less and less. The traditional textile enterprises have been pforming, and the main business is changing to the direction of the Internet, lottery and other textile businesses, "eight poles can not be reached".

"(Textile) industry has encountered a lot of problems, the capacity structure is unreasonable, according to our understanding, there are some excess capacity, resulting in poor efficiency."

"We have to find a way to cope with this situation," said Junping, Changshan's Dong min Chi.

Textile business is subject to greater policy implications.

"This year, the impact of cotton reserves on cotton procurement is limited. At the beginning of the year, the company predicted that the price of cotton would increase this year, and the cotton used for the whole year was purchased earlier in the market."

The leader of color spinning, Huafu color spinning Tung Chi song, said in reply to the reporter's letter.

Changjiang Securities, a research report pointed out that in the cotton textile industry, raw material cotton accounted for about 70% of the operating costs.

Every policy change related to cotton prices will have an important impact on the operation of listed companies.

Huafu color spinning has suffered losses in policy changes.

From 2011 to 2013, in order to protect the interests of cotton farmers, ensure supply and stabilize the market, the state issued a temporary purchasing and storage policy.

Under the support of purchasing and storage policy, domestic cotton prices remained high, and domestic and foreign cotton prices were worse than in 2013, reaching 5900 yuan per ton.

In 2014, 3 years of national temporary purchase and storage policy was changed, and cotton subsidy policy was promulgated. Subsidies were directly given to cotton farmers, and the price of new cotton was determined by the market.

This has led to a steep fall in cotton prices in 2014.

The revenue of Huafu color spinning has also been affected. The annual report shows that Huafu color spinning revenue in 2014 was 6 billion 133 million yuan, a decrease of 107 million yuan compared with 2013, while operating profit was negative.

Rely on pformation to achieve profitability

At present, many listed companies in the textile industry are choosing to make a living in pition.

Choice shows that there are 14 A shares belonging to the cotton spinning industry, but some of the original "textile enterprises" have not been among the 14 companies.

Take Shenzhen textile as an example, its main business is textile and garment manufacturing, textile and garment trade, LCD Polaroid manufacturing and property leasing management. The industry has also been pformed into "computer, communication and other electronic equipment manufacturing industry".

2015 annual report shows that the company's textile sector revenue is 25 million 205 thousand and 300 yuan, accounting for only 2.05% of the annual revenue; from another point of view, the cost of the textile sector is 27 million 117 thousand and 500 yuan, gross margin is negative, it can be said to be a drag on the company's business segment.

For deep textile management, this may be expected.

In 2007 and 2008, the total operating cost of Shenzhen textile industry exceeded two consecutive years, and the net profit after deduction was negative.

In October 2009, Shenzhen textile announced that it would raise no more than 850 million yuan for TFT-LCD polarizing film projects. In the annual report, Shenzhen textile also said it would "quit the traditional processing enterprises in an orderly way by adjusting the industrial layout".

As a rising star of deep textiles, photoelectric business achieved 804 million yuan revenue in 2015, and contributed more than half of its revenue to Shenzhen textile industry, accounting for 65.52% of total revenue.

Similarly, Changshan stock company also completed the acquisition of North Ming software in 2015. In the first two years of the acquisition, the textile business of Changshan's shares must rely on government subsidies to achieve small profits.

In addition to Changshan's shares, Kerid's 2015 annual report shows that the company's main business is changing from textile to Internet acceleration, lottery and other related businesses, while the Black Peony textile business accounts for only 28.68% of the total revenue in 2015.

In Chi Junping's view, the pformation of textile companies is a very common phenomenon in the whole industry. "The industry has encountered a lot of problems. The capacity structure of the textile industry is unreasonable. According to our understanding, there are some excess capacity, resulting in very poor returns. If the listed companies fail to benefit from successive losses, they will be delisted by ST. We must find ways to cope with this situation."

Shoes and clothing industry observers Ma Gang pointed out that the textile industry is in an excessive competition and overcapacity.

The growth of domestic sales can offset the decline of exports in the short term, but in the long run, it is more necessary to adjust the capacity structure and improve market share with quality products.