Gross Profit Has Reached A New High Of Nearly Ten Years - The Spinning And Weaving Industry: Between The Main Business And The Sideline Industry.

Listed companies semi annual report shows that textile and clothing Trade wool Profit has reached a new high of ten years: the average gross profit margin of listed companies is 23.65% this year, and the textile and garment industry is 21.14%. In particular, clothing and home textile terminal companies sing all the way, with the outstanding performance growth and gross margin level to widen the intra industry gap.

Although most list Textile companies are growing better, but fewer than 10 companies are in a state of net profit deficit. ST Hailong, Huafang textile and Tianshan textile are the most serious and rather topic oriented enterprises. Most of them suffer from the double slide of the main and sideline industries, and face the worsening financial situation to seek survival.

　 ST Hailong

First credit rating downgrade

This year is the third consecutive loss of Shandong Hailong. In the first half of the year, the company's operating profit loss was 406 million yuan, and the net loss attributable to the parent company owner was 322 million yuan. The company has lost two consecutive years in 2009 and 2010 and lost 371 million yuan in 2010. After the announcement, the chairman of the company's securities affairs and chairman of the board of supervisors resigned one after another.

In the first half of this year, the company, which had a huge deficit and a debt ratio of 91.46% in the reporting period, continued to violate the external guarantee, and was eventually changed to "ST" by other special treatment. By the end of 2010, the amount of violation of the company's external guarantee amounted to 423 million yuan, and the violation guarantee had not yet been solved. In the first half of 2011, another $100 million was added to the violation.

In September 5th, less than ten days after the formal wearing of the hat, the joint credit rating company limited announced that, in view of the worsening financial situation of Shandong Hailong Limited by Share Ltd, the pressure of production and operation, and the gradual increase of management problems, the joint credit rating lowered its main credit rating from "A+" to "A-". The rating outlook was adjusted from "stable" to "negative", and the credit rating of the "11 Hailong CP01" of the remaining short-term financing certificate was transferred from "A-1" to "A-2".

Shandong Hailong Limited by Share Ltd has become the first Chinese sovereign debt rating market to be downgraded this year, adding negative effects to its twists and turns of restructuring.

In addition to the main glue industry, restructuring seems to be the only way for Shandong Hailong to redeem itself. In August 22nd, the state-owned shareholder of Weifang, the major shareholder of the company, has just lifted the trusteeship of Chenming holdings, and the Weifang municipal government and the China Hi-Tech Group Corporation have reached a preliminary intention. Today, the confusion of the reorganization of the greater the unknown, and viscose main industry, downstream conduction is not smooth, resulting in greater inventory pressure, product prices decline, has been low prices of raw materials. In the second half of the year, the peak season of downstream demand may help raise prices, but the range is still affected by the change of cotton prices, and the road to revival of main business is still difficult.

　　 Huafang textile

Restructuring and lithium battery double grounding

Huafang textile announced interim results, the company achieved net profit of -3116 million in the first half. After that, the company's stock price changed, and the closing price fell 24.68% in three consecutive trading days from September 2nd to September 6th.

Huafang attributed its losses this year to cotton The sharp fluctuations in prices, the beginning of the two quarter of cotton prices fell, making the company's product prices fell deeper, gross margin decline, sales sluggish, resulting in the company's high price inventory and low price products coexist bad situation. Tight monetary policy has aggravated the company's poor financing.

However, in the first half of the first half of the year, Huafang textile has rejected two ways to turn it around: restructuring and lithium battery business.

First, the announcement of the restructuring of the cotton spinning business and assets in May 17th was temporarily stranded, and it was promised that it would no longer plan to restructure within 3 months. In August 18th, it announced the transfer of 8 million 140 thousand yuan to its controlling subsidiary, 70% stake in Zhangjiagang Hua Tian Xin Mstar Technology Ltd. Huafang textile has been planning and operating lithium battery business for two years. In June 2009, the Jiangsu Tiantian new energy Polytron Technologies Inc was set up in June 2009. In November, Li Tian also invested in the establishment of an electrolyte company, Hua Tian Xin Mstar Technology Ltd, and Huafang textile accounted for 70%. As of August, Huafang textile invested 16 million 330 thousand yuan in Zhangjiagang Huatai new Mstar Technology Ltd. Now it is sold at a profit of 8 million 140 thousand yuan. Huafang textile claims that the operation efficiency of Zhangjiagang Huatai new Mstar Technology Ltd has not reached the expected level. The company has no industry background strength and strength for the electrolyte industry, and has great uncertainty for the future development of the lithium battery industry. And this business has been judged by many brokerages as an important driving force for Huafang textile to make profits in the future.

To stop and restructure and sell lithium power, the next step in the loss of Huafang textile is to concentrate on the main business or to find another way. {page_break}

　 Tianshan textile

Iron heart must set foot in mining industry.

Tianshan textile gross profit margin declined for 3 consecutive quarters, with a loss of 4 million 178 thousand and 200 yuan in the first half. The company said that the main reason was that the cost of raw materials market increased and the cost of products increased. The gross margin was lower than that in 2010, and the financial cost increased compared with the same period last year.

Although the main business is sluggish, the company does not have much action in its main business, but still feels frustrated in its reorganization. Since the beginning of last year, Tianshan textile has been actively promoting the restructuring plan, plans to acquire 75% stake in the west mining industry, and is involved in the development, production and sales of non-ferrous metal mineral resources. Unfortunately, in April 18th, a document of the SFC poured cold water on the restructuring enthusiasm of the company. The audit of the company's major asset restructuring plan was not approved. After being rejected for 2 months, Tianshan textile came back and restarted the major asset reorganization. In June, Tianshan textile once again announced the major asset restructuring plan after adjustment. The new plan and the previous comparison, the assets valuation of the 75% equity interest of Xi Tuo mining was reduced from 696 million yuan to 629 million yuan, and the price of the additional issuance remained unchanged at 5.66 yuan / share, and the number of additional shares was reduced from 123 million shares to 111 million shares. In July 29th, the company received the notice of acceptance of the application for administrative licensing of the China Securities Regulatory Commission, and the China Securities Regulatory Commission accepted the application for administrative approval of the Xinjiang Tianshan wool textile Limited by Share Ltd purchase of assets issued by shares.

Whether the two degree application can be approved is pending, but we can see the direction and determination of the mining industry from the reorganization of Tianshan textile.