Seven wolves men wear high bamboo bamboo textiles

The performance of the textile and apparel industry has clearly differentiated in the past year.

Recently, Fujian Septwolves Industry Co., Ltd. (hereinafter referred to as "Seven Septwolves") and Fujian Phoenix Bamboo Textile Technology Co., Ltd. (hereinafter referred to as "Fengzhu Textile") have issued the 2012 annual report.

The Septwolves Annual Report stated that in 2012, the company realized operating revenue of 3.477 billion yuan, total profit of 753 million yuan, and net profit of 561 million yuan, an increase of 19.05%, 54.24%, and 36.09% over the previous year respectively. The overall operating performance has continued to be a highlight. .

In contrast, Fengzhu Textile's total operating income for the past year was 847 million yuan, a year-on-year decrease of 9.99%; its operating profit was -64.822 million yuan, still unable to escape the environmental impact; The net profit of shareholders was 120.883 million yuan.

The performance data of Septwolves and Phoenix Bamboo Textile is representative. Compared to the attractive growth rate of men’s clothing, upstream textiles are still worried about continued decline in profits. The downstream is happy about the ups and downs, indicating that the market outlook of the local textile and garment industry in the second half of the year is not as optimistic as the surface data. Our reporter Du Yuling Huang Xiaohuan Wang Zhiqian

Downstream earnings are better than upstream

In addition to seven wolves, China Lilang also performed well last year. The sales volume of its main brand LILANZ was RMB 258.67 million for the year, a slight increase of 0.3% year-on-year. The sub-brand L2 had a good performance in 2012 due to the low base in previous years. The annual turnover reached 191.4 million yuan, an increase of 50.5% over the same period of last year. The proportion of China Lilang’s total turnover also increased from 4.8% in 2011 to 6.9% in 2012.

Compared to the steady growth of clothing, the upstream textile and accessories industry is going harder.

Analysts believe that the reason why Phoenix Bamboo Textile's net profit attributable to shareholders of listed companies reached 120.883 million yuan last year, mainly due to the government grant of 80 million yuan from the Anyang Municipal Government of Henan Province. Since June 26, 2012, as planned to invest 2.9 billion yuan to build a production base in Anyang, Fengzhu Textile has received a total of RMB 80 million in award funds from Beiguan District of Anyang City for three times. Aside from filling the post, Fengzhu Textile did not make a profit.

In response, Fengzhu Textile stated that the decline in business was due to the downturn in the market and the drop in external demand. Although there was no major change in the number and target of customers, the total number of orders placed by customers had decreased.

The same reasons also affected Baihong Industrial, China Energy Saving Haidong Qing, and Zhaoxing shares. Baihong Industrial slightly increased its revenue by 0.6% last year; its annual profit fell by 16.9%. China Energy Savings Haidong Youth's revenue rose by 13.5%, and profit for the year was 246 million yuan, a slight decrease of 2.1%, a decrease from the previous year. After the company's 2012 net profit decreased by 44% year-on-year, the company announced that it had issued a quarterly earnings report. The estimated net profit or loss was 4.1044 million to 3,077,200 yuan, compared to a loss of 3.422 million yuan in the same period of the previous year.

Clothing inventory is still plagued by

Despite good results, in estimating the industry outlook in 2013, Septwolves and Lilang both stated that in 2013 China's apparel retail industry will still face many challenges.

Seven wolves frankly stated that due to the adoption of the ordering system, the company's financial report will lag behind in terminal sales. The sales status and performance in 2013 may be affected by the sales situation in 2012. “Because the rent of terminal shops is still rising, labor costs and other expenses are increasing, and terminal operating costs are increasing. At the same time, in order to digest inventory, terminal products are sold at discounted prices, affecting terminal gross profit, and double adverse factors have brought about a decline in terminal profit. The enthusiasm that ultimately affected the end-user dealers' operating confidence and capital investment was the most important difficulty the company faced during the reporting period.

Obviously, the troubles from inventory still exist. In order to return funds as soon as possible, various apparel industry enterprises have adopted discounted sales promotion models to speed up inventory processing, further compressed terminal profits, dealers' confidence in business operations has been hit, and the closure of sporting goods has intensified. With the spread of pessimism, the expansion of the garment industry has been under pressure.

“Since the channel inventory was higher in the spring, summer and autumn of 2012 than in previous years, we expect that this will have a certain impact on sales in 2013; There will be a possible negative growth in orders for orders in the autumn. However, if the overall business environment does not continue to deteriorate, we are confident that through various countermeasures, the situation of the winter 2013 trade fair will be stabilized,” said Li Lang of China.

Textile accessories accelerated research and development

Downstream apparel customers' inventory problems will certainly affect the textile and accessories industries. Although faced with various unfavorable situations, Fengzhu Textile has not given up its investment in scientific and technological research and development, but has actively promoted technological transformation and technological innovation.

It is reported that Phoenix Bamboo Textile has been listed as the third batch of state-level innovative companies, and a number of technical R&D achievements have received financial support from governments at all levels. Among them, the "Technology Development of Easy Decontamination and Moisture Absorption and Quick-drying Knitted Fabrics" was listed as a key project of the Fujian Science and Technology Plan. At the same time, Fengzhu Textile also actively participates in the formulation of various industry standards. According to statistics, in 2012, Phoenix Bamboo Textile Co., Ltd. participated in the validation of 11 industry standards, and completed 4 invention patent applications, 1 utility model patent application, and 5 appearance patent applications, all of which were accepted by the national patent office.

Baihong Industrial Co., Ltd. and China Energy Saving Haidong Qing also placed R&D at the most important position.

Last year, Baihong Industrial spent about 2.1 billion yuan on research and development. Currently, it has obtained 39 patents in the country, and applied for 13 patents. Big investment in R&D will continue this year.

While participating in the formulation of industry standards, China Energy Saving Haidong Qing set up a new product research and development and market technical service committee to increase the research and development of new products, comprehensively upgrade the existing product range and expand the application fields, and accelerate technological innovation and product upgrading in order to seek Higher added value and technical content. The committee was asked to proactively provide customers with technical services and solutions.