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Fengzhu Textile: three advantages against industry pressure

Number of visits: Date: January 18, 2017 17:54

The "roller coaster" market of raw materials brings great pressure to the company's operation. The company timely evaluates the overall supply and demand of cotton and cotton yarn, and properly controls the inventory.

At present, most of the listed textile companies have disclosed their performance. As for the key companies that have announced their results, the overall performance is slightly lower than expected. The reporter also carefully read the text and data of some textile listed companies, and obtained valuable information from the annual report.

As a famous supplier of Jinjiang local sports fabrics, Fengzhu textile has a strong R & D foundation. As a benchmark enterprise in the printing and dyeing industry, high and new technology may be the "sharp weapon" for Fengzhu textile breakthrough. The total business income of Fujian Fengzhu Textile Technology Co., Ltd. reached 941 million yuan in 2011, an increase of 1.82% compared with 924 million yuan last year. In the new year, in the face of difficulties and pressures, the company's managers will actively take measures to meet the challenges and make preparations. In 2012, the company's operating target is 1.081 billion yuan of operating revenue and 1.027 billion yuan of operating cost.

Three advantages against industry pressure

Reporter: what is the current business situation of the company? What is its position in the industry?

Shi Jinping: at the beginning of listing, the company's main business income was 345 million yuan, net profit was 37.73 million yuan, total assets was 596 million yuan, and net assets was 531 million yuan. After several years of development, by the end of 2011, the company's main business income reached 935 million yuan, total assets 1.234 billion yuan, and net assets 607 million yuan. The company's production equipment has reached the advanced level of the world peers, water, electricity, steam, sewage treatment and other foundation It is one of the top 100 key industrial enterprises in Fujian Province, a national large industrial enterprise, a key high-tech enterprise of the national torch plan, a national innovative enterprise, and one of the top ten competitive enterprises in China's knitting industry for seven consecutive years.

Reporter: affected by the current economic downturn, weak foreign demand and high cost, the textile industry as a whole has been greatly affected. What competitive advantages does the company have to remain invincible?

Shi Jinping: the company has obvious competitive advantages in technology, capital and environmental protection. In terms of technology, the company is the setter of national and industrial standards, has a national enterprise technology center, which meets the high-tech requirements of dyeing and finishing industry with long process and complex process, and can adapt to the situation of deep processing, high technology and high added value competition; in terms of capital, it adopts advanced technology The dyeing and finishing industry of Arts and technical equipment has a large investment in the early stage and remarkable scale benefit. With good reputation, the company has smooth direct and indirect financing channels, which ensures the operation and development of the company. In terms of environmental protection, the dyeing and finishing industry consumes a large amount of water and pollutes water resources seriously. The state and other parts of the world have higher environmental protection requirements for the textile industry. The indexes of sewage treatment in the production and operation of the company are much better than the national discharge standards.

Plan to expand the upstream and downstream of the industrial chain

Reporter: the company is in a traditional industry, which is greatly affected by various factors. Does the company have plans to invest in the upstream and downstream of the industrial chain?

Shi Jinping: textile industry is a traditional pillar industry of China's national economy and an important livelihood industry. It is also an industry with obvious international competitive advantages. It plays an important role in prospering the market, expanding exports, absorbing employment, increasing farmers' income, and promoting the development of urbanization. The company is a high-tech enterprise mainly engaged in knitting dyeing, finishing and production of high-grade knitted fabrics. It is committed to becoming a global leader in high-end knitted fabrics. Focusing on independent innovation, technological transformation, elimination of backward and optimized layout, the company promotes structural adjustment and industrial upgrading, consolidates and strengthens its leading position in the dyeing and finishing industry, and promotes the transformation of the company from large to strong.  

Reporter: does the company have expansion plans in the upstream and downstream of the main textile industry? What other investments does the company have?

Shi Jinping: the three bleaching and dyeing plants in the headquarters of the company are the core business of the company. At the same time, there are weaving plant, dyeing mill and sewage treatment plant. In addition, the company has 100 thousand spindle production capacity of cotton spinning wholly-owned subsidiaries in Jiangxi and Shandong. In addition, the company also invested 30 million yuan in Shanghai Xingye Venture Capital Co., Ltd., accounting for 10% of its shares.

Multi Strategy to solve business problems

Reporter: under the current economic situation, what are the main problems existing in the operation of the company and what measures have been taken?

For the whole textile industry, 2011 is a tough year. Facing the severe industry of textile industry in 2011, the company's business performance has been greatly impacted, and the growth of business income is not obvious. 2011 is the most difficult year since the company went public. First of all, the price of raw materials represented by cotton and cotton yarn fluctuated violently, and the "roller coaster" market brought great pressure to the company's operation. From the high price in early March to the low price in August, the price dropped by more than 40%, which increased the risk of purchasing and storing cotton needed for production. At the same time, the wait-and-see attitude of the market strongly affected the normal order receiving and production of enterprises, resulting in the production and sales failure In addition, there are more inventory, more capital occupation and lower profit. To this end, the company has taken appropriate measures to control the overall supply and demand of cotton yarn. Secondly, under the circumstance that the company actively develops export orders, the continuous appreciation of RMB has squeezed the profit space of export orders to a certain extent. Therefore, the company signs forward settlement agreement with banks to lock in export revenue, increase foreign currency liabilities, increase raw material import, and increase export documentary financing by using export credit insurance policy to reduce the adverse impact of RMB appreciation on the company. Moreover, to some extent, the company is faced with the problem of recruiting general workers. The company increases the attractiveness of each post of the company, reduces the difficulty of recruitment, maintains the stability of employees in each production plant, and ensures the normal production of the company by improving the salary and welfare of employees, refining the promotion mechanism, and strengthening the party and League and cultural construction of the company.

In view of the fact that the company's customers are mainly concentrated in Fujian Province and have relatively small influence in the country, the company adheres to the "going out" strategy, actively promotes the company's brand construction, and strives to build a national well-known brand of knitted fabrics. Through participating in various fabric fairs and recommendation meetings, the company strengthens the industry exchange, and fully exchanges information with textile peers, upstream and downstream, and brand customers with the help of information exchange platform of various textile fabric exhibitions; in addition, the company also actively participates in the formulation of national and industrial standards to expand the company's influence.

Category: Company news

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