Clothing And Textile Industry Will Face A New Round Of Downward Trend.

On the morning of 15 January 30th, 1647 companies of A share issued 2014 annual earnings forecasts. Among them, 355 companies were pre cut and slightly reduced, accounting for 21.55%; the first deficit and continued losses were 192, accounting for 11.66%.

With the announcement of the 2014 performance forecast of 600156.SH and 600107.SH,

According to the times weekly reporter statistics, as of the morning of January 30, 2015, the textile and garment industry has 72 listed companies announced the past year's performance notice.

Among them, a total of 16 companies fell, accounting for 22.22%; the first deficit and continued losses accounted for 13, accounting for 18.06%.

In contrast, these two data are "leading the" market.

"Because last year's pfer of shares of subsidiaries, a large investment income has been achieved; this year's textile main business market continues to slump, the cost of raw materials rises, and sales prices are still low, leading to losses."

For the first loss in 2014, Hua Sheng shares explained in the announcement.

Textile for a long time

Zhao Yongqiang, an analyst, told the times weekly that the overall situation of the textile industry is not optimistic as a result of the weak demand in the international market, the severe export situation, the slowing down of domestic demand, the sharp fluctuation of textile raw material prices, and the multiple unfavorable factors such as the continuous rising of production factors such as labor force and fuel power.

In the grim situation of the overall downturn in the industry, textile and garment enterprises have been looking for a way out, through restructuring and asset injection, withdraw from the main textile industry, or seek the pformation of the mode of operation of the Internet, the textile and garment industry's wave of pformation is lifting.

First loss of Hua Sheng shares

In January 27th, Hua Sheng shares issued a notice of performance loss. The annual operating performance of Hua Sheng shares in 2014 is expected to be a loss. The net profit attributable to shareholders of listed companies is 28 million yuan to 3800 million yuan.

In the same period last year, the net profit of Hua Sheng shares belonging to shareholders of listed companies was 70 million 808 thousand and 800 yuan and earnings per share were 0.1761 yuan.

Huasheng share was jointly launched by Hunan Huasheng Industry and trade group united China clothing group company and Yiyang finance source construction investment Co., Ltd. in 1998. The Limited by Share Ltd set up by the collection method is specialized in textile business. Its main products are yarn, cloth and clothing. In May 27th of that year, Hua Sheng shares were listed on the Shanghai stock exchange.

For reasons of losses, Huasheng shares said that the larger extent of the current performance changes was mainly due to the pfer of subsidiaries' equity in the previous year, resulting in a larger investment income; the main textile market continued to be depressed this year, the cost of raw materials increased, and sales prices remained low, leading to losses.

In fact, as a result of

In the doldrums, Huasheng shares began to lose money in 2013.

Data show that the net profit of Huasheng shares in the first three quarters of 2013 was -1751.97 yuan, -889.44 million yuan and -890.28 million yuan respectively.

However, the profit of Huasheng joint stock in 2013 was due to its 80% stake in the public listing of its Yueyang Huayi Real Estate Development Co., Ltd. (hereinafter referred to as Huayi Company).

In August 2013, Hua Sheng shares announced that in order to revitalize the company's stock assets, improve the company's operating efficiency, improve the company's financial situation, concentrate on improving the main business of the company, Hua Sheng shareholding company, Hunan Huasheng Dongting Hemp Industry Co., Ltd. (hereinafter referred to as "Dongting company") publicly pferred the 80% stake of Huayi Company in Hunan joint equity exchange.

After the completion of the pfer of equity, Dongting company no longer holds the equity of the company. The net profit of Huasheng shares increased by about 155 million yuan (Unaudited) in 2013, and thus achieved profit in the year.

Zhao Yongqiang told times weekly reporter that in the face of the main business sluggish, Hua Sheng shares listed the most important purpose of the pfer, or to achieve the pfer of assets disposal income.

Loss of company accounted for 18.06%

The status of Hua Sheng shares is only a microcosm of the industry. With the continuous downturn of the textile industry, the performance of the listed companies in the apparel industry is not good.

In the 2014 annual performance forecast, the number of pre - and slightly reduced companies totaled 16, accounting for 22.22%, including A000018.SZ, A000018.SZ, 000982.SZ, 002740.SZ, 002269.SZ, 002425.SZ, Jialin Jay (002486.SZ), Jin Feida (002239.SZ), wedding bird (002154.SZ), Japan's shares (002083.SZ), Jinlun shares (002722.SZ), search for special (002722.SZ), Xingye Technology (c), Ka NDI Road (H), huadin shares, kompun (HON), Langer group, and seven wolves. As of January 30, 2015, there were 72 textile and apparel companies in A shares.

In the above performance decline, the largest change in net profit growth was forecast for Thailand, which was 1300.87%, followed by Busen shares and Aerospace Communications. The biggest changes were -1070.00% and -878.20% respectively.

At the same time, the first deficit and continued losses were 13 companies, accounting for 18.06%.

In addition to Huasheng shares, 11 companies such as 600107.SH, Inner Mongolia development 000611.SZ, 601113.SH, Aerospace Communications (600677.SH), meindinda (002034.SZ), China Textile investment (600061.SH), Victor essence (600152.SH), Busen shares (002569.SZ), Hin Le (002485.SZ), Shenzhen textile (A000045.SZ) and Tai Asia share (002517.SZ) have ushered in the first loss since listing.

Among them, from the amount of loss, the loss of *ST is the most serious.

In 2014, *ST Xia Ke expected to lose 795 million yuan to 695 million yuan, compared with the same period last year, *ST Xia passenger loss 349 million yuan.

"During the reporting period, the company's capacity declined, the sales market was sluggish, the selling price of products fell, the cost of production and the increase in its fees rose year by year."

*ST Xia Ke said in the announcement.

Due to continuous losses, *ST Xia Ke has been insolvent, and the net assets attributable to shareholders of Listed Companies in the three quarter of 2014 amounted to -5494 million yuan.

Corresponding to the decrease in net assets, the asset liability ratio is 107%.

In November 19, 2014, the Wuxi intermediate people's court decided to accept creditors' application for reorganization of Jiangsu *ST Xia, and the company entered a period of bankruptcy reorganization.

It is worth noting that 7 companies have realized losses, but most of the industry is losing profits by changing the industry's profits.

For example, *ST San Mao expects net profit of around 59 million yuan in 2014, while in 2013, *ST's gross loss reached 47 million 180 thousand yuan.

One of the important reasons for the change of performance is the pfer of our company's 100% stake in Shanghai San Mao International online shopping life Plaza Trading Co., Ltd., so that its assets will increase substantially.

In addition, in the turnaround of the three companies of blue tripod holdings, *ST Jinggong and Kai Reed, the sale of assets is also a decisive factor in the achievement of losses.

The main reason for the loss of Xinlong holdings is due to the increase in government subsidies, the reduction in costs and losses in asset impairment.

Industry ushered in the tide of pformation

In the face of increasingly severe demand, rising costs and declining profits in garment industry, textile and apparel listed companies have launched a wave of mergers and acquisitions.

Zhao Yongqiang told times weekly reporter that the pformation of textile and garment companies has two main paths: first, through the implementation of major asset reorganization or backdoor listing, the main business pformation will be thoroughly pformed, such as Huarun Jinhua, Xinyang Fengfeng, Busen, Huafang textile and Fujian Nanfang spinning company; two, through cross-border acquisition of assets, the main business and new business will be realized, such as "100 legged walking", such as 100 round pants industry, Zhonghe shares, Jiangsu sunshine and other companies.

Inner Mongolia development, Mei Bang apparel and Xinfeng ocean have disclosed their progress in the performance notice.

In January 30th, Inner Mongolia development said in its performance forecast that the main reasons for the loss in 2014 were: first, because of the downward pressure of the overall economy, the company's original losses were

The prospect is very serious, production and operation can not get rid of the deficit situation; two, because the trading price of bulk commodities is lingering low, the company can not make profits in this business, resulting in the company unable to carry out the original bulk trading business in the current year.

Based on the foregoing reasons, Inner Mongolia development management has studied and planned the national industrial policy orientation. In the second half of 2014, the company decided to integrate the assets in an all-round way, adjusted the main business development direction, and established a strategic pformation of the information industry, such as big data and cloud computing, by investing in the Internet related supporting industries which are mainly based on big data services and gradually extended to the industrial chain.

American Apparel is seeking to pform the traditional business mode into an Internet based business mode.

"The effect of pformation and upgrading still needs more time to fully appear, so the company expects the 2014 annual performance will still decline in a certain range."

Mei Bang dress said in the announcement.

Xinfeng ocean has changed its main business through major asset reorganization: from the original textile printing and dyeing and textile trade business to the development, production and sales of phosphate compound fertilizer.

Hubei Xinyang Feng fertilizer Co., Ltd., a major asset restructuring company, had a net profit of 429 million 739 thousand and 800 yuan attributable to shareholders of Listed Companies in 2013 1-12, which is expected to grow by 12%-35% over the same period last year.

In 2014, Xinfeng ocean's performance grew year-on-year.

For the reasons for the growth, Xinfeng ocean believes that the main departments are to promote the increment as the core, focus on promoting the two main battlefields of operation and production, increase the research and development efforts of crop specific fertilizers and new functional fertilizers, continue to promote technological innovation, strengthen internal management, comprehensively improve the level of pportation and operation, increase the business steadily, and effectively control the cost and other factors.

In 2014, Sanmao, a *ST *ST executive director, said Shen Lei had been looking for good projects and opportunities for pformation for many years, and will continue to do so after the success of shell protection.