The COVID-19 epidemic has been raging since 2020, and global economic demand and supply have been hit by double impacts, triggering huge fluctuations in the capital market and increasing uncertainties in changes in world politics and economic and trade patterns. As the concentrated representative of enterprises with innovative advantages in my country’s textile industry and the vanguard of industrial development, how can listed textile and apparel companies avoid risks and cope with the severe situation? According to market changes and industry development requirements, do a good job in orderly resuming work and increasing production, and improve the management and operation level of listed companies. , solidly expanding the market is a common issue that the majority of listed textile and apparel companies urgently need to study and discuss.
As the securities market on July 6th filled the screen with the smell of “bull market”, various When road funds are rushing into the market, the 2020 meeting of the Board Secretaries Alliance of Listed Companies in the Textile and Garment Industry was held in Beijing. The conference will be organized at the main venue in Beijing and via online video.
This annual meeting is guided by the China National Textile and Apparel Industry Federation, hosted by the China Textile Planning Research Association and the China Textile Construction Planning Institute, and sponsored by the China Textile Industry Enterprise Management Association and China Textile Asset Management Co., Ltd. Supported by the company, it is hosted by the China Textile and Apparel Industry Listed Companies Board Secretary Alliance (Secretariat). With the theme of “Collaboration, Empowerment, and Endeavor”, the annual meeting analyzed and summarized the current situation of my country’s textile industry and the development prospects of industry-finance cooperation, the operation and development of listed textile and apparel companies, and relevant rules and successful cases of mergers, acquisitions and reorganizations. At the meeting, the “Top 10 Comprehensive Evaluation of Operation and Development Performance of Listed Companies in the Textile and Clothing and Apparel Categories of the Shanghai and Shenzhen Stock Exchanges in 2019” and “The Market Value and Operation of the Textile and Apparel Listed Companies in the Shanghai and Shenzhen Stock Exchanges and the Hong Kong Stock Exchange in 2019” were also released. “Top 10 Revenue and Profit Rankings” list.
Sun Ruizhe, President of China Textile and Apparel Federation, Duan Xiaoping, Vice President of China Textile Federation, Yang Jun, Secretary General of China Textile Federation, Vice Chairman of China Textile Federation Li Jincai, Secretary General and Director of the Industry Development Department, Executive Chairman of the China Textile Planning Research Association, President of the China Textile Construction Planning Institute, Feng Dehu, Chairman of the China Textile and Apparel Industry Listed Company Board Secretaries Alliance, and other heads of relevant departments and professional associations of China Textile Federation, and Board secretaries from more than 50 listed textile companies such as Guangwei Composite Materials, Lutai Textile, Semir Clothing, Luolai Life, Biyinlefen, Huafeng Spandex, representatives of industry-focused companies planning to be listed, representatives of financial investments and intermediaries, and news More than 100 people including media representatives attended the meeting.
Yu Yizheng, executive vice president of China Textile Planning Research Association, presided over the meeting.
Sun Ruizhe delivered a keynote speech entitled “The Current Situation of my country’s Textile Industry and the Development Prospects of Industry-Integration Cooperation”. Sun Ruizhe introduced the development status of the textile industry under the epidemic, as well as the importance of industry-finance cooperation and future development paths.
He stressed that with the deepening of changes over the past century and the spread of the COVID-19 epidemic, the world’s economic development is under unprecedented pressure and is falling into the worst recession since World War II. The development of the industry is currently facing huge challenges. Systemic risks have put many companies under pressure to survive. Facing diverse changes such as geopolitics, digital economy, terrorism, epidemics, social responsibility and climate change, the textile and apparel industry must be prepared and actively respond.
Under the new situation, the Party Central Committee has made important decisions to do a solid job in “six stability” and implement the “six guarantees” task, and has introduced various policies to ensure the smooth operation of the economy. , to help enterprises tide over difficulties. From January to May, my country’s RMB loans for the real economy increased by more than 10 trillion yuan, an increase of more than 2 trillion yuan compared with the same period last year. As an important people’s livelihood sector in my country, the textile industry is dominated by the private economy and small, medium and micro enterprises. It is of great practical significance to do a good job in industry-industry cooperation.
Sun Ruizhe shared four views on industry-financing cooperation in the textile industry: First, the industry is under pressure to recover, and deepening industry-financing cooperation is a practical need to achieve sustainable development. Taken together, the global epidemic has not yet peaked, domestic consumption has not recovered as fast as expected, and the shortage of corporate orders remains severe. Problems such as inventory backlog, intensified competition, shrinking profits, and tight cash flow have generally plagued industry enterprises, and many small, medium and micro enterprises are facing survival crises. The number of overdue loans and defaults on corporate loans has increased, which has increased the financial risk of the entire industry chain. The industry urgently needs to deepen the connection between industry and finance to effectively alleviate the financial pressure on enterprises and reduce the impact of the epidemic on enterprise production and operations.
The second is the profound adjustment of the industrial environment, and deepening cooperation between industry and finance is an objective requirement to adapt to the changes. Facing an unprecedentedly complex industrial environment, we must identify trends from the chaos and find new opportunities amidst the changes. On the one hand, there is a profound adjustment of the production pattern: global value chain cooperation is under pressure; on the other hand, there is a profound adjustment of the market pattern: sluggish global demand has become a long-term phenomenon, and the importance of domestic demand has increased; on the other hand, there is a profound adjustment of the factor pattern: technological innovation has become a core variables that determine industrial development. The industry must��Project protection. First of all, “focusing on industry and strengthening the main business” is the fundamental reason for the successful implementation of the reorganization. Secondly, “standardized governance and precise management” are important bonus points for the smooth passing of the reorganization meeting. Furthermore, “sound and pragmatic operations” are an important basis for the rapid advancement of restructuring. Finally, “taking the initiative to seek opportunities and proactively plan for things” is the key guarantee for the success of reorganization.
Through this reorganization, the market value of Huafeng Spandex has increased significantly, and the company’s visibility and activity in the capital market have increased rapidly. As the capital market continues to mature, companies with large market capitalization due to industry Status, liquidity, safety margin, etc. enjoy additional valuation premiums, which can increase the company’s ability to resist risks and cycles, optimize asset structure, and enhance profitability and sustainable development capabilities. From the leader in the spandex industry to the leader in the global polyurethane products and materials industry It has developed by leaps and bounds, so this asset reorganization has extremely high strategic significance for the company.
Finally, Duan Xiaoping said during the annual work report of the Board of Directors and Secretaries Association and the summary of this meeting that from textile and clothing Judging from the first quarter reports of listed companies in the industry and recent surveys on resumption of work and production, the overall situation is better than the industry average.
At present, there are nearly 600 listed textile and apparel companies listed (or listed) on my country’s domestic capital market, including dozens of companies participating in the meeting today. The textile and apparel sector has become an important sector that the capital market focuses on. As leading companies in various fields, they not only practice green, technological, and fashionable development in the industry, but are also the vanguard of innovation and excellence. Their benchmarking, advanced experience, and development model are of great significance in promoting the optimization of industrial structure and realizing transformation and upgrading. Significance.
In 2018, China Textile Federation released the “Three-Year Action Plan for the Integration of Industry and Finance in the Textile Industry”, which includes promoting the listing of textile companies, maintenance and refinancing of listed market value, and industry mergers and reorganizations. As a key task of industry-industry cooperation. And the division of labor has been carried out within China Textile Federation. China Textile Asset Management Co., Ltd. is specifically responsible for promoting the services related to the listing of enterprises, and the China Textile Planning Research Association is specifically responsible for the investment value analysis, market maintenance and refinancing related services of listed companies. China Textile Enterprise Management Association is responsible for bank loans, bonds, leases, bills and other related services. Judging from the current situation, all work is generally carried out smoothly and certain results have been achieved.
Among them, in promoting IPO financing. In accordance with the requirements of the three-year action plan, China Textile Federation has recommended a total of 50 companies to the China Securities Regulatory Commission, Shanghai Stock Exchange, and Shenzhen Stock Exchange, and released three batches of lists. Among them, 9 companies have successfully passed the listing, all of which are among the top ten companies in the recommended list. The release of the list plays three roles: first, industry endorsement increases the credibility of review agencies; second, exchanges actively connect and win customers through the list, especially the Science and Technology Innovation Board and GEM; third, it is easier to obtain Series B and Series C financing raises valuation levels.
When summarizing the work of the League of Directors and Secretaries, Duan Xiaoping said that the establishment of a League of Directors and Secretaries of a listed company in the textile industry can be said to be the first of its kind among all industries in the country. First, it has played a positive role in strengthening experience exchange and cooperation with listed companies. The second is the annual development report of listed textile and apparel companies released every year, which gives a glimpse of the whole picture. Through this report, it is convenient to understand the current status and trends of the industry and become the basis for formulating industry development. The third is to cooperate with third-party institutions to develop a performance cooperation system for listed companies, tap the resources of high-quality listed companies in the industry, establish an industry model, and provide important reference for other companies.
At the same time, on behalf of the China Textile Federation, we put forward two suggestions for the work of the Federation of Directors and Secretaries: First, we hope to combine the “Comprehensive Performance Evaluation System for Listed Companies in the Textile and Apparel Industry Asys.16” ( (referred to as the A-Sai System) for a more in-depth comparative evaluation of valuations, which has greater reference value for listed companies. Second, it is hoped that in conjunction with market value maintenance, the reports of listed companies will more reflect the industry image and investment value. Only by improving the overall image of the textile industry can we better establish the image of listed textile and apparel companies, better improve the valuation of listed companies, and enable more textile companies to achieve IPO listings.
Starting domestic demand and internal circulation is a major opportunity for domestic products and domestic brands. This is precisely the innate advantage of our textile and garment industry, so we should seize such opportunities. It is expected that the China Textile Association of Directors and Secretaries will give full play to the role of friendship, exchanges, win-win cooperation, innovative development and contribution to society, jointly explore new innovative development paths for listed textile and apparel companies and study hot and difficult issues in the development process of the industry, in order to promote the health of the textile and apparel industry. Continue to develop and make new and greater contributions. </p
