Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News More than 90% of products may become inventory, and there is no retaliatory rebound! Huafu and Luthai both suffered hundreds of millions of losses!

More than 90% of products may become inventory, and there is no retaliatory rebound! Huafu and Luthai both suffered hundreds of millions of losses!



When the rainy days are long, the warm wind feels hot. In the midsummer of 2020, the natural seasons are changing as usual. The “climate” of the textile industry is much drab. Since work resumed aft…

When the rainy days are long, the warm wind feels hot. In the midsummer of 2020, the natural seasons are changing as usual.

The “climate” of the textile industry is much drab. Since work resumed after the New Year, the gray fabric workshop of Nantong Yongshang Textile Co., Ltd. has only opened one shift every day. “It’s definitely too much to digest.” According to the company’s chairman Gu Xuchun, under the normalized prevention and control situation of the domestic new coronavirus epidemic, the “frost period” brought by the epidemic to the industry will last for a long time.

“It is obvious that customer inquiries this year are not as frequent as in the past.” Zhang Xiuhong, general manager of Nantong Qingyu Feifei Textile Co., Ltd. said, “If the downstream can not take the goods, they will not take it. I’d rather wait for the goods.” After resuming work, the company received orders at the end of April, and all subsequent production and operations had to be spent in the unknown.

As the main raw material for gray cloth weaving, the price of cotton yarn has been falling deeply after the Spring Festival. Taking 32-count carded cotton yarn as an example, transaction data released by the China National Textile and Apparel Industry Federation show that in early July, its sales price per ton was about 18,650 yuan, a drop of more than 600 yuan from the beginning of April.

“The global epidemic has led to the cancellation or withdrawal of textile export orders, and textile factories have accumulated a large amount of inventory.” Chen Xiaojin, director of the Economic Development Bureau of Shuangdian Town, said that the pessimistic expectations for the industry have not changed. It will be difficult for the market to move. More than 30 enterprises above designated size and more than 100 small and micro enterprises in the town’s textile industry have all resumed work since April. He believes that the problem of insufficient orders will continue to exist after the resumption of work, which is a bigger problem.

“In Dieshiqiao, few out-of-town customers come and few old customers go.” Gu Xuchun said that Rudong’s textile industry has long been backed by the Dieshiqiao market. At present, the first-level The market is still recovering, and the secondary and tertiary markets below are not fully operational. He asserted, “There will be very few new orders placed this year, and more than 90% of products will become inventory.”

Zhang Xiuhong’s estimate is more optimistic. She calculated that as the epidemic prevention and control situation stabilizes in the later period, it may not be a problem for the company’s sales to reach last year’s 33 million yuan, but profits will undoubtedly be spread very thin.

The resumption of work has been delayed again and again, the supply of raw materials is not available, logistics is delayed, workers are struggling to get in place, and orders are suddenly depressed. At the beginning of the new year of 2020, the sudden spread of the new coronavirus pneumonia epidemic hit textile companies hard. What’s even more difficult is that companies in trouble still have to maintain the necessary dignity at a certain cost.

“There are fewer orders, but the management staff have to be paid, and the piece-rate workers have to pay no matter how little they do.” Yan Lipei, secretary-general of the Chahe Town Textile Association, said that in In addition to these expenses, we should also note that 80% of textile companies have loans, and the interest rates are also quite stressful.

Gu Xuchun believes that lost time is also an irreparable price. Cloth is just an ordinary daily necessities. Even if the impact of the epidemic weakens, suppressed consumer demand cannot be released, not to mention that a company’s production capacity is basically fixed. “Retaliatory rebound does not exist in our industry.”

In the first half of the year, except for non-woven fabrics, the scale The losses of the above textile enterprises reached 32%!

With the steady advancement of normalized epidemic prevention and control, the production of the textile industry has gradually recovered, and the decline has continued to narrow. According to data from the National Bureau of Statistics, from January to May, the industrial added value of the national textile industry above designated size decreased by 8.2% year-on-year, and the growth rate was 11.8 percentage points lower than the same period last year, but it rebounded by 3.1 percentage points from January to April this year. The growth rate turned negative to positive for the first time. Among all links in the industrial chain, the industrial textiles industry maintains a high-speed lead. The industrial added value from January to May increased significantly by 50.7% year-on-year, which was 58.9 percentage points higher than the growth rate of the entire industry. Affected by shrinking terminal demand, the apparel and home textile industries saw industrial added value decrease by 12.8% and 10.6% respectively year-on-year. The industrial added value of the textile machinery industry decreased by 20.8% year-on-year from January to May, reflecting that industry investment confidence remains sluggish.

Among the major categories of products, only the output of non-woven fabrics achieved a positive growth of 2.5% year-on-year, while the output of other products declined. From January to May, the output of chemical fiber, yarn, cloth and clothing of enterprises above designated size decreased by 3.2%, 18.1%, 27.6% and 17.9% respectively year-on-year, and the growth rate was 16.2, 19.7, 27.4 and 17.5 percentage points lower than the same period last year respectively.

According to data from the National Bureau of Statistics, from January to May, the loss rate of textile enterprises above designated size reached 32%; the total asset turnover rate and finished product turnover rates were only 0.9 times/year and 10.4 times/year respectively, a year-on-year slowdown of 20.6% and 24.7% respectively; the ratio of three expenses was 7.3%, 0.3 percentage points higher than the same period last year.

Textiles place their hopes on the recovery of end demand, but clothing brands The story has become increasingly difficult to tell!

The first half of this year was a turbulent half for the textile and apparel industry. This crisis was ignited by the epidemic. It started with terminal brands and will also end with terminal brands. Many domestic midstream and upstream textile companies rely on orders from brands to survive. Production was hampered in the first quarter and orders dropped sharply in the second quarter. Currently, many textile companies have to cut back on food and clothing. Terminal brands have taken away most of the profits of the industry chain. In theory, their ability to resist risks is stronger and they should protect the middle and upper reaches of the industry. However, what we have seen is the collapse of one brand after another.load/News/image/2020/07/25/20200725091614704005.png”>

Lu Thai Textile Co., Ltd. (hereinafter referred to as “Lu Thai A”) on the evening of July 14 Disclosing the performance forecast for the first half of 2020, the company expects that the net profit attributable to shareholders of listed companies during the reporting period will only reach 120 million yuan to 160 million yuan compared with 411 million yuan in the same period last year, a decrease of 70.83% to 61.11%.

As for the main reason for the change in performance, Lutai A explained that during the reporting period, the company was affected by the epidemic and the number of customer orders decreased, and the company’s product sales declined, resulting in a decrease in net profit compared with the same period last year. A sharp decline.

Public information shows that Luthai Textile is the leader in China’s yarn-dyed fabric industry and the world’s largest high-end yarn-dyed fabric production base. The company was originally Lutai Textile Co., Ltd., a joint venture jointly established by Lucheng Textile and Thai Tailon Textile. It was listed on the Shenzhen Stock Exchange in August 1997.

Lu Thai Textile has a complete industrial chain from textile, dyeing and finishing, garment production to brand marketing, and has established holding subsidiaries in 8 countries: China, the United States, Italy, Japan, India, Vietnam, Cambodia, and Myanmar. 14, is an integrated industry chain, comprehensive innovative, international textile and apparel enterprise integrating R&D, design, production and marketing services.

Shandong is the main production base of Lu Thai Textile. The industrial chain includes spinning, fabric weaving, and garment manufacturing. It has the main production capacity of yarn-dyed fabrics and shirts. It is also the company’s R&D, design and management center. The Xinjiang production base is mainly responsible for cotton. Planting, purchasing, spinning and other businesses.

Lu Thai Textile takes advantage of Southeast Asia’s labor costs and has garment factories in Cambodia and Myanmar. Vietnam has formed an industrial chain layout for yarn, fabrics and garments, mainly because Vietnam’s textile industry is relatively advanced in Southeast Asia and can form industrial chain synergies with Cambodia and Myanmar’s garment manufacturing. </p

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/34461

Author: clsrich

 
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