How are the financing costs of textile industry profitable?

Summary:

Tax cuts and losses, textile companies feel how?

Survey background:

Since last year, from the central government to local governments, various measures such as tax cuts and fee reductions and factor cost reductions have continued to intensify. From January to March, the cost of main business income per 100 yuan of industrial enterprises above designated size was 85.25 yuan, a decrease of 0.15 yuan year-on-year. How do you feel about textile companies?

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Textile companies feel:

In the survey, the reporter requested the surveyed companies to rank the cost burden, and almost all of the labor costs were among the top three. How high is the labor cost? Song Dewu, chairman of Jilin Chemical Fiber Co., Ltd., for example, Jilin Chemical Fiber has 11,150 employees and the average annual labor cost is over 70,000 yuan per person.

In addition, Song Dewu said that in some regions, industries, there are even speculations on raw materials, speculators are more, but the recent control efforts can also be. “Part of the burden is mainly on raw materials transportation. The downstream industries of textile raw material production are mainly concentrated in the south.”

Is it desirable for a textile company to come out of its own way?

Survey background:

Zhao Changwen, head of the Industrial Economics Research Department of the State Council Development Research Center, said that the financial and real estate industries have high profit margins, and imbalances in the structure of industry remuneration have created a siphon effect, causing various innovation factors and production factors to escape the real economy and entering these areas. It is necessary to raise the profitability and attractiveness of the real economy through comprehensive measures such as reducing costs, improving quality, and optimizing the market environment.

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Textile companies feel:

"More than 10,000 people can't rely on real estate to maintain." Song Dewu does not intend to invest in real estate. "We are now the world's largest producer of acrylic and rayon, and national industry needs old state-owned enterprises. Manufacturing industry should focus on the industry and lay a solid foundation." , speed up the upgrade, adapt to grasp and lead the new normal."

Is the problem of "financing difficult" solved by textile enterprises?

Survey background:

Whether or not the commercial bank’s loan funds are invested in a reasonable structure determines, to a large extent, the efficiency of the financial service entity economy. Qiu Zhaoxiang, professor of the University of International Business and Economics, believes that current commercial banks should base themselves on revitalizing the real economy, invigorate the loan resources deposited in zombie enterprises and inefficient areas, and invest them in the real economy that meets the major national and regional development strategies.

Textile companies feel:

Tianfu Sanyue is a clothing company that focuses on style design and fabric research and development. It closely interacts with many international fashion companies and is developing a production base in Southeast Asia. Trading space continues to expand. However, the identity of private enterprises, the integration of trade and industry, and the simultaneous growth of funds have been superimposed. There is a certain degree of difficulty in financing. “We are advancing with the banks, but the financing methods are mainly mortgages of real estate, guarantees of related companies, and the number of procedures and the lengthening of time will increase the difficulty.” Chairman Ma Weimin suggested that relevant departments and agencies have a rigid demand for such consumer industries, especially autonomy. Companies that design, develop and enter the international market will be financially supported.

"The situation of state-owned enterprises in financing is slightly better, and it is even more difficult for private enterprises." Song Dewu, chairman of Jilin Chemical Fiber Group, also introduced that because it is a listed state-owned enterprise, it can also obtain equity financing in addition to loans to state-owned and commercial banks. However, in recent years, competition in the textile industry has become increasingly fierce. The process of corporate differentiation and internationalization has become more pronounced. The stronger the stronger, the weaker the weaker. Although financial costs are not the most pressing issue for Jilin Chemical Fiber, it is difficult to obtain financing before 2016. “This year has improved.”

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Has the profit of textile companies improved?

Survey background:

From January to March this year, the total profit of industrial enterprises above designated size in China increased by 28.3% year-on-year, and the growth rate dropped by 3.2 percentage points from January to February. Statistics professionals analyzed that the main reasons for the decline included rising raw material prices faster than product prices, lower earnings for related industries such as coal, petroleum and steel, and higher profit margins for the same period.

However, on a year-on-year basis, the profit rate continued to rise, and the profit growth structure was optimized. The proportion of the mining industry and raw material manufacturing industry declined, and the proportion of consumer goods manufacturing and equipment manufacturing industry increased. Facing the differentiation of production profits between different industries and enterprises, the key is to focus on industrial transformation and upgrading, form an industrial system with sustained competitiveness and support, and promote the formation of a new structure of strategic emerging industries and traditional manufacturing.

Textile companies feel:

"The real economy's money is not profitable. We are a traditional industry. The textile industry is relatively competitive. Basically, all factors are market-oriented. Earlier, the gross profit margin was only 7% to 8%." Song Dewu, Chairman of Jilin Chemical Fiber Co., Ltd. introduced , not profitable in previous years.

From 2014, the company adjusted its production pattern according to market demand. More than 1,200 tons of carbon fiber, more than 2,000 tons, more than 4,000 tons of carbon fiber, this year is expected to exceed 8,000 tons. With the increase in the proportion of emerging products, gross margins have been above 10% in the past three years and 13% in 2016.

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