Fynex Textiles:Three advantages against industry pressure
The material "roller coaster" market has brought greater pressure on the company's operation, the company timely cotton and cotton yarn overall supply and demand assessment, appropriate control of inventory.
At present, most of the textile and apparel listed company's performance has been disclosed. As far as the key companies have already announced the results, the overall performance is slightly below expectations. Reporters also carefully read some of the textile listed company dense text and data, obtained valuable information from the annual report.
As a famous local sports fabric suppliers in Jinjiang, Fengzhu have a strong R & D foundation. As in the printing and dyeing industry benchmarking enterprises, high-tech is perhaps the "breakout weapon Fengzhu textile". Fujian Fengzhu textile Polytron Technologies Inc in 2011, total revenue reached 941 million yuan, 924 million yuan compared to last year increased by 1.82%. The new year, in the face of difficulties and pressures, the company managers will take active measures to cope with the challenges, do the preparatory work, in 2012 the company's operating target for the operating income of 1 billion 81 million yuan, operating costs 1 billion 27 million yuan.
Three advantages against industry pressure
Reporter: how about the current operation of the company? What is your position in the industry?
Shi Jinping: the company listed at the beginning of the main business income of 345 million yuan, net profit of 37 million 730 thousand yuan, the total assets of 596 million yuan, net assets of 531 million yuan, after several years of development, as of the end of 2011, the company's main business revenue reached 935 million yuan, the total assets of 1 billion 234 million yuan, net assets of 607 million yuan, the company has reached the world advanced production equipment the level of water, electricity, gas, sewage treatment and other infrastructure facilities in Fujian Province, hundreds of key industrial enterprises, the national large-scale industrial enterprises and the national Torch Plan key high-tech enterprise, national innovation oriented enterprises, for 7 consecutive years won the top ten enterprises China knitting industry competitiveness.
Reporter: by the current economic downturn, weak external demand, high cost of impact, the textile industry as a whole has been greatly affected, the company has any competitive advantage can be invincible?
Shi Jinping: the company has a clear competitive advantage in technology, capital and environmental protection, in terms of technology, the company is the national and industry standards, has a state-level enterprise technology center, with high technical level, long process of dyeing and finishing industry complex process requirements, to adapt to the competition of deep processing, high technology and high added value the situation; in the capital, the dyeing and finishing industry of advanced technology and technical equipment of the large initial investment, scale benefit. Companies with good reputation, with patency of the direct and indirect financing channels, to protect the company's business development; in the aspect of environmental protection, the dyeing and finishing industry water consumption large amount of water pollution is serious, and countries around the world and have higher environmental requirements for textile industry. Production and operation of the sewage treatment indicators are much better than the national emission standards.
Plan to expand the upper and lower reaches of the industrial chain
Reporter: the company is located in the traditional industries, affected by the various larger, whether the company has invested in the industrial chain upstream and downstream plans?
Shi Jinping: the textile industry is a traditional pillar industry of China's national economy and an important livelihood industry, the international competitiveness of industries, plays an important role in the prosperity of the market, expanding exports, creating jobs, increasing the income of farmers, promote the development of urbanization. The company is a high-tech enterprise mainly engaged in knitting, dyeing and finishing, finishing and high-grade knitting fabric production. It is committed to becoming the leader of high-grade knitting fabrics all over the world. The company independent innovation, technological transformation, eliminate backward, optimize the layout as the focus, to promote structural adjustment and industrial upgrading, to consolidate and strengthen the leadership in the dyeing and finishing industry, promote the company's transformation from large to strong.
Reporter: does the company have an expansion plan in the upper and lower reaches of the textile industry? What other investments are there in the company?
Shi Jinping: the company is the core business of the company in three dyeing factory headquarters, also equipped with weaving factory, dyeing mill, sewage treatment plant. In addition, we have a wholly-owned subsidiary of cotton spinning in Jiangxi and Shandong with 100 thousand spindles. In addition, the company also invested in Shanghai Xing Ye Venture Capital Co., Ltd. 30 million yuan, accounting for 10% of its shares.
Multiple strategies to resolve business problems
Reporter: in the current economic situation, what are the main problems in the management of the company, and what measures have been taken?
Shi Jinping: 2011 is a tough year for the textile industry as a whole. Faced with the severe industry of textile industry in 2011, the operation performance of the company has been greatly impacted, and the revenue growth is not obvious. 2011 was the most difficult year since the company went public. First of all, with cotton and cotton yarn as the representative of the raw material price volatility, "roller coaster" market has brought great pressure to the company, from March to early August to high prices, low prices, fell more than 40%, the company procurement and production risk reserves required cotton increases, while the market wait-and-see attitude strongly affect the normal production orders, resulting in sales are sluggish, inventory increased, increase profit and capital occupation. For this reason, the company has taken corresponding measures in a timely manner to assess the overall supply and demand of cotton and cotton yarn, and to appropriately control the amount of inventory. Secondly, in the case of the company actively opening up export orders, the RMB continued to appreciate, to a certain extent, squeezed the profit margins of export orders. To this end, the company and the bank signed a long-term settlement agreement, locking export revenue to increase foreign currency liabilities, increasing imports of raw materials, the use of export credit insurance policy to increase the export trade financing, reduce the RMB appreciation of the public