Number of textile enterprises in 2011 annual report recently released, for different factors, there is a general decline in corporate performance.
Huafang shares disclose the 2011 annual report on the 10th, last year a profit of 15.5242 million yuan, down 23.18% year-on-year; deductions and the main business is unrelated to non-recurring gains and losses, the company is “twisting surplus to deficit”, loss 12.2359 million yuan.
Prior to this, the world’s largest cotton spinning enterprises Weiqiao Textile announced last year net profit of 246 million yuan, down 84.9% year-on-year; the performance of the ST of cotton, Shandong Ruyi and other textile enterprises have declined.
This is subject to domestic labor costs, raw material prices rise, the textile companies are currently subject to domestic labor costs, financing costs rise, and raw materials last year fluctuations are frequent, mainly cotton.
The slow global economic recovery, the European debt crisis and other negative factors, the needs of the international textile and apparel market is in downturn. In Southeast Asia, the cost of textile enterprises is lower than China, also brings great impact on the entire industry.
The international environment is not good, now the Chinese cotton textile products’ prices are high, in particular, Vietnam, India, where labor is cheap, the same count of cotton yarn, the price is at least one thousand cheaper.