Textile And Garment Performance Differentiation Upstream Enterprises Fell Significantly

The three quarterly performance of textile and garment industry is divided.

As of October 30th, the three quarterly bulletin of 51 textile and garment enterprises, 1 to September net profit rose 22, down 29, the performance of the last year's decline in the upper and middle reaches of the majority of textile enterprises, and brand clothing enterprises performed slightly better.

In the background of slowing down external demand and RMB appreciation, the fundamentals of textile and garment industry this year are not optimistic.

The current data show that 51 textile and garment enterprises achieved a net profit of 1 billion 497 million yuan in the first three quarters of this year, a decrease of 11.57% compared with 1 billion 693 million yuan in 2007.

In addition to the overall net profit decline, the main business revenue growth of textile and garment companies also declined.

Data show that the main business revenue of the 51 Enterprises in the first three quarters was 44 billion 372 million yuan, which was basically the same as that of the same period last year. The average main business revenue increased by about 8%. Compared with 2006, the average main business income increased by about 14% in 2007, and 19 businesses in 51 companies declined.

At the same time, the company's performance has been divided, and the performance of textile enterprises in the upper and middle reaches has declined significantly.

At present, the 51 companies announced three quarterly reports, 1 to September performance fell 27 enterprises, a total net profit of 274 million yuan, compared with the same period last year was 1 billion 279 million yuan.

Among them, due to the decline in gross profit margin, mxinda, black peony and other profitable companies in the first three quarters of last year saw a loss in the same period this year. In addition, nearly 10 listed companies in the upstream and downstream companies including Jinying and Huasheng share companies decreased their net profit in the first three quarters from 83.8% to 23.8%.

Analysts believe that in the environment of slowing down external demand and soaring costs, the upstream textile enterprises generally lack bargaining power, the industry boom has been declining and gross margin has declined, which has affected the company's performance, while the export tax rebate increase can only bring short-term subsidies, but it is difficult to improve the overall operation.

However, some large textile enterprises or brand clothing enterprises can still maintain.

In the first three quarters of the year, 22 companies, which rose from 1 to September, achieved a net profit of 1 billion 223 million yuan, compared with only 413 million yuan in the same period last year. Among them, the leading textile industry and the brand clothing industry were the majority, for example, Lu Tai, Fu Tian shares, seven wolves, Kai Kai industries and other enterprises were among them.

The net profit in the first three quarters of the first quarter was 447 million yuan for all textile and garment industries, and its net profit grew by 36% over the same period last year, but its main business revenue grew by only about 2.6%.

Analysts expect that under the background of the downturn of the textile industry, textile enterprises with export pricing power and larger export proportion can enjoy some preferential treatment from the adjustment of the export tax rebate rate, but their growth rate will decline.

As for the brand clothing listed companies that are currently able to perform, their performance will also be differentiated when the consumption expectation slows down.