Cotton Roller Coaster Resulted In A Loss Of 295 Million In Huafang Textile Last Year.

In 2011,

However, the A share market seems to have long ago failed to predict the performance of Huafang textile in 2011.

On the day of April 24th, the price of Huafang textile reached a new low of 1 years, closing at 7.41 yuan, or 49.57% in one year.

Huafang textile annual report 2011 shows that the total business revenue of the company's consolidated statements is about 1 billion 747 million yuan, the operating profit is about -2.89 billion yuan, the total profit is about -2.87 billion yuan, the net profit is about -3 billion yuan, the net profit attributable to the owners of the parent company is about -2.95 billion yuan, according to the company's total stock 315 million as the base, equivalent to the earnings per share -0.94 yuan.

Huafang textile said that due to the first and last attack of the industrial chain, the difficulties faced in 2011 should exceed that of the 2008 financial crisis.

In 2011, throughout the textile raw materials market, the entire textile industry showed a bleak look. Textile raw materials fell sharply from the peak of the beginning of the year, and prices of various products dropped even to 1/3.

Regardless of the domestic and foreign cotton market showing a sharp rise and fall of roller coaster pattern.

Data show that the price of grade 328 cotton rose from 27500 yuan / ton in early January 2011 to 31550 yuan / ton in 2011 March, up 14.73%.

Since then, with the increasing expectations of the new year's cotton production and the increasing risk of the international financial market, cotton prices have plunged rapidly, from the historical high price of 31550 yuan per ton in March to 19034 yuan / ton in August, and the fall has reached 39.67%.

In the late stage, with the introduction of the detailed rules for the state's temporary purchase and storage, cotton prices remained stable.

Subsequently, in May, cotton market remained weak, the market continued to decline, and the decline was huge.

Until late August, however, the price has dropped to less than 20 thousand, which has dropped by nearly 30% compared with the high value period.

Cotton price roller coasters make most cotton enterprises miserable.

Huafang textile is almost at a loss. The annual report shows that in 2011, the gross profit margin of the company's textile industry was -5%, a decrease of 19% over the previous year.

Among them, the gross profit rate of cotton yarn dropped to -9%, 28% less than that of last year.

Cotton business performance

The decline in the performance of textile enterprises is not an isolated phenomenon. In addition to Huafang textile, the performance of Wei Qiao textile, Shandong Ruyi (002193), ST de cotton (002072) and so on generally declined.

Prior to this, the world's largest cotton textile enterprise Weiqiao textile announced that the company achieved net profit of 246 million yuan last year, down 84.9% compared to the same period last year, and the performance of ST de cotton and Shandong Ruyi textile enterprises also dropped significantly.

Wei Qiao textile annual report 2011 revealed that the company achieved revenue of 15 billion 232 million yuan last year, down 14.8% from 2010, realized gross profit of 278 million yuan, down 90.3% compared to the same period last year, and realized net profit of 246 million yuan, down 84.9% compared to the same period last year.

ST de cotton predicted a loss of 115 million -1.2 billion in 2011 at the end of January. Yesterday evening, the company issued a revised performance report, saying that the total operating income of the company was 711 million yuan, and net profit loss was 98 million 949 thousand and 300 yuan, down 12.98% and 1612.88% respectively.

In 2011, the raw materials market really hit the whole textile industry, and the enterprises ceased production.

Huafang textile management believes that in 2012, the downstream orders have gradually picked up, but the instability and uncertainty of the world economic recovery are still rising. The global economy will enter a slow growth period of a longer period. The textile industry must face the slow growth of exports for a long time due to the shrinking international market and insufficient demand.

Huafang textile management said that textile enterprises must have a deep understanding that the rising cost of essential elements has certain inevitability and persistence. "The textile industry has entered the most critical period of pformation and upgrading.

Innovation is the soul and driving force to promote the upgrading of the industry, and will inject stronger vitality into the enterprise and industry.