China Silver Cashmere Industry Shifted Its Focus To Downstream Industries.

(000982, share bar) to implement the rights issue, with the total share capital of 556 million shares as the base of the stock registration day after August 27, 2012, and 3 shares for every 10 shares, the total amount of the allotment shares can be 166 million 800 thousand shares, and the estimated amount of funds raised is not more than 650 million yuan, which is currently in the payment period.

The rights allotment fund is used in the company's "multi component special textile high-grade textile spinning technology pformation project" and the repayment of short-term bank loans. This not only helps the listed companies further improve the industrial chain, but also optimizes the company's financial structure, laying a good foundation for the performance of the Bank of China's cashmere industry.

Unique advantages of the whole industry chain

According to Ma Shengguo, chairman of the Bank of China's cashmere industry, China silver cashmere industry is currently the largest cashmere raw material acquisition company in China. After the private placement was completed in 2011, the company's share in the raw silk market increased to 50%-60%, indirectly controlling 40% of the world's raw materials, and had a certain say in the international market.

At present, the cashmere industry has reached 5000 tons of annual cashmere raw materials, 3500 tons of washed wool, 1100 tons of wool, 1100 tons of cashmere, 300 tons of cashmere, 1420 tons of cashmere yarn, 260 tons of worsted cashmere yarn and 1 million 500 thousand pieces of cashmere sweaters.

Data show that cashmere

The main production processes of the products processing industry include: first, the goat's velvet is produced into washable wool after sorting and washing process; secondly, after washing and washing, it is produced into wool free after processing, and third, no wool is used to produce woollen cashmere yarn, and woollen cashmere yarn can be used for cashmere products production such as cashmere sweater. Fourth, no fuzz with high length and fineness can be processed into velvet strips, and further worsted yarns and cashmere fabrics are used for the production of high-grade cashmere products.

Ma Shengguo said that the cashmere industry is focused on the production and sale of cashmere textiles and products. It is the only listed company in China that covers the upstream and downstream industries of cashmere raw materials acquisition, production and processing, terminal sales and so on. It is a state-level export industrial product approved by the AQSIQ.

The company can make full use of the product structure advantages of the whole industry chain, and enjoy the added value of different links in the industrial chain, so that it can better control and reduce the cost than the single product manufacturer.

At the same time, the company can better adjust the proportion of production and sales of different products according to market demand, adapt to market changes quickly and maximize profits.

Shift the focus of business to downstream

In analyzing the development trend of cashmere industry, Ma Shengguo said that with the gradual development of cashmere industry in China, the growth mode of "relying on scale growth but lacking product added value" has been limited by resource constraints because of the export of raw materials and processing.

Domestic cashmere enterprises are no longer satisfied with the export of raw materials and processing for foreign brands. They begin to gradually improve their technological content and develop cashmere products with their own brands, extending to the downstream of the industrial chain.

According to Ma Shengguo, in recent years, the cashmere industry has gradually adjusted its focus of operation and strengthened the development of downstream products.

The center of gravity of the product structure is pferred from cashmere and velvet strips with lower added value to cashmere products in downstream downstream processing such as yarns and garments with higher added value.

In 2009, the cashmere industry "1 million annual cashmere sweater technical pformation project" completed production, the company cashmere sweater production capacity of 1 million 500 thousand pieces; in 2010, the company set up the Shenzhen branch, responsible for cashmere yarn sales business, with the help of raw materials and brand advantages, the business growth significantly.

In 2011, the operating income and net profit of cashmere industry increased significantly, of which yarn and clothing sales accounted for a relatively large proportion, and the effect of product structure upgrading has been gradually reflected.

Ma Shengguo said that the cashmere industry currently has its own brand, Philosofie, as well as its overseas well-known brands "Todd & Duncan" and "Brown Allan".

Among them, Philo Sophie (Philosofie), as the brand of domestic cashmere products, began operation in 2007 and has become an important part of the domestic sales network construction.

"Todd & Duncan" is the long term yarn brand of subsidiary Duncan Ltd.

Brown Allan, which is located in high-end cashmere products, has not yet been promoted.

Next, the cashmere industry will further promote the adjustment, optimization and upgrading of the product mix, increase the production capacity of the worsted yarns, and master the production capacity of worsted and worsted blended yarns, and further expand the yarn sales market.

At the same time, the overseas sales channels of cashmere clothing and products are expanded and strengthened.

And the domestic network construction of products, enhance brand awareness and enhance the sales ratio of private brands.