Textile And Garment Exports Are Now Differentiated Due To Rising Exchange Rates.

< p > since the reform in 2005, < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > a target= "_blank" href= "target=" > clothing industry has been facing the impact of RMB appreciation on its performance.

Time flies, and time flies. Can the industry companies resist the risk of exchange rate changes? < /p >

< p > < strong > foreign trade enterprises generally bear pressure < /strong > < /p >.

< p > because the export dependence is large and the average profit rate is low, the negative influence of textile > a href= "http://www.91se91.com/news/" > garment industry < /a > RMB appreciation can not be ignored.

On the one hand, the textile enterprises need to consider whether the decrease of procurement cost is enough to compensate for the loss caused by the selling price of products. On the other hand, even if the decrease of the two products is similar, the appreciation of the renminbi will lead to a decline in the profit of Renminbi denominated by domestic enterprises.

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< p > according to the estimation of the relevant institutions, the value of the cotton textile industry will drop by about 12%, and the wool textile industry will drop by about 8%, and the garment industry will drop by about 13%, with an appreciation of 1%.

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< p > May 21st, Tan Yaling, director of the China Foreign Exchange Investment Research Institute, wrote on micro-blog's Sina blog that China's trade situation is relatively better at the time of the downturn, but it is not good or even worse than the stable period and the upward period.

This has great relationship with exchange rate, and the appreciation of RMB has really affected export trade.

More importantly, China's trade is mainly raw materials processing and processing. After the appreciation of the renminbi increases, the international market can not choose our products.

In addition, many foreign trade enterprises make use of short-term factors such as RMB settlement instruments and market interest margin to make use of regional and regional differences to make short-term profits, without taking into consideration the real needs of the real economy.

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< p > < strong > A leading stock "turn around" to avoid danger < /strong > /p >

< p > in the face of the risks brought by the appreciation of the "a href=" http://www.91se91.com/ "RMB > /a > to the export business, A shares a href=" http://www.91se91.com/news/index_c.asp "> clothing industry < /a > leading listed companies have been actively pforming gradually for many years, with less negative impact.

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< p > YOUNGOR (7.53,0.00,0.00%) (600177.SH) said in its 2012 annual report that the company divested part of its small profit export business and reduced its textile processing business, and achieved remarkable results in restructuring and upgrading its garment business.

According to the results, the proportion of clothing business accounted for 46% of the main business income, real estate development accounted for 54%.

Shanshan Group (13.66,0.00,0.00%) (600884.SH) also incorporated lithium battery materials and investment into the three main businesses in parallel with clothing. In 2012, the company accounted for 44.69% of the lithium battery materials revenue.

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< p > part a href= "http://www.91se91.com/news/index_c.asp" > textile industry < /a > listed companies are facing a more severe situation.

As an export textile enterprise, the performance of A (8.37,0.00,0.00%) (000726.SZ) in 2012 has dropped for the first time since its listing. In the annual report, the company pointed out that the company's export revenue accounted for more than 70% of the company's total revenue, and its products were mainly sold to the international market. Sales receipts were mainly based on US dollar settlement, and most of the machinery and equipment used by the company were obtained through import. When the exchange rate fluctuated a great deal, it had a negative effect on the export earnings of the company converted to RMB measurement.

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< p > < strong > small and medium-sized enterprises are in distress. < /strong > < /p >

< p > according to media reports, with the continuous appreciation of RMB, the trend of textile and garment production orders to large enterprises is obvious. The pressure on SMEs is increasing. The appreciation of RMB has little effect on small orders with short production cycle, but it has a significant impact on orders with a long production cycle and large orders.

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< p > > Tang Shuangshuang href=, "http://www.91se91.com/news/index_c.asp" > textile and apparel < /a > industry analyst, told reporters that facing the exchange rate risk brought by RMB appreciation, the pressure of textile and garment enterprises is still relatively large in general. "A"

In view of the appreciation of RMB, the main purpose of the company is to hedge foreign exchange. Although it has evaded certain risks, it has also suffered losses.

"Generally speaking, the appreciation of RMB is a problem, but it is not the biggest problem. The biggest problem is the rise in labor costs and the downturn in the overseas economy, mainly because of the demand."

Tang Shuangshuang said.

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< p > A shares listed companies as the industry leader, better than small and medium-sized enterprises, because the order price can be locked ahead of time, will generally take account of exchange rate fluctuations.

In the face of the rise in labor costs, the boss company takes measures such as setting up factories overseas to save costs. For example, Tang Shuang Shuang, "for example, to Southeast Asian countries such as Kampuchea and Vietnam, where labor costs are low, and because of domestic import cotton quotas, and importing cotton from there, raw materials and labor are all there, the cost will save a lot."

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< p > the pressure of small and medium-sized enterprises is relatively large. Tang Shuangshuang told reporters that "some enterprises have lost money but are still alive, basically relying on some export tax rebates to support them".

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