The textile industry has encountered the “cold winter” in history!
According to the National Meteorological Observatory, with the arrival of La Nina, this winter will be colder than usual! So much so that some people said, “I might cry from the cold.” Not only that, due to the influence of La Nina, the fabric industry may also be frozen to tears. As my country’s traditional labor-intensive export industry, the fabric workwear industry accounts for a huge proportion of my country’s export trade. However, since 2015, due to factors such as slowing economic growth, exchange rate fluctuations, and high domestic manufacturing costs, my country’s fabric workwear exports have continued to decline. The situation is extremely bad. Therefore, there is constant news that major fabric workwear companies have closed down one after another. .
“Business is getting harder and harder” is almost the sentence has become the mantra of the bosses. “More than half of private enterprises are struggling… There have been difficult times in previous years, but never so sad,” the bosses said in their hearts.
It is not uncommon for bosses to run away. It is not uncommon for bosses to run away.
Lack of money has become a thorny problem now , without money, companies will collapse at will. Not long ago, with the news of the bankruptcy of “Xidelong” and the bankruptcy and reorganization of Jinjiang Minchao Shoe Company, people have lamented, what happened to Jinjiang Shoe Factory in recent years? For more than 20 years, Jinjiang has become “China’s fabric industry base” and “jacket capital” by relying on the shortcut of “starting as an OEM → switching to domestic sales → signing spokespersons and advertising to build the brand → store expansion → going public”. However, under this round of in-depth adjustments in the industry, Jinjiang has obviously reached a crossroads of transformation.
For Jinjiang enterprises, the main means of financing are banks and private Borrowing and listing financing, but currently these three approaches are not only full of obstacles but also turbulent. Most of the companies that ran away were unable to repay their debts as they matured, causing their capital chains to break. In today’s environment, most banks will keep their loan balances unchanged and will not add new loans to the footwear and apparel industry. Enterprises with a certain scale can still obtain bank loans, while more small and micro enterprises can only turn to private loans, but the interest rates have increased with the reduction of bank loans, with annual interest rates as high as 30%. During the current downturn in the footwear and apparel industry and shrinking profits, The risks of this financing method can be imagined. “Whoever’s capital chain is broken first will die first”, this has become a mantra in the fabric industry. The volume of orders has dropped sharply, labor and other costs have remained high, bank debt collections have become more frequent due to joint loans and joint guarantees, and the overall fabric and chemical fiber industry is in trouble. Following the bankruptcy or suspension of production of more than 20 large and medium-sized fabric and chemical fiber companies in 2015, several companies have fallen into debt crisis this year.
Sixty percent of companies are laying off employees
In fact, it is not just a large number of small fabric companies that are disappearing, Even large fabric companies listed on the A-share market are suffering from declining profits or even losses. According to Wind data, among the 36 fabric companies listed on the A-share market, 10 were at a loss in the first half of the year, with a loss ratio of more than 25%; while in 2010, only one fabric company suffered a loss. In the first half of 2016, the net profits of listed fabric companies also continued the downward trend of the previous three years, with net profits falling by more than 10% year-on-year.
在�According to the introduction, due to the overall decline in the overall situation of the workwear and fabric industry last year, large banks have set higher financing thresholds when evaluating the company’s capital and asset status, which has become an obstacle to the company’s development. . “If we can’t get money, the company’s progress will naturally slow down and fall into a bad cycle.”
In the context of negative export growth in the fabric industry, the Ministry of Industry and Information Technology proposed that during the “13th Five-Year Plan” period, the average annual growth rate of the industrial added value of China’s large-scale fabric enterprises should remain at 6% to 7%; fabrics The market share of exports of premium workwear must remain basically stable. The Ministry of Industry and Information Technology also bluntly stated in the “Fabric Industry Development Plan (2016-2020)”: The development of China’s fabric industry is facing the double squeeze of the “re-industrialization” of developed countries and the acceleration of industrial processes in developing countries. The progress in Asia and Africa is ongoing. The country’s labor cost advantage is obvious; the international comparative advantage of China’s fabric industry is weakening.
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