Last weekend I went to watch the recently popular “Walking on the Moon”, in which Huang Zitao played a popular star who became penniless after the “apocalypse”. In fact, many things are like this. The so-called value and value are under certain specific conditions. But now that the global environment is in recession, many things are worthless.
Cloth is not valuable
The most fundamental business of textile people is “selling cloth”, but this year’s cloth is really worthless. Originally, the profit from a piece of cloth might be 30%, but because business is not good this year and everyone is grabbing orders, other factories may quote 20%, and then some factories will quote 10%. Everyone competes with each other, and in the end no one makes any profit.
In the past, when the inventory of gray fabrics in weaving companies was high, they would grit their teeth and sell off the goods if they could no longer hold on. If they sold them at a loss, there would always be people in the market who wanted them. However, in this year’s situation, if the fabrics are not “fractured”, there is no way to think about it. Ship large quantities to clear inventory.
The factory is not valuable
Not only is the cloth worthless, but the factory is also worthless. Some time ago, the news that the former giant Sanfangxiang sold a printing and dyeing workshop made countless textile people sigh.
In the early years, printing and dyeing factories were always considered to be “hens that lay golden eggs.” Especially after the start of environmental protection rectification, a large number of non-compliant printing and dyeing enterprises were eliminated, and the market was once “overpopulated” with printing and dyeing enterprises. But in the past two years, the market has suddenly taken a turn for the worse. The Sanfangxiang printing and dyeing business suffered a loss of nearly 1,700 million last year, and the final selling price was only 3,000 span>Ten thousand yuan. According to industry insiders, the equipment in Sanfangxiang’s printing and dyeing workshop has only been updated in the past two years and is still very advanced. 300010,000 yuan may not be enough for the equipment cost.
Capacity is worthless
When the market is good, production capacity equals money. The editor remembers that in 2018 when conventional fabrics were the hottest, a water-jet loom could earn almost 100 per day just by producing polyester taffeta.100 span> RMB 1,000, a machine can be produced for almost one year. At that time, whoever had the production capacity was the most handsome guy on the street.
But in the current market situation, production capacity is a big mountain in a sense, which is a silent cost. The higher the production capacity of a company, the greater the pressure on its capital flow and sales. Therefore, more and more textile companies have chosen to reduce production capacity.
The more processed it is, the less valuable it is
According to normal circumstances, every time the primary product is processed, the added value will be added, but this is not the case now. Under the current circumstances, crude oil as the source is more valuable than chemical raw materials such as PX and PTA, and these chemical raw materials are longer than polyester. Silk is valuable, polyester filament is more valuable than gray cloth, and gray cloth is more valuable than fabric. The more it is processed, the less valuable it becomes.
Of course, the value here refers to the ability to monetize, because each time they are processed, the versatility of these products will decrease. Originally, a piece of polyester taffeta can be used to make clothes and pants, but after dyeing and finishing, After the fabric is completed, it may only be used to make a specific type of clothing, and it will be even more difficult to ship it.
The ability to make money is valuable
Then textile people would like to ask, what else is valuable at this time? Now, the ability to make a profit is what’s really valuable. For example, if a piece of cloth has its own special technology that other companies cannot imitate in a short time, then this piece of cloth will be protected from vicious competition from its peers, which makes it valuable. In other words, we have a good relationship with a previous customer, so we trust the company very much, and no one else can take the order away. This ability is also very valuable.
At this time, the way assets are calculated has also changed.
For example, the original output value of a factory was 1000 million, and the annual profit was 5%, and the annual profit50 million, and the bank interest rate at that time was 2.5%,From a certain perspective, the income this factory can bring is the same as 2000 cash deposited in the bank. But if the profit rate drops to only 2.5%, then the income becomes 1000 ten thousand cash deposited in the bank . If it turns into a loss, it will be a negative return, and it will be even more difficult in terms of asset evaluation, and the cost will become unimportant.
Therefore, when companies make decisions during this period, they should have similar thinking and realize what is truly valuable.
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