The recent turmoil in the textile market has been constant
1. Recently, the leading textile company Titan Shares updated its prospectus. This is the second IPO of Titan Shares. Titan, whose accounts receivable remains high and bad debt problems are increasing, is once again facing the challenge of going public.
2. According to the first-instance civil judgment recently announced by the Liaocheng Intermediate People’s Court, as of February 10, 2020, the defendant Qiuhua Textile Company owed the plaintiff Shanghai Pudong Development Bank Liaocheng Branch a loan principal of 29.9 million yuan, plus interest 245,168.82 yuan.
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This year, incidents such as arrears and bad debts and bosses running away have occurred frequently, bringing huge panic to the textile industry. It is now mid-to-late September. During the visit, many cloth bosses were worried about accounts receivable. One trader said worriedly: “Many of the balances this year are in arrears for half a year, and the balances of the orders received now are basically owed.” It won’t be paid until the end of the year, and it’s very difficult to get payment at the end of the year. This year, because everyone’s funds are relatively tight, they are worried about whether they will get back the final payment at the end of the year.”
Some cloth bosses are also worried. Orders were missed. “Although foreign trade is gradually recovering now, we still cannot relax, and the phenomenon of missed appointments still exists. The end of September to October is the time when foreign trade orders are issued intensively. The risk of doing business this year is too great. If you are not careful, your funds will be lost.” Trapped.” So, what is the financial situation of weaving mills and traders now?
Orders have decreased, profit margins have shrunk, and corporate funds are tight
For most trading companies that make finished products Generally speaking, the company’s profit margin is about 10% to 20%, almost below 10%. The person in charge of a foreign trade company revealed: “The current net profit is only about 5%, last year it was 10%, mainly this year’s orders There are few, and customers have been lowering prices.”
The situation of factories this year is even more unsatisfactory. The profits of gray fabrics are basically below 10%. A manufacturer of peach skin velvet said: “This year Our profits are very low, basically only 0.05-0.1 yuan/meter. In the past, there were profits of 0.2-0.3 yuan/meter. There are also some gray fabrics that are sold at a loss in order to collect funds.” In addition, a manufacturer that makes orders He also said: “This year’s single-machine profit is around 200, which is about 100 yuan lower than the same period last year.”
Whether it is a trader or a factory, this year’s profit has a clear downward trend, but every month However, the rigidity has not changed much. The trading company’s monthly rigid expenditure is not bad. It only needs to pay the workers’ basic wages and water and electricity bills. A small trading company revealed: “A month’s water, electricity and salary expenses are about 6,000.” The factory’s monthly rigid expenses are much more, including raw material expenses, workers’ wages, water and electricity bills, etc.
“If you don’t count raw materials, our monthly expenditure is about 60,000 yuan.” A factory with 60 looms said.
A manufacturer with 150 employees revealed: “The usual monthly rigid expenditure is 1.5 million yuan, including factory rent, employee wages, five insurances and one housing fund, depreciation of machinery and equipment, water and electricity bills, and taxes. Wait.”
With so much rigid expenditure, but the profit point is so low, this year’s cloth boss said helplessly: “The goal this year is to stay alive, not to make money. We are very satisfied to be able to feed the workers. ”
The money is either in the books or in inventory
But in fact, for many cloth bosses In fact, it is not that there is no money, but part of it is on the books and part of it is pressed into inventory.
At present, the inventory of many manufacturers on the market has reached a high level of more than 2 months, occupying millions or even tens of millions of funds. “The most critical issue now is how to monetize the inventory. This year Orders have shrunk by 60% in the first half of the year, and the future is still very uncertain.” said a factory that makes four-sided bombs.
Many brands such as Nike and Ralph Lauren are now reducing their autumn and winter orders, which has resulted in the delivery of autumn and winter fabrics being less than expected. According to a trading company, “Our last company stocked up a few The frequency of orders for cotton-padded jackets and down jackets in a warehouse has also begun to decrease due to mispredictions about cold winters in previous years. I am afraid that orders for autumn and winter this year will also be greatly reduced.”
From Judging from the current market inventory, some manufacturers have reduced their inventories in September, but the inventory of the entire industry is still at a high level, and the recovery of foreign trade demand is not as expected. Many clothing and home textile brands are reducing stores, adjusting production plans, and investing in fabrics. Procurement is also more cautious. Therefore, there is still a big doubt whether the inventory in the second half of the year can be converted into funds.
In addition to the fact that inventory is difficult to cash out in the short term, Boss Bu has generally reported that the billing period has become longer this year, and there are cases of arrears. A trader revealed: “The billing period is now between 3-6 For months, it is not uncommon to default on payment. At present, 30% of the receivables have not been received. Although customers do not intend to default, if customers default like this, our capital flow will be in trouble. It is very likely that Will face suspension of production and bankruptcy.”
Due to the epidemic this year, the entire industrial chain has experienced both prosperity and loss. Whether it is weaving factories, traders or clothing The company is very short of money, which has also resulted in this year’s payment period being longer than in previous years. “We are very worried about whether we will be able to return the goods at the end of the year, and are most afraid of bad debts, but there is no way. In this situation, very few can pay in full. Clear. “A weaving factory owner said helplessly.
Afterword
Companies develop by profits, but they survive by cash flow. For most companies, this year is not a good year for development. In order to survive, we must pay more attention to the company’s cash flow. The deterioration of the general environment, the impact of the epidemic, etc. are external factors that companies themselves cannot change. At present, all companies can do is control inventory and choose reputable partners. Ensure the healthy operation of funds.</p
