China silver velvet Industry says inventory increase system meets raw material demand

After being questioned by the relevant media, the Chinese bank cashmere industry disclosed the stock problem that investors generally cared about in the clarification announcement. The Company believes that the reason for the company's continued increase in inventory reserves is not as described in the report, "one side in the profit statement of the virtual increase in profits, while on the balance sheet to increase the difficult to assess the inventory," and to meet their growing raw material needs. The company explained that cashmere is scarce resources, production is scarce, and cashmere has a one-year production of natural characteristics, cashmere procurement is mainly concentrated in April-September each year, procurement season, the market is difficult to buy at any time to match the demand for a large number of suitable cashmere. At the same time, the export of cashmere yarn and products orders are usually in the annual autumn and winter and the next spring season, due to the cashmere procurement season and accept orders, production and sales there is a lag, the company each year to purchase enough of the original velvet to ensure that sales orders signed and locked its own raw material costs According to the sales contract signed at the end of last year and the customer's intention, the company expects the sales of cashmere yarn and products will continue to grow steadily. Therefore, the company gradually increase the amount of raw material procurement to meet the growth of the business scale of raw materials demand increased, inventory size increased year by year. The reporter learned that cashmere as an inventory of the innovative model of mortgage loans, but also by the relevant bank support. At present, about 65% of the company's inventory has been pledged to the bank for the company's loans to the bank to provide collateral guarantee. In this case, the loan Bank shall verify and confirm the authenticity and actual value of the subject matter of the company's pledge, and the company and the bank, as well as the corresponding third party inventory regulator, have signed the three-party inventory supervision Agreement to ensure the three parties ' confirmation of the authenticity of the inventory and the supervision of the pledged stock. The company also disclosed the specific quantity of inventory, as of June 30, 2013, the company's original velvet, washed velvet, no plush stock of 1716 tons, 1162 tons, 1899 tons, raw material reserves can meet the future of about 1.5 of raw material demand. The announcement disclosed that the company is operating normally, is expected 2013 1-September cumulative net profit of 280 million-300 million yuan.