Sino-Silver cashmere industry denies false increase in profits Dong says inventory is real

Recently, some media pointed out that the Chinese silver velvet industry (000982, shares bar) there is a "stock climbed suspected falsely increase profits", "3 export customers for the shell company", "5 domestic customers have a relationship or control relationship" and other seven questions.　　For media questioning, the Chinese and the silver velvet industry have given a clarification, and at the same time denied the company suspected of inflated profits. Chinese silver wool industry dong Chen Xiaofi yesterday evening to accept "securities daily" reporter interview, said the company and Third-party intermediary agencies have the company's domestic and export of the self-examination and verification.　　According to the results of the intermediary verification, the company's stock reserves are real, the export transactions are real, there is no virtual increase in export revenue and the actual control of domestic customers.　　Two factors lead to high inventory it is understood that the content of media questioning mainly includes the increase of the stock is suspected to be inflated profits, 3 export customers for the shell company, 5 domestic customers have relationship or control relations. For media questioning the authenticity of the stock in the silver velvet industry, and said that the continued increase in inventories may be one side in the profit statement of the virtual increase in profits, while the balance sheet to increase the difficult to assess the inventory, the company explained that at present, about 65% of the company's inventory has been pledged to the bank, for the company loans to the bank to provide collateral collateral.　　The loan bank verifies and confirms the authenticity and actual value of the subject matter of the company's pledge, and the company's stock reserve is real.　　The company said that as of the first half of this year's raw material reserves can meet the next 1.5 of the raw material demand. According to Chen Xiaofi, due to seasonal factors, the company's acquisition of Cashmere can only be between April to September, therefore, the company's inventory is generally based on about 1.5 of raw materials procurement.　　At the same time, the expansion of the company in the past two years has also led to an increase in stock. Customer Business Truth Media In addition to questioning the authenticity of the stock in the silver velvet, but also questioned the company Dongsheng International, China Digital, group Thai International and other 3 customer business authenticity. In this respect, the company explained that the three companies are Hong Kong-registered offshore companies, mainly engaged in entrepot trade. (Entrepot trade is a common model of international trade in which trade does not go directly between producer and consumer countries, but through third countries (transit countries/regions). In the process of entrepot trade, there is no transaction relationship between the producer and the consuming country, but the transit country/region is traded with the producing and consuming countries respectively, and the trade products are transported to the consuming country by the producer countries without the customs clearance in the transit country/region.　　Under this model, entrepot traders can enjoy preferential tax policies in transit countries/regions. On the sales of these three companies, Chen Xiaofi to reporters: "The three companies accounted for more than 12% of the company's total sales." Chen Xiaofi said that since the three companies are entrepot trading companies, the company will only need to send the goods to the port designated by the customer, and thereafter, the company is no longer responsible for this consignment.　　According to Chen Xiaofi, in order to improve product value-added, the company has been optimizing customer structure, ready to increase the proportion of end customers, reduce the proportion of middlemen. It is understood that at present, the end of the silver velvet industryCustomers include Uniqlo (excellent Uniqlo), Patagonia (famous American outdoor brand), Bloomingdales ' s (Bloomingdales department store) and so on. "Selling products directly to end-users will reduce this aspect of the middleman and increase the company's profits," he said. "There is an analysis of the industry, the media questioned the silver velvet industry because in the cashmere market continues to slump in the background, its earnings are still all the way red." According to the financial results of the Bank of China, from 2012 to 2008, the company's operating income is 2.43 billion yuan, 1.81 billion yuan, 1.18 billion yuan, 770 million yuan, 750 million yuan, the increase is 34.8%, 53.74%, 53.84%, 2.61%, and from 2012 to 2008,　　The company net profit is 280 million yuan, 170 million yuan, 77 million yuan, 39 million yuan, 36 million yuan, the increase is 67.91%, 117.66%, 96.93%, 9.58% respectively. For the company's performance, Chen Xiaofi explained to reporters that the company has been focused on the cashmere industry, there is no diversification, from raw materials to finished products, the company has been constantly adjusting to the industry. And the company's operation has also been recognized by customers, because of this, the company's major shareholders will pay, to invest 2 billion yuan to expand the scale. "This represents a bullish outlook for the global cashmere industry and firm confidence in the future development of the company," he said. "It is understood that the company 2013 Non-public offerings to major shareholders and Citic Securities (600030, shares bar) (12.75, 0.04,-0.31%) targeted to raise capital of 2.3 billion yuan." Among them, the company's major shareholders intend to subscribe to 2 billion yuan in cash for this private issue of shares. The company said that the Non-public offering is entirely from the major shareholders and Citic Securities, not the report said "the third time the hand of refinancing to the market."