The main business of the sluggish sideline "drag" Hua Fang Textile net profit dropped 312% last year

Huafang Textile in the process of reorganization (600273. SH) Last night announced 2013 years of performance, following 2008, 2009, 2011 Operating Income and net profit "double drop" situation, Huafang textile 2013 again face revenue, profit both decline embarrassing situation, net loss amounted to 32.514 million yuan, year-on-year big drop 312%. Huafang Textile said, as the core business of cotton spinning enterprises, more than 70% of the proportion of the production costs, but because of "domestic and foreign cotton prices continue to be significantly upside down, textile enterprises, the cost of raw materials is obviously pushed high", this has been a meager corporate profits further crowding out, the main business is facing On the other hand, was Huafang textile high hopes of battery manufacturing, warehousing and other "sideline" also poor performance, operating income is lower than the same period of 39.36% and 32.69% respectively, to a certain extent, directly lower the overall performance of Huafang textile. The main business is weak, the sideline situation is not optimistic, the old cotton spinning enterprise, where is Fang textile road? The decline of cotton spinning industry almost from the beginning of 2003, Huafang textile performance has been in a relatively floating state. In addition to the first year of the company's main business year-on-year increase of 107.04%, there has been almost no rapid growth in the situation, and 2008 has been a succession of large diving performance. This has to do with the whole cotton spinning industry and even the textile industry's "Twilight" is not unrelated. According to the Ministry of Statistics, 2013 1 ~ September China's textile industry above the size of the increase in industrial value year-on-year growth of 8.6%, the growth rate fell 2% Year-on-year, showing a continued slowdown trend. But for large textile enterprises, especially cotton spinning enterprises, cotton price of internal and external difference is the real pain. As Huafang textile an executive to "the first financial daily" said, the entire textile industry is already depressed, the cost is still facing the double pressure of cotton price and artificial, "especially cotton price and international market is completely not in line, the difference is too big, the enterprise can not profit." In order to prevent the cotton price ups and downs, China since 2011 the implementation of the cotton temporary storage policy, by the Chinese Reserve Cotton Management Corporation is responsible for the stockpiling of cotton. This policy has played a significant role in stabilizing the cotton market, guaranteeing the market supply and protecting cotton farmers ' interests for some time. However, many of the textile enterprises interviewed told the "First financial daily", for enterprises, domestic and foreign cotton price difference in recent years has not been significantly improved, or even the trend of expansion. An unnamed textile enterprise executive bluntly, the domestic cotton price of the highest when more than 30000 yuan/ton, the recent price also more than 20000/ton, and the international market cotton price is not even 15000 yuan/ton, "The cost difference is too big." Ministry of Industry data also shows that since 2013, China's cotton prices in temporary stockpiling support has been maintained at 19000 yuan/ton, and the international market price difference maintained at about 4000 yuan/ton. In addition, the increase in labor costs has become a textile enterprise "unbearable weight." Above Hua Fang Textile executivesaid that the wages of workers in the past one or two years in the 1800~2000 yuan, but each year in the rate of more than 20%, now 3000 yuan a month is not necessarily recruit people. "Cotton prices and labor costs remain high, and many international orders have shifted to other regions." We have been waiting for this year to change the cotton from stockpiling to direct compensation policy, hoping to get some cushion. "The executive said. In addition to 2010, from 2007 to 2013, Huafang textile cotton yarn products and other textile main business income decline, the 2011 ~2013 year's decline is 15.54%, 20.12% and 4.07% respectively. The unknown side of the sideline in 2009, Huafang textile to increase the share of the way to obtain Jiangsu Power Tian New Energy Co., Ltd. 70% of the equity, the latter's main business is the development, production and sale of lithium iron phosphate power battery. Thus, Huafang Textile announced formally entered the field of new energy lithium. At that time, due to the stagnation of the main business, Huafang textile hope to expand the new energy business out of the mire, find new business growth point, and even put forward in this field bigger and stronger, and strive to "recreate a Hua Fang" idea. But the fact gave Huafang textile a heavy blow. Just one year later, Huafang textile in the 2010 Annual report announced that its lithium iron phosphate power battery operating income of 2.49 million yuan, the cost is as high as 5.988 million yuan, and six months later also announced the preparation of 8.14 million yuan for the transfer of the subsidiary responsible for lithium battery business-Hua Day company 70% Equity. But today, Huafang textile "sideline" ranks still include battery manufacturing, sewage treatment, warehousing and other industries. A person close to the textile industry in China, said the first financial daily, the current lithium iron phosphate battery of the entire market is not very mature, the entire industry is generally in a loss. "The main reason is because of its high price, the application cost is too high, on the other hand there are some technical problems, popularization is difficult." Huafang Textile does not have this technology accumulation and experience, before rushing into this field may be a bit too ' fashionable '. "The first textile network editor-in-chief Wang Qian also said that many textile enterprises to enter the new energy field of the trial some" make quick money "suspicion," or should be the main industry as the center to expand the relevant new business. " To Lutai Textile Co., Ltd. (000726. SZ) As an example, its cotton shirt fabrics mainly for the industry, while actively upstream and downstream extension, the industrial chain throughout the cotton planting, spinning, dyeing, weaving, finishing and clothing and other fields, has entered a benign development of the track. Hua Fang Textile, although ranked as the leader of domestic cotton spinning enterprises, but in recent years only the scale still occupy advantages, product grade, business management and other aspects have appeared relatively backward trend. "A few years ago when the market is better, we all fight scale, but Huafang textile primary product positioning has not been improved, product extension and deep excavation did not do too much homework, the external environment a change, the main business will be in a very awkward situation." It is better to make a fuss on the main business first and then talk about others. "WangForward said. At the end of 2013, Huafang Textile announced the ownership of all assets and liabilities as an asset, with the Chia group and the same action person, such as the 96-person exchange of the equivalent of the 100% equity share of the benefit of the exchange. After the reorganization is completed, Huafang textile will no longer be engaged in cotton spinning business, the main business will become steam heating. At present, the reorganization has been accepted by the China Securities Regulatory Commission Administrative license application.