Chairman Of Shanshan: The Textile Industry Will Intensify In Winter.

Since the subprime mortgage crisis in the United States, the development of light textile industry is facing an unprecedented grim situation due to the changes in the domestic and international economic situation. In order to ease the pressure faced by textile enterprises, the government has relaxed the policy again and again.

In November 19th, in order to promote the development of light textile industry, the executive meeting of the State Council studied and determined 6 policy measures.

Can the implementation of the 6 policies play a fast role?

What are the consequences?

Faced with the support of policies, the executives of textile enterprises are also in a different mood.

In November 21st, the reporter made an exclusive interview with Mr. Dai Ming Hua, chairman of Shanshan Group.

The policy represents the government's attitude to tide over difficulties and sees its own securities daily.

Mr. Dai Minghua: we can not deny that the introduction of this policy will bring some benefits to the textile enterprises, reduce the cost pressure of some enterprises and save the small and medium enterprises which are on the verge of bankruptcy. From these announces, we can see that the government supports the small and medium-sized textile enterprises.

However, because these policies are only put forward in a macro way, they are not clear in details. Therefore, it is not clear how much interest it can bring to small and medium-sized textile enterprises.

For example, how much will the export tax rebate be raised, and how to solve the problem of financing difficulties for small and medium-sized textile enterprises by increasing financial support, and how to achieve the standard of government support and so on?

What do you think of the government's support policy, which can save the textile enterprises and solve the problems that the textile enterprises are facing?

Dai Ming Hua: the difficulties faced by spinning enterprises are inevitable and the result of market selection.

I hope that the government can introduce support policies in a moderately scientific and market-oriented way to save spinning enterprises, but not too much participation in the operation of the market.

Although the policy can offset the negative situation brought by some markets, it can not completely replace the operation of the whole market.

No matter what industry there are ups and downs, elimination and competition are normal laws.

In this competition, there are enterprises that are eliminated and enterprises that survive. This is the general trend. It is normal for companies without scale and competitiveness to be eliminated.

The survival of enterprises can not only rely on policy support, but also on the development of enterprises themselves, which is closely related to the promotion of product and technology.

Therefore, only enterprises can save their own businesses.

Raising the export tax rebate rate has the greatest impact on textile enterprises. Securities Daily: which is the most important concern of textile enterprises in this policy?

Can it bring profits to enterprises?

Dai Minghua: no doubt, the most important concern is to raise the export tax rebate rate, because this policy applies not only to large export textile enterprises, but also to small and medium-sized export oriented textile enterprises. Therefore, this policy is more popular.

However, raising the export tax rebate rate does not mean that the profits of enterprises will be raised.

For example, we Shan Shan, export products are mainly knitted textiles. Before the export tax rebate rate is reduced, we can raise the prices of export products and customers will agree. On the contrary, if the export tax rebate rate increases, customers will ask us to lower the prices of export products.

Of course, most other textile export enterprises are also.

Relatively speaking, Shan Shan has certain voice and pricing power in foreign trade competition, but for more SMEs, bargaining power is not great.

Unless we can adjust the product, enhance the company's technology and enhance the quality of export products, we will be able to qualify for bargaining.

Securities Daily: in this policy, we should encourage and guide financial institutions to increase financial support and solve the financing difficulties of textile SMEs.

Do you think this policy is feasible?

Dai Ming Hua: it can be said that the introduction of this policy is a good thing, but it can not be implemented in small and medium-sized enterprises that need help.

Banks also need to make money and earn profits. It is not only a financial tool of the government, but also a shareholder's investment target.

Moreover, banks have always been just icing on the cake, not doing anything in the snow. Before they borrow, the first thing to think about is the ability to repay their debts.

Under this premise, we can imagine how difficult it is for small and medium-sized enterprises to make loans.

On the contrary, banks are more willing to lend to listed companies, one is the larger scale, the other is listed companies themselves can raise funds in the securities market, not only financing channels, but also the repayment ability of enterprises is strong.

All along, many banks have taken the initiative to come to Shanshan to contact the loan business.

But we insist on prudent attitude. After all, it is not a good thing to borrow too much money. With such a high interest rate on banks, it will bring too much financial cost to the company and increase the cost pressure of the enterprises.

"Securities Daily": some experts have suggested that the policy of "real pfer" for the suspension of textile processing trade accounts will help enterprises solve cash flow problems in the short term.

I wonder if Shanshan shares are the same?

Dai Ming Hua: Although I do not know the specific value, but the sum of money of Shanshan is not big, maybe it can solve some capital turnover problems, but for Shanshan, the amount is too small and the effect is limited.

But for small and medium-sized enterprises, it should be a good choice. Although it can not solve the problem of shortage of funds, it can solve the problem of capital flow.

Textile enterprises in winter will continue to consume problems will become a new worry, "Securities Daily": some experts have suggested that with the introduction of various policies, the cost pressures faced by textile enterprises are slowly decreasing, and the demand problem will become the biggest problem of spinning enterprises. What do you think?

Mr. Dai Ming Hua: Yes, the cost pressure of raw materials, coal prices and water and electricity charges that textile enterprises face before has been reduced due to the gradual reduction of these costs, coupled with the support of policies, the cost pressures faced by enterprises will be eased.

However, influenced by the sharp reduction in consumption in the US and Europe, China's textile enterprises will face the demand.

Even if Shan Shan is a large enterprise, it will also be affected by consumption in Europe and America.

Our approach is to adjust customer structure, order to focus on quality customers and international brands.

For example, knitting one piece, we adjusted the past 130 overseas customers to 40, although the customer group narrowed, but sales increased by 33%.

If we want to solve the demand problem, we cannot rely on policy too much.

The amount of demand depends on the consumer's "psychology". The introduction of policies can not play a direct role, but how much can play a role in guiding consumers' psychology.

In addition, our country is currently stimulating domestic sales, and the domestic products of Shanshan have been growing out of the growth trend. For example, Shanshan suits, this year's sales increased by 20%. Our international cooperation brand is also growing rapidly.

"Securities Daily": when do you think the "winter" of textile enterprises will be over? When will spring come?

Although it is not known when spring will come, the winter of textile industry will also intensify.

First of all, to analyze the surrounding situation, when the European and American economy will recover will affect the export and investment of China's textile enterprises.

As far as the current situation is concerned, there is no way to predict the future situation, but I expect that there will be a clear trend until the middle of next year.

This is a process of industry integration.

General industry integration takes 5 to 10 years, and the crisis of the textile industry can be said to be a signal of industry integration.

Moreover, the increase of industry concentration is not a bad thing. In the process of integration, as long as we constantly enhance our core competitiveness, we can enhance our strength through acquisitions and mergers, and form a brand and managed scale enterprise, which will help our textile enterprises compete with international giants or p national companies in the future.

This is also the future goal of Shan Shan.