Textile And Garment Industry Downstream Hongtai Holdings Gorgeous Financial Data Was Questioned

< p > 2014 is not easy for investors of Hongkong's new shares, and more than 80% of the listed companies have broken down.

Against this background, Hongtai Holdings (01400.HK), which is in the "a target=" _blank "href=" //www.sjfzxm.com/ "textile" /a "industry, has not withdrawn, and has continued to implement its plan for landing at HKEx.

However, due to the downturn in textile industry in recent years, the financial data of Hongtai Holdings has aroused investors' doubts.

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< p > Hongtai holdings is a textile enterprise which mainly produces and sells fabrics and yarns in China. Its headquarters is located in Shishi, Fujian. It is one of the main manufacturing bases of China's < a target= "_blank" href= "//www.sjfzxm.com/" > clothing /a > (000902, stock bar) a target= "_blank" href= "target=".

In 2011 ~2013, the net profit of Hongtai holdings was 28 million 980 thousand yuan, 34 million 830 thousand yuan and 74 million 970 thousand yuan respectively, while operating income rose from 262 million yuan to 791 million yuan.

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< p > Hongtai holdings prospectus said that the significant increase in annual revenue was mainly due to cater to the requirements of customers, the first phase of production of Hubei production facilities, the great contribution made by the yarn business in May 2012, the successful expansion of the customer base, and the strategy of providing customized products for high-end customers, with a higher gross margin.

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< p > the company's listing in Hongkong is about HK $163 million net, about 60% for Hubei production facilities, second for construction and purchase of machinery and equipment, 15% for sales and marketing activities, 10% for R & D capability, 5% for promotion of brand awareness and brand value, and 10% for general business purpose and working capital.

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< p > however, Hong Tai holdings is in a very depressed industry.

Orient Securities's textile and clothing research report said that the industry retail data in February before 2014 showed that the a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" terminal was still relatively low, which is basically consistent with the operation of the key brand clothing companies. It is expected that the industry terminals will be more difficult to break through in 2014.

According to the statistics of the China National Business Information Center, clothing sales in 50 key large retail enterprises nationwide dropped by 2.5% in the month of January 2014 ~2.

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< p > Guoxin Securities believes that in 2013, the theme word of the clothing industry is "going to stock and deleveraging". The simple extension mode of extensive expansion is facing reconstruction. At the same time, due to the decline of terminal retail, the industry is under pressure, facing both performance and valuation decline.

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< p > Hongkong investment bankers told the first Financial Daily reporter that Hongtai's brilliant financial performance reminiscent of 00946.HK, who was caught in a fraud scandal. Both of them were enterprises producing raw materials for clothing in Fujian. The clothing companies of Hongtai holding downstream were generally not good in 2013. The growth of Hong Tai holdings is so fast that it is doubtful.

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< p > Hong Liang international is a vertically integrated chemical fiber knitted "a target=" _blank "href=" //www.sjfzxm.com/ "cloth" /a manufacturer in Fujian Province, specializing in the production of sportswear functional fabrics.

According to the financial data of the first half of 2006, listed in its prospectus, the Hongkong Securities Regulatory Commission considered that Hong Liang International's turnover, pre tax earnings and cash information were false, requiring its repurchase of shares issued.

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