2010, The Performance Of Upstream And Downstream Enterprises Of Spinning And Weaving Clothing Keeps Increasing.

In 2010, the performance of brand companies increased steadily, showing an increasing trend from upstream textile enterprises to downstream garment enterprises. The growth rate of home textiles is 30%~60%, and the growth rate of clothing is 30%~40%. From the perspective of growth mode, home textile companies mainly rely on rapid extension and expansion, and the number of net stores in 3 companies in the first half of the year is 6%~10%, while garment companies rely more on endogenous growth and net profit growth.

2010 revenue exceeded expectations

　　 Dream clean The home textile company announced its 2010 performance bulletin, operating income of 854 million yuan, an increase of 35.38% over the same period last year, and net profit attributable to parent company was 102 million yuan, an increase of 14.78% over the same period last year, basically in line with expectations.

Meng Jie home textile company sold 359 million yuan in the fourth quarter last year, accounting for 42% of the total sales in the year. The proportion of sales in the second half of the year was basically flat compared to 2009, 4:6. Meng Jie home textile company 2010 overall Gross profit margin Compared with 2009, it increased by 5 percentage points to 41%. The main Department of Meng Jie home textile company was conservative in pricing because of the fact that the consumption power in Central China was lower than that in East China. After the order was raised last year, the gross profit margin of the company's affiliate rose from 31% in 2009 to 38%, basically the same as that in Luo Lai and fuanna. The company's performance in 2010 increased by only 14.78% compared to the previous year, mainly due to a 34 million out of business revenue in 2009. After the actual growth was eliminated, the company's growth rate was around 60%, which was in line with expectations.

Meng Jie home textile channel expansion strategy has accelerated. Brand operation And the coverage of the weak market in the whole country will enable the company to increase its volume on the premise of price stability. Its 2011~2012 EPS (EPS) is estimated at 1.47 yuan and 1.97 yuan respectively (assuming the income tax rate is 15%). The home textile industry is still in its growth stage, and the leading companies have high growth certainty.

In 2010, Huafu color spinning was EPS 1.34 yuan based on the latest diluted share capital, and its net profit increased by 154% over the same period last year, and its performance exceeded expectations. In 2010, operating income reached 4 billion 783 million yuan, an increase of 45.4% over the same period, with a total profit growth of 101%. Net profit attributable to shareholders of listed companies was 371 million yuan, an increase of 153.6% over the same period last year. In 2010, the total diluted EPS was 1.32 yuan, which was higher than our 1.22 yuan forecast in the forecast of the annual report, and slightly higher than the 1.32 yuan expected in the company's performance bulletin. The profit distribution plan is: every 10 shares distribute cash dividends 2 yuan (including tax).

The increase in prices and sales increased revenue greatly, strengthened cost control and increased profitability. The main reason for over expected performance is: revenue grew by 45.4% over the same period last year. Due to the continuous optimization of regional structure and customer structure, the proportion of target customers increased, sales increased by 17% compared to the same period last year, and the price increase was about 30%. Through the westward shift of the industry, the company achieved a total cost reduction of 10%. At the same time, it made full use of national auction, import quota increment, seed cotton purchase, futures operation and other ways to lock high-quality resources and avoid the risk of large fluctuation of cotton. Gross profit margin increased by 1.9 percentage points to 19.7% in 2010, and sales cost increased by 0.3 percentage points to 4.5% compared to the same period last year. The management fee rate dropped 0.3 percentage points to 4.1% over the same period, and the net profit margin increased 3.3 percentage points to 7.8% over the same period. Therefore, the growth of performance mainly comes from the growth of market demand, the optimization of product mix, the shift of industries and the integration of resources, which will continue to release the cost effect, making the profitability greatly improved.

Speed up sales terminal construction

Meng Jie home textile is home textile industry is still in its early stage of growth, its product brand effect is weaker than the clothing industry; therefore, the growth momentum of Future Ltd will mainly come from the increase of sales terminals. New third quarter store The number is increasing sharply. In the first half of the year, there were about 100 new stores in the third quarter, and about 200 new stores opened in the third quarter. As of the end of September, there were about 300 new stores. The company significantly strengthened market development efforts, and the focus of the expansion of the company's stores was in the blank areas such as the two or three line cities. Due to the increase of sales terminal construction and the increase of advertising expenses, the sales cost rate in the first three quarters increased from 25.20% in the first half to 25.20%, a record high. Similarly, due to the expansion of business scale, the management fee rate of the first three quarters reached 4.51%, a record high. {page_break}

From the situation of Meng Jie home textile company, Direct profit The ability is weaker than joining. About the future, the company thinks that the net operating interest rate is still harder to join. This is mainly due to the following reasons: first, the direct investment in the first tier central cities will join the two or three tier cities, the rent of the first tier cities and the market discount are significantly higher than that of the two or three tier cities. Shopping centers in the first tier cities are generally around 30%, while the two or three tier cities are only 15~20%. Second, franchisees work for themselves, and sales power is stronger; moreover, franchisees have local resources, less investment, and easier to understand consumer needs. But the direct battalion area is the commanding height of the national economic development. After these areas are done well, it is easy to radiate to the surrounding areas, and the franchisee's general economic strength is limited, so it is difficult to carry out continuous and large-scale investment. In addition, from the profit level, although the net interest rate of the direct battalion is not as good as joining the alliance, these areas are easy to scale, and the net profit of the direct battalion will be higher than that of the alliance. The company will use the investment fund to complete the basic layout of the direct target market. In the next 3 years, the direct operation system will experience the release period of store maturity and management reengineering. The product line will be further improved and the support for franchisees will be increased. In 2011, the growth of the company's dream and sleep brand outlets will be 21% and 32%. The cooperation between the self created mid-range brand and the international brand will release the positive direction of the company's brand development.

The multi brand strategy of Meng Jie home textile industry should meet diversified needs. By the end of 2010, the number of stores in the company was 1990, which was similar to that of Luo Lai, but higher than that of fuanna. Meng Jie Mei The 652 stores independently operated by low priced brands, such as Meng Jie baby, have lowered the overall efficiency of the company. However, the single store income of MJ's main brand is increasing year by year, and the single store income in 2011 is expected to increase by 40% over the same period. The high-end brand of "sleeping" brand has gradually matured, and Maori has contributed more than 20%. The positioning of low-end "flat aesthetics" has 2 stores, and it is expected to reach 30-40 in the year. The revenue contribution is expected to exceed 20 million yuan, and is expected to become a new growth point of the company.

In addition, the regional strategy of Meng Jie home textile is blooming everywhere, and the disadvantaged areas are expanding rapidly. The proportion of central China's regional income is the largest, but the growth rate of vulnerable areas in the future will be higher than that in Central China. According to the company's forecast, the growth of central China's revenue in 2011 will be over 50%, while the growth of the peripheral market will be about 60%~70%.

Despite the uncertainty of the downstream demand, the customer structure of Huafu color spinning is basically stable. In 2010, its top 5 customers sold a total of 777 million yuan, accounting for more than 16% of sales revenue. Accounts receivable balance of 156 million yuan, accounting for the total balance of accounts receivable near 43%. company said that the first 5 suppliers did not change significantly, and no single supplier procurement exceeded the total purchase amount of 30%. Huafu color spinning has been strengthening the brand promotion of color spinning, and combining the strategic layout of resources in the central and western regions, its performance is expected to continue to grow rapidly. Huafu color textile company strengthened the promotion of the "fashion source power" conveyed by Huafu brand. In December 2010, it held the first Huafu cup fashion design competition. Through a series of promotional activities, Huafu brand influence was further promoted, and the popular color card launched annually became the first choice of the main terminal brands at home and abroad. At the same time, Huafu color spinning company will increase the search and negotiation of the acquisition targets according to the layout of the regional strategic plan, and complete the industry westward transfer plan at the right time. The future is in good shape.

Meng Jie home textile is undergoing transformation and upgrading. Since 2011, the company has increased its support for direct terminal operators and franchisees. At the same time, the company is in the review period of high-tech enterprises, the company income tax rate increased from the past 15% to 25%. In accordance with the principle of prudence, Meng Jia home textile made provision for depreciation and bad debts, which affected net profit of about 10 million yuan. If the above factors are excluded, the net profit of Meng Jie home textile in the first quarter of 2011 should be around 30 million yuan, an increase of more than 100% over the same period.

Recently, the media reported that Jiang Tianwu, chairman of the company, said at the annual general meeting of shareholders in 2010: "the company is in the best position at present, with 328 new stores last year. The target is 500 this year. Last year, the gross profit margin has also reached a new high level." Jiang Tianwu, director of Meng Jie Home Textile Co., said: "the investment projects are now fully completed, and the investment projects of the super raised funds are progressing smoothly, providing support for the company's substantial growth in the future. At the end of 12th Five-Year, the revenue target of Meng Jie home textile is 3 billion yuan." The annual report shows that in 2010, Meng Jie home textile achieved a revenue of 854 million yuan, thereby predicting that the composite business growth rate of the company in the next five years will reach 58.1%.

The dream home textile company will take advantage of the rapid development of the home textile market in the future. The dream of home textile company opened 500 stores in 2011 with the possibility of greater completion, so that the target of 50% net profit growth in 2011 in the 2010 annual report is likely to be achieved.

In 2011, Huafu color spinning will join hands with suppliers to enhance the development and popularization of new raw materials in the field of color spinning. Recently, Huafu color spinning and Shangyu Hong Qiang color polyester Co., Ltd. held the signing ceremony of cooperative development and promotion of new functional products in Shangyu Huafu Industrial Park. Shangyu Hong Qiang color polyester Co., Ltd. is a diversified polyester fiber staple manufacturer specializing in the production of a variety of special-shaped fiber, imitation plant and fiber, functional fiber and colored fiber. The company is one of the partners in the development of new functional color spun products. {page_break}

In recent years, Huafu color spinning Co., in order to promote and develop new coloured spinning products, has entered into a cooperative relationship with Austria Lan Jing fiber company, making full use of the advantages of both sides, and strengthening strategic cooperation in fiber dyeing and finishing, R & D, manufacturing, marketing and other aspects. We are committed to the development, popularization and application of the new spun yarn products with new cellulose fibers as raw materials, and jointly promote the development of ecological, environmental protection and fashion textile products, and the future development will be better.