Textile enterprises sigh, “sending charcoal in snowy weather”

August 1, 2008, people spread the news a long time to become a reality: the Ministry of Finance and State Administration of Taxation issued a circular to be part of the textile, clothing export tax from 11% to 13%, at the same time the abolition of some of the high-energy, high-pollution , Resources and products of export tax rebates, including the Korean pine-jen, some of the pesticide products, some of the organic arsenic products, most of Taxol products, zero, zinc, some of the paint, such as carbon anode.

Qingdao industry for the two-point increase, in addition to “touching” and “policies that Heater”, but also the fact that the two points has been difficult for digestion of this year’s rapid rise in costs, and even lost their losses resulting from the revaluation of the RMB. But the industry has generally been encouraged by the emergence of a more positive mood, perhaps because of the symbolism of tax rebates to more than practical significance, at least not given up the national textile industry.

Textile enterprises sigh, “sending charcoal in snowy weather”

August has just introduced the policy, Jiangsu Province, have responded positively, in the prime-time news coverage given to, and began to reflect on the state’s textile industry is more radical macro-control policy to discuss the industry to achieve rapid escalation of the target, the collapse of the The advantage of the textile industry has accumulated over the years, is it worth?

As early as before the introduction of the policy, Shandong Province, also in the plight of the textile attached great importance. In mid-July, Shandong Textile Industry Council headed by the Secretary-General personally, in the province’s major cities, key enterprises, research carried out to listen to the business difficulties. Secretary-General Teng Huizhen Province Textile Association, summed up the textile and garment enterprises are facing difficulties in general, is “rising energy prices, land-use tax to double, financing difficulties, such as the revaluation of the RMB areas.”

Control so much by profits, enterprises will be able to understand the sigh of “sending charcoal in snowy weather” in the mood.

Group that is relevant person in charge said: “The appreciation of the yuan three-year cumulative 21% in the first half of 2008 only 7% rise on the year affected the profit amounted to 50,000,000 yuan. That the Group would also like to work for the new law more Labor insurance to pay 1,000,000 yuan, to cope with rising electricity costs, more than double the land use tax, together, reduced corporate profits 15.2 percent. ”

That is, as the group made such a large scale, the volume of trade, trade unions, and employment is the norm enterprises in the textile and garment industry in the first half of all the problems they encountered almost all encounter. The official said that since last year, energy prices quickly, the textile industry as an important energy steam get on the helicopter, had risen to 135 from 240, nearly doubled. 2 points of export tax subsidies is the price the cost of steam, at the right moment.

Qingdao is chairman John Huang Yuzhen said that the village is due to the low volume of trade, export tax benefits are not very prominent. However, the appreciation of the renminbi really eat up the profits to the enterprise created difficulties. 1,000,000 yen in the past can exchange 80,000 yuan, and now he can only take more than 60,000, more or less a calculated business each year by about 400,000 yuan in profits.

Huang Yuzhen, said: “The multitude of enterprises, where the two points, two points there, with a total cost of the expensive, so the 2-point increase is to help enterprises solve some practical problems.”

Textile companies that were not affected

Data from a macro perspective, China’s textile machinery for the production of 60,000,000,000 yuan, is one of the world has been an important base for textile machinery. Jiaonan only as an example, the China Textile Machinery in the town were represented by the Qingdao Textile Machinery, Textile Machinery enterprises above designated size reached 88, the output value of 5.2 billion, the card market share of the national accounts for 3 / 4, water Loom account for the domestic market share of 1 / 2, is the country’s largest production base of shuttleless looms.

Textile and garment industry affected by the spill-over effects, the national textile machinery market has also been a lot of influence, Guangdong, Zhejiang, Jiangsu and other places than export-oriented textile enterprises lay-off, a number of business failures, from the first half of the data, the domestic textile machinery Production and sales declined by approximately 20% of the loss-making enterprises amounted to 198, a loss of face for 20.5 percent.

East good person in charge of textile machinery, because there are a lot of orders last year, the textile machinery business-to macro-economic situation of the response has lagged behind, with sales revenue last year. “However, due to the price of coke rose 156 percent profit decline from last year.”

The companies said the east from the best textile machinery last year, high-end production equipment, exports reached a historical best. For the time being, by a number of factors still benefit and tax rebates were not up-to-business impact because business has been operating quite well, “no burden.”

“Straw” could “back to life?”

Labor, energy, land use tax, this year’s line up is not small, but the price did not rise textiles, textile products China is in the final analysis do not have bargaining power. As early as before the introduction of the policy, there have been rumors, speculation may raise the export tax rebate, the China Textile Industry Association rumors of an ambiguous attitude does not deny that the more determined people’s speculation.

August 1, the introduction of the policy, the joy in the industry, another concern has surfaced. Because of the increase is expected to form, most likely foreign investors ready to order when requested, so that enterprises can not be exclusive interests. To some of the costs and prices as the main factor to measure the foreign buyers will not easily give up the cake at the opportunity to domestic counterparts are also most likely around 2:00 this made a big fuss, the prices of the race. If these concerns become reality, 2:00 welfare policy could end up as “a sweet outsiders.”

Due to the continued tense capital, a number of textile enterprises have already run out of cash in the risk chain. Saddam group said: “Under the current policy, companies have to pay import of raw materials imported margin, the chain-to-business financial impact is even worse.”

As the country set the tone for the textile industry is excess capacity should be eliminated, the banks will generally not support textile and garment enterprises. On the one hand, out of their operating costs and other factors to consider, even if the bank loans to textile enterprises, but also in the benchmark interest rate hike on the basis of 20% -30%, to allow enterprises to bear. On the other hand, bank-to-business side of information do not completely open, loans made to a certain extent arbitrary, and sometimes the banks to recover loans, the loans are no longer the delay, so that enterprises increasingly tight financial chain tension, the operation have been seriously affected .

It can be said that the export tax rebate up to ease the export business is only part of the financial pressure, but did not reverse the Chinese garment enterprises a very difficult situation. At present, a number of textile enterprises, mainly due to the industrial level is not high, resulting in the price of raw materials and factory prices of industrial products rose widening of the spreads, the direct result of reduced corporate profits, coupled with tight financing, resulting in reduced ability to respond to the enterprise, the impact on the Business regulation and sustainable development.

Up 2 percentage points, on the profit contribution may be only a few percentage points against this year’s overall business costs have increased by 15% to 20%. Increase export tax on enterprises, can only play a role in the short term, perhaps a few months will be no resolution in appreciation of the yuan, the export tax rebate adjustment does not change the fate of the industry.