Changshan Shares In The Main Cotton Producing Area To Undertake High-End Home Textile Industry Chain

Even if the textile industry has been in the cold winter in recent years, there are many textile giants in Xinjiang area layout.

Changshan shares announced that it invested 100 million yuan in cash and set up Xinjiang Changshan Heng Hong Textile Technology Co., Ltd. in Xinjiang.

Since the investment does not constitute an asset reorganization, it does not require approval from shareholders' meeting or other government departments.

"The company chose to set up a textile industry company in Xinjiang, mainly focusing on the textile industry in Xinjiang," said Jung Ping, Changshan's shares.

The policy is strong, and directly set up in the main cotton producing areas in China is conducive to the stable source of cotton textile raw materials. "

In addition to policy support at the national and regional levels, Changshan shares set up a textile company in Xinjiang, so it can not be recalled that the former Changshan shares invested in the Kaple family in Italy.

In August 10, 2016, Changshan shares signed a letter of intent with Italy Kaple family, signed a package of investment intentions including the establishment of joint ventures in China, the production of high quality home textiles, home products, and exclusive distribution of Italy Kaple family textile products in China.

Previously,

He has invested 100 million yuan with the North Ming software and the North Ming Albert to set up the Beijing love life e-commerce company, which is considered by the market analysts to be the preparation for the high-end home textile sales channel, and also an important layout for the high-end pursuit of the textile and clothing business.

High end breakthroughs and multiple realisation, using offline experience + online channel based light asset model, to achieve smooth integration of the manufacturing side and sales side of the industrial chain.

Xinjiang Changshan Heng Hong Textile Technology Co., Ltd. is located in Xinjiang national alar economic and Technological Development Zone. The company offers preferential policies such as special funds for the development of textile and garment industry, special tax concessions, low tariff preferences, textile and apparel freight subsidies, Xinjiang cotton supply and subsidies, staff training subsidies, corporate social security subsidies, and financial support. At the same time, alar city, as a national smart city pilot, will also actively strive for cooperation in smart city and other software information development services with the company's North Ming Software Co., Ltd.

At the same time, Changshan shares also have sufficient funds to support the company to achieve such an industrial layout.

According to Anxin Securities Research Report, the land resources advantage of Changshan stock has been continuously enhanced. The company has five land in the prime section of Shijiazhuang's main city area, covering 1230 acres of land, and has successfully auctioned two pieces, with a total price of 6 billion 442 million.

The remaining three pieces of land along with the integration of Beijing, Tianjin and Hebei, and land prices continue to rise.

Land resources will provide adequate financial support for the future development of the company, whether it is to carry out extensive M & A, or to strengthen product research and development.

In the first half of this year, Changshan shares realized business income of 5 billion 38 million yuan, an increase of 10.40% over the same period last year, and realized a net profit of -1843.78 million yuan, a year-on-year loss reduction of 44.99%.

However, the company achieved a revenue of 3 billion 356 million yuan in the cotton textile industry, down 18.82% from the same period last year, with a gross margin of 2.15%, an increase of 0.91 percentage points over the same period last year.

In view of the downturn in textile business, the intention of Changshan shares to continue to promote high-end textile business is obvious. The establishment of a textile company in Xinjiang is most likely to be the further layout of the company at the raw material production side.