China's textile enterprises tend to engage in mixed business
Source: CCPIT TEX Date: 2006-06-07
Affected by the price hike of raw materials, Renminbi appreciation, EU's resuming of quota system over some exported products and the intensified competition, a number of China's textile and garment enterprises show an obvious trend of mixed business based on textile and garment business.
According to statistics, earnings per share and return on net assets of 55 listed textile and garment enterprises were lower than those of all listed companies in the first quarter of this year.
In such a background, only 27 companies, 49.09% of the total, still held fast to their position, while 20 companies, 36.36% of the total, chose to explore other business for a better business performance and smaller risk. And the remaining companies either totally transformed to other business or closed the business.
However, 27 companies accounted for 61.55% of the total investment of the 55 listed companies in the textile and garment business. It indicates that most of them prefer to make the main business bigger and stronger though the profit becomes thin.
