The company and all members of the board of directors ensure that the contents of the announcement are true, accurate and complete, and are jointly and severally liable for false statements, misleading statements or major omissions in the announcement.
I. Brief description of media reports
Recently, CCTV's second program interviewed the blogger Xia Cao in the column entitled "Economical Half Hour", quoting its online blog post. This article challenges the authenticity of the 2007 annual report of some listed companies and lists the company's Among them, the online blog post questioned and assumed the authenticity of our company's inventory and the power metallurgy company's investment. Our company believes that it is a subjective speculation that the company did not understand the characteristics of the cashmere industry and did not actually investigate it. There is no factual basis and is inconsistent with the facts. In view of the widespread nature of television programs, the program and quoted online blog posts may be misleading to investors and cause damage to the company's reputation. The company has made clarifications. .
Second, the company clarified and explained
(I) Stock of the company
1, inventory analysis
The inventory distribution of our company in 2006 and 2007 is as follows:
RMB: ten thousand yuan
December 31, 2007
Among them: cashmere industry
Among them: power metallurgical industry
Raw materials
146,513
124,346
22,167
Finished product
191,321
160,412
30,909
In the product
14,900
14,900
-
total
352,734
299,658
53,076
Less: inventory depreciation reserve
(15,389)
(15,323)
(66)
Net amount
337,345
284,335
53,010
December 31, 2006
Among them: cashmere industry
Among them: power metallurgical industry
Raw materials
157,108
137,602
19,506
Finished product
167,712
152,052
15,660
In the product
15,015
15,015
-
total
339,835
304,669
35,166
Less: inventory depreciation reserve
(14,733)
(14,667)
(66)
Net amount
325,102
290,002
35,100
As can be seen from the above table, the cashmere industry accounts for the vast majority of the company's inventory, which is dominated by raw materials and finished products. The company has a large inventory, which is related to the characteristics of the cashmere industry and the company's operating industry chain, and the raw material acquisition of the cashmere industry. The production organization and product sales can not be synchronized in the same period, with obvious seasonal characteristics, resulting in higher inventory occupancy than normal products. The company's operations are from the acquisition of raw cashmere to cashmere yarn processing, to the production and marketing of cashmere products, Throughout the entire cashmere industry chain, all links on the chain need a certain amount of inventory.
1) Analysis of the inventory of raw materials
a. In order to meet production needs, the company must have a reasonable amount of raw material reserves
The annual sales revenue of the company's cashmere industry exceeds 3 billion yuan, so the company's reserves for raw materials must be sufficient to meet the annual production needs.
b. Cashmere industry raw material acquisition has seasonal characteristics and market risk, so it is necessary to carry out raw material strategic reserve
Cashmere is a natural animal fiber that was harvested in the second quarter of each year. Manufacturers must complete raw material reserves for production demand for more than one year during this season. Cashmere is a scarce resource and its production is greatly affected by climate and disease factors. In history, price fluctuations are also very large. In order to stabilize the quality of raw materials and purchase prices, in addition to normal production demand reserves, the company will also carry out appropriate strategic reserves of raw materials according to market conditions, so as to avoid the risk of scarce resource acquisition in the next year. And to the company's production.
c. The unit cost of raw materials is much higher than the unit cost of other textile industries
Because cashmere is a scarce resource, cashmere sweaters are known as the treasures in clothing. The price is calculated in grams and is called “soft gold.†Therefore, the unit cost of raw materials is higher than the cost of raw materials in other textile industries, and the product price is also higher. high.
In summary, the Company's cashmere raw materials are used for one-off acquisitions throughout the year, even for multi-year use, and the unit cost of raw materials is relatively high. Therefore, maintaining a stable raw material inventory is a must for business development and a guarantee for the company to maintain stable profitability. Different from the conventional textile industry.
2) Inventory analysis for finished products
a. Balanced production organization throughout the year
The company's comprehensive production network provides a strong guarantee for the successful completion of the company's sales goals. In addition to the company's consideration of ensuring product quality and product delivery, the company must also consider the company's stable production and optimal cost, which requires the company The annual balance of production is organized. In this way, the production team is stable, the work intensity is balanced, and the loss of work stoppages is reduced. Finally, the purpose is to achieve stable quality, fixed delivery, and cost locking.
b. Sales of cashmere products have strong seasonal characteristics, different from the general clothing industry
The warmth and comfort of cashmere products determine that the products are mainly in autumn and winter. The sales and collection of domestic sales of our company are mainly concentrated in the fourth quarter of the year and the first quarter of the following year. Therefore, the end of each year is The company's sales season, we must have adequate inventory support. The company's cashmere industry's annual sales of more than 3 billion yuan, sales costs account for about 2/3 of sales revenue, so our existing product reserves are reasonable.
c. The company's sales model determines that the company must have sufficient inventory
At present, our company's domestic sales are mainly based on the direct selling model, not the dealer's buyout model, so we need reasonable distribution support. Our company has more than 1,600 sales outlets in China, according to an average sales point of 1,500 shops, only sales The base of outlets needs about 2.4 million units. At the same time, our company has more than 30 distribution centers throughout the country. The distribution center must have sufficient inventory to satisfy the supply of products to sales outlets.
From the above characteristics, we can see that the reserve period of our company's cashmere raw materials and products is very long:
The raw material link ————> The production chain needs more than one year of raw material reserve period;
Production cycle ---> The sales cycle needs nearly one year of product reserve.
Therefore, the occupation period of the company's inventory is longer and takes up more.
2. Comparison of income and inventory of cashmere industry over the years
Company's cashmere industry inventory and sales revenue over the years
Unit: ten thousand yuan
stock
Sales revenue
Inventories as a percentage of revenue
In 2007
284,335.00
325,530.00
87.3%
year 2006
290,002.00
316,155.00
91.7%
2005
237,759.40
293,992.41
80.9%
year 2004
216,287.51
309,750.43
69.8%
Year 2003
258,144.64
291,719.79
88.5%
year 2002
267,393.23
221,502.05
120.7%
2001
207,929.19
242,794.78
85.6%
2000
220,884.29
182,181.82
121.2%
Year 1999
119,245.47
147,973.13
80.6%
1998
122,963.00
115,238.40
106.7%
1997
139,641.30
102,829.20
135.8%
1996
102,148.42
101,000.50
101.1%
From the analysis of cashmere industry data since the company's listing, we can see that the average annual growth rate of inventory is 9.75%, and the average annual growth rate of sales income is 11.23%. The ratio of inventory to sales revenue as a whole shows a steady decline.
3, inventory value management and preparation for falling prices
The company strictly follows the accounting system for inventory value management and provision for falling prices. The company’s inventories are stated at the lower of cost and net realizable value. The inventory devaluation reserve is calculated based on the difference between the inventory cost and its net realizable value. The net realizable value is In the activity, it is determined by the estimated selling price of inventory minus the estimated costs to be incurred upon completion, the estimated selling expenses, and the amount of related taxes.
The company has a wide variety of inventories and a large number of major inventory items. The depreciation reserve is usually calculated after detailed analysis based on the type of inventory. Among them, raw materials belonging to cold and cold backs in stocks such as lint-free and cashmere yarns are used according to their availability. To analyze and take into account the preparation for falling prices; cashmere sweaters and other finished products are calculated after detailed analysis based on factors such as the age of shipment of finished products, the formulation of market prices by companies, and the actual situation of previous years’ sales of inventory with a longer delivery age. Finished inventory falling prices.
Multi Color Embroidery Lace Fabric
shaoxing rongxi textile co.,ltd , https://www.rongxifabrics.com