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As the saying goes ... it always comes ...

Alipay bill for 2019 is finally here

Ready to accept this belated crit?

Briefly summarize the editor at the moment

Complex and inexplicable mood

It's not just the editor who feels this way. A textile owner has also issued his own "bill".

Seeing this bill can be described as "exhaustive words", a medium-sized textile mill spends as much as 10 million a year! The boss also sent a torture of the soul: "Did I make so much money?"

The textile boss calculated himself a bill

According to the boss: "I have been in a textile factory for ten years. Recently, Alipay's annual bill has come out. I also calculated a bill for my factory. In 2019, our sales reached 80 million yuan and gross profit was 632. Ten thousand yuan, in general, the industry's average profit margin is about 10%, but last year's gross profit margin was 7.9%, which is also a multi-year low.

Of the gross profit of 6.32 million yuan, we still need to pay for workers' salaries, raw material costs, local taxes, logistics costs, rents and utilities. Local taxes and fees are about 700,000. There are 30 skilled workers in the company, and the annual salary of each skilled worker is about 100,000, which costs about 3 million. Then there is the cost of raw materials plus equipment depreciation and the company's management staff costs totaling 5 million yuan. There are also logistics costs. The total cost of the factory's own 5 freight freight logistics vehicles, plus all logistics transportation costs for hiring external vehicles to carry cargo, is close to 1 million yuan. In addition to this, there are rents, utilities, bank interest, etc. The revenues and expenditures are severely uneven, and they are all eating their own money. "

It's so expensive to make textiles, and it's no wonder that there have been frequent news that textile mills have closed and stopped production this year. What's the reason for this?

Labor, utilities, rents rising

We see that the bulk of the bills are still wages, rents, utilities and so on. The textile owner said: "Each year, it will increase 100-200 yuan to retain workers. At present, the annual salary of skilled workers has reached 100,000 / year, and the welfare is becoming more and more complete. There is also a holiday fee for the New Year and the New Year. Hydroelectric power is also always available, especially for industrial electricity. The rent is also increasing every year. Taking Shengze area as an example, the rent of Shengze plant is as high as 200-300 yuan / square meter. "CCTV has reported news that nearly 30% of small and medium-sized textile mills in China faced shutdowns and bankruptcy due to rents rising too fast in Hangzhou.

Fabrics have thin profits and are starting to lose money

This year's textile market has entered a recession cycle. In the words of the textile people, it is "good three years and poor three years". The three-year peak has passed, and has now entered the downward channel. Affected by this, textile companies have generally experienced shrinking orders and shrinking profits.

Generally speaking, the profit of the gray fabric is 5% -10%, and the profit of the finished fabric is 10% -20%. Although the profit of the finished fabric is higher than that of the gray fabric, the degree of complexity is doubled. However, due to overcapacity and falling raw materials this year, the prices of grey cloths and finished products have also been falling, and only stabilized after the raw materials rose last month.

During the visit, many cloth owners also agreed, "The price of grey fabrics fell by 15% -20%, and the reduction in orders from tens of thousands of meters to several kilometers has become accustomed to this year. Now we basically have no profit and are doing it at a loss. "A bile cloth company revealed.

The credit money hasn't returned yet

For debt-operated factories, a big chunk is bank interest expenses. When the factory purchases the raw materials for purchase, they must pay in full before picking up the goods. In the sales collection, a long payment period is required, especially the overall poor textile market this year. Most companies will allow customers to owe money, and the account period is 2-3 months or even longer, so long The accounting period also has an impact on the turnover of corporate liquidity. Many factories have to lend to banks in order to continue their operations, and the interest on bank loans is not small. If you run into customer arrears again, the consequences are even more unimaginable!

Source: Global Textile Network

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