RMB Appreciated By More Than 0.8%&Nbsp Against The US Dollar; &Nbsp; Textile Enterprises Were Not Affected. (1)

2010/7/15 15:41:00 80

RMB Appreciation Wool Spinning Shandong Ruyi

As of yesterday, the yuan has appreciated by more than 0.8% against the US dollar after restarting its currency reform.

What will be the impact of RMB appreciation on the textile and garment industry when profit margins approach the breakeven point?

RMB appreciation

It has some influence on the company's performance.

However, because the company's procurement and sales links are carried out abroad, this offset the impact of RMB appreciation.

In fact, as the company produces high-end products, both the price of raw materials and the appreciation of the renminbi continue to maintain the gross profit of the company. "

Shandong Ruyi

One person said yesterday in an interview with reporters.

Similarly, Jiangsu sunshine is the world's largest concentrate.

Wool spinning

In the interview with reporters, Mr. Wang, a company surnamed Wang, also said: "because the company has brand advantage, it ensures the sales volume of the company.

Therefore, the impact of RMB appreciation on corporate performance is limited.

Liu Zhiru, an industry analyst at Hongyuan securities, said that if the RMB appreciates by 1%, the net profit of Lu Tai and Dayang will decrease by 0.61% and 0.57% respectively.

Therefore, the large textile and garment export enterprises with full orders and bargaining power will not change significantly this year because of the exchange rate reform.

The latest export data released by the General Administration of Customs showed that in June, exports of textiles and garments were 21 billion 62 million US dollars, up 56.22% over the same period last year, of which 6 billion 595 million US dollars in textile exports, an increase of 31.06% over the same period last year, and 14 billion 467 million US dollars in clothing exports, representing an increase of 71.21% over the same period last year.