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Deep-centre crown printing and dyeing industry moved to the interior


Shenzhen Zhongguan (000018) announced the results of the share reform plan today: 4,723,736 shares of A shares tradable shares, of which 4,185,236 shares were approved, with a pro-rata ratio of 88.60%. The plan was approved.
Hu Yongfeng, chairman of Shenzhen Zhongguan, said that the textile industry is different from the port and is an industry with low barriers to entry and full competition. The industry profit margin showed a downward trend after joining the WTO. At the same time, because the Shenzhen-Chongqing Crown is located in Shenzhen, the production cost of printing and dyeing enterprises in Shenzhen is generally higher than that in the mainland, which makes the company's cost increase higher than the product price. Hu Yongfeng said that under such circumstances, Shenzhongguan will have a planned step-by-step implementation of the printing and dyeing industry to migrate to the inland, forming a new production base with cost gradients, and re-implementing the company's products in the market competition with a new cost structure. Advantage. He said that the Shenzhen Zhongguan has established a good reputation and a sound sales network, which are the advantages of the company. However, due to the adjustment of the company's production and operation, it is unlikely that a major change will occur in the short term. (China Securities Journal)

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