Feng Bamboo Textile Was Two Masters Of Continuous Reduction Of Profit Outlook Was Empty?

In March 7th,

(600493.SH) issued a notice that the second largest shareholder of the company revitalization of the industry on March 2012 5, the Shanghai Stock Exchange centralized auction and block trading system accumulated 13600000 shares of the company's total holdings, accounting for 5% of the total share capital of the company: through the centralized bidding system, the company reduced the shares of the company's 500000 shares, accounting for 0.18% of the total share capital of the company, and reduced 13100000 shares of the company's shares through the block trading system, accounting for 4.82% of the total share capital of the company.

After the reduction, the revitalization industry holds 41321600 shares of the company's unlimited sale conditions.

The announcement also said that in addition to this reduction, from February 27, 2012 to February 2012 28, the revitalization industry also sold 13600000 shares of Phoenix Bamboo textile stock through the Shanghai Stock Exchange bulk trading system and the centralized auction system, accounting for 5% of the total share capital of the company.

Investors have questioned this. From February 27th to March 5th, in a short span of a week, the revitalization industry has been reduced for three times in a row. What is the reason for the frequent reduction of revitalization industry?

It is noteworthy that, prior to this, Phoenix Bamboo textile released its performance forecast in January 17th. After preliminary calculations, it is estimated that the net profit attributable to parent company owners in 2011 will be reduced by more than 90% over the same period last year.

The main reason is that the appreciation of the renminbi, the tightening of monetary policy and the rising cost of labor during the reporting period have made the gross margin of the company's products decrease significantly.

The price of cotton has fallen sharply, and the demand for textile market has been fluctuating.

Is the continuous reduction of revitalization related to the recession of the performance of Phoenix Bamboo textile?

In March 7th, the reporter telephoned Zhenxing industry, but no one answered the public telephone.

At the same time, according to Xu Wen, an economist at Xiangcai securities, the national PMI data in January was 50.5, an increase of 0.2 over last December, down 2.4 from the same period last year.

Because January has always been textiles.

In the off-season, textile and garment industry PMI ring ratio has dropped, the decrease is 6.4 and 4.3 respectively.

Compared with the textile industry, PMI dropped by 7.1, or 36.7, near the 28.7 low of the financial crisis in 2009.

Analysis of relevant professionals, at present, the textile industry as a whole is in a state of depression, many companies pre cut performance, revitalization of industrial reduction is difficult to only ascribe to the profitability of Feng Bamboo textile, the overall outlook of the textile industry is not optimistic about the factors are also difficult to exclude.