Although the COVID-19 epidemic has affected economic momentum, Hong Zhenhai, chairman of textile stock Wang Ruhong, said that customer purchasing momentum in the first half of the year is completely fine, and the operating trend is “optimistic and enterprising.”
In addition, because Ruhong participated in the isolation gown production plan this time, Hong Zhenhai revealed for the first time that he will expand into the medical clothing market in the future.
Ruhong held an online legal briefing today. As expected, legal persons are concerned about the impact of the epidemic in China. Hong Zhenhai pointed out that some main and auxiliary materials come from Chinese factories, so The shutdown of supply plants has resulted in insufficient shipments. After communicating with customers, orders for March-April will be delayed to May-June. Although orders for March-April this year will be delayed, the single-month revenue performance is similar to that of the same period last year. Compared with that, it will be an annual growth pattern.
In addition, this year Ruhong will expand the number of Target brands it undertakes, from the original 1 brand to 4 brands, and is expected to start shipping in May.
With strong support from existing customers and new customers, Hong Zhenhai believes that the first quarter will grow slightly compared with the same period last year, and the second quarter will grow significantly. , facing the operation in the first half of this year, he used four words to describe it as “optimistic and enterprising”.
As for the outlook for the second half of the year, he pointed out that although customers’ forecast orders are all about growth, there is probably a gap between the forecast and the actual number of orders. In addition, the epidemic warning has not yet been issued. Therefore, we need to wait until the end of April or early May to further observe customer attitudes to make it clear.
However, Ruhong’s current production capacity expansion speed cannot keep up with the speed of receiving orders. At the beginning of the year, it recruited 5-10% more manpower to cope with the situation. Currently, all workers at the Long An factory in Vietnam are in place. Ze Factory will have until March 20 to confirm the on-site employment rate, so as to increase its garment production capacity from 8.5 million pieces to 10 million pieces in the second quarter.
Following this, Ruhong is expected to seek cooperation with garment factories in central Vietnam in April to make up for the lack of production capacity in the second half of the year. Hong Zhenhai even believes that the overcapacity and full capacity situation must wait until the first phase of Ruhong Indonesia is launched to alleviate the pressure slightly.
