Ruhong and Guangyue, major garment OEMs, simultaneously announced their January revenue on February 7, 2020. Affected by the number of working days during the Spring Festival, the two companies’ annual revenue growth rates All are showing decline; also due to the spread of the new coronavirus pneumonia epidemic, Ruhong is currently experiencing disruptions in the supply of a small part of its raw materials.
Textile stock Wang Ruhong’s revenue in January was 2.30 billion yuan, a year-on-year decrease of 4.7% and a month-on-month decrease of 16.1%. Ruhong said that the current Vietnam factory has closed on February 3 Work has started, and workers have returned to work to increase utilization rates. However, the recent epidemic has increased risks in the supply of raw materials. Mainly because a small number of main and auxiliary materials come from Chinese suppliers. The suppliers are still suspended and have asked them to make production capacity adjustments. , connecting with factories outside China or looking for second alternative sources to ensure that raw materials are safe.
However, Ruhong admitted that there is still a small amount of raw materials at this stage and difficulties need to be overcome.
Faced with the impact of the overall epidemic on the textile industry, Ru Hong is also worried that if the epidemic continues and impacts the global economic momentum, the textile industry will inevitably be dragged down.
Guangyue’s revenue in January was NT$727 million, a year-on-year decrease of 18.6%, the largest decrease in the past two and a half years, a month-on-month decrease of 11.9%, which was also affected by Due to the reduction in working days during the Spring Festival.
Guangyue said that the Spring Festival fell in different months last year and this year. There were 16 working days in January this year and 26 working days in the same period last year, a total of 10 days less. The decrease reached 38.5%, compared with the company’s annual consolidated revenue reduction of less than 20%, showing that orders are booming.
Although China and Vietnam have the Spring Festival holiday at the same time, the Vietnam factory has started work at the end of January. As for the Jiaxing factory and the down Muyang factory in China, it will be after the Lantern Festival, 2 Construction will start on March 10. Since Vietnam is the main production area of Quang Viet, as long as the Vietnam factory utilization rate rebounds, the legal person expects February revenue to be better than January performance.
Looking forward to this year, Guangyue General Manager Wu Chaobi previously pointed out that the main growth force in 2020 will be led by sports brands, including adidas, Nike and UnderArmour. The outdoor brand Patagonia has shown growth of more than 20% in the past two years. This year, the momentum will take a break to destock inventory. It is expected that the purchase volume will decline slightly. The remaining brands will show the same performance as last year. The overall full-year operation can still be cautiously optimistic. .
