Huafu Colored Spinning (002042), China’s leading colored spinning yarn manufacturer, announced on the evening of July 13 that the company plans to use its own funds of approximately 199 million yuan to purchase Building 1, 5801, 5802, 5901, and Rooms 5902, 5903 and 5905 are used for offices and have a construction area of 3330.99 square meters.
The leading domestic color spinning enterprise raised 200 million yuan to buy 6 houses in Shenzhen! What does this mean?
According to the announcement disclosed by Huafu Color Textile, the property will be used to establish the Guangdong-Hong Kong-Macao Bay Area headquarters base, improve the office environment, and help gather useful talents, improve network chain investment capabilities, and lay out the industrial Internet and flexible supply in the Guangdong-Hong Kong-Macao Bay Area. chain.
In the author’s opinion, as early as November 2015, Huafu Colored Textile established a subsidiary, Shenzhen Huafu Network Chain Investment Company, in Shenzhen to lay out the entire industry supply chain of raw materials, spinning, fabrics, and garments, and actively integrate into vertical Integrate the apparel e-commerce platform to form a flexible supply chain vertical social ecosystem, and ultimately realize the transformation from a fashion manufacturer to a fashion operator.
As a well-known enterprise in the domestic textile industry in recent years, Huafu Colored Textile has attracted much attention from market participants in recent years. In recent years, Huafu Colored Textile has accelerated its layout in Xinjiang, Vietnam and other places. After years of continuous expansion, Huafu Color Textile already has five major production bases in Zhejiang, Huanghuai, Yangtze River, Xinjiang, and Vietnam. With the further advancement of the national “Belt and Road” strategy, Huafu Colored Textiles focuses on Xinjiang, laying a solid foundation for fully exploring the markets in South Asia, Central Asia and Europe. At the same time, Huafu made a timely deployment in Vietnam, planning a production capacity of 300,000 spindles in Vietnam with supporting dyeing plants, which complied with the trend of China’s textile and apparel industry moving to Southeast Asia.
The current production capacity in Xinjiang reaches 500,000 spindles and is expected to reach 1.5 million spindles in the future. With the introduction of ten preferential policies for the Xinjiang textile industry, the company is expected to receive stable and high government subsidies. Vietnam has benefited from the Trans-Pacific Trade Agreement (TPP) and enjoyed tariff preferences and other treatments, which has also laid the foundation for opening up the international market. Huafu Color Spinning currently has a total production capacity of 1.35 million spindles and is expected to double its production capacity in the future. It is precisely because of its early expansion of territory that in the first half of 2017, Huafu Colored Spinning Co., Ltd. put into production 80,000 spindles in Xinjiang and Vietnam respectively. The production capacity increased by double digits year-on-year, and the price increased by single digits; the network chain business increased significantly, and it is expected that Net profits attributable to shareholders of listed companies increased by approximately 40%-60% in the first half of the year. Huafu Color Textile’s expansion of territory has indeed brought it a taste of sweetness!
This move into Shenzhen closely follows the central government’s blueprint for the future planning of the Guangdong-Hong Kong-Macao Greater Bay Area. According to industry sources, the core of the future construction and development of the Guangdong-Hong Kong-Macao Greater Bay Area is the integration and diversion of industries, creating a modern service industry, reshaping the economic spatial structure, and moving the industrial structure closer to the mid-to-high end to achieve high economic growth. From the perspective of Guangdong Province, its scientific and technological innovation capabilities and strategic depth are exactly what Hong Kong and Macao lack. It will provide the vast majority of local talents and most of the market for the Guangdong-Hong Kong-Macao Greater Bay Area. Relying on the Pearl River Delta, Hong Kong is expected to further expand into an international financial center like London in the United Kingdom and New York in the United States, which can also alleviate the current competitive pressure Hong Kong faces from Shanghai. With such a combination, Guangdong, Hong Kong and Macao are expected to form a Greater Pearl River Delta financial center circle with Hong Kong as the core, a Silicon Valley entrepreneurial center circle with Shenzhen as the core, and a tourism industry circle with the entire region as the benchmark, becoming a sustainable development and sustainable development circle. Attractive urban agglomeration.
As a leading company in the mid- to high-end color spinning industry, Huafu Colored Spinning’s products account for 40% of the mid-to-high-end product market share. It has established industry barriers in its past operations. Compared with traditional industries, the color spinning process is environmentally friendly and has “small batches, multiple varieties, and rapid response”, which meets the current requirements of a rapid response supply chain and has great development potential. The construction of the Guangdong-Hong Kong-Macao Greater Bay Area is in line with the development goals of the flexible supply chain vertical social ecosystem created by Huafu Color Textile.
As an employee of Huafu Color Textile, the benefits of working in Shenzhen will be envied by many others in this “other people’s company”. As for Huafu Colored Spinning, in recent years, its supply chain layout in Xinjiang, Vietnam, Shenzhen and other regions, as well as the entire industry supply chain of raw materials, spinning, fabrics and garments, has provided a solid foundation for it to become stronger and bigger. At this moment, the author just wants to say to the helmsman of Huafu Color Textile: Sun Weiting, you have played a big game of chess!
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