In a development which is relevant to the listing of Zhongguo Pengjie Fabrics this week, China Printing & Dyeing Holding has reported a net profit of 1.29 million yuan (S$259,000) for the second quarter of 2008, a fall of 94.3 per cent compared to 22.66 million yuan in the corresponding period a year ago, hit by a strong yuan and higher energy costs.
The company said that the textile printing and dyeing industry in China has been facing an increasing challenging environment of strengthening RMB against US$, higher operating costs; especially high oil prices leading to higher material costs, freight, transportation and energy related costs. Reduction of export tax rebates, stringent environmental regulations and export restriction have placed the industry in an extremely unfavorable environment.
Most of these factors can be extended and applicable to Zhongguo Pengjie Fabrics which count the same targeted end users as their ultimate boss.
We reference to their statement: “extremely unfavorable environment”, we could understand better by now why there is a rush of the new listing from same industry and same country into Singapore.
The next up coming in fabric industry is Qian Feng Fabric Tech.
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