Interviews
News Flash
Revenue from dyed fabrics, sewing threads & yarns up, Fountain Set
05 May '11
5 min read
“The Group targets to reach approximately 3 million pounds of fabric dyeing output per month in the Yancheng fabric mill by the end of this financial year. Within the next 3 years, the plant could potentially be developed to achieve a monthly fabric dyeing capacity of approximately 5 million pounds per month without the need for major construction work. Upon completion of all phases, the fabric dyeing capacity could eventually reach a maximum capacity of over 10 million pounds per month. The Group will monitor closely the market conditions and the upcoming sourcing plan of our customers before further developing the Yancheng fabric mill.
“Meanwhile, the Group's plant in Jiangyin, Jiangsu Province remains the largest fabric production site within the Group and is expected to represent about half of the Group's total capacity. This phased plan of balancing the distribution of capacity between the Pearl River Delta and the Yangtze River Delta of the PRC will enable the Group to strategically diversify our geographical risk, be better positioned to efficiently service the PRC market and lessen the impact of rising costs of production in Southern part of the PRC in the long term.”
“The recent minimum wages increase by the Chinese Government resulted in continuous pressure on the cost of labour and other labour intensive services. In addition, potential risks for the industry will stem from the possibility of appreciation of Reminbi, continuous volatility in the price of cotton as well as possible surge on fuel prices, all of which are universal to the Group and the major competitors and would therefore contribute towards stronger momentum for adjustment in average selling price of fabrics. Despite increase in sales of fabrics during the period under review, the market for garment export from China remains volatile and highly competitive.
“Under such market conditions, the Group expects continuing challenges for the garment business in the second half of this financial year. The Group maintains a policy to implement stringent cost control and efficiency improvement measures to reduce our overall operating costs. The number of employees of the Group has decreased from approximately 16,200 as of 31st August, 2010 to approximately 15,600 as of 28th February, 2011.Given the current assessment of the market environment, the Group maintains a relatively optimistic view on the business outlook for the longer term.” Mr. Victor HA Kam On added.
Click here for more details
“Meanwhile, the Group's plant in Jiangyin, Jiangsu Province remains the largest fabric production site within the Group and is expected to represent about half of the Group's total capacity. This phased plan of balancing the distribution of capacity between the Pearl River Delta and the Yangtze River Delta of the PRC will enable the Group to strategically diversify our geographical risk, be better positioned to efficiently service the PRC market and lessen the impact of rising costs of production in Southern part of the PRC in the long term.”
“The recent minimum wages increase by the Chinese Government resulted in continuous pressure on the cost of labour and other labour intensive services. In addition, potential risks for the industry will stem from the possibility of appreciation of Reminbi, continuous volatility in the price of cotton as well as possible surge on fuel prices, all of which are universal to the Group and the major competitors and would therefore contribute towards stronger momentum for adjustment in average selling price of fabrics. Despite increase in sales of fabrics during the period under review, the market for garment export from China remains volatile and highly competitive.
“Under such market conditions, the Group expects continuing challenges for the garment business in the second half of this financial year. The Group maintains a policy to implement stringent cost control and efficiency improvement measures to reduce our overall operating costs. The number of employees of the Group has decreased from approximately 16,200 as of 31st August, 2010 to approximately 15,600 as of 28th February, 2011.Given the current assessment of the market environment, the Group maintains a relatively optimistic view on the business outlook for the longer term.” Mr. Victor HA Kam On added.
Click here for more details
Fountain Set (Holdings) Limited
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
