Haining Leather City Is Committed To Becoming A Leader In Leather Market.

In January 26, 2001, Haining leather city successfully entered the Shenzhen Stock Exchange's small and medium-sized board, rising from the initial 21.96 yuan / share issue price to 59.61 yuan / share in December 8th, less than a year's share price rose 171.44%.

The rise of stock prices stems from the explosive growth of corporate performance and the dependence of capital markets.

In the first three quarters of 2010, the company achieved operating income of 723 million yuan, an increase of 92.69% over the same period last year, and realized a net profit of 167 million yuan attributable to shareholders of listed companies, representing an increase of 194.49% over the same period last year.

In addition, the three phase of the company's shop sales is the most important part of the company's shops and ancillary property sales. Sales revenue in the first half of this year was 309 million 760 thousand yuan, leading to an increase of 257.42% in the first half of the year.

At present, most of the sales shops are located in the eastern part of the three phase. The western block is being planned according to the plan, and the investment is basically completed. It is estimated that 11 years will still be the source of stable profits for the company.

A few days ago, Haining leather city held the third provisional shareholders' meeting in 2010. Reporters and company secretaries Li Zongrong face to face exchanges, and understand the future and planning of Haining's leather city.

Interview: Li Zongrong, deputy director of Haining Leather City

Venue: Jin Jiang Grand Hotel, Haining.

Different replicating business models give birth to high growth

Reporter: in November 25th, the Jiangsu Holding Company Limited, a subsidiary of the company, plans to invest in the construction of Shuyang leather industrial park. The total investment of the project is about 70 million yuan.

The project area is about 120 mu, and the standard factory building area is about 100 thousand square meters. It is proposed to introduce 40-50 leather products processing enterprises and other supporting enterprises through the combination of renting and selling. Can you tell us about the development environment of leather industry in Shuyang?

Li Zongrong: Shuyang originally did not have the foundation of leather industry development. It has been a major player in Jiangsu. It has become a controlling shareholder after the listing of the company. The project is located in Northern Jiangsu Province. The volume of the project is not large, and its contribution to the company's profits is limited.

There is a population of 2 million in a county in Shuyang. South of Jiangsu and Shandong are relatively developed areas in China. There is no reason why North Jiangsu is also lagging behind in the plain area. In the future, the purchasing power of the region will definitely come up, and in the long run, there will be potential for future development in Shuyang.

Reporter: the company signed a letter of intent in April 24th this year in Xinxiang, Henan, to jointly set up Xinxiang Haining Leather City Industrial Development Co., Ltd. (hereinafter referred to as "Xinxiang Haining company"). The company accounted for 51% of the total capital stock.

How is the operation of the project?

Li Zongrong: Xinxiang project is expected to set up a joint venture in the 1 quarter of next year. At present, the house of imperial seal has been built, and it will strive for completion in 2011.

Reporter: will Future Ltd continue to copy existing models to other regions?

Li Zongrong: copying Haining skin city to other places has always been a strategy for the company's development. The expansion of internal plus extension is the main driving force for the development of the company in recent years.

The company will continue to expand its extension in the future and copy existing models to other parts of the country.

The company will open up in Chengdu Chongqing and Beijing Tianjin areas in the future, but it will be more difficult to take projects in these big cities and take time. In the future, Signing company will make a public announcement.

Reporter: at present, the company has projects in Shuyang, Tian Xiang and Tong Er Bao. In the future, how will the site be selected for different business models?

Li Zongrong: the existing markets are not selected according to the company's initiative. The future selection of the company will be concentrated on the periphery of large and medium cities with a certain spending power. For example, Tong Erbao is the major leather producing area in Northeast China, and is also a large consumer city near Shenyang.

The Future Ltd will conduct some selection in Wuhan, Harbin and Xi'an.

Strive to build a leader in leather Market

Reporter: the three phase of the project will be completed next year. What is the current rental status of the block? At present, the rents of Haining leather city are going up every year.

Li Zongrong: in addition to the current high-rise building block covered by about 20 thousand square meters, there is no rental sale, the three phase of the project has been basically sold out.

The rental price is determined by the market. In the first 5 years, the rent of the company rose by 15% to 20% every year, and not all shops increased the same rate.

Reporter: at present, there are 2 sublets of landlords in the small commodity city and the textile city. The price of the sublet is much higher than the original rental price, which has a negative effect on the continuous prosperity of the commercial market. What is the current situation of the 2 sublet of the Haining Leather City landlord? What do you think of the 2 sublease of the landlord?

Li Zongrong: the 2 leased phenomenon of Haining Leather City landlord is much better than that of the small commodity city and the textile city. They are generally the 2 sublease phenomenon of the landlord. When Haining city signed a contract with the tenant, it clearly pointed out that once the 2 leased phenomenon was found, the company would rent the house back.

Reporter: what is the sales situation of the Oriental art house project? Is Future Ltd planning to develop the real estate project again?

Li Zongrong: the Oriental Art villa 2/3 is a row house. At present, the basic sales have been completed, and the 1/3 is the small top level.

Real estate housing project is not the main business of the company. In the future, if there is a suitable time and a cheaper place, the company will carry out some project development.

Reporter: at present, the commodity city and the textile city have invested in equity in the financial field. Is there any future consideration for the company?

Li Zongrong: we have heard two ideas in this respect. Our underwriting broker, CITIC Securities, advocates that we should concentrate on the main business and not participate in the rest of the market except for the professional market. Future Ltd will not put much effort into participating in the investment of financial equity. Appropriate companies will also participate appropriately.

Reporter: this year's fur and fur prices generally rise by about 30%.

The main reason for the increase is the increase in the cost of raw materials this year, and the price of raw leather and fur has risen by 30% - 50%.

In the current situation, what do you think of the sales of leather this year? Will there be a further increase next year?

Li Zongrong: personally, I think leather products are a kind of consumption upgrading products. From the national perspective, the current level of residents' consumption will have very objective improvement in the future.

The price increase of fur clothing this year is mainly due to the rise in prices of raw materials. Last year, the price of fur fell badly due to the financial crisis.