Huafeng Spandex latest announcement indicates that the company’s 2008 net profit fell 50 percent to ~ 70%, in fact, the performance of chemical fiber industry in 2008 showed only the tip of the iceberg going from bad to worse, in the chemical fiber industry, the profit decline was the worst of the results of less than . Experts said that from the beginning of the third quarter of 2008, the domestic chemical fiber industry has plunged into a situation where the entire industry losses for 2000 are rarely seen since.

The profit margin dropped reasons, Huafeng Spandex earlier semi-annual report in 2008 have already signs of the semi-annual report Huafeng Textile ammonia, said: “As the demand for the lower reaches of the textile industry in the doldrums, spandex production capacity expansion of the industry to further increase the market The contradiction between supply and demand, market competition spandex products, prices continued to decline, gross profit margins significantly lower than the same period last year. ”

Experts said: “The preliminary estimation, 2008 1 ~ November chemical fiber industry realized profits of about 3.47 billion yuan, while 1 ~ August industry profits are still 4.713 billion yuan, it is obvious that 9 ~ November chemical fiber industry in fact a net loss of 12.43 billion. ”

In addition to a large number of small and medium-sized clearance dejected things, since October 2008, chemical fiber industry than the news one after another giant corporate bankruptcy, for example, Hualian Sanxin reorganization, the reorganization of China Holdings, pentacyclic spandex reorganization, Fengming synthetic full stop Nissan, etc.. More enterprises in the lead industry association under the production-limiting, or stage production.