I. General situation of the enterprise

Shandong Wei Qiao Venture Group Co., Ltd. is located at the southern end of Lubei Plain, with total assets of 654.38+03.5 billion yuan, bank credit rating of AAA, customs credit rating of AA and tax credit rating of AA. It is a super-large comprehensive enterprise group integrating cotton spinning, weaving, dyeing and finishing, clothing, thermoelectric and aluminum industry. Technical equipment ranks first in the country, and its production scale and economic benefits rank first in the national cotton textile industry for six consecutive years. Wei Qiao Venture Group is currently the largest cotton textile enterprise in the world, one of the top 500 enterprises in China and 26 super-large enterprises in Shandong Province.

Wei Qiao Venture Group owns three subsidiaries, namely Wei Qiao Textile, Wei Qiao Thermoelectric Company and Wei Qiao Aluminum Company, and has formed an industrial structure based on cotton textile, with' textile-dyeing and finishing-clothing' and' thermoelectric-metal smelting-metal calendering' as two wings. Wei Qiao Textile, the largest holding subsidiary invested by Wei Qiao, was listed in Hongkong in September 2003 (stock code: 2698). It mainly produces more than 2,000 varieties in ten categories, such as two yarns and two fabrics, high count and high density elastic fabrics, jeans and chemical fiber fabrics. The company has been rated as one of the top ten enterprises in the national commercial industry, the most profitable enterprise in the national industrial system and the leading enterprise in the national industrial, commercial, financial and trading system. 1997-2002 was rated as the advanced collective of the national textile industry system and the national supply and marketing cooperative system; 1998-2002 was rated as the national advanced export production enterprise; And in 1998-2002, it was rated as the national cotton textile industry economy.

Second, the operation of the enterprise

The profitability of the company is good, and it is constantly improving. The gross profit margin of sales remained at around 9%, and the gross profit margin in 2005 was slightly higher than that in 2004, indicating that the company, as the largest cotton spinning enterprise, could well cope with the changes in the textile export environment and domestic policy environment in 2005. The rate of return on net assets increased by 16.06% compared with the previous year, and that of return on total assets increased by 18.68% compared with the previous year. The cost-expense ratio was 2.30, which was much lower than that of the previous year. It shows that the profitability of Wei Qiao Textile has improved in 2005, and all the indicators have reached the expected goals.

In 2005, the company's accounts receivable turnover rate showed a sharp upward trend, indicating that the company's accounts receivable liquidation speed and management efficiency have improved, and the return on current assets and total assets turnover rate have both increased compared with the previous year, indicating that the company's asset management efficiency is better, and the turnover rate of finished products is the same as that of the previous year, with a slight decline. Generally speaking, the company's operating efficiency continued to improve in 2005.

In 2005, the company's current ratio and property right ratio remained at a low level, and the asset-liability ratio was slightly higher, but it was still in the normal range, and the interest rate multiple dropped significantly.

Table 1 Operating Indicators of Wei Qiao Venture Group

Specific indicators

In 2004

In 2005

profitability

Gross profit margin of sales

9.35%

9.43%

return on total assets

16.84%

18.68%

Return on common shareholders' equity

15.64%

16.06%

Cost-expense ratio

2.95

2.30

Operating energy

Accounts receivable turnover rate (times)

23. 19

63.42

Return on current assets (times)

2.49

3.22

Turnover rate of finished products (times)

2 15.75

209.77

Total assets turnover rate (times)

0.73

1.43

asset structure

Current ratio (times)

0.48

0.54

Proportion of property rights (times)

0.38

0.38

Asset-liability ratio (%)

6 1.24%

6 1.53

Interest guarantee multiple (times)

1 1. 1

4.08

develop ability

Main business growth

——

——

Total profit growth rate

——

45.73%

net assets growth rate

——

——

total assets growth rate

——

16.70%

Source: National Bureau of Statistics

Third, the enterprise research and development situation

Wei Qiao Textile pays attention to the research and development of enterprises. The company has strong technical force and reasonable commodity structure. It mainly produces more than 2,000 varieties in ten categories, such as two yarns and two fabrics, high count and high density elastic fabrics, jeans and chemical fiber fabrics. In 2003, the total production capacity reached 440,000 tons of cotton yarn and 840 million meters of grey cloth. "Weiqiao" brand products have the advantages of high grade, good quality and complete specifications, covering more than 20 countries and regions such as the United States, Japan and South Korea. It is an enterprise certified by ISO900 1 quality management system and ISO 1400 1 environmental management system. All the exported cotton yarns have reached the level of international Hurst Bulletin 97, the export qualification rate of cotton fabrics has reached 99.2%, and the commodity inspection qualification rate of export commodities has remained at 100% over the years.

It can be seen that Wei Qiao Textile has formed a unique brand, and there are many kinds of textile products in Wei Qiao, which meet the market demand well, indicating that the company pays attention to the development of new products. In addition, the company's product quality management system and environmental management system show that the product quality is very good, which is enough to show that the company attaches great importance to product technology and development.

Fourth, the development prospects of enterprises

Wei Qiao Group is the first cotton spinning enterprise in China. As the largest producer of cotton yarn, grey cloth and denim in China, Weiqiao Textile Co., Ltd. invested 500 million US dollars to expand its production capacity in 2004-05, and its production capacity has reached 3 million spindles. An Deyu Cotton Mill, which has started construction, plans to invest HK$ 654.38 billion with a design scale of 3 million spindles, and will be the largest compact spinning production base in the world after completion.

In addition, Weiqiao Textile also invested and established Weihai Weiqiao Textile Co., Ltd. in Weihai, becoming the largest foreign-invested enterprise in Weihai. From 2000 to 2005, we invested nearly 2 billion yuan to establish Weiqiao No.1 Industrial Park in five years. At the end of 2004, Weiqiao No.2 Industrial Park was established. After full production in 2008, Wei Qiao will invest a total of 4.5 billion yuan, with a production capacity of 65.438+600,000 spindles and 20,000 looms, with a sales income of 8 billion yuan.

It can be seen that Wei Qiao Textile, which is in the high-speed growth period, has a long-term plan for the future development of the enterprise. While consolidating the advantages of cotton textile projects, we will actively seek domestic and foreign partners, integrate resources, and add home textile and garment projects to build Weiqiao Textile into a large-scale comprehensive enterprise with textile and garment processing and export as the main body. With the increase in domestic consumption of high-quality textiles and clothing, Wei Qiao, the largest and most profitable cotton textile manufacturer in China, will continue to be the industry leader, and the future development prospects of the enterprise are quite promising.