Wenzhou 101 optical Co. Ltd , https://www.101optical.com
Shandong Ruyi has been transitioning from a traditional manufacturer to a brand-focused enterprise in recent years. While part of the listed company still primarily produces worsted wool fabric, its production capacity has seen significant growth. In 2009, it produced 7 million meters of worsted woolen cloth, and after expansion, it is expected to reach 10 million meters in 2010 and 15 million meters in 2011. The company’s “Ruyi Spinning†technology drives its order volume, and with increased production scale, product prices have remained stable. As the industrialization ratio of this technology increases, gross profit margins are projected to rise to 27.5% in 2010 and 28% in 2011.
Expanding toward the terminal market is a key trend for the company, with a focus on high-end products such as cotton-silk printing fabrics, home textiles, and premium wool suits. To achieve this, Shandong Ruyi is exploring resource integration models, combining the design and management strengths of acquired companies in Japan, Italy, and France with its own manufacturing capabilities to target both domestic and international markets.
Despite a sluggish export market last year, the domestic market showed strong performance, reinforcing the company’s commitment to expanding within China. Over the next three to five years, Lianfa Textile aims to build its own brand, focusing on promoting the “James King†label and strengthening its retail network.
After listing on the capital market in April of the previous year, the company plans to expand its production capacity gradually. By 2011, it expects to produce 75 million meters of fabric, 8,000 tons of yarn, and 11.8 million shirts, reducing reliance on external processing and improving profit margins. The company currently operates an integrated supply chain covering spinning, weaving, and garment production, with a compound annual growth rate of revenue and net profit at 31.43% and 26.44%, respectively, over the past three years.
Li Lang, another subsidiary, has repositioned its second brand, L2, and is working on refining its brand strategy and pricing model. Despite opening only 80 new stores last year, including 55 in high-end cities, sales did not meet expectations. Future plans include enhancing brand positioning and increasing terminal support, with an expected operating gross margin of 24.7% in 2013.
The company’s five-year strategic plan, known as the “12345 Lilang Gene,†outlines multi-brand development, brand extension, and operational improvements. It also emphasizes values like innovation, hard work, and dedication, aiming to become a leading Chinese fashion brand.
Xinxiang Chemical Fibers is investing in fiber upgrading projects, including high-modulus fibers and spandex, which are expected to significantly boost profits. Huaxi Village is expanding its polyester staple fiber production line, adding 100,000 tons of capacity and boosting revenue and net profit by 300 million and 180 million yuan, respectively.
Haidong Qing is focusing on recycling products, expanding its regenerated fiber and non-woven fabric capacities. The company is also investing in clean production technologies and environmental products, targeting high-end markets.
Weixing shares are leveraging advantageous projects to attract downstream customers, transitioning from traditional manufacturing to value creation. It is expanding its presence in the south and abroad, enhancing its competitive edge.
As the world's largest button manufacturer, the company holds a 17% share of the high-end button market. With recent capital raising, it is investing in four major projects to expand its button and zipper production, aiming to increase total production capacity and generate over 700 million yuan in income.
In summary, Shandong Ruyi continues to strengthen its brand presence, expand its industrial chain, and invest in high-value-added products, ensuring long-term growth and competitiveness in the global textile industry.