Reference Home, &Nbsp, Home Textile Industry.

Historically, since the listing in 1982, the price rise and fall of Su Qi has basically been associated with the rise and fall of business performance. It can be roughly divided into four stages, which rose from 1987 to 1990, far ahead of the index. There was a certain degree of callback from 1991 to 1992; from 1993 to 1992, it experienced a period from a small climb to a straight line pull up; finally, from the beginning, it entered the long bear road that lasted for decades.

Stock price is closely related to business and fully reflects the value orientation of capital market for company pricing.

Looking back at the history of the listing of Su Chi company, 1987 - 1990 and 1993 - 1997 are the two stages of the company's development and stock price performance. We believe that in addition to the background of the national economy and consumption growth, we should maintain the product quality advantage based on the highest technical post finishing links in the industry chain, and the most important reason is the rapid expansion of the channels through the acquisition and merger of the extensive acquisition.

According to the development history of Su Qi company, since 1998, the company's share price and performance have entered a long downward path, and the reasons for its decline are analyzed. We believe that the financial pressure and operational integration caused by the multiple acquisitions and mergers in the early stage have not been fully released, resulting in the gradual deterioration of the company's financial indicators and further drag on the company's operation. At the same time, the poor integration of the supply chain after the large-scale expansion of business and the untimely expansion of emerging markets are also important factors affecting the performance.

From the vicissitude of Su Qi's company, we think that the domestic economic growth and consumption upgrading will create a good platform for the domestic textile industry, and promote the sustained and rapid growth of the industry. The market share of the leading domestic textile enterprises has great room for improvement (in 2007, the share of Italy's home textile market in France and the French home textile market is about 16.47% and 5.46% respectively).

Referring to the history of the development of home textile enterprises in Europe and America, we believe that the future development mode of domestic textile enterprises may include the following: the giant mode of vertical integration of industrial chains, the high-end mode of personalization and diversification, the channel King mode and the mixed operation mode brought by acquisition and merger, agency and delegation.

Taking history as an example, we firmly believe in the domestic textile industry. We expect that the average growth rate of home textiles in the short and medium term will be higher than that of ordinary clothing. The dominant companies with listed companies as leaders will be expected to share the multiplier effect brought by the rapid growth of the industry and the increase of market share.

At present, the mode of operation of home textile enterprises listed is more similar. In the short term, there is no essential difference (there are differences in the operation of multi brands, the strength of channel development and the development of new business efficiency, etc.), and the "overweight" rating of fuanna and Meng Jie home textiles is maintained.