President Huang Hongyu: How Trade Enterprises "Find Money", "Use Money", and "Manage Money"

President Huang Hongyu: How Trade Enterprises "Find Money", "Use Money", and "Manage Money"
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  • President Huang Hongyu: How Trade Enterprises "Find Money", "Use Money", and "Manage Money"
Huang Hongyu, President of Henan Tongzhou Cotton Industry Co., Ltd., delivered a practical course on financial management and risk control. Using her rich historical experience and high-level management strategies, Ms. Huang detailed the key aspects of operating a cotton trading company.
Ms. Huang summarized the key points of trade company financial management using simple, down-to-earth terms: "finding money," "using money," and "managing money." This translates to "financing," "capital allocation and use," and "financial supervision." The goals of capital allocation are liquidity, security, and effectiveness. Cotton trading companies should focus on improving the turnover rate of funds to increase corporate profits. During financial supervision, it's important to establish regulations to ensure capital safety and strictly enforce supervisory systems to avoid excessive corporate debt ratios. Currently, most companies lack attention to financial analysis, which prevents effective guidance on fund use and activation of existing funds; small and medium-sized enterprises lack effective supervision.
Where do business risks come from? What does risk control entail? Ms. Huang stated that risks are everywhere, arising from knowingly taking risks, cognitive biases, inconsistencies in execution, business models, and the risk preferences of company leaders. Risk control is not about eliminating risk but transferring it. For example, futures hedging transfers risk to the futures market. Using relatively common financial tools such as futures and options for hedging requires trend forecasting and rational long-short analysis. For example, is a Fed rate cut bullish or bearish for cotton? Lower interest rates reduce the cost of capital, which is beneficial for industrial chain operation and relatively bullish. However, one must also consider why rates are being cut. Is it because the economy is weakening, non-farm employment data is declining, and economic growth is slowing? From this perspective, a rate cut would be bearish.
 

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Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance

On March 3, Wang Yongqing, Vice President of Xiamen CNOOC Group, visited Tongzhou Group for investigation and guidance. Wei Gangmin, Chairman of our company; Huang Hongyu, President; Li Tao, Vice President; and Zhang Zhiyan, Director of the General Office, met with and participated in a symposium.

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Leaders from Xiamen C&D Group visited Tongzhou for investigation and guidance
Tongzhou Cotton Market Brief, Week 1 of March 2025

Tongzhou Cotton Market Brief, Week 1 of March 2025

1) This week's National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) in China boosted market expectations for steady growth. In February, the Purchasing Managers' Index (PMI) for manufacturing stood at 50.2%, up 1.1 percentage points from the previous month, indicating a significant improvement in the manufacturing sector.

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Tongzhou Cotton Market Brief, Week 1 of March 2025
In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.

In 2024, China's dyeing industry saw rapid export growth to ASEAN and RCEP member countries, exceeding the overall export growth rate. However, this growth was accompanied by a decline in prices. From January to December, China's exports of eight major dyeing products to ASEAN totaled 7.908 billion meters, a year-on-year increase of 12.14%, 4.61 percentage points higher than the overall export growth rate, accounting for 23.58% of total exports. The average export price was US\$1.19 per meter, a year-on-year decrease of 2.75%, 0.64 percentage points lower than the overall decline. Exports to RCEP member countries totaled 8.431 billion meters, a year-on-year increase of 11.35%, 3.82 percentage points higher than the overall export growth rate. The average export price was US\$1.17 per meter, a year-on-year decrease of 2.79%, 0.60 percentage points lower than the overall decline.

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In 2024, China's exports of dyed and printed fabrics to Vietnam and Bangladesh increased significantly.
President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

On February 28, Mr. Huang Hongyu, President of our company, was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference and, as a guest speaker at the "Xiangshan Roundtable," shared his views on the cotton market and trading opportunities.

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President Huang Hongyu was invited to attend the 2025 Zhangjiagang Cotton Industry Development Conference

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