Recently, with the continuous disclosure of the 2021 semi-annual performance forecasts of listed companies in the cotton textile industry, the operating conditions of listed companies in the cotton textile industry have gradually emerged. In the performance forecasts announced by the six listed cotton textile companies, one of them has a net profit loss, but it has reduced losses compared to the same period last year, and the remaining five have made profits, which have increased or decreased compared with the same period last year. It can be seen that with the control of the global epidemic and the gradual growth of textile and apparel consumption, the profitability of my country's cotton textile enterprises is gradually recovering, and the gross profit rate of products continues to increase.
Weiqiao Textile
Product sales have increased significantly
Company Name: Weiqiao Textile Co., Ltd.
Operating conditions: Net profit in the first half of the year is expected to increase by more than 200% compared to the same period in 2020.
Reason for change: With the gradual control of the global novel coronavirus pneumonia epidemic, domestic and foreign textile and apparel market consumption has gradually recovered, and the overall demand for textiles has increased. The sales volume of cotton textile products has increased significantly year-on-year, and the sales price has also increased year-on-year; Due to the negative impact of the epidemic, the level of net profit is at a low level.
Core event: In March 2021, Weiqiao Textile held a new product launch conference and released 33 series of innovative products in six categories, including technological innovation, functional protection, ecological environmental protection, comfortable experience, fashion creativity, and high-quality products. Among them, there are not only market-leading category innovations, but also breakthroughs in key technologies. Some of the innovations are the first in the industry, which are in line with the development trend of technology, fashion, and green in the textile industry, and are in line with environmental protection, comfort, personalization, diversification, etc. Market demand has broad market prospects.
Reporter's comment: Weiqiao Textile adheres to the development strategy of science and innovation-led and digital empowerment, and has a complete industrial chain integrating "spinning-weaving-printing and dyeing-clothing, home textiles", and will give full play to the advantages of the entire industry chain to create The large-scale and clustered development model will continue to work hard in intelligent manufacturing, technological innovation, and brand building in the future, continue to strengthen extensive cooperation with professional colleges and scientific research institutions, and build a modern and international comprehensive innovation research and development platform. Build a technological and industrial innovation highland with global influence.
Lianfa shares
Raw materials rise and gross profit margins fall
Company Name: Jiangsu Lianfa Textile Co., Ltd.
Operating conditions: The net profit attributable to shareholders of listed companies in the first half of the year is expected to be 90.32 million yuan to 116 million yuan, a year-on-year decrease of 55.00% to 65.00%.
Reasons for change: The exchange rate of RMB has appreciated compared with the same period last year, and the price of raw materials such as cotton and auxiliaries has decreased, resulting in a decrease in the company's order gross margin; non-recurring gains and losses from trading financial assets held by the company are approximately RMB 0.05 billion, a decrease from the same period last year About 196 million yuan, reducing net profit by about 147 million yuan.
Core event: In order to respond to changes in the global textile industry trade pattern and meet the demand for high-end woven fabrics from the apparel industry in Southeast Asia, Jiangsu Lianfa Textile has invested in Indonesia to build a project with an annual output of 66 million meters of high-end woven fabrics. At present, the project The construction of the main project has started, and the trial operation time of the project is expected to be in the second quarter of 2022.
Reporter's comment: In 2020, affected by the external environment, Lianfa's export orders will be under greater pressure, but in the long run, Lianfa's yarn-dyed manufacturing has a prominent position and has experienced the baptism of the epidemic. The survival of the fittest in the industry has intensified, and the company as a leading company resists risks The ability is relatively strong, and it is expected to achieve an increase in market share. In addition, the high-end home textile grey fabrics and supporting yarn production projects invested and constructed by Lianfa Co., Ltd. have been put into production one after another, supplying home textile grey fabric raw materials for the company's downstream processes, extending the home textile industry chain, and laying the foundation for the company's home textile industry layout.
Huafu Fashion
Adjust strategy to optimize the main yarn industry
Company Name: Huafu Fashion Co., Ltd.
Operating conditions: The net profit in the first half of the year is estimated to be between 290 million yuan and 350 million yuan, turning losses into profits year-on-year.
Reasons for change: During the reporting period, global apparel consumption showed a recovery growth trend. The structural demand for replenishment after destocking in the previous period increased. Some overseas orders returned to China due to the epidemic, raw material prices fluctuated upward, and the operating environment improved; the company adjusted according to the established strategy Optimize the main yarn business, vigorously develop the network chain business, and actively promote intelligent upgrades; in terms of the main yarn business, the company vigorously expands the domestic market, non-US international markets, and establishes strategic partnerships with many domestic brands, and the domestic market has increased significantly , The gross profit margin increased significantly; the front-end network chain business, which is dominated by the cotton industry, realized an increase in volume and profit; the back-end network chain business that took the hosiery category as the entry point also made breakthroughs and achieved the set goals.
Core event: In June 2021, Huafu Fashion established an environmental footprint measurement model from Xinjiang cotton fields to ready-made garments, and released the world's first measured carbon footprint data product of Xinjiang cotton: Peacebird 25th Anniversary T-shirt. Huafu Fashion also led more than ten brands to jointly establish the "High Sustainability (HQS) Cotton Industry Cooperation Organization".
Reporter's comment: Huafu Fashion actively adjusts the product and market structure, seizes the historical opportunities of the expansion of the Chinese market and consumption upgrades, deepens the domestic market, actively builds a domestic market supply chain based on internal circulation, and accurately grasps the development trend of the industry. The line runs through the textile and apparel industry, and realizes the industrial transformation through the industrial Internet and flexible supply chain, and realizes the transformation from a "fashion manufacturer" to a "fashion operator".
Chang Shan Beiming
Increase the proportion of differentiated products
Company Name: Shijiazhuang Changshan Beiming Technology Co., Ltd.
Operating conditions: The net profit loss attributable to shareholders of listed companies in the first half of the year is expected to be 50 million to 60 million yuan, a reduction of 41.53% to 29.84% over the same period of the previous year.
Reasons for the change: Domestic terminal consumption is recovering, and some overseas orders have returned to China due to the epidemic, and the industry's prosperity has improved; the company continues to make efforts in product development, increasing the proportion of functionally differentiated fiber fabrics and colored spinning products. Downstream order-taking capacity, sales revenue and profitability have achieved significant growth.
Core event: In 2020, due to changes in the market environment and the company's business strategy, Changshan Beiming terminated its investment in the construction of a comprehensive textile and garment project in Xinjiang. Through structural adjustments to the textile sector, weed out varieties with low gross profit and poor market prospects, increased varieties with high gross profit and good market prospects, and enhanced the enterprise's ability to resist risks and profitability. The company also formulated measures for the management of cotton yarn futures delivery factories and warehouses, with strong allocations. The technical force of the cotton yarn futures business has carried out the cotton yarn futures delivery factory warehouse business to help the company's main textile business to improve quality and efficiency.
Reporter's comment: In the past two years, Changshan Beiming has continuously adjusted its business structure. In 2021, Changshan Beiming's textile business is better than last year. This is inseparable from the increase in research and development and product development capabilities, and increase the differentiation of production with high added value. The product ratio has enhanced the competitiveness of its yarn business.
Blum Oriental
Production capacity returned to pre-epidemic levels
Company Name: Blum Oriental Co., Ltd.
Operating conditions: The net profit attributable to the parent company in the first half of the year is expected to be 518 million to 586 million yuan, a year-on-year increase of 280% to 330%.
Reason for the change: In the first half of 2021, the company's overall production capacity has returned to the pre-epidemic level, the capacity utilization rate has increased, orders have increased, and the profit of its main business has increased.
Core event: On July 5, Blum Oriental issued an announcement stating that the company plans to raise capital of no more than 1 billion yuan for Blum (Vietnam) to expand its 390,000-spindle yarn project. Blum (Vietnam) expands its 390,000-spindle yarn project with a total investment of US$250 million and plans to use raised funds of 1 billion yuan. The implementation site is located in Fudong Industrial Park, Xining City, Vietnam.
Reporter's comment: At present, Blum Oriental's orders are continuing to grow. Individualized products are fully produced and sold in a single season, and orders for standardized products have been filled throughout the year. In the short term, benefiting from the replenishment demand of domestic brands and the continuous recovery in overseas demand, it is expected that the overall improvement trend of cotton spinning enterprises' orders in the second half of 2021 will gradually relieve the pressure of insufficient operating rate and profits will gradually rise; in the medium and long term, costs The rising trend and the uncertainty of trade frictions have benefited the manufacturing leaders with an earlier and higher share of overseas production capacity, and the value of high-quality leaders will continue to be highlighted.
Xinye Textile
The volatile trading environment exacerbates risks
Company Name: Xinye Textile Co., Ltd.
Operating conditions: The net profit attributable to shareholders of the listed company in the first half of the year is expected to be 57,379,600 yuan to 80,331,400 yuan, a year-on-year change of -50.00% to 30.00%.
Reasons for the change: The risk of uncertainty in the international trade environment has intensified, and the impact of the global new crown epidemic on the industry has been superimposed, and the net profit attributable to shareholders of listed companies has declined.
Core event: In 2020, Xinye Textile invested 120 million yuan in the construction of a high-end spunmelt composite nonwoven project in the textile industry agglomeration area of Xinye County, Henan Province. However, due to the impact of the global epidemic, the import of key equipment was blocked, and the construction period of the project is not yet predictable. .
Reporter's comment: Xinye Textile is one of the domestic manufacturers of high-end cotton textiles. Under the framework of the national "One Belt and One Road" strategy, Xinye Textile has successively invested more than 2 billion yuan in Xinjiang to integrate Xinjiang's cotton purchases, cotton processing, and spinning. The yarn industry chain has driven the company's production capacity to more than 1.7 million spindles. In 2021, the company will give full play to the cost advantage of Xinjiang production base, coordinate domestic and foreign cotton resources, and continuously improve production efficiency while stabilizing quality, so as to maintain the company's leading position in the cotton textile industry.
