Recently, with the successive disclosure of 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 come to light. Among the performance forecasts announced by 6 listed cotton textile companies, 1 had a net profit loss, but it was less than the same period last year, and the remaining 5 were all profitable, with an increase or decrease 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 clothing consumption, the profitability of my country’s cotton textile enterprises is gradually recovering, and the gross profit margin of products continues to increase.
Weiqiao Textile
Product sales 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 with the same period in 2020.
Reason for change: As the global new coronavirus pneumonia epidemic is gradually controlled, consumption in the domestic and foreign textile and apparel markets has gradually recovered, and the demand for textiles has increased overall. The sales volume of cotton textile products has increased year-on-year. There has been a significant increase, and the sales price has also increased compared with the same period last year; in the same period last year, due to the negative impact of the epidemic, the net profit level was at a low level.
Core event: In March 2021, Weiqiao Textile held a new product launch conference and released technological innovation, functional protection, There are 33 series of innovative products in six categories, including ecological environmental protection, comfort experience, fashion creativity, and high-quality products. Among them, there are not only market-leading category innovations, but also breakthroughs in key technologies. Some innovations are the first in the industry. They are in line with the development trend of technology, fashion and greenness in the textile industry, and are in line with environmental protection, comfort, personalization, diversification, etc. market demand and has broad market prospects.
Reporter’s comment: Weiqiao Textile adheres to the development strategy of scientific innovation and digital empowerment, and has a business that integrates “spinning – weaving – printing and dyeing – clothing and home textiles” A complete industrial chain will give full play to the advantages of the entire industrial chain and create a large-scale and clustered development model. In the future, it will continue to work hard in intelligent manufacturing, technological innovation, and brand building, and continue to strengthen extensive cooperation with professional colleges and scientific research institutions. Cooperate to build a modern and international comprehensive innovation R&D platform and build a technological and industrial innovation highland with global influence.
Lianfa Shares
Rising raw materials and declining gross profit margin
Company name: Jiangsu Lianfa Textile Co., Ltd.
Business situation: expected The net profit attributable to shareholders of listed companies in the first half of the year was 90.32 million yuan to 116 million yuan, a year-on-year decrease of 55.00% to 65.00%.
Reason for the change: The appreciation of the RMB exchange rate compared with the same period last year, and the increase in the price of raw materials such as cotton and auxiliaries led to a decrease in the company’s order gross profit margin; the company’s holdings of trading financial assets generated Non-recurring gains and losses were approximately 50 million yuan, a decrease of approximately 196 million yuan compared with the same period last year, and a decrease in net profit of approximately 147 million yuan.
Core event: In order to respond to changes in the global textile industry trade pattern and meet the Southeast Asian garment industry’s demand for high-end woven fabrics, Jiangsu Lianfa Textile invested in Indonesia to build an annual production capacity of 6,600 A 10,000-meter high-end woven garment fabric project. At present, the main construction of the project has begun, and the trial operation of the project is expected to be in the second quarter of 2022.
Reporter’s comment: In 2020, affected by the external environment, Lianfa Co., Ltd. will face greater pressure on export orders. However, in the long run, Lianfa Co., Ltd.’s leading position in yarn-dyed manufacturing will be outstanding. After the epidemic, the survival of the fittest in the industry has intensified. As a leading enterprise, the company has relatively strong ability to resist risks and is expected to increase its market share. In addition, the high-end home textile gray fabric and supporting yarn production projects invested and constructed by Lianfa Co., Ltd. have been put into production one after another, supplying home textile gray fabric raw materials for the company’s downstream processes, extending the home textile industry chain, and laying the foundation for the company to realize the layout of the home textile industry.
Huafu Fashion
Adjust strategy to optimize main yarn business
Company name: Huafu Fashion Co., Ltd.
Operating conditions: Net profit in the first half of the year is expected to be 290 million yuan to 350 million yuan , turning losses into profits year-on-year.
Reason for change: During the reporting period, global apparel consumption showed a recovery trend, and the structural demand for replenishment after destocking increased in the early stage. Some overseas orders returned to China due to the epidemic, and raw materials Prices fluctuate upward and the operating environment improves; the company adjusts and optimizes its main yarn business in accordance with the established strategy, vigorously develops network chain business, and actively promotes intelligent upgrades; in terms of its main yarn business, the company vigorously expands the domestic market, non-U.S. international markets, and domestic A number of brands have established strategic partnerships, and the domestic market has increased significantly, with gross profit margins significantly improved; the front-end network chain business, which is mainly in the cotton industry, has achieved both volume and profit; the back-end network chain business, which uses the sock industry category as the entry point, has also increased. Make breakthroughs and achieve set goals.
Core event: In June 2021, Huafu Fashion established an environmental footprint calculation model from Xinjiang cotton fields to ready-made garments, and released the world’s first measured carbon footprint data of Xinjiang cotton Product: Peacebird 25th Anniversary T-shirt. Huafu Fashion also led more than ten brands to jointly establish the “Highly Sustainable (HQS) Cotton Industry Cooperation Organization”.
Reporter’s comment: Huafu Fashion actively adjusts its product and market structure, seizes the historical opportunities of China’s market expansion and consumption upgrading, deeply cultivates the domestic market, and actively builds a domestic market based on internal circulation. The market supply chain accurately grasps the development trend of the industry, runs through the textile and garment industry with yarn, and implements the industrial Internet and flexible supply chain.�Industrial transformation, realizing the transformation from “fashion manufacturer” to “fashion operator”.
Changshan Beiming
Increase the proportion of differentiated products
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Company name: Shijiazhuang Changshan Beiming Technology Co., Ltd.
Business situation : It is estimated that the net profit loss attributable to shareholders of listed companies in the first half of the year will be 50 million to 60 million yuan, a decrease of 41.53% to 29.84% compared with the same period last year.
Reasons for change: Domestic terminal consumption is recovering and growing, some overseas orders have returned to China due to the impact of the epidemic, and industry prosperity has improved; the company continues to make efforts in product development and increase functions The proportion of gender-differentiated fiber fabrics and color-spun products has been continuously enhanced, and downstream order taking capabilities, sales revenue and profitability have been continuously enhanced, achieving 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 comprehensive textile and apparel projects in Xinjiang. By adjusting the structure of the textile sector, eliminating varieties with low gross profit and poor market prospects, adding varieties with high gross profit and good market prospects, and enhancing the company’s ability to resist risks and profitability. The company has also formulated cotton yarn futures delivery factory management methods to strengthen the allocation of The technical strength of cotton yarn futures business is to carry out cotton yarn futures delivery factory business to help the company’s main textile business improve the 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 Better than last year, this is inseparable from its increased research and development, improved product development capabilities, increased production of differentiated products with high added value, and enhanced the competitiveness of its yarn business.
Blum Oriental
Production capacity has returned to pre-epidemic levels
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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 yuan~ 586 million yuan, a year-on-year increase of 280%~330%.
Reason for the change: In the first half of 2021, the company’s overall production capacity returned to pre-epidemic levels, capacity utilization increased, orders increased, and main business profits increased.
Core event: On July 5, Blum Oriental announced that the company planned to raise no more than 1 billion yuan in additional capital for the expansion of Blum (Vietnam) by 390,000 ingots. Yarn projects. Blum (Vietnam)’s 390,000-spindle yarn expansion project has a total investment of US$250 million and plans to use 1 billion yuan of raised funds. The implementation location is located in Fudong Industrial Park, Xining City, Vietnam.
Reporter’s comment: At present, Blum Oriental’s orders are continuing to grow. Personalized products are fully produced and sold in a single quarter, and orders for standardized products are fully booked throughout the year. In the short term, benefiting from the replenishment needs of domestic brands and the continued recovery of overseas demand, it is expected that cotton spinning enterprise orders will continue to improve overall in the second half of 2021, the pressure of insufficient operating rates will gradually be lifted, and profits will gradually recover; in the medium and long term, costs The rising trend and the uncertainty of trade friction will benefit manufacturing leaders that have earlier overseas production capacity deployment and a higher proportion. The value of high-quality leaders will continue to be highlighted.
Xinye Textile
Changes in the trade environment intensify risks
Company name: Xinye Textile Co., Ltd.
Operating conditions: The estimated net profit attributable to shareholders of the listed company in the first half of the year is 57.3796 million yuan to 80.3314 million yuan , year-on-year change -50.00%~30.00%.
Reason for the change: The uncertainty and risks of the international trade environment have intensified, coupled with the impact of the global COVID-19 epidemic on the industry, 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 nonwovens project in the textile industry cluster area of Xinye County, Henan Province. However, due to the global epidemic Due to the impact, the import of key equipment has been blocked, and the project construction period cannot yet be estimated.
Reporter’s comment: Xinye Textile is one of the domestic manufacturers in the field of high-end cotton textiles. In the national “One Belt, One Road” strategy Under the framework of Xinjiang, Xinye Textile has successively invested more than 2 billion yuan in Xinjiang, integrating Xinjiang’s cotton acquisition, cotton processing, and spinning industry chains, driving 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 its Xinjiang production base, coordinate domestic and foreign cotton resources, and continuously improve production efficiency while stabilizing quality to maintain the company’s leading position in the cotton textile industry. </p
