In the last few days of April, the 2021 first quarter reports of major listed dye companies were released one after another. After sorting through these “report cards”, the reporter found that in the complex market environment, the performance of some dye companies declined, but at the same time, many companies relied on their own strength to achieve steady growth in performance.
Performance is mixed
Net profit may rise or fall
Judging from various data in the first quarter report, Zhejiang Longsheng Group Co., Ltd. still continues its position as the leader for many years, with operating income The net profit attributable to shareholders of listed companies was RMB 4.17 billion and RMB 1.07 billion ranked first. But it is worth noting that the company’s operating income and net profit fell by 0.6% and 9.1% respectively compared with last year.
Despite the decline in revenue and profits, many financial institutions still affirmed Zhejiang Longsheng’s performance in the first quarter. A research report released by CICC pointed out that as the global economy slowly recovers, the global dye market demand will continue to improve. Zhejiang Longsheng’s dye sales are expected to continue to grow month-on-month, and the company is optimistic about further expanding its domestic market share. Bank of China Securities said that although some companies in the industry have added new production capacity, which will have a certain impact on market prices, Zhejiang Longsheng’s industry leading position cannot be shaken.
Data show that Zhejiang Runtu Co., Ltd.’s operating income in the first quarter was 1.42 billion yuan, a year-on-year increase of 23.9%; the net profit attributable to shareholders of the listed company was 180 million yuan, a year-on-year decrease of 23.4% %. Zhejiang Haixiang Pharmaceutical Co., Ltd.’s first-quarter revenue was approximately 642 million yuan, a year-on-year increase of 11.63%; the net profit attributable to shareholders of the listed company was 57.19 million yuan, a year-on-year decrease of 45.6%.
In response to the divergence between corporate revenue and net profit, industry experts pointed out that in the first quarter of 2021, domestic textile and apparel exports maintained restorative growth, with textile and apparel exports in March increasing by 22.66% year-on-year. %, maintaining positive growth for six consecutive months since October last year, and the prosperity of the dye industry has also improved. However, due to the tight market supply and large price fluctuations of dye intermediates such as H acid and para-ester in recent years, profits have declined.
Due to the large-scale production shutdown and the impact of the epidemic last year, Jiangsu Yabang Dyestuff Co., Ltd. has suffered losses for two consecutive years, and its profit losses have also expanded in the first quarter of this year. In the first quarter of 2021, the company’s revenue was approximately 76.16 million yuan, a year-on-year decrease of 47.01%; its net loss was approximately 94.03 million yuan, a year-on-year decrease of 26.07%.
Affected by the market, the performance of some dye companies in the first quarter was unsatisfactory, but at the same time, the performance of several companies bucked the trend and increased. Among them, the data of Zhejiang Jihua Group Co., Ltd. is particularly eye-catching. Jihua Group achieved operating income of approximately 672 million yuan in the first quarter of 2021, a year-on-year increase of 59.22%; the net profit attributable to shareholders of listed companies was approximately 114 million yuan, a year-on-year increase of 222.31%. According to the main operating data announcement released by the group from January to March 2021, during the period, the company’s output and sales of dyes and intermediates were 18,000 tons and 22,500 tons respectively, compared with 13,200 tons and 13,400 tons in the same period last year. 10,000 tons has been greatly improved.
Another company whose net profit has increased significantly is Jiangsu Jinji Industrial Co., Ltd. The company achieved operating income of 251 million yuan in the first quarter of 2021, a year-on-year increase of 24.79%; it achieved a net profit attributable to shareholders of listed companies of 20.77 million yuan, a year-on-year increase of 172.93%. The company’s first quarter report pointed out that the main factor driving changes in business income is that as the epidemic situation gradually improves, the global industrial chain and supply chain have gradually recovered, which has led to the growth of the company’s performance. In addition, by strengthening sales management and strengthening performance appraisal, the company has consolidated the responsibilities of sales personnel and steadily improved sales performance.
In addition, the first quarter report of Shanghai Yayun Textile Chemical Co., Ltd. in 2021 showed that it achieved revenue of 251 million yuan in the quarter, a year-on-year increase of 22.36%, and achieved net profit attributable to shareholders of the listed company. 24.5678 million yuan, a year-on-year increase of 30.71%. Shanghai Annoqi Group Co., Ltd. achieved total operating income of 340 million yuan in the first quarter of 2021, a year-on-year increase of 11.6%; it achieved a net profit attributable to shareholders of listed companies of 49.831 million yuan, a year-on-year increase of 1.3%.
Printing and dyeing orders decrease
Dye faces bottleneck
Judging from the quarterly report data, in the first quarter of 2021, although the performance of dye companies varied, the overall development of the industry was relatively stable. However, Zhejiang Longsheng insiders revealed in recent interviews with relevant media that the dye industry has entered a bottleneck period, and Zhejiang Longsheng’s production capacity operating rate has only remained at about 60%.
As a downstream industry of the dye industry, the printing and dyeing industry performed mediocre in the first quarter of this year. The economic operation data of the printing and dyeing industry from January to February 2021 released by the China Printing and Dyeing Industry Association show that compared with the same period in 2019, the industry’s main business income decreased by 9.02% from January to February 2021, the total profit decreased by 36.44%, and export transactions The value of goods decreased by 13.74%. The analysis report pointed out that although the economic operation of my country’s printing and dyeing industry showed restorative growth from January to February, and the main operating indicators rebounded significantly, the industry as a whole has not yet returned to pre-epidemic levels.
In addition, according to a survey conducted by Colorful Cloud Dyeing e-commerce platform in March, the ex-factory price, internal control price and transaction price of my country’s dye market have certain differences.�Gap. For example, the ex-factory price of dispersed black ECT 300% is 35 yuan/kg to 40 yuan/kg, the internal control price is 32 yuan/kg, and the transaction price ranges from 26 yuan/kg to 30 yuan/kg. Qicaiyun pointed out that in the first quarter, due to factors such as the off-season production and rising raw material prices, orders from printing and dyeing companies were less than expected, resulting in dye consumption not reaching expectations, which in turn caused the actual transaction price growth of dyes to be slower than expected.
In response to the pressure the industry has faced in recent years, Shi Xianping, president of the China Dyestuff Industry Association, suggested that companies should pay attention to various policies issued by the central and local governments and actively take advantage of them; make good use of downtime to do We should do a good job in technical transformation and personnel training; qualified enterprises should appropriately reserve raw materials and products; focus on export tax rebates; take advantage of favorable conditions to actively expand international markets; pay attention to customer changes and prevent business risks.
The epidemic has accelerated the reshuffle
Enterprises become better and stronger
It is worth noting that in the recently released quarterly reports, many companies mentioned the company’s core competitiveness. It is generally believed in the industry that dye companies will accelerate the reshuffle after the epidemic. Whether they have their own core products and technologies not only determines the profits of each company, but also is the key to whether the company can further become better and stronger.
In its first quarter report, Yayun Co., Ltd. clearly stated that it will further increase its cooperation with clothing brands and fabric manufacturers at the end of the textile industry chain and gradually improve related services. system. The large database platform for color formulas developed by the company has about 500,000 pieces of dye performance data, about 50,000 pieces of color data, including dyeing formulas, fastness predictions, and environmental protection information, and about 20,000 physical colors, respectively, and the big data center. Correspondingly, it basically covers most colors on cotton, polyester and nylon, thus starting to provide better solutions for downstream customers. Its wholly-owned subsidiary Monk Technology has created a digital color solution platform that can predict the achievability of colors and whether sustainable solutions can be adopted before placing an order, and provide the other party with information before placing an official order. Reliable solution.
In the 2020 annual report released at the same time as the first quarter report, Runtu Co., Ltd. pointed out that it will focus on strengthening high-intensity environmental protection by promoting the construction of key technological transformation projects. The disperse dye continuous project and the cationic dye project will undergo technical transformation, improve the production process and improve the level of equipment automation, achieve clean and safe production, improve production efficiency, and reduce production costs; actively implement the innovation-driven development concept of independent innovation and cooperative research and development. , continue to increase technical cooperation and innovation exchanges with major universities and scientific research institutes.
In view of the environment of regular and strict supervision on safety and environmental protection, Haixiang Pharmaceutical stated that it will adhere to the path of clean and green sustainable development . The company will build a new resin adsorption system, multi-effect evaporation equipment, electrolysis facilities, inorganic waste gas treatment facilities, RTO organic waste gas treatment facilities and other pre-treatment and terminal treatment facilities, build a new solid waste warehouse, and transform the physical and chemical systems and biochemical systems of the sewage station. , improve the front-end pretreatment and end-end “three wastes” processing capabilities; continue to optimize and improve the production process, strengthen the recycling and application of by-products and wastewater in each workshop, improve the output and quality of by-products, and reduce the discharge of pollutants such as wastewater and solid waste.
In addition, in the face of the reduction of orders in overseas markets caused by the current global epidemic, in order to enhance the international competitiveness of my country’s dye industry and reverse the passive situation of international competition , the industry hopes that the export tax rebate policy for dyes and intermediates will be restored, and it is recommended that relevant national departments grant full export tax rebate rates for dyes and intermediates products. Some insiders judge that if they can obtain the support of export tax rebate policy, it is expected that the international market share of relevant Chinese enterprises can increase to more than 50%.
At the same time, some business leaders pointed out that to restore the export tax rebate policy for dyes and intermediates, the export tax rebate rate for dyes and intermediates-related enterprises and environmental protection and safety management can be adopted In a linked manner, they complement each other to promote the green and high-quality development of the dye and intermediate industry.