On November 22, 2020 (Sunday), Zhejiang Longsheng Group Co., Ltd. issued a “Price Adjustment Letter” and decided that starting from November 22, 2020, the price of disperse dyes will be based on the price of “October 12” table execution. That is, “dispersed black ECT black 300%” is priced at 25 yuan/kg, and other products can also refer to the price list. All businesses are also required to actively communicate with customers and hope for understanding and support.
Table: Canhai Investment Notes
In recent years, the development path of dye companies has not been smooth. . This year, the spread of the epidemic has worsened the situation for an industry that was already under heavy pressure. The impact of the epidemic has become the primary factor restricting the development of the industry. The epidemic has had a profound impact on the supply and demand of the dye industry. Although the domestic epidemic has been effectively contained, it is still unknown when the global epidemic will peak, and companies have not yet seen an inflection point in foreign epidemic control and economic recovery.
Table: Canhai Investment Notes
On the other hand, since the end of September, various types of chemical raw materials, China The price of the body has risen rapidly and sharply. By mid-November, the cumulative price increase of some raw materials had exceeded 50%, putting great pressure on the production costs of dyes. In order to properly digest part of the cost pressure caused by the increase in raw materials.
Judging from various financial report data for the first three quarters, Zhejiang Longsheng continued its leading position in 2019, ranking first with operating income of 11.295 billion yuan and net profit of 3.16 billion yuan. However, compared with the same period last year, the company’s operating income and net profit fell by 32.05% and 18.61% respectively. Runtu Co., Ltd., which ranks second in the industry, achieved revenue of 3.654 billion yuan in the first three quarters, a year-on-year decrease of 28.46%; net profit was 556 million yuan, a year-on-year decrease of 48.33%. Among them, net profit in the third quarter was 181 million yuan, down 27.44% from the same period last year. Jihua Group’s financial report shows that from January to September, it achieved revenue of 1.306 billion yuan, a year-on-year decrease of 36.42%; net profit fell by more than 60%, a year-on-year decrease of 64.89%, to 144 million yuan.
Affected by the epidemic this year, dye prices have always been low, and sales in foreign markets are not ideal. However, there are more orders in the domestic market than in previous years, and dyeing auxiliary companies hope to achieve the same sales volume as last year through the increase in domestic orders. </p
