Five months ago, Xinye Textile was once a “star” in the eyes of A-share investors. Because it got caught up in the hot mask concept at the time, Xinye Textile’s stock price doubled for five consecutive days. However, with a letter of concern from regulators, Xinye Textile’s popularity quickly receded like a tide.
On the evening of August 25, Xinye Textile released its performance report for the first half of 2020: operating income in the first half of the year was 2.413 billion yuan, a decrease of 15.81% from the same period last year; non-net profit attributable to shareholders of the listed company was 99.61 million yuan , a decrease of 40.87% compared with the same period last year.
Net profit in the first half of the year was 114 million, a decrease of 24.8%
According to data, Xinye Textile’s main business is in mid-to-high-end The production and sales of cotton textiles, the main products include yarn series products, gray cloth and fabric series products, etc. It is currently one of the domestic manufacturers in the field of high-end cotton textiles. The company has been engaged in the cotton textile industry for more than 50 years.
For such a long-established textile company, the report card submitted in the first half of 2020 is not ideal. Data show that the company’s operating income in the first half of the year was 2.41 billion yuan, a decrease of 15.81% from the same period last year; the net profit attributable to the parent company was 115 million yuan, a decrease of 24.80% from the same period last year.
Specifically, Xinye Textile’s sales expenses and administrative expenses increased by 2.58% and 30.27% respectively in the first half of the year, but the specific reasons were not disclosed. From the perspective of contribution to operating income, sales revenue from gray fabrics fell by 23.03%, and revenue from foreign markets fell by 64.35%. At the same time, Xinye Textile’s accounts receivable and inventory increased by 7.44% and 27.22% respectively.
It is worth mentioning that Xinjiang Jinyu Textile Co., Ltd., two subsidiaries of Xinye Textile and Xinjiang Yuhua Textile Technology Co., Ltd. contributed significantly to the parent company’s revenue and net profit. The former achieved revenue of 208 million yuan and a net profit of 41.03 million yuan in the first half of the year; the latter achieved revenue of 458 million yuan and a net profit of 19.75 million yuan in the first half of the year. The two companies cumulatively contributed nearly 50% to Xinye Textile’s net profit.
Xinye Textile said that the textile industry, as a pillar industry of the national economy and an industry that is deeply integrated with the global industrial chain, has played an important role in the battle against the epidemic. However, both ends of the industry’s supply and demand have also experienced impacts. The company’s The cotton textile industry here is a labor-intensive industry, and the market is a perfectly competitive market.
In this context, Xinye Textile further disclosed that the raw materials used by the company are mainly fine velvet cotton, and its price Affected by many factors such as market supply and demand, climate, policies, exchange rates, quotas, etc., the company will strive to reduce the impact of raw material price fluctuations on the company’s operating performance; at the same time, part of the company’s cotton is purchased from the international market, and some textile products are purchased directly or Exporting overseas indirectly, RMB exchange rate fluctuations will have a certain impact on the company’s operating income and exchange gains and losses.
The stock price of the mask raw material cloth project was “exploited” for 5 consecutive times
On March 9, the “Announcement on Investment and Construction of High-grade Spunmelt Composite Nonwovens Project” was disclosed Xinye Textile received a letter of concern from the Shenzhen Stock Exchange after its stock price rose by the daily limit for five consecutive days. The letter of concern requires the company to specify the products it plans to produce and their actual uses, the construction period, the estimated time of production, and whether other qualifications should be met for the products required for production.
The Xinye Textile Project Announcement disclosed that the project requires a total factory area of 7,200 square meters, and it is planned to use the company’s existing spare factory buildings for construction. The total investment of the project is 120 million yuan, and the construction period is 6 months. After the project is completed, it is expected to produce 25,000 tons of high-grade spunmelt composite nonwovens annually, with an average annual sales revenue of 425 million yuan and a total profit of 31.9 million yuan.
It should be noted that Xinye Textile still chose to raise 20 million yuan by itself even though its cash flow was not abundant, and at the same time borrowed another 100 million yuan from banks to invest in a high-end spunmelt composite nonwovens project. According to Xinye Textile, the completion of this project can improve the company’s overall equipment level, improve the company’s product structure, expand the proportion of high-end products, further enhance the company’s market competitiveness, and achieve transformation and upgrading to open up greater space.
It is reported that high-grade spunmelt composite nonwovens are one of the important raw materials for masks. At present, spunmelt composite nonwovens It has been promoted and applied in health, medical, industrial protection, environmental protection and other industries. Xinye Textile believes that the market prospect of spunmelt composite nonwovens is extremely broad, and the nonwovens industry has developed into the youngest and most promising high-tech industry in the textile industry.
As to whether the products required for production mentioned in the letter of concern should have other qualifications, Xinye Textile said that after consulting the relevant administrative departments, according to the “Regulations of the People’s Republic of China on the Administration of Industrial Product Production Licenses”, spunmelt composite nonwovens It is not included in the production license list of important industrial products, so spunmelt composite nonwovensThe production and sales of � do not require relevant qualifications.
However, when the reporter checked Xinye Textile’s semi-annual report, he found that the status of projects under construction was disclosed in the column, and The specific situation of the high-grade spunmelt composite nonwovens project was not mentioned.
On August 6, an investor asked Xinye Textile on the interactive platform: An announcement was made in March that spunmelt fabric would be put into production in September. Now there is only more than one month left. Can it be put into production as expected? Can the machinery and equipment still be in production? Arrived as expected? Or is the announcement in March just to ride on the popularity of the mask concept?
In response to investors’ questions, Xinye Textile only said: The company has been working hard to catch up with the progress of the project. A reporter from Dahe Daily and Dahe Finance Cube checked the Henan Province Investment Project Online Approval and Supervision Platform and found that the planned completion date of the project is October 1. According to the information previously disclosed by Xinye Textile, the project should be put into production in September, with a per capita output value of over 10 million yuan, and will bring a total annual profit of 31.9 million yuan to the company.
On August 27, the reporter called Xu Qinzhi, Secretary of the Board of Directors of Xinye Textile regarding the above issues. The other party said that since the project was to be renovated on the basis of the existing factory building, the semi-annual report did not disclose relevant information. In addition, due to the impact of the epidemic, the import of some key parts has been affected. It is expected that the project will be partially put into production after expiration. </p
