Behind the hard-won textile machinery report card

Behind the hard-won textile machinery report card

In the production workshop of Jiangsu Songhesong Intelligent Technology Co., Ltd.’s intelligent injection molding factory project for key components of the jacquard machine, more than 100 injection molding machines and automation equipment are running rapidly , showing a busy production scene.

“In order to improve production efficiency and product competitiveness, we invested 120 million yuan, including nearly 100 million yuan in equipment update and automation transformation, to build a new intelligent injection molding factory project for key components of the jacquard machine. As a core component production line for the jacquard machine, The annual output is 10 million sets of jacquard machine core components.” Hou Guangnan, administrative manager of Jiangsu Songhesong Intelligent Technology Co., Ltd. said: “Currently, we are working at full capacity to focus on production and sprint for the fourth quarter.”

In the first three quarters of this year, despite facing multiple pressures such as frequent outbreaks of the new coronavirus, shrinking demand, and supply shocks, many textile machinery companies, represented by listed textile machinery companies, still delivered a steady and upward answer. “We are currently facing pressures such as economic downturn risks, and corporate profits and market expectations have been affected to a certain extent. However, the fundamentals of my country’s long-term economic growth have not changed, and there are still certain conditions for the steady development of the industry. Under the new situation, textile machinery companies have to suffer even more. Practice internal skills, improve quality, enhance one’s own competitiveness, and plan for the future.” Liu Song, vice president of the ChinaTextile Machinery Association, said.

The overall performance is relatively stable

Recently, a number of listed companies in the textile machinery industry have successively disclosed their performance reports for the first three quarters of this year. Among the 10 listed textile machinery companies, including Jingwei Textile Machinery, Titan Co., Jinggong Technology, Honghua Digital, Cixing Co., Ltd., Yuejian Intelligent, Jack Co., Ltd., Saurer Intelligent, Wuchan Jinlun, and Golden Eagle Co., Ltd., 9 have varying degrees of of profits, with the average net profit growth ranging from 1.36% to 87.55%. Among them, Yuejian Intelligent’s net profit increased the largest in the first three quarters of 2022, at 167.36%.

Since 2022, the global epidemic has continued to spread, the international situation has been tense, and the downward pressure on my country’s economy has further increased. The epidemic has spread at multiple points in the Yangtze River Delta region and various places, bringing direct impact to textile machinery companies. The textile machinery industry is faced with unfavorable factors such as insufficient domestic market demand, high and volatile raw material prices, and poor freight logistics. It also has problems such as insufficient orders, low operating rates, and poor supply chains. The industry is facing greater growth pressure. Driven by factors such as the expansion of foreign demand and the development of foreign trade policies, the industry’s exports continue to maintain a growth trend.

Analyzing the third quarter report data, the textile machinery industry is in a state of recovery. The net profits of individual listed textile machinery companies have turned from positive to negative, and the profit growth rate of some listed textile machinery companies has been slow. Regarding the reasons for performance growth, some companies have benefited from improved cost control capabilities. For example, Jack shares said that the company pays close attention to quality, continues to reduce costs, consolidates internal management, and improves management Benefit, the net profit attributable to the parent company increased by 25.96% compared with the same period last year. Some companies are expanding their products to expand overseas markets. For example, Titan Co., Ltd. has seen rapid growth in overseas sales orders thanks to its years of business dealings with foreign customers, its multi-variety expansion and its good market foundation. Some are driven by multiple factors. For example, Yuejian Intelligent said that the company’s production and operations continue to maintain a good momentum and its performance is relatively stable. At the same time, the company completed the demolition matter during the reporting period, and the compensation received for the demolition matter, after deducting the book value of some real estate assets, relocation expenses and losses, was included in the current profit and loss as asset disposal income.

Generally speaking, the overall performance of listed textile machinery companies in the first three quarters of this year was relatively stable. Many listed textile machinery companies achieved significant revenue growth and even profit growth through cross-border acquisitions and new large projects.

Practice hard to build up stamina

It is worth noting that the third quarter reports of many listed textile machinery companies show that R&D investment and R&D intensity have increased significantly. Although increased investment in research and development can easily cause profit fluctuations, most decision-makers of listed textile machinery companies believe that only with excellent products can high-quality development of enterprises be guaranteed in the long run, and they must work hard to build up their internal strength to build up stamina for long-term development.

R&D and hard work have become the focus of many textile machinery companies.

According to Jiao Lunjin, general manager of Hubei Tianmen Textile Machinery Co., Ltd., now is the time for enterprise equipment transformation and upgrading. “When the market situation picks up, we will have better development opportunities.” Jiao Lunjin said. “Tianmen Textile Machinery’s current main goal is to build a 5G+ smart factory. In short, it is to achieve flexibility in production and manufacturing, automation of warehousing and logistics, and modernization of information management.”

According to Hao Liujun, general manager of Anhui Lanxiang Textile Machinery Technology Co., Ltd., there is no end to market development. “The prerequisite for developing the market is to make our own products well and build a good corporate reputation. Only in this way can the scale of the market be further expanded. Since this year, we have increased investment in research and development on the one hand, and on the other hand we have strengthenedTalent reserve and training, concentrate on practicing internal skills, deepen the product and technology, and prepare to show off their skills in the next industry and market opportunity period.” Hao Liujun said.