The Half Year Performance Forecast Of Listed Companies Shows That The Profitability Of Cotton Textile Industry Is Gradually Recovering

Recently, with the disclosure of the semi annual performance forecast of the listed companies in the cotton textile industry in 2021, the business situation of the listed companies in the cotton textile industry has gradually emerged. Among the performance forecasts released by six cotton textile listed companies, one of them is net profit loss, but the loss is reduced compared with the same period of last year, and the remaining five companies have made profits, with increase and decrease compared with the same period of last year. It can be seen that with the control of the global epidemic situation and the gradual growth of textile and clothing consumption, the profitability of China's cotton textile enterprises is gradually recovering, and the gross profit rate of products is increasing.

Weiqiao textile

Sales of products increased significantly

Company name: Weiqiao Textile Co., Ltd

Operation: it is estimated that the net profit in the first half of the year will increase by more than 200% compared with the same period in 2020.

Reasons for the change: with the gradual control of the global new type of coronavirus pneumonia, domestic and foreign textile and clothing market consumption gradually recovered, the overall demand for textiles increased, the sales volume of cotton textile products increased significantly year-on-year, and the sales price 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 conference, and released 33 series of innovative products in six categories, including scientific and technological innovation, functional protection, ecological environment protection, comfortable experience, fashion creativity and high-quality products. Among them, there are not only category innovation leading the market, but also breakthroughs in key technologies. Some of the innovation achievements are the first in the industry, which are in line with the development trend of science and technology, fashion and green in the textile industry, and meet the market demand of environmental protection, comfort, personalization and diversification, and have broad market prospects.

Reporter's comments: Weiqiao textile adheres to the development strategy of science and technology innovation and digital empowerment, and has a complete industrial chain of "spinning weaving printing and dyeing clothing and home textile". It will give full play to the advantages of the whole industrial chain and create a large-scale and cluster development mode. In the future, it will continue to make great efforts in intelligent manufacturing, scientific and technological innovation and brand building, We will continue to strengthen extensive cooperation with professional institutions and scientific research institutions, build a modern and international comprehensive innovation research and development platform, and build a technological and industrial innovation highland with global influence.

Joint issue of shares

Raw materials rise and gross profit rate decreases

Company name: Jiangsu Lianfa Textile Co., Ltd

Operation situation: it is estimated that the net profit attributable to shareholders of Listed Companies in the first half of the year will be 90.32 million yuan ~ 116 million yuan, with a year-on-year decrease of 55.00% ~ 65.00%.

Reasons for the change: the RMB exchange rate appreciated compared with the same period last year, and the price of raw materials such as cotton and auxiliaries increased, resulting in a decrease in the gross profit margin of the company's orders; The non recurring profit and loss generated by the trading financial assets held by the company is about RMB 05 million, which is about RMB 196 million lower than that of the same period last year, and the net profit is reduced by about 147 million yuan.

Core event: in response to the change of global textile industry trade pattern and meet the demand of Southeast Asian clothing industry for high-grade woven fabrics, Jiangsu Lianfa textile invested in Indonesia to build a high-grade woven clothing fabric project with an annual output of 66 million meters. At present, the main project construction of the project has started, and the trial operation time of the project is expected to be in the second quarter of 2022.

Reporter's comments: in 2020, affected by the external environment, Lianfa's export orders are under great pressure. However, in the long run, Lianfa's leading position in yarn dyed fabric manufacturing is prominent. After experiencing the epidemic situation, the survival of the fittest in the industry has intensified. As a leading enterprise, the company has relatively strong anti risk ability and is expected to increase its market share. In addition, Lianfa investment and construction of high-grade home textile grey cloth and supporting yarn production projects have been put into operation, which provides raw materials for the downstream process of the company, extends the home textile industrial chain, and lays the foundation for the company to realize the layout of home textile industry.

Huafu fashion

Adjust strategy and optimize yarn industry

Company name: Huafu Fashion Co., Ltd

Operation situation: it is estimated that the net profit in the first half of the year will be 290 million yuan ~ 350 million yuan, turning losses into profits on a year-on-year basis.

Reasons for changes: during the reporting period, the global clothing consumption showed a recovery growth trend, the structural demand for replenishment after de stocking in the early stage increased, some overseas orders returned to China due to the epidemic situation, the raw material prices fluctuated upward, and the business environment improved; The company adjusts and optimizes the main yarn business according to the established strategy, vigorously develops the network chain business, and actively promotes the intelligent upgrading; In terms of yarn main business, the company vigorously expands domestic market and non US international market, establishes strategic cooperation relationship with many domestic brands, with obvious increase in domestic market and gross profit rate; The number of front-end network chain business mainly in cotton industry increased; The back-end network chain business which takes the sock industry category as the breakthrough point also has the breakthrough, achieves the established goal.

Core event: in June 2021, Huafu fashion established an environmental footprint measurement model from cotton fields in Xinjiang to clothing, and released the world's first measured carbon footprint data product of Xinjiang cotton: taipingniao 25th anniversary T-shirt. Huafu fashion also led more than ten brands to establish the "high sustainable (HQs) cotton industry cooperation organization".

Reporter's comments: Huafu fashion actively adjusts the product and market structure, seizes the historical opportunity of China's market expansion and consumption upgrading, deeply cultivates the domestic market, actively constructs the domestic market supply chain based on internal circulation, accurately grasps the development trend of the industry, penetrates the textile and garment industry with yarn, and realizes industrial transformation with industrial Internet and flexible supply chain, Realize the transformation from "fashion manufacturer" to "fashion operator".

Changshan Beiming

Increase the proportion of differentiated products

Company name: Shijiazhuang Changshan Beiming Technology Co., Ltd

Operating situation: it is estimated that the net profit loss attributable to shareholders of Listed Companies in the first half of the year will be 50-60 million yuan, which will be 41.53% - 29.84% lower than that of the same period of last year.

Reasons for the change: domestic terminal consumption showed a recovery growth trend, some overseas orders returned to China due to the epidemic situation, and the industry prosperity was improved; The company continued to make efforts in product development, increased the proportion of functional differentiated fiber fabrics and color textile products, and continuously enhanced the downstream order contracting ability, sales revenue and profitability, and achieved 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 garment projects in Xinjiang. Through the structural adjustment of the textile sector, the company eliminated the varieties with low gross profit and poor market prospect, increased the varieties with high gross profit and good market prospect, and enhanced the enterprise's ability to resist risks and make profits. The company also formulated the management measures for cotton yarn futures delivery factory warehouse, strengthened the technical strength of cotton yarn futures business, carried out the business of cotton yarn futures delivery factory warehouse, and helped the company improve the quality and efficiency of its main textile industry.

Reporter's comments: in the past two years, Changshan Beiming has been constantly adjusting its business structure. In 2021, Changshan Beiming's textile business is better than last year, which is inseparable from the increase in R & D and the improvement of product development capacity. It has increased the proportion of differentiated products with high added value and enhanced its own competitiveness of yarn business.

Blum Oriental

Production capacity returned to pre epidemic level

Company name: Blum Oriental Co., Ltd

Operation situation: it is estimated that the net profit attributable to the parent company in the first half of the year will be 518 million yuan ~ 586 million yuan, with a year-on-year increase of 280% ~ 330%.

Reasons for change: in the first half of 2021, the company's overall capacity returned to the level before the epidemic, the utilization rate of production capacity increased, orders increased, and the profit of main business increased.

Core event: on July 5, Blum Oriental announced that the company plans to raise no more than 1 billion yuan to expand its 390000 yarn spindles project in Vietnam. The total investment of Bailong (Vietnam) expansion project of 390000 spindles yarn is 250 million US dollars, and the raised funds are planned to be 1 billion yuan. The implementation site is located in Fudong Industrial Park, Xining City, Vietnam.

Reporter's comments: at present, the orders of Blum Oriental are growing continuously, the personalized products are full of production and sales in a single quarter, and the orders of standardized products are full all year round. In the short term, benefited from the replenishment demand of domestic brand manufacturers and the continuous recovery of overseas demand, it is expected that the overall order of cotton textile enterprises will continue to improve in the second half of 2021, the pressure of insufficient operating rate will gradually relieve, and the profit will gradually rise; In the medium and long term, rising costs and uncertainty of trade frictions will benefit manufacturing leaders with earlier overseas production capacity and higher share, and the value of high-quality leading enterprises will continue to highlight.

Xinye textile

Changeable trade environment aggravates risks

Company name: Xinye Textile Co., Ltd

Operation: it is estimated that the net profit of shareholders of Listed Companies in the first half of the year is 57.3796 million yuan to 80.3314 million yuan, with a year-on-year change of - 50.00% - 30.00%.

Reasons for changes: the uncertainty of the international trade environment, the increased risk, the impact of the new global epidemic on the industry, and the decrease of net profit attributable to shareholders of listed companies.

Core event: in 2020, Xinye textile invested 120 million yuan in the textile industry cluster area of Xinye County, Henan Province to invest in the construction of high-grade textile melt composite nonwovens project. However, due to the impact of the global epidemic situation, the import of key equipment was hindered, and the construction period of the project could not be predicted.

Reporter's comments: Xinye textile is one of the domestic high-end cotton textile manufacturers. Under the framework of the national "one belt and one road" strategy, Xinye textile has successively invested more than 2 billion yuan in Xinjiang, integrating the cotton acquisition, cotton processing and spinning industrial chain in Xinjiang, driving the company's production capacity to reach 1.7 million spindles. In 2021, the company will give full play to the cost advantage of Xinjiang production base, coordinate domestic and foreign cotton resources, and continuously improve production efficiency while stabilizing quality, so as to maintain the company's leading position in the cotton textile industry.