Huafeng Spandex Doubled Its Revenue Last Year By 13 Billion 900 Million. Why Is Wenzhou'S First Private Textile Company Listed So Strong?

Zhejiang Huafeng spandex Limited by Share Ltd (hereinafter referred to as "Huafeng spandex") has released 2019 annual performance bulletin. During the reporting period, the company achieved operating income of 13 billion 939 million yuan, an increase of 214.26% over the same period, and its net profit attributable to shareholders of listed companies was 1 billion 742 million yuan, up 291.37% over the same period last year.


For the performance changes during the reporting period, Huafeng spandex explained:


1. During the reporting period, under the influence of unfavorable factors such as the oversupply of spandex market, the sharp downward price of products and the continuous expansion of the industry deficit, the company implemented the policy of "full production, marketing, excellent structure, strong advantages and risk prevention", stabilized production, accelerated technological innovation, continued to improve efficiency, reduced product quality, expanded product differentiation, and expanded competitive advantage. The ability to stay in the forefront of the industry.


2, during the reporting period, the price of the products decreased as compared with the same period last year due to the fluctuation of raw material prices. The company has effectively responded to the market impact by increasing production efficiency, reducing costs and optimizing product quality at the same time. The product sales volume has increased over the same period last year, and gross profit margin has increased over the same period last year.


Huafeng new material holding company Chongqing Huafeng Chemical Co., Ltd. under the influence of factors such as price fluctuation of adipic acid raw materials, weak downstream demand and intensified market competition, the sales price and gross profit margin of products decreased significantly compared with the same period last year, resulting in a decrease in operating income, operating profit, total profit and net profit over the same period last year. The company has further improved the market share by stabilizing production, reducing production efficiency, improving product quality and enhancing after-sales service, and the leading position of the industry has been further strengthened.


Xie Nan, an analyst at Zhongtai securities, said that the main products of Huafeng spandex are spandex, and the main products of Huafeng new material are polyurethane raw liquid, polyester polyol and adipic acid.


Spandex aspect, in 2019, the market continued the pattern of oversupply, which led to the downward trend of product prices, and the industry deficit continued to expand. According to LIAN gold data, the factory price of Hua Feng spandex 20D, 30D and 40D was 36000 yuan / ton, 34000 yuan / ton, 30000 yuan / ton at the end of 2019, respectively, 7.7%, 10.5%, 9.1% lower than the beginning of the year. The company continues to implement the business principle of full production and full sales, continuously improve efficiency and reduce production, and expand the output of differentiated products, and its profitability lies in the forefront of the industry.


In terms of adipic acid, the sales price and gross profit margin of Chongqing Huafeng Chemical products decreased significantly compared with the previous year under the influence of weak downstream demand and intensified market competition, resulting in a decline in revenue and net profit. Huafeng spandex can further improve the market share by stabilizing production, reducing costs and increasing efficiency. As the price of raw materials fluctuates and the selling price of products has declined, the company has effectively counteracted the market impact by raising efficiency and reducing the price. The production and sales volume increased during the reporting period, and the gross profit margin was higher than that of the same period last year.


In addition, the Huafeng spandex Chongqing annual output of 100 thousand tons of differential spandex expansion project has been officially launched in April 2018, is expected to reach production by June 2021, one of which has entered the commissioning phase in September 2019. After the full commissioning, the spandex production capacity will reach 211 thousand tons / year.


Adipic acid, Chongqing base has built three phases of 160 thousand tons (480 thousand tons / year) adipic acid production line, in 2020 will add 255 thousand tons / year capacity. With the rapid volume of spandex and adipic acid business, Huafeng spandex will further enhance its position in the field of polyurethane.


Public information shows that Huafeng spandex specializes in the production, sales and technology development of spandex fiber, and ranks the highest in the world spanning spandex manufacturing enterprises. In 2006, the company successfully became the first domestic listed private enterprise in Wenzhou and the first main spandex listed company in A in China.


According to the results, in the past 2009-2018 years, the composite growth rate of Huafeng spandex has reached 16%. Whenever the new capacity is put into operation, the company's revenue will increase significantly. In 2018, the company's operating income was 4 billion 436 million yuan, an increase of 6.9% over the same period, and net profit of 445 million yuan, an increase of 15.5% over the same period last year. The 2016 loss is due to the impairment of assets of 445 million yuan in Liaoning Huafeng Chemical Industry.