Half-yearly reports of listed chemical fiber companies suggest business risks
Release Date：2018-04-10 13:25:01 Number of visits：367
Recently, chemical fiber listed companies have released their 2014 semi-annual reports more intensively. The profitability of polyester, nylon and viscose 3 major chemical fiber varieties vary, and the general situation of the industry can be glimpsed from the annual reports of Yizheng Chemical Fiber, Huading Nylon and Hengtian Hailong.
Polyester, in the first half of 2014, the domestic polyester production capacity is still maintaining rapid growth, the new polyester production capacity of about 2.85 million tons, to the end of June the total domestic polyester production capacity of 45.07 million tons, the domestic polyester overcapacity situation further intensified. Polyester production continued to rise in the first half of the year, but the industry load fell further, domestic polyester fiber production increased by 8.8% year-on-year. The total supply of polyester fiber reached 18,528.6 kilotons, up 12.9% year-on-year. At the same time, the total domestic polyester fiber consumption reached 16,093.1 thousand tons, up 9.1% year-on-year, influenced by the rigid domestic polyester demand and the total export of polyester products continued to rise.
Yizheng Chemical Fiber said in its annual report, in the first half of 2014, by the slow recovery of the global economy, as well as China's exports are not strong, economic structure transformation and other factors, the domestic chemical fiber market demand continues to be weak, the domestic polyester industry is in a deep adjustment pattern. At the same time, as the domestic polyester production capacity continues to increase, polyester supply and demand contradictions are further highlighted, and market competition is increasingly intensified. In the announcement, Yizheng Chemical Fiber said that the company faced with a very severe market environment and business situation, increased corporate management, focusing on highlighting technological innovation and marketing, vigorously reduce costs and expenses, promote effective development, and strive to reduce losses and increase efficiency.
Ltd. said in its annual report that in the first half of the year, the company achieved operating income of $766,509,192.87, down 4.38% compared with the same period last year; net profit attributable to shareholders of the listed company -26,127,882.12 yuan, down 166.63% compared with the same period last year.
In the first half of 2014, due to the obvious expansion of nylon industry production capacity, the market competition stage intensified, while the downstream textile market overall market is weak, the demand decreased, resulting in nylon market has been in a weak down pattern. Huading nylon said that it survived the adversity with quality and aimed at the needs of customers, ensuring both sales and production stability. The production and sales volume in the first half of the year increased slightly, but due to the continuous decline in product sales prices and raw material prices, and the magnitude of the decline in product prices was greater than the decline in raw material prices, so that the company's operating income was slightly reduced, profitability was seriously squeezed, and gross profit margin dropped significantly.
Ltd. annual output of 80,000 tons of nylon (polyamide) slices project has successfully reached production in June 2014, and the company will focus on improving the stability of nylon slices product quality in the future; a total investment of RMB313 million annual output of 20,000 tons of differentiated DTY nylon filament project is in the stage of equipment commissioning, and is expected to be in trial production in November 2014. The self-financing project with total investment of RMB 629.5 million for annual production of 50,000 tons of differentiated nylon filament yarn is at the stage of equipment installation and commissioning and is expected to be in trial production in November 2014; the preliminary preparatory work for the project with total investment of RMB 1.824 billion for annual production of 150,000 tons of differentiated nylon filament yarn is being carried out in an orderly manner.
Viscose fiber profitability in the first half of the year is also less satisfactory. In the first half of 2014, the company achieved operating income of 833,822,300 yuan, down 22.53% year-on-year; net profit attributable to shareholders of the listed company was a loss of 192,178,500 yuan, compared with a loss of 5,665,800 yuan in the same period of the previous year. In the announcement, Hengtian Hailong pointed out that the overall operation of the viscose fiber industry, in which the company's core business is located, was poor in the first half of the year. The company said that the viscose industry continued to be in the doldrums in 2014, and although the viscose staple yarn experienced a significant decline and slight recovery from January to June, and the filament price rebounded month by month, the overall comparison, the selling price of viscose staple yarn and filament still dropped by 11% and 14% compared with the same period of the previous year. In addition, the company shut down some of the short yarn production lines for maintenance, the first half of the short yarn operating income compared to the previous year significantly reduced. However, the announcement also said that the profit level of cord fabric and canvas business in the first half of the year improved greatly compared with the same period of the previous year.
