Recently, performance reports for the first three quarters of listed dye companies have been released one after another. Judging from published reports, affected by the epidemic, most listed companies experienced significant declines in operating income and net profits in the first three quarters.
The scene of the 20th China International Dye Industry, Organic Pigments, and Textile Chemicals Exhibition.
Recently, reporters interviewed a number of companies at the “20th China International Dye Industry, Organic Pigments, and Textile Chemicals Exhibition” to understand the company’s operating conditions, future market forecasts and other issues this year. .
The epidemic has affected corporate performance and generally declined
In recent years, the development path of dye companies has not been smooth. This year, the spread of the epidemic has put even more pressure on those who have already endured the epidemic. Stressed industries are getting worse.
Judging from various financial report data for the first three quarters, Zhejiang Longsheng continued its leading position in 2019, ranking first with operating income of 11.295 billion yuan and net profit of 3.16 billion yuan. However, compared with the same period last year, the company’s operating income and net profit fell by 32.05% and 18.61% respectively. Runtu Co., Ltd., which ranks second in the industry, achieved revenue of 3.654 billion yuan in the first three quarters, a year-on-year decrease of 28.46%; net profit was 556 million yuan, a year-on-year decrease of 48.33%. Among them, net profit in the third quarter was 181 million yuan, down 27.44% from the same period last year. Jihua Group’s financial report shows that from January to September, it achieved revenue of 1.306 billion yuan, a year-on-year decrease of 36.42%; net profit fell by more than 60%, a year-on-year decrease of 64.89%, to 144 million yuan.
At the exhibition, the reporter also interviewed the booth managers of many companies about their business conditions. Many responsible persons told reporters that since the beginning of this year, the impact of the epidemic has become the primary factor restricting the development of the industry, and the epidemic has had a profound impact on the supply and demand of the dye industry. Although the domestic epidemic has been effectively contained, it is still unknown when the global epidemic will peak, and companies have not yet seen an inflection point in foreign epidemic control and economic recovery.
“Affected by the epidemic this year, the price of dyes has always been low, and the sales situation in foreign markets is not ideal. However, the order volume in the domestic market is more than in previous years. We hope that through the increase in domestic orders, we will strive to achieve the same sales volume as It was the same as last year.” said the relevant person in charge of Tuona Chemical.
The relevant person in charge of DyStar Group admitted that the company is facing the most difficult situation this year. “In the first quarter, the company’s operations were not significantly affected, but in the second quarter the performance declined more obviously. Although the company’s operations have improved since the third quarter, there is still a certain gap in sales compared with previous years.”
The person in charge of the booth of Zhejiang Longsheng Group Co., Ltd. did not avoid the issue of declining performance. He said frankly: “Although the company’s overall profit has decreased this year, the market is currently recovering and downstream demand continues to rebound. We are full of confidence in the future market.”
Differential development enhances enterprises Core competitiveness
In interviews with reporters, heads of many companies mentioned the company’s core competitiveness when talking about the business situation. Enterprises generally believe that after the epidemic, the dye industry will accelerate reshuffling. Whether they have their own core products and technologies will not only determine the level of corporate profits, but also the key to whether they can further become better and stronger.
Taking Zhejiang Longsheng as an example, the reporter learned that the company’s competitiveness is mainly reflected in its industrial chain integration advantages and leading environmental protection technology. Zhejiang Longsheng focuses on the integration of the industrial chain and expands into the production of related intermediates such as resorcinol and p-phenylenediamine to expand production capacity and market share. At the same time, the company also develops varieties of aromatic amine intermediates such as reducing products, integrates and extends the upstream of the dye supply chain, and strengthens its control of strategic intermediate raw materials. In terms of environmental protection, Zhejiang Longsheng’s water-saving and cost-reduction project for disperse dyes implemented last year has effectively enhanced the core competitiveness of the disperse dye business in the market. The development of a series of key technologies for high-salt and high-COD wastewater treatment and new green and clean dye supporting intermediate projects has not only relieved enterprises of environmental protection worries, but also significantly reduced production costs.
There is no doubt that dye companies are moving forward on the road of green and sustainable development. Recently, seven of the world’s leading chemical companies, including Tuna Chemical, announced the joint launch of the Sustainable Chemicals Industry Alliance (SCTI) for the textile industry. Committed to collaboration, innovation and change, this new alliance aims to lead the textile and leather industry towards a more sustainable future. The relevant person in charge of the company said: “The company will continue to follow the concepts of energy saving, consumption reduction and environmental protection, and provide more diversified and differentiated products.”
“As textiles and textile production become more environmentally friendly, Highly valued, non-toxic and pollution-free ‘green fabrics’ have become the mainstream of production and consumption, which coincides with the company’s positioning. We are optimistic about the future market prospects and will continue to increase product research and development and focus on the Chinese market investment.” said the relevant person in charge of DyStar Group.
In addition, making products unique and functional has become the main direction of dye companies. “EpidemicNowadays, China’s dye industry faces challenges but also has no shortage of opportunities. Enterprises should adhere to the development theme of innovative research and development. “At the booth of the German CHT Group, the relevant person in charge of the company showed reporters a mask produced using HeiQ Viroblock technology. It is understood that textiles treated with HeiQ Viroblock can effectively inhibit viruses and bacteria after contact, and Textiles treated with this technology do not contain live viruses and bacteria, which can minimize the possibility of pathogens spreading through textiles.
With prudent management, the market is expected to gradually pick up
As for the next industry trend, some industry experts predict that in the absence of a significant increase in total international demand, the dye industry production will maintain the current level, but the performance will be different in different countries and regions. . The specific performance is as follows: the output in areas with mature industrial development will decrease slightly and continue to develop towards high-end products; the output in areas with rapid industrial development will continue to maintain a growth trend.
It is worth noting that in the near future, , the export situation of China’s eight major categories of printing and dyeing products has improved, which may bring certain support to the dye market. According to China’s customs statistics, from January to July, the total import and export volume of China’s eight major categories of printing and dyeing products was US$12.193 billion, year-on-year. A decrease of 27.24%; the trade surplus was US$10.864 billion, a year-on-year decrease of 26.32%. From a month-on-month perspective, during the period, the export quantity and export value of eight major categories of printing and dyeing products narrowed by 2.15 and 2.10 percentage points respectively. This has been the second consecutive month of exports The decline has declined, indicating that China’s foreign trade market demand for printed and dyed fabrics is gradually recovering.
In addition, under the epidemic, China has introduced policies to promote economic development, such as reducing restrictions on the industry, reducing corporate taxes and fees, and encouraging expansion Export markets, etc., to promote the release of domestic demand; abroad, especially India, where output is gradually increasing, dye production capacity has been greatly affected by the epidemic, and production capacity supply continues to tighten, which is a short-term problem for Chinese dye companies Positive factors.
“While actively seeking market opportunities, dye companies should be careful to maintain low-speed operation and smoothly survive this difficult period. “At the Textile Printing and Dyeing Sustainable Development Forum, a supporting event for this exhibition, Kang Baoxiang, secretary-general of the China Dyestuff Industry Association, suggested that companies should pay more attention to various policies issued by the government and make full use of them. In terms of production, dye companies should pay more attention to the policies issued by the government when production is suspended. During this period, technical transformation and training should be carried out. Qualified enterprises should properly reserve raw materials and products, pay attention to customers’ operating conditions, prevent risks, and pay attention to capital security.
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