Benefiting from the high prospect of the chemical industry in 2021, Xinxiang Chemical Fibre Co.Ltd(000949) ( Xinxiang Chemical Fibre Co.Ltd(000949) . SZ) achieved a new high in the market, with a year-on-year increase of more than 15 times. Xiao Shubin, the company’s board secretary, told the financial associated press that the downstream demand outbreak of spandex in 2021 led to performance growth. This year, the price of spandex decreased due to the epidemic and other external reasons. However, after excluding external factors, China’s Spandex demand maintained a stable growth, and the company has great confidence in spandex products.
In 2021, Xinxiang Chemical Fibre Co.Ltd(000949) achieved an operating revenue of 8.74 billion yuan, with a year-on-year increase of 95.25%; The net profit attributable to shareholders of listed companies was 1.365 billion yuan, a year-on-year increase of 153321%. Among them, the operating revenue of spandex fiber products was 6.425 billion yuan, an increase of nearly 1.3 times over the same period, and the gross profit margin was 41.28%, an increase of 24.17 percentage points year-on-year.
For the performance outbreak in 2021, Xiao Shubin told the financial associated press that spandex products are high elastic fibers, which are mainly used in medium and high-end clothing, which can increase the softness and wrinkle resistance of clothing. The sharp rise in prices last year was mainly due to the fact that spandex products met the current consumer demand for clothing, and the downstream driven spandex market ushered in explosive growth.
However, since the fourth quarter of last year, the price of spandex began to decline, and the profit of Xinxiang Chemical Fibre Co.Ltd(000949) fourth quarter decreased month on month. Xiao Shubin said: “the price rise of Spandex Products also drives the rise of raw materials. Since December last year, the epidemic has affected the start-up of downstream textile enterprises, resulting in a decline in demand, but the price of raw materials is still rising, so the company’s profit in the fourth quarter fell month on month. Although the raw materials have declined this year, the overall profit space has indeed narrowed compared with 2021, but compared with previous years, we think it is more reasonable.”
Wang Donghai, spandex analyst of Longzhong information, told the financial associated press that at present, about 85% of Spandex Enterprises are started as a whole, the demand of downstream weaving Market is low, China’s epidemic situation is multi-point fermentation, and other aspects such as logistics and transportation and new order follow-up are limited. At present, the finished product inventory of downstream weaving enterprises continues to be at a high level, and the spandex market remains weak.
In Xiao Shubin’s view, the decline in spandex prices is mainly affected by the external environment, but once the industry consumption trend is formed, it will not be easily changed. He further said: “in recent years, China’s demand for spandex has increased by about 8% – 10% every year. It is expected that the sales volume will increase steadily in 2022. The company is very confident in spandex products, which is also the main reason for the company to increase production capacity. Spandex is divided into fine denier silk and coarse denier silk, of which fine denier silk has higher requirements for process and softer products. Spandex 20d is the main product of the company.”
