Synthetic Leather Industry In Cold Wave

Amway listed on the small and medium sized board yesterday (May 18) shares Its main products are ecological functional PU synthetic leather Attract market attention. The reporter learned that, due to the rise of raw materials and many other factors, the gross profit rate of synthetic leather enterprises has declined to varying degrees. However, the medium and high-end synthetic leather such as ecological functional synthetic leather and superfine fiber synthetic leather has declined market It is still optimistic.

Mr. Feng, a small leather manufacturer in Shiling Town, Guangzhou, said in an interview: "the orders this year are half less than last year. Now the profit is much lower. On the one hand, there are more and more manufacturers and the competition is fierce; On the other hand, the price of raw materials is rising, and the appreciation of RMB has made it more and more difficult to do export business. " In fact, not only the profits of small synthetic leather enterprises have shrunk, but also several listed synthetic leather companies have been impacted to varying degrees.

Huafeng super fiber, a synthetic leather enterprise listed on the SME board on February 11 this year, reported a net profit of 13.1214 million yuan in the first quarter, down 9.79% year on year. Huafeng super fiber said that the sharp rise in raw materials has brought great pressure on the company's costs. The average gross profit margin of the company's products in the first quarter was 30.54%, down 1.9% compared with that in 2010. The gross profit rate of Huafeng microfiber in 2010 has decreased by 1.24% compared with that in 2009.

Hexin shares also disclosed in the 2010 annual report that the price of main raw materials has increased significantly, making the company's products face greater cost pressure. The gross profit rate of main products decreased to varying degrees, among which PU leather showed the largest decline, with a 5.05% decline.

However, a securities analyst who did not want to be named told reporters: "the medium and high-end synthetic leather is still optimistic. This is a process of upgrading. The original PVC synthetic leather was very good, and then PU synthetic leather was introduced. But now high-end PU synthetic leather is gradually replacing ordinary PU synthetic leather, and the products are developing from low-end to high-end. "

Although China's high-end brand sports shoe leather and sports goods leather are still mainly imported from Korea and Japan, China's high-end synthetic leather enterprises are developing rapidly. The above analysts told reporters: "foreign made synthetic leather is not necessarily very good. At present, many domestic PU synthetic leather has reached a very high grade, such as Dingdao superfine fiber synthetic leather of shuangxiang Co., Ltd, It represents the highest level in the industry. "

Shuangxiang's announcement shows that the proportion of its main business of microfiber synthetic leather has increased from 20.24% in 2008 to 30.57% in 2010. In last year's annual report, the growth rate of superfine fiber synthetic leather was 3.31%, reaching 29.35%, which led to an increase of 2.69% and 18.29% in the comprehensive gross profit margin.

It can be seen from the historical data that the demand for high-grade PU synthetic leather in China is increasing year by year. Taking superfine fiber as an example, the consumption of superfine fiber in China was about 70.62 million square meters in 2009, with a year-on-year increase of 61.6%. According to the statistics of the industry association, the domestic demand for superfine fiber was about 107 million square meters last year, and the market gap was 35 million square meters. The market demand is expected to reach 200 million square meters in 2012. At that time, the situation of supply exceeding demand will be further highlighted.

The 239 million yuan raised by Amway will be used for the expansion of eco functional PU synthetic leather, which is a high-end leather project. According to Amway's announcement, the average proportion of eco functional PU synthetic leather in the company's main business income was 80.74% from 2008 to 2010, and the proportion showed an upward trend in the past three years. From 2008 to 2010, under the influence of eco functional PU synthetic leather, the gross profit margin of the company's main business was 13.72%, 20.58% and 23.34%, showing an upward trend year by year.