Huafeng Spandex Revenue Increase Small Company Suddenly Become The First Big Customer Fog.

(002064.SZ) this year is a mixed blessing. In the first three quarters, business revenue increased year by year, but still faced with problems such as poor demand for spandex, sudden drop in profits and so on. The main business also suffered large losses, and huge government subsidies, such as timely rain, made it lose its fortune in one fell swoop.

However, despite the losses, Huafeng spandex's Liaoning Huafeng Chemical Industry Co., Ltd. is still under environmental review, and it can not reverse the loss of main business in a short period of time.

Some investors said that Ruian's Eastern Europe Light Chemical Co., Ltd., which was one of the largest customers of Huafeng spandex for many years and was one step away from Huafeng spandex company, suddenly vanished from the top five customers of Huafeng spandex, while a Foshan company with less than one year and only 2 million capital injection replaced it.

Poor spandex Market

The cyclohexanone project has just completed EIA.

The newly released Huafeng spandex 2012 three quarterly report shows that the total operating income of 1-9 yuan in the 1-9 months is 1 billion 224 million yuan, an increase of 16.34% compared with the same period last year. The operating profit is -3070.2 yuan, plus the net profit after the government subsidy is 20 million 86 thousand yuan, a decrease of 74.95% over the same period.

In this regard, the industry generally believes that China

Export growth has slowed down, demand for spandex market has declined, domestic new spandex production capacity has been released, and market competition has been intensified, resulting in a continuous downturn in the price of Spandex Products.

But the third quarterly report shows that the gross profit margin of Huafeng spandex in the third quarter is 11.62%, which is significantly higher than the average gross profit margin of the first six months, which is 7.04%. This information seems to indicate that the market situation of spandex is gradually improving.

Taihe new material, which is also a large spandex producer with Huafeng spandex, has slightly offset the loss of spandex due to the better market condition of aramid market.

But Taihe new material securities affairs representative said to China capital securities network, the market situation of spandex is poor, the whole industry is depressed, and this year's performance is mainly supported by aramid.

However, the Huafeng spandex seems to be less favored by the institutional investors than Taihe new material, even though the gross profit rate of Huafeng spandex is higher than that of Taihe new material.

This year's three quarterly and mid day reports show that the top ten shareholder seats of Huafeng spandex are only 2 funds, while Taihe new materials attract 7 funds to get together.

The reason is that Taihe new material PE is 51.93, while Huafeng spandex PE is as high as 118.25. Whether it is from PE or anti risk ability, Huafeng spandex is probably not the best choice for the fund.

JOYOU Information Analyst Wang Chunling told China capital securities network that the overall volatility of the spandex market was limited this year. Although the cost of raw materials increased in the second half of the year, the operation of the downstream areas of spandex was not very satisfactory. The external debt crisis of Europe and the United States affected the production of orders, and the terminal demand continued to be weak.

Factory purchase is mainly based on demand, and the downstream production enterprises in the second half of the year are not optimistic.

Just the opposite is that spandex is the most unique product of Huafeng spandex. Although Huafeng spandex has invested in Liaoyang to set up a wholly owned subsidiary, Liaoning Huafeng Chemical Industry Co., Ltd., it plans to produce 120 thousand tons of cyclohexanone annually. However, the latest news shows that in early September, the Liaoyang EPA assisted Liaoning Huafeng Chemical Co., Ltd. to confirm the total amount of pollutants discharged to Liaoning environmental protection agency, that is, Liaoning Huafeng Chemical Co., Ltd. is just in the EIA or has just completed the environmental evaluation.

It is foreseeable that within a short period of time, Huafeng Chemical Industry's cyclohexanone can not turn Huafeng spandex performance, although the current domestic market of cyclohexanone is tight and the market is jumping.

{page_break}

Long term major customers are replaced by micro enterprises?

Thai and new materials reported spandex

In the doldrums, operating income fell year by year.

However, the first half of this year, Huafeng spandex spandex product revenue increased nearly 10% year-on-year growth, the first three quarters of spandex products sales revenue grew 16.34% over the same period, but Huafeng spandex semi annual report shows that its first largest customer is less than a year's company, it is puzzling.

In 2010 and 2011, the first largest customers of Huafeng spandex were local Ruian Eastern Europe Light Chemical Company Limited, whose annual operating income was more than 60 million yuan. However, Huafeng spandex in 2012 showed that Ruian Eastern Europe Chemical Light Co. Ltd. was no longer among the top five customers, and the first was replaced by a company called Foshan allied hair textile Co., Ltd.

The updated information of Guangdong business credit network sponsored by the Guangdong provincial government in April 12th of this year shows that Foshan allied hair textile Co., Ltd. is a small business taxpayer founded in November 2011 (a business enterprise whose annual taxable sales volume does not exceed 800 thousand yuan), with a registered capital of 2 million yuan, mainly engaged in the wholesale of textiles, knitwear and raw materials.

Foshan Lian de FA Textile Co., Ltd. turned out to be the first big customer of Huafeng spandex.

Before that, Ruian Eastern Europe Chemical Light Co., Ltd. has been the first largest customer of Huafeng spandex. The company is located at Xinxi Road, Xinjia Town, Xincheng Town, Ruian, and the address of Huafeng spandex is Ruian Xincheng Industrial Park, Ruian, which is almost one step away. However, the Ruian Eastern Europe Light Co., Ltd. has disappeared from the half year report this year, which is very strange for investors.

For the above problems, China's capital securities network has repeatedly called the Huafeng spandex, but was told that Dong MI was away on business, so he did not get a reply.