The Decline In Dye Prices Is A Drag On The Three Quarter Revenue, And The Four Quarter Is Expected To Usher In An Inflection Point.

Compared with last October, in August this year, dye intermediates benzene, toluene and other prices fell more than 40%, after October, the average price rebounded by about 10%, we expect dyes.

There is little room for downside.

It is reported that our country

Export prices fell for two consecutive months. In September, the average export price of synthetic organic dyes in China was 5587 US dollars / ton, a decrease of 17% compared with the same period, down 21% from the same period last year.

The company's main decentralized and reactive dyestuffs were dragged down by the decline in dye prices, and three quarterly earnings fell in line with expectations.

The company currently has 36 thousand tons of disperse dyes capacity, will gradually release capacity according to market conditions, achieve production by stages, and produce 8500 tons of reactive dyes. According to the company's planning, production capacity will be increased to 20 thousand tons.

The company has a high market share in differentiated disperse dyes such as disperse dyes, high water washing dyes, low temperature reactive dyes and reactive dyestuffs.

At present, the development of differentiated products is mainly based on the development of new fabrics. At present, different types and functions of different brands of international brands are constantly developing. Large and medium-sized printing and dyeing enterprises are also growing in R & D capability and business. With the increase of market acceptance and customer demand, the market space of differentiated dye varieties will continue to improve.

Company and

A wholly owned subsidiary invested by the company, Beijing trillion Lun dyeing and finishing Consulting Co., Ltd., a subsidiary holding company of China Dyestuff Industry Association, Beijing Hua dyed trade limited liability company, Yixing Lok Qi Textile Group Co., Ltd., Shaoxing BELLE wholly owned subsidiary Shaoxing Keqiao Xindu printing and dyeing Co., Ltd. and Shishi Xianghua group jointly set up "Shanghai seven color cloud Agel Ecommerce Ltd".

With the promotion of Internet + industry, the participation of industry associations and several large printing and dyeing factories has provided broad room for development of e-commerce platform.

The upstream intermediates short board to make up, the company's dye industry chain layout tends to be perfect.

The company invested 500 million in the construction of the fine chemical intermediate project with annual output of 30 thousand tons in the north ditch industrial gathering area of Penglai. The park is the only professional chemical park approved by the environmental protection department in Jiaodong peninsula.

The project is expected to be put into operation in the second half of 2015, with a total annual revenue of 1 billion.

With the increase of market demand for high imitation cotton and mixed imitation fabrics, the consumption of dye intermediates has increased significantly, and prices are expected to continue to rise.

With the Yantai intermediate project put into operation, the company's dye industry integration layout tends to be perfect, while enhancing profitability, it also increases the risk resistance capability.