The Rise Of Dye Helped Anothem Earn 1.4 Billion In 2018, Increasing Its Investment Income By Tens Of Millions.

The local dye leader, Shanghai anoits group Limited by Share Ltd (hereinafter referred to as "anuoqi") has published the 2018 annual report. During the reporting period, the company achieved 1 billion 160 million operating income, down 13% from the same period last year. The net profit attributable to the owners of the parent company was 140 million, an increase of 62.8% over the same period, an increase of 3 years, and a profit of 0.19 yuan per share. During the reporting period, the gross profit margin of the company was 30.6%, an increase of 7.6 percentage points over the previous year, with a net interest rate of 11.7%, representing a 5.4 percentage point increase over the previous year.


As for the main reason for the substantial increase in performance during the reporting period, anso explained that:


(1) the company continuously strengthens R & D, production and marketing, and promotes the growth of company performance. During the reporting period, the company strengthened the sale of dissimilar products such as disperse dyes, printing dyestuffs, disperse dyes and environment-friendly disperse dyes for superfine fibers, strengthened sales of new dyestuffs, strengthened sales team building and market promotion, and promoted the growth of the company's performance.


(2) the intermediate projects of the company are gradually reaching production, stabilizing the supply of raw materials, reducing the cost of raw materials, and increasing the company's profits.


(3) under the influence of national environmental policy and supply side reform, the price of dyestuff continues to rise, and the gross profit margin of dyestuff products is increased compared with the same period last year, thus increasing the net profit of the company.


(4) during the reporting period, the financial expenses decreased by 4 million 380 thousand yuan over the same period last year, mainly during the reporting period. At the end of last year, the initial investment of the raised funds was replaced by 115 million yuan, and the bank loans were paid back in advance. The average balance of bank loans during the reporting period was reduced by 63 million 500 thousand yuan over the same period last year, and interest expense was reduced correspondingly.


(5) during the reporting period, the investment income increased by 16 million 100 thousand yuan over the same period last year. The main reason is that during the reporting period, the company spanferred 25% stake in the electricity supplier of the seven color clouds to obtain 9 million 890 thousand yuan of investment income. During the reporting period, the reserve fund was temporarily kept idle, and the investment income was 6 million 720 thousand yuan.


During the reporting period, the non recurring gains and losses had a greater impact on the performance of Anor, with a total of 15 million 368 thousand yuan, of which 10 million 284 thousand yuan or 6 million 724 thousand yuan were invested in government subsidies, entrusted to others to invest or manage assets. After deducting the non recurring gains and losses, the net profit of the returned parent was 120 million yuan, up 50.1% over the same period. Net profit growth is greater than revenue growth, mainly due to gross margin increased by 7.6 percentage points from last year.


Anno will send a cash dividend of 1 yuan (including tax) per 10 shares to all shareholders, 0 shares of red shares (including tax), and 3 shares per 10 shares to all shareholders.


During the reporting period, anoits's marketing work continued to implement brand strategy and differentiation strategy, and strengthened product, price and channel work, and made positive progress in product promotion, customer development, market development, team building and so on. During the reporting period, the price of dye increased as a result of various factors such as supply and demand, environmental protection and so on. At the same time, influenced by the national environmental protection policy, the supply side reform, and the optimization and adjustment of the company's product mix, the price of dyestuffs continued to rise, and the gross profit margin of dyestuff products sold increased compared with the same period last year, and the net profit of the company increased significantly.


Anoit continued to expand its R & D efforts in disperse dyes, digital ink, reactive dyestuff digital ink, acid dyestuff digital ink and coating digital ink. The quality of ink has improved significantly over the past year. The active ink produced by the company during the reporting period has been well received by customers both at home and abroad. In 2019, the company will continue to make efforts in product R & D, market development and other aspects to enhance the market competitiveness of digital ink products. In addition, the company has successfully developed ultra-fine environmental protection liquid disperse dyes, greatly reducing printing and dyeing wastewater, the market prospect is broad, it is expected to form mass production in 2019.


In ananits refinancing project, about 13000 tons of disperse dyes intermediates have been completed in the first phase of the 30000 ton intermediate project in Yantai. Due to the changes in the market environment and the preparation of the new project of Shandong anoits, the company plans to improve the content of the two phase project, and the related changes are in progress.


As of the end of the reporting period, anso has formed 7000 tons of dye filter cake, 30000 tons of disperse dyes, 15300 tons of reactive dyes, 10000 tons of auxiliaries, and 13000 tons of disperse dyes intermediate. In addition, in 2018, the company invested 100 million yuan, and established a wholly owned subsidiary, Shandong anuoqi Fine Chemical Co., Ltd., and began to build an annual output of not less than 50 thousand tons of dyestuff and related intermediates. At present, the project is being actively promoted.


Deng Sheng, an analyst with CITIC Securities, said that along with the rising price of dyes and intermediates, the net profit of anoits rose sharply. In view of the impact of supply side reform, high pressure environmental protection policy and the optimization of the product mix, the price of dye has been rising. In 2018, disperse dyes and reactive dyes rose from 28 thousand yuan / ton, 25 thousand yuan / ton to 40 thousand yuan / ton and 30 thousand yuan / ton respectively, or 42.9% and 20% respectively.


Anso is based on high-end dyestuff. Its gross profit is higher than the average level of the industry. The rising price of dyestuff boosted the net profit of the company. The Dongying subsidiary, a wholly owned subsidiary, realized its operating income of 631 million yuan in 2018, an increase of 78.8% over the 353 million yuan in 2017, mainly due to the sharp rise in the price of dyes. Due to the impact of environmental protection and shutdowns in Northern Jiangsu, Jiangsu's revenue in 2018 was 205 million yuan, down 29.3% compared with the same period last year. Sales of reactive dyes decreased, resulting in lower revenue. In 2018, the net profit was 18 million yuan, up 63.6% over the same period last year, mainly due to price increases. At the same time, Anor has sold 25% stake in the seven color cloud, gained an investment income of 9 million 890 thousand yuan, and the seven color cloud business turned a profit, realized a net profit of 2 million yuan, and jointly supported the company's performance.


In addition, Anor has further expanded the scale of dyestuff dyes and vigorously promoted the upstream intermediates project. At present, its main products include disperse dyes, high washing disperse dyes and environment-friendly disperse dyes, which have strong market competitiveness. Yantai 30 thousand tons of intermediates, one phase, 13 thousand tons of disperse dyes intermediates have been put into operation. Due to the tight supply of disperse dyes intermediates in the past two years, the first phase intermediates are mainly used for their own use, and a small amount of external sales will help stabilize the supply of raw materials, greatly reduce the production cost of dyes, and enhance the company's business performance. At the same time, Shandong's anuoits fine chemicals not less than 50 thousand tons of dyestuff and related intermediates are also actively pushing forward, and the scale of anso's dyes and intermediates will further expand in the future.


In addition, anoit has also set up a big digital industry chain to create a new growth point. In 2017, the 50 million yuan of Anyuan, which was originally used for the "Jiangsu reactive dye technology spanformation project", was changed to "Yantai Digital Technology Co., Ltd.". After the completion of the project, it is expected to produce an annual production capacity of 7 million 350 thousand meters high end printed silk scarves, 15 million 540 thousand digital printing T-shirts and 11 million 100 thousand pairs of digital printed socks. In the first half of 2018, anoit invested in Shanghai to build a B2C digital printing flexible customization platform to open up the upstream and downstream relations of the digital inkjet printing industry chain and promote the development of the digital inkjet printing industry. In November 2018, strategic investment DESAY digital, its socks digital printing machine has a higher market share and market visibility, further improving the digital industry chain, and promoting the digital equipment technology progress. In 2018, anto initially completed the layout of digital industry, including digital printing head and its chip, digital equipment, digital dye, digital ink, B2C digital printing terminal flexible customization platform, and so on. It strongly supported the development of anoits B2C digital printing terminal flexible customization platform, and the synergy effect of various digital plates will form the core competitiveness of the company's B2C digital platform.


Public information shows that it has been committed to the research, production and sales of high-end dyes, and for many years it has always had strong competitive advantages and high market position in the market of differentiated dyes, and maintained healthy, rapid and sustainable development. Our products occupy the leading position in the microfiber market, such as disperse dyes, high washing disperse dyes, environment-friendly disperse dyes, reactive dyestuff dyes, low temperature reactive dyes, ultra micro environmental protection liquid disperse dyes, special dyes for digital ink, and multi fiber blended dyes.