It Has Over 1 Million 700 Thousand Spindles And Asia'S Largest Air Spinning Base. Xinye Textile Revenue Last Year Was 5 Billion 700 Million.

China's cotton spinning industry has the top 20 competitiveness in the largest spinning rotor production line and the largest air spinning production base in Asia. The Henan Xinye textile Limited by Share Ltd (hereinafter referred to as "Xinye textile") has recently disclosed its 2019 annual report. During the reporting period, the company achieved operating income of 5 billion 732 million yuan, 5.41% lower than the same period last year, and the net profit attributable to the parent company 2.79. Billion yuan, 27.70% lower than the same period last year.

In the first quarter of 2020, Xinye textile realized operating income of 1 billion 59 million yuan, down 28.41% compared to the same period last year. The net profit attributable to shareholders of listed companies was 63 million 299 thousand and 100 yuan, down 18.39% compared to the same period last year.

According to the category, during the reporting period, Xinye textile yarn products achieved a total revenue of 3 billion 577 million yuan, down 6.36% compared with the same period last year. The fabric and fabric products achieved a revenue of 1 billion 601 million yuan, an increase of 7.09% compared with the same period last year, and cotton products achieved a profit of 534 million yuan, down 25.08% from the same period last year.

From the production and storage situation, during the reporting period, Xinye textile produced 214 thousand tons of yarn, a decrease of 2.70% compared to the same period, and sales of 178 thousand and 900 tons, a decrease of 4.74% compared with the same period last year, and yarn inventory grew 23.23% to 34 thousand and 800 tons over the same period. Xinye textile production of grey cloth and fabric 169 million meters, an increase of 7.76% over the same period; sales of 167 million meters, an increase of 6.26% over the same period; inventory grew 11.49% to 18 million 690 thousand meters.

Mi Hanjie, an analyst with GF Securities, said that for cotton spinning companies, the cotton used for production is usually cotton purchased in the past. When cotton prices continue to rise, product prices will be raised by cost plus pricing, but the cost of products will remain unchanged, so gross margins will grow correspondingly and profits will also rise. On the contrary, if the market price of cotton is kept low with the production of cotton in stock, the price basis may be lower than the cost price. In addition to the profit of the price increase, the company also faces the loss of the price basis, which is lower than the cost price.

Observation, cotton textile industry growth from 2018 high growth to switch to low speed growth in 2019, while the net profit growth is lower than the revenue growth is mainly due to several reasons: first, cotton prices continue downward in 2019, leading enterprises have a certain amount of cotton stocks, so when the cotton flower price is weaker, the inventory cost is higher, and the price of products is driven by the decline of cotton prices. The decline in gross profit margin; two, domestic enterprises were affected by the Sino US trade war, and the downstream customers reduced orders, and some orders shifted overseas to affect demand. In the first quarter of 2020, due to the impact of the epidemic, production stagnated after the Spring Festival in February, and overseas outbreaks began in late March.

Mi Hanjie believes that although the performance of the first quarter of 2019 and the first quarter of 2020 shows that the upstream textile manufacturing sector performs better than the downstream garment home textile plate, but considering that the export enterprises in the textile manufacturing sector begin to cancel and postpone a large number of downstream customer orders in the middle and late 3 months, the two quarter performance is facing greater uncertainty, even though the recent individual states and some European countries have land. Continued lifting of the ban, so the upstream textile manufacturing sector short-term recommendations continue to pay attention to the high industry boom, and benefit from the global shortage of anti epidemic materials, such as non-woven fabric leading non-woven fabrics, such as meltblown cloth production capacity and non-woven fabric leader with wet paper towel production, medium and long-term recommendations are concerned about the quality supply chain leader in the plate, the global epidemic acceleration industry shuffle, high-quality supply chain leader anti risk Stronger capacity, the epidemic is expected to benefit from further improvement in industry concentration.

During the reporting period, Xinye textile continued to strengthen product development and process research around the series of products such as pure cotton, blended yarn, new fiber spinning, new high-grade cotton and blended fabrics, and formed the core technology. In 2019, the company invested 184 million 918 thousand and 100 yuan in the development of new products, and achieved some results. Some of them have been put on the market. The company will continue to enhance R & D capability, do research and development reserves well, and improve R & D results.

As of December 31, 2019, Xinye textile has obtained 5 patents for invention, 72 patents for utility models, and 39 patents for design. The company has actively participated in the drafting and formulation of 29 national and industrial standards, and has released 15 publicly.

Xinye textile main business is engaged in the production and sale of medium and high grade cotton textiles, the main products include yarn series products, grey fabrics and fabric products. It is one of the manufacturers of high-end cotton textiles in China. In July 2019, the China Cotton Textile Industry Association released the competitiveness ranking of China's cotton textile industry in 2018, ranking seventh.

Under the framework of the national "one belt and one way" strategy, Xinye textile has invested about 2000000000 yuan in Xinjiang, integrating Xinjiang's cotton acquisition, cotton processing and spinning industry chain, and driving the company's capacity to more than 170 million spindles. In 2020, the company will give full play to the cost advantages of Xinjiang's production base, coordinate domestic and foreign cotton resources, and continuously improve production while stabilizing its quality. Efficiency in order to maintain the company's leading position in the cotton textile industry.