Huamao Co., Ltd. (000850): New Blue Ocean Of Intelligent Textile Industry

"Spinning the best yarn, weaving the best cloth, and making the best fabric are Huamao people's unchanging original intention, which leads us through the" bull bear "industry." Recently, Ni Junlong, chairman of Huamao stock (000850), said in an interview with a reporter of securities times · e company, "now we have a solid foundation for the main business, because the high-quality and efficient mode has been established and has been continuously verified in practice."

Under the intelligence and innovation empowerment, Huamao will achieve a net profit of 89.6645 million yuan after deducting non-profit in 2020, which is the first time that Huamao becomes a regular in nearly nine years; In the first three quarters of this year, the company's main business competitive advantage further expanded, net profit after deducting non-profit reached 163 million yuan, a year-on-year increase of 28.32%; The gross profit rate was 18.92%, a new high in nearly 19 years.

Rejuvenate the main business

In 1998, Huamao shares landed on the main board of Shenzhen stock market and turned around magnificently with the help of capital. In the traditional textile industry, Huamao has always stressed to follow the trend to resist the cyclical risks of the industry, and adhering to the main business is the main line throughout.

Back in 2011, due to the fluctuation of cotton market and high price, Huamao textile business's main business profit decreased sharply. The net profit after deducting non-profit in 2011 was only 11.98 million yuan, with a year-on-year decrease of nearly 90%. Since then, the main business once fell into the plight of insufficient hematopoietic function. From 2012 to 2019, the company's main business net profit after deducting non-profit is negative for 8 consecutive years. Fortunately, the previous investment in Guotai Junan, Guangfa Securities and other enterprises brought investment income has been released, so that the company smoothly through the loss of the main business "dark moment.". Data show that since the listing, Huamao shares to the parent net profit continued to be positive, no loss for a year.

"We emphasize the dual drive of industrial capital and financial capital. It is undeniable that financial capital can smooth the company's profit output, but the main business benefit is the long-term value we pursue." Ni Junlong said frankly.

The long-term adherence to the main business finally ushered in the harvest period. In 2020, Huamao shares realized the first positive net profit in nearly nine years, which was 89.6645 million yuan; In the first three quarters of this year, a net profit of 344 million yuan was recorded, a year-on-year increase of 35.56%; Net profit after deducting non-profit reached 163 million yuan, up 28.32% year on year.

"Professional people do professional things, and Huamao is good at spinning and weaving." quality is the life of an enterprise "has been integrated into Huamao people's blood." When it comes to the strength of Huamao, Ni Junlong can be described as a family treasure: in the early 1990s, Li Peng, then Premier of the State Council, praised Huamao as a "model of management for efficiency"; Huamao's "Chengfeng" brand high-grade yarn and "Yinbo" brand high-grade grey cloth are like thunder in the industry. "High count, high density and high-grade" have become the concentration of Huamao's product structure.

The reporter saw that in the exhibition hall and conference room of Huamao Stock Co., Ltd., a picture of welcome pine in fabric version was particularly eye-catching. According to reports, the Yingke pine in the pattern is made of 600 superfine combed yarn developed by Huamao with domestic cotton in 2011, representing the highest level in the industry. On December 3 last year, the "fabric version" of the national flag developed and produced by the company and relevant domestic colleges and universities was successfully displayed on the surface of the moon with chang'e-5, which once again demonstrated the technical strength of the enterprise to the industry.

Intelligent spinning is the only way

"How to spin the yarn better, weave the cloth better, make the fabric better, and enhance the added value of the product, this is the goal we have been pursuing for many years." Ni Junlong said. However, there are many management and management philosophy behind the seemingly simple sentence.

In the interview, the reporter found that intelligent spinning plays an important role in promoting the revitalization of Huamao's main business, and has become the "only way" for the company's high-quality and efficient mode.

Since 2016, Huamao's comprehensive gross profit margin has been gradually increased from 9%, reaching 18.92% in the first three quarters of 2021, setting a new record in nearly 19 years.

In the second half of 2017, the company rebuilt and built 150000 spindles intelligent spinning factory on the basis of the original old factory building, which was put into full operation in April 2018; In 2019, invest 500 million yuan to build 145000 spindles high-quality and high-efficiency intelligent spinning upgrading project in the whole process; In 2021, Anqing Xinwei, a wholly-owned subsidiary, plans to invest about 500 million yuan in the construction of new fiber spinning intelligent production project.

"In fact, the industry forced us to embark on the road of intelligence, but when the first intelligent chemical plant was put into operation, the effect of cost reduction gave everyone a surprise. At present, the capacity of intelligent production line of the company is about 400000 spindles." As the leader of Huamao's intelligent project, Ni Junlong told reporters with pride, "our intelligent chemical plant, whether in terms of monomer scale, product quality, or production efficiency, can be rated as the first-class in the world, and the level of intelligence is unparalleled in the industry." In 2020, "new spinning intelligent transformation project" won the sixth "China Industry Award", which is known as "the Oscar of Chinese industry".

In Huamao's intelligent chemical plant, "intelligence" can be directly measured by figures: the average operating cost per ton of yarn is reduced by 34.47%; The number of employees per ten thousand ingots decreased from 50 to less than 15, with a decrease rate of 70%; The rate of defective products decreased from 0.3% to 0.1%, decreased by 66.67%, and the rate of excellent products reached 99.9%; The product upgrade and development cycle is shortened from 80 hours to 40 hours, and the efficiency is improved by 50%. "The reduction of operating costs will directly increase the gross and net interest rates, while the increase in the rate of superior products will enhance the consistency and stability of products and realize real high-quality production." Ni Junlong said that after the transformation of the project, the delivery time of products has been greatly shortened, some products are in short supply, and the inventory cycle is generally only about 15 days.

"Take the 145000 spindles intelligent spinning project built by the company last year as an example. Our design capacity is 70 tons, and it has been put into operation for more than half a year, and now it has reached more than 60 tons. The production of 400000-500000 spindles of traditional spinning mills is also at this level." Ni Junlong said that at present, the benefits of the project are good, and according to this level, the cost can be recovered soon.

As the saying goes, the quality control of each yarn bloom can be called a world problem. In Huamao's intelligent factory, the above problems have been solved skillfully.

The reporter saw at the scene that each yarn crack in the factory is attached with a unique chip, which can automatically collect the output, quality and progress information of each spinning process, and can control each tube of yarn online and instantaneously. "I dare to say responsibly that there is no defective yarn from Huamao intelligent factory." Ni Junlong said frankly.

It is particularly worth mentioning that the intelligent chemical plant is not a simple general equipment combination, but a highly integrated customized product with decades of cotton spinning experience of Huamao. "From flower cleaning to spinning, the intelligent production equipment of each process has been transformed by us, and has applied for a number of patents, and has its own intellectual property rights." Ni Junlong told reporters, "this is our most precious wealth and will build the most solid moat."

Enter the new blue sea of textile industry

"Now we are confident and confident in the future, because a high-quality and efficient model has been established." Ni Junlong told reporters, "although it is a traditional industry, as long as efforts can also drive into the new blue ocean."

In Ni Junlong's opinion, spinning is Huamao's housekeeping skill, and it will still be the key development direction in the future. "The domestic spinning scale is more than 100 million spindles, but there are still not many yarn cracks that truly represent the industry's leading level. Huamao's current spinning capacity is about 8000000 spindles, and there is still a lot of space." According to the capacity planning, the company will further increase the investment in the field of spinning and continue to expand production capacity during the 14th Five Year Plan period.

In the market segment, how to improve the discourse power in the field of high count yarn will be the main direction of Huamao shares in the future. "The technical threshold of high count yarn is high, which can form a certain technical barrier." Ni Junlong explained, "at present, there are not many enterprises entering the field of high count yarn. In the context of subsequent consumption upgrading, consumers have higher and higher requirements on fabrics, and the market space for high count yarn will be more and more large."

In the past few years, the company has made great achievements in structural adjustment. On the basis of maintaining the advantages of pure cotton, it has gradually increased the production of differentiated varieties, such as high count yarn of various cellulose fibers, high-grade polyester sewing thread and other pure and blended fiber varieties, which are favored by customers once they are put into the market; At the same time, the low efficiency varieties and years of loss of singeing mercerizing production line were closed, and non-woven fabric, shading cloth and other production lines were added to gradually improve the main business efficiency. "At present, the company's products are in short supply, the old customers continue to be stable, and the new customers are attracted." Ni Junlong revealed.

In addition to spinning, Huamao's strength in weaving, fabrics and nonwovens can not be underestimated. Huamao is striving to build a new textile industry system with high-end textile manufacturing, modern textile trade and green, healthy and fashionable. "How to integrate the spinning, weaving, fabric, clothing and other plates to form a" resultant force "is a problem we have been thinking about. At present, our spinning and weaving capabilities are strong. If we use our own raw materials to produce fabrics, we will certainly promote the competitiveness of fabrics. After a virtuous cycle is formed, it is expected to achieve the goal of" people without me, people with my own advantages "; at the same time, With a complete industrial chain layout, enterprises' ability to resist risks will also be enhanced. " Ni Junlong said that in the future, the company will also pay attention to the extension of the industrial chain of non-woven fabric plate, including cotton towel, facial mask and other end products.

At present, under the background of building a new pattern of "double cycle" development, China's demand for global industrial chain has formed a siphon effect, and the textile industry's order backflow phenomenon is obvious, and the industry accelerates to warm up; At the same time, the trend of industry reshuffle and differentiation is more obvious. The situation of clearing out inefficient production capacity and slowing down of demand growth exist simultaneously, and uncertainty remains.

"Intelligence has become the new engine of the company's development, and will gradually open the gap with peers." Ni Junlong said that in the future, we will take intelligent spinning as the starting point, accelerate the development and application of new fibers, new processes and new technologies, and strive to achieve greater achievements in the new pattern of "double cycle" development.