The world’s largest supplier and manufacturer of colored yarn – Huafu Fashion Co., Ltd. (hereinafter referred to as “Huafu Fashion”) July 14 The performance forecast for the first half of 2020 was disclosed in the evening. It is expected that the net profit attributable to shareholders of listed companies during the reporting period will be a loss of 120 million yuan to 160 million yuan compared with 351 million yuan in the same period last year.
As for the reasons for the performance changes, Huafu Fashion explained that due to the impact of the epidemic during the reporting period, domestic and foreign The market demand is sluggish, the price of raw materials has fallen, and the company’s production capacity utilization has decreased, resulting in increased costs and reduced gross profits. The company has not taken measures to significantly reduce production capacity or layoffs. Instead, it has actively organized staff training and improved skills and professionalism to prepare for the market. recovery.
down 117.7%.
At that time, Huafu Fashion explained that the Sino-US trade dispute had dampened consumer confidence, inhibited global trade, led to market shrinkage, intensified competition, and trend and cyclical changes in the market. As a result, the growth rate of orders dropped from more than double digits to single digits; secondly, the price of cotton dropped sharply by 20% in a short period of time last year, resulting in a drop in yarn prices and making it more difficult to make profits on orders.
Public information shows that Huafu Fashion was founded in 2000 and was listed on the backdoor in 2008, becoming a domestic The first A-share listed company in the color textile industry, Huafu Fashion has always adhered to its main business and shared industries, believing that Xinjiang and Vietnam cannot be neglected. Xinjiang is a supply market for domestic consumption upgrades, while Vietnam is a supply market for overseas markets. The company has fully grasped the opportunities in the two regions and achieved rapid development.
Huafu Fashion, which focuses on manufacturing and supplying high-end new yarns, is also one of the largest color-spun yarn companies in the world. The company mainly provides color-spun yarns with fashionable and environmentally friendly technology, and provides supporting services. High-end new gray yarn, dyed yarn, semi-worsted, open-end dyed yarn and other value services, with strong supply chain management capabilities and fast product delivery.
As of 2019, Huafu Fashion has formed five major production capacity bases in Zhejiang, Huanghuai, Yangtze River, Xinjiang and Vietnam. The company’s current total production capacity has reached 1.88 million spindles, and it has a production system with an annual output of 250,000 tons of new yarns. In the future, production capacity expansion projects in Xinjiang and Vietnam will continue to expand. As of mid-2018, Huafu Fashion has formed 280,000 spindles of spinning yarn in Vietnam. Production capacity, forming a production capacity of 980,000 spindles in Xinjiang, the company’s total production capacity is 1.89 million spindles, including domestic production capacity of 1.61 million spindles and Vietnamese production capacity of 280,000 spindles. The short-term impact of the epidemic has led to an imbalance in the company’s production and sales. The current production capacity construction speed has slowed down. The next step of production capacity construction is expected to be concentrated overseas, mainly in Vietnam. At the same time, the company is also inspecting countries such as Bangladesh and Pakistan.
Sales dropped due to fewer orders due to the epidemic! Luthai, the global leader in yarn-dyed fabrics, saw its net profit drop by 70% in the first half of the year and only earned 100 million yuan
Lutai Textile Co., Ltd. (hereinafter referred to as “Lutai A”) disclosed on the evening of July 14, 2020 According to the performance forecast for the first half of the year, the company expects that the net profit attributable to shareholders of listed companies during the reporting period will only reach 120 million yuan to 160 million yuan compared with 411 million yuan in the same period last year, a decrease of 70.83% to 61.11%.
As for the main reason for the change in performance, Lutai A explained that during the reporting period, the company was affected by the epidemic and customer orders decreased, and the company’s product sales dropped, resulting in a sharp decline in net profit compared with the same period last year. .
Public information shows that Luthai Textile is the leader in my country’s yarn-dyed fabric industry and the world’s largest high-end yarn-dyed fabric production base. The company was formerly known as Luthai Textile Co., Ltd., a joint venture jointly established by Lucheng Textile and Thai Tailon Textile. It was listed on the Shenzhen Stock Exchange in August 1997.
Lu Thai Textile has a complete industrial chain from textile, dyeing and finishing, garment production to brand marketing. It has a presence in China, the United States, Italy, Japan, India, Vietnam, Cambodia, and Myanmar 8 countries, with 14 holding subsidiaries established. It is an integrated industry chain, comprehensive innovative and international textile and apparel enterprise integrating R&D, design, production and marketing services.
Shandong is the main production base of Lu Thai Textile. The industrial chain includes spinning, fabric weaving, and garment manufacturing. It has the main production capacity of yarn-dyed fabrics and shirts, and is also the company’s R&D Design and Management Center. The Xinjiang production base is mainly responsible for cotton planting, purchasing, spinning and other businesses.
Lu Thai Textile takes advantage of Southeast Asia’s labor costs and has garment factories in Cambodia and Myanmar. Vietnam has formed an industrial chain layout for yarn, fabrics and garments, mainly because Vietnam’s textile industry is relatively advanced in Southeast Asia and can form industrial chain synergies with Cambodia and Myanmar’s garment manufacturing.
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