Recently, a number of listed companies in the knitting industry have released their 2020 performance reports and first quarter 2021 performance reports. Overall, the overall performance of the knitting industry in 2020 was solid, and the overall performance in the first quarter of 2021 showed a trend of accelerated recovery. With the steady recovery of domestic demand and export consumption, domestic retail sales of knitwear have shown a gradual recovery trend, and future order volumes are expected to rebound rapidly. Several listed knitting companies continue to inject new momentum with technology around high-quality and sustainable development, pursue fashion, simplicity, and perfection in products, create and provide more high-quality, high-looking, and high-value products, and lead new trends with service. development and create new space with green. In addition to Jiansheng Group, Langsha Co., Ltd., Shenzhou International, and Bangjie Co., Ltd. all achieved double growth in total revenue and net profit, indicating that corporate development still needs to continuously improve quality and efficiency, expand markets, and build a new development pattern.
Jiansheng Group
Performance Expected to accelerate recovery
Performance performance: In the first quarter of 2021, Jiansheng Group Co., Ltd. (hereinafter referred to as “Jiansheng Group”) achieved operating income of 414 million yuan, a year-on-year increase of 11.26% ; Net profit attributable to shareholders of listed companies was 47.378 million yuan, a year-on-year decrease of 13.49%.
In 2020, Jiansheng Group achieved operating income of 1.582 billion yuan, a year-on-year decrease of 11.12%; the net profit loss attributable to shareholders of listed companies was 528 million yuan, a year-on-year decrease of 293.09%. It was 270 million yuan in the same period last year, failing to maintain profitability.
Operation review: The 2020 annual report shows that Jiansheng Group’s main business is textiles, accounting for 98.83% of revenue. From the perspective of business structure, cotton socks are the main source of Jiansheng Group’s operating income, showing strong resilience. During the period, the operating income of cotton socks was 880 million yuan, accounting for 56.2% of the revenue, and the gross profit margin was 22.9%. The financial report of Jiansheng Group pointed out that due to the impact of the new crown pneumonia epidemic in 2020, the company’s Qiaoertingting seamless underwear business suffered a one-time asset impairment loss of approximately 554 million yuan, which had a greater impact on the company’s net profit; in addition, the epidemic’s impact on customers’ Sales have had a negative impact, and the company’s sales revenue has declined, resulting in a decline in gross profit margin and a reduction in profit scale. In 2021, with the accelerated recovery of terminal textile exports and the steady recovery of domestic total consumption of knitted shoes and hats textiles, Jiansheng Group continued to promote the optimization of business structure, driving the accelerated recovery of overall revenue and terminal profits, and net profit returned to positive year-on-year terms.
Market forecast: In 2021, facing the difficulties in the seamless underwear market, Jiansheng Group will continue to expand its share of high-quality customers in the cotton socks business, and continue to develop new products. Add new customers to make up for lost orders. At the same time, in terms of production capacity expansion plan, Jiansheng Group continues to promote the expansion plan of Vietnam’s Haiphong cleaning chemical plant, and is expected to achieve a production of 200 million pairs of cotton socks within the year; at the same time, the company is actively deploying domestically, and plans to complete Guizhou cotton socks and The construction of the auxiliary materials project will, on the one hand, undertake the transfer of part of Shangyu’s seamless apparel production capacity, and on the other hand, add auxiliary materials production and a 60 million pair of mid-to-high-end cotton socks production plant. Industry experts believe that in the future, Jiansheng Group’s seamless underwear business is expected to effectively diversify downstream risks while increasing orders.
Langsha Shares
Profits increase as the market recovers
Performance: In the first quarter of this year, Sichuan Langsha Holdings Co., Ltd. (hereinafter referred to as “Langsha Holdings”) achieved operating income of 66.7 million yuan, a year-on-year increase of 37.38%; net profit attributable to shareholders of listed companies 5.934 million yuan, a year-on-year increase of 22.57%.
In 2020, the company achieved operating income of 346 million yuan, a year-on-year increase of 4.67%; the net profit attributable to shareholders of the listed company was 17.7566 million yuan, a year-on-year increase of 12.11%.
Operation review: In the first quarter of 2021, Langsha Co., Ltd. achieved operating income of 66.7 million yuan, a year-on-year increase of 37.38%. Langsha Co., Ltd. stated that this performance was achieved due to the impact of the COVID-19 epidemic in the same period last year. In the first quarter of this year, the economy recovered, the consumer market gradually picked up, and the main business income achieved substantial growth. Affected by the epidemic, Langsha’s operating income and net profit both bucked the trend in 2020. During the reporting period, underwear products achieved operating income of 100 million yuan, accounting for 29.22% of the main business income; shorts achieved operating income of 204 million yuan, accounting for 59.17% of the main business income; bras achieved operating income of 6.6272 million yuan, accounting for 29.22% of the main business income. 1.92% of business income. Langsha underwear brand series products mainly include thermal underwear product series (seamless and seamed), men’s and women’s shorts, fashion underwear and bras, etc. There are obvious seasonal differences in the sales of underwear products. In 2021, Langsha Co., Ltd. will accelerate the optimization and upgrading of its product structure, reduce the losses of underwear products due to seasonal and weather effects, and increase the sales of conventional products, such as shorts, bras and other categories.
Market forecast: In 2021, Langsha Co., Ltd. will actively explore brand innovation business models, adjust channel structure, and strive to achieve a 10% growth in revenue and profits based on 2020. In addition, while continuing to increase investment in research and development and strengthening marketing capabilities, we will enhance corporate profitability and drive continued performance growth with brand benefits. In the future, benefiting from the consumption upgrading trend and the market penetration of the “Langsha Underwear” brand, the company’s market share is expected to further increase. In 2021, Langsha Co., Ltd. will promote the improvement of Langsha brand in terms of products, channels, services, management and terminal image. Through the brand advantages and product quality of “Langsha Underwear”, it will be launched online.�Synchronized channel promotion to quickly improve the company’s profitability.
Shenzhou International
Seize Sports shoes and apparel track
Performance: In 2020, Shenzhou International Co., Ltd. (hereinafter referred to as “Shenzhou International”) achieved operating income of 23.03 billion yuan, a year-on-year increase of 1.6% ; Net profit attributable to shareholders of listed companies was 5.083 billion yuan, a year-on-year increase of 2.5%.
Operation Review: In 2020, against the background of the impact of the global epidemic on consumer demand, Shenzhou International’s revenue and net profit showed strong upward development resilience. In 2020, despite the adverse impact of the epidemic, Shenzhou International’s overseas base production capacity expansion will still proceed as planned. Among them, production bases in Vietnam and Cambodia contribute nearly 40% of Shenzhou International’s garment production capacity. Shenzhou International is a global apparel OEM company, and its sports brand customers account for more than 50% of the company’s revenue. In 2020, Shenzhou International reduced the impact of fluctuations in market demand by increasing its efforts in new product development. In the second half of 2020, the company’s newly developed mask products alone achieved sales revenue of approximately US$190 million.
Market forecast: As a daily necessity, sports shoes and clothing have a huge market size, stable growth and strong premium capabilities. In 2021, the impact of the global epidemic is expected to be significantly weakened. Shenzhou International actively responds to the trend of the industry, accelerates the expansion of production capacity, and establishes a R&D base to quickly break through energy bottlenecks and improve R&D capabilities and production capabilities. It is expected that production capacity will grow by 15% within the year. The above is expected to further increase market share in the sports shoes and apparel track.
Bangjie Shares
Steady growth in seamless apparel performance
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Performance: In the first quarter of 2021, Zhejiang Bangjie Holding Group Co., Ltd. (hereinafter referred to as “Bangjie Group”) achieved operating income of 122 million yuan, a year-on-year increase of 21.06%; attributable to The net profit of shareholders of listed companies was 14.0784 million yuan, a year-on-year increase of 13.56%.
In 2020, the company achieved operating income of 626 million yuan, a year-on-year increase of 4.12%; the net profit attributable to shareholders of listed companies was 61.62 million yuan, a year-on-year increase of 61.92%.
Operation review: Bangjie Co., Ltd. is mainly engaged in the design, research and development, production and marketing of seamless clothing. Its main products include underwear, suits, casual wear, sportswear and other series of products. . In the first quarter of this year, Bangjie Co., Ltd.’s export business achieved business revenue of 452 million yuan, a year-on-year increase of 11.68%; its domestic sales business achieved revenue of 174 million yuan, a year-on-year decrease of 11.48%. Bangjie Co., Ltd. stated in its financial report that under the impact of the epidemic, the company’s core business of seamless apparel performance still maintained positive growth: the company’s performance reached a new high in 2020, and the positive growth in operating performance under the epidemic was mainly due to the active resumption of work and production during the epidemic and Seize the development opportunities of the seamless garment industry, increase investment in research and development, increase the added value of products, steadily promote the construction of intelligent and informatized factories, deepen cooperation with high-quality customers, and win more orders.
Market forecast: Bangjie Co., Ltd. mainly provides seamless clothing development, design and production and manufacturing services to global customers through the ODM/OEM model. After more than 20 years of development, Bangjie Co., Ltd. has established a complete and mature production and marketing system from R&D and design, sample confirmation to production and sales. In 2021, Bangjie Co., Ltd. will continue to strengthen strategic planning, enhance brand value, improve internal control construction, strictly control operating risks, reserve technical talents, enhance the company’s core competitiveness, maintain the company’s development potential, and consolidate its position as a leading company in the seamless garment industry . </p
