Performance reports of many textile and garment companies have been released. In the first half of 2022, in addition to declining revenue, net profit losses have almost become common.
Many textile giants reported “poor” results in the first half of the year
Rongsheng Petrochemical: Net profit attributable to parent company in the first half of the year was 5.367 billion yuan, down 18.27% year-on-year
On the evening of August 17, Rongsheng Petrochemical disclosed its 2022 semi-annual report. The company achieved operating income of 147.628 billion yuan, a year-on-year increase of 74.88%; net profit attributable to the parent company was 5.367 billion yuan, a year-on-year decrease of 18.27%.
Xinxiang Chemical Fiber: Net profit fell 98% year-on-year in the first half of the year
On the evening of August 11, Xinxiang Chemical Fiber released its 2022 semi-annual report. The company achieved operating income of 3.964 billion yuan from January to June 2022, a year-on-year decrease of 3.84%. The net profit attributable to shareholders of the listed company was 9.4224 million yuan, a year-on-year decrease of 98.72%. , earnings per share were 0.0064 yuan.
Weiqiao Textile: Net profit loss in the first half of the year was 650 million yuan
On August 19, Weiqiao Textile announced that in the first half of 2022, the company’s revenue increased by approximately 10.6% compared to the same period last year to approximately RMB 8.293 billion; its gross profit loss was approximately RMB 419 million, compared with approximately RMB 880 million in the same period last year. The net loss attributable to the company’s owners was approximately RMB 650 million, while the net profit attributable to the company’s owners during the same period last year was approximately RMB 583 million.
The main reasons for the loss are: 1. The price of lint, the main raw material required for the production of the group’s textile products, has remained high, and employee costs have also increased compared with the same period last year, resulting in a significant increase in the production costs of the group’s textile products. The increase in sales prices is not as high as the increase in production costs. , resulting in a gross profit loss for the group’s textile business in the first half of this year; 2. In the first half of 2022, although the group’s power business remained profitable, the price of coal, the main raw material, fluctuated at high levels, and the cost of electricity rose sharply, resulting in a decrease in unit gross profit.
Huamao Shares: Net profit fell 152.52% in the first half of the year, with a loss of 76.722 million yuan
On August 22, Huamao Shares disclosed its 2022 semi-annual report. During the reporting period, the company achieved revenue of 1.696 billion yuan, a year-on-year increase of 1.92%; net profit attributable to shareholders of the listed company was -76.722 million yuan, a year-on-year profit-to-loss, a decrease of 152.52%. In the first half of 2022, the company focused on the goals and tasks of “stabilizing the market, adjusting structure, reducing costs, and reducing losses”, making efforts and overcoming various difficulties to stabilize main business profits. Faced with the challenges of the complex and ever-changing external environment at home and abroad and the repeated tests of the epidemic, we have overcome various difficulties such as insufficient market demand, large fluctuations in raw material prices, and poor exports, persisted in focusing on the main business, and faced difficulties, and the company’s production and operations have maintained Smooth operation.
Jiangsu Lianfa: Operating profit in the first half of the year was 78.0641 million yuan, a year-on-year decrease of 25.96%
On August 23, Jiangsu Lianfa Textile Co., Ltd. released its financial report for the first half of 2022. During the reporting period, the company achieved operating income of 2.28 billion yuan, a year-on-year increase of 1.98%; operating profit of 78.0641 million yuan, a year-on-year decrease of 25.96%; achieved vesting The net profit of the parent company was 59.3214 million yuan, a year-on-year decrease of 44.14%.
Regarding the reasons for the change in performance, Lianfa Co., Ltd. explained that during the reporting period, especially in April and May, textile companies in the Yangtze River Delta, the most concentrated and developed region with the textile industry centered on Shanghai, faced the counterattack of the epidemic, poor logistics, and consumption. Unfavorable factors such as sluggish demand and insufficient domestic demand orders, as well as the sharp fluctuations in crude oil and raw material prices caused by the Russia-Ukraine conflict, have made it more difficult for downstream enterprises to study and judge the market, and the enterprises have encountered greater difficulties in operation. The company continues to maintain a relatively stable development trend and offset the impact of the adverse external environment through proactive measures such as further integration of the industrial chain, investment and transformation of intelligent manufacturing, technological innovation and product research and development, brand building and market development.
Huafu Fashion: Revenue and profit remained basically stable in the first half of the year
On August 25, Huafu Fashion disclosed its 2022 semi-annual report. In the context of the U.S. ban on Xinjiang-related cotton products, and in the face of complex environmental changes at home and abroad, the company has taken advantage of its brand and product advantages to adjust its market and customer structure, integrate and optimize its main yarn business, vigorously develop network chain business, and actively promote digital intelligence. With the transformation and upgrading, revenue and profits remained basically stable. During the reporting period, the company achieved operating income of 8.535 billion yuan, a year-on-year decrease of 0.22%, and net profit attributable to the parent company of 292 million yuan, a year-on-year decrease of 3.03%.
Huafang Co., Ltd.: Net profit in the first half of the year fell 66.06% year-on-year
Huafang Co., Ltd. (600448) released its 2022 semi-annual report on the evening of August 30. The company achieved operating income of 1.828 billion yuan in the first half of 2022, a year-on-year increase of 8.33%. The net profit attributable to shareholders of the listed company was 2.4292 million yuan, a year-on-year decrease of 66.06 million yuan. %; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -3.2656 million yuan; the basic earnings per share was 0.04 yuan.
The clothing industry is also not optimistic, and collectively encountered “Waterloo”
Semir Apparel’s net profit in the first half of the year was 104 million yuan, a year-on-year decrease of 84.31%
Semir Apparel released its 2022 semi-annual report. In the first half of 2022, Semir Apparel achieved revenue of 5.641 billion yuan, a year-on-year decrease of 13.43%; net profit attributable to the parent company reached 104 million yuan, a year-on-year decrease of 84.31%.
Specifically, Semir Clothing’s online operating income increased by 3.45% year-on-year, while offline operating income decreased by 25.76% year-on-year. Among offline businesses, direct operating income decreased by 19.02%, and franchise wholesale business operating income decreased by 27.64%. In the clothing business, casual clothing decreased by 15.54% year-on-year., children’s clothing dropped 12.45% year-on-year.
Meibang Clothing: Net loss exceeded 700 million in half a year, and more than 300 stores were closed
On the evening of August 28, Meibang Apparel released its 2022 semi-annual report. Data show that in the first half of 2022, Meibang Apparel’s revenue was approximately 723 million yuan, a year-on-year decrease of 47.49%; its net loss was approximately 689 million yuan, a loss that expanded by more than 500% year-on-year.
Peacebird: Net profit attributable to parent companies fell 67.57% year-on-year in the first half of the year, and online revenue fell 10.74%
On the evening of August 29, Peacebird’s semi-annual report announced that it achieved operating income of 4.197 billion yuan in the first half of the year, a year-on-year decrease of 16.31%; it achieved a net profit attributable to shareholders of listed companies of 133 million yuan, a year-on-year decrease of 67.57%; The company’s shareholders’ net profit after deducting non-recurring gains and losses was 5.2196 million yuan, a year-on-year decrease of 98.2%. In terms of channels, during the reporting period, the company achieved direct operating income of 1.876 billion yuan, a year-on-year decrease of 21.33%; franchise income of 909 million yuan, a year-on-year decrease of 13.59%; online income of 1.382 billion yuan, a year-on-year decrease of 10.74%.
It is not easy to live with the “epidemic”
Some business people admitted to reporters that in the first half of this year, affected by multiple factors such as the spread of the epidemic at multiple points in the country, rising raw material prices, and weakening short-term consumer demand, the domestic retail industry and the textile and apparel industry were indeed under certain pressure.
According to data from the National Bureau of Statistics, from January to June 2022, the total retail sales of consumer goods was 21,043.2 billion yuan, a year-on-year decrease of 0.7%; the nationwide retail sales of clothing, shoes, hats, and knitted textiles by units above designated size was 628.2 billion yuan, a year-on-year decrease of 6.5%; nationwide The per capita consumption expenditure of residents was 11,756 yuan, a nominal increase of 2.5% over the same period last year. After deducting the impact of price factors, the actual increase was 0.8%; the per capita consumption expenditure of clothing nationwide was 725 yuan, a decrease of 2.3%; the national online retail sales of clothing products increased by 2.4% year-on-year. .
Industry insiders believe that as the economic environment improves, consumers’ willingness to consume and consumer confidence will further increase, and the textile and apparel industry will usher in new development opportunities under the background of dual-circulation economy. Among them, market resources will accelerate the concentration of industry leaders, which will help companies in a dominant position to integrate upstream and downstream resources more efficiently, consolidate their competitiveness, and expand market share. In the future, industry concentration will continue to increase.
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