Since the beginning of this year, textile and clothing trade has gradually become normalized. As market demand continues to increase, the profitability of leading companies has also continued to increase. Recently, three leading spinning companies issued announcements on the same day. They either carried out industrial cooperation or expanded overseas production capacity, and actively laid out and planned for the future.
Huamao shares:
Mixed ownership reform introduces leading knitting enterprises to form resource matching
On December 7, Anhui Huamao Co., Ltd. (hereinafter referred to as “Huamao Co., Ltd.”) issued an announcement showing that Ningbo Ruiding New Materials Co., Ltd. acquired 17.28% of Huamao Group’s equity through public listing. The equity transfer price is 480 million yuan.
Ningbo Ruiding was established in 2002, and the company behind it is Shenzhou International Group Holdings Co., Ltd. (hereinafter referred to as “Shenzhou International”). “The company and Shenzhou International have an upstream and downstream relationship and have always cooperated at the business level, and Shenzhou International is the company’s largest customer. From the perspective of a listed company, the future business of both parties will be carried out under the premise of legal compliance. This The mixed-ownership reform is an important reform at the group level, led by the local government, with the full cooperation of the listed companies, and we will strive to become bigger and stronger in the future.” said a relevant staff member of Huamao Co., Ltd.
Huamao Co., Ltd. has a relatively complete industrial chain of spinning, weaving (dyed weaving), dyeing and finishing, and clothing. According to the third quarter report of Huamao Co., Ltd. in 2021, the company’s total revenue in the first three quarters was 2.589 billion yuan, a year-on-year increase of 6.23%; net profit was 343 million yuan, a year-on-year increase of 35.56%, and the performance growth was relatively stable. Huamao Co., Ltd. stated that through this mixed ownership reform, Huamao Group has introduced strategic investors in the same textile industry, formed resource matching for the upstream and downstream of the industrial chain with Huamao Group and the company, achieved coordinated industrial development, and transformed the state-owned holding enterprises. The current management system will establish and improve the market-oriented operating mechanism, improve the operational governance level and market competitiveness of Huamao Group and the company, and bring better development prospects to the company.
Shenzhou International was listed on the Hong Kong Main Board in November 2005. It is one of the world’s largest vertically integrated knitting manufacturers. It mainly manufactures high-quality knitwear for customers through a combination of OEM and commissioned design. Huamao Co., Ltd. is one of Shenzhou International’s yarn suppliers. Shenzhou International said that this acquisition can strengthen its supply chain security with Huamao Co., Ltd. and bring positive benefits to the company’s future supply of yarn and woven fabrics. promotion effect.
In the view of Shenzhou International, the future development of the textile and apparel industry will transform from scale expansion to high-quality supply. The company stated in its annual report that the high-quality development of the textile and apparel industry should first focus on product differentiation and added value, and enhance the industry’s value chain through product innovation. At the same time, we promote the progress of production efficiency by improving the level of production automation and management digitization to reduce relative production costs. Qualified companies will pay more attention to product innovation, efficiency improvement, market expansion, transnational layout, environmental protection and other aspects. .
Industry insiders said that after upgrading and transformation in recent years, Huamao Co., Ltd.’s intelligent manufacturing level has ranked among the top in the industry. At present, Huamao’s smart spinning scale accounts for 50%. Continuous technological transformation and equipment upgrading have enhanced profitability and market competitiveness.
Tianhong Textile:
Spend 228 million yuan to rent land to expand yarn production capacity in Vietnam
Tianhong Textile Co., Ltd. (hereinafter referred to as “Tianhong Textile”) announced that Vietnam Haihe Industrial Zone (owner) and the company’s indirect wholly-owned subsidiary Tianhong Galaxy (as tenant) have entered into a lease agreement for the leased land. The lease term is from December 2021 From April 7 to April 24, 2064, the land will be used to build production facilities. The total rent of the leased land is 808.681 billion VND (equivalent to approximately RMB 228.5 million), based on approximately Calculated at RMB 595.
The announcement shows that the land is located in Haihe Industrial Zone, Haihe District, Quang Ninh Province, Vietnam. The total site area is approximately 383,800 square meters. The land use rights will expire on April 24, 2064. Tianhong Textile intends to build a large-scale production base in Vietnam. to manufacture yarn to expand its production capacity in Vietnam.
Industry insiders said that the new crown epidemic broke out in Vietnam in June 2021. Affected by the epidemic, textile production capacity was in short supply, resulting in a shortage of production capacity resources in the global supply chain. The production capacity of Vietnamese factories of many textile and garment companies in my country was limited, while my country’s domestic textile companies benefited from Abundant supporting resources and increased return orders. As the epidemic situation in Vietnam gradually improves, economic activities return to normal, factories resume work, and production capacity quickly recovers, the annual output of Chinese textile companies in Vietnam is expected to resume growth. Based on this, Texhong Textile has invested in expanding yarn production in Vietnam to actively plan for future overseas market expansion.
The financial report shows that in the first half of 2021, Tianhong Textile achieved operating income of 12.5 billion yuan, a year-on-year increase of 52.5%; net profit attributable to parent company holders was 1.288 billion yuan, a year-on-year increase of 12192%. As of the end of the reporting period, the total number of spindles of Tianhong Textile in China and overseas (mainly in Vietnam) was approximately 2.52 million spindles and 1.62 million spindles respectively. Since the first half of 2021, the increase in the sales price of Tianhong Textile yarn has completely caught up with the increase in raw material prices. In addition, the export supply of textiles in some countries or regions is still affected by the epidemic, which is beneficial to Tianhong Textile’s sales orders and profit. Tianhong Textile expects that the company’s yarn businessIn the future, it will still benefit relatively from the current operating environment.
Fuchun dyeing and weaving:
Started construction of cheese dyeing project with an annual output of 60,000 tons
Wuhu Fuchun Dyeing and Weaving Co., Ltd. (hereinafter referred to as “Fuchun Dyeing and Weaving”) stated in its foreign investment announcement that the company plans to sign a “60,000-ton annual high-quality cheese dyeing construction project” with the Hubei Jingzhou Economic and Technological Development Zone Management Committee. 》Investment Agreement, the total investment of the project is about 750 million yuan, and the construction will be carried out in two phases, of which the first phase is about 375 million yuan.
According to the announcement, Fuchun Dyeing and Weaving’s high-quality cheese dyeing construction project with an annual output of 60,000 tons plans to acquire 220 acres of land in the Textile Printing and Dyeing Circular Economy Industrial Park in Jingzhou Economic Development Zone, Hubei Province, build a new 219,800 square meter factory building and supporting facilities, and purchase advanced High-quality cheese dyeing intelligent production line and environmentally friendly production equipment, construction of Yangtze River water supply pipeline and comprehensive sewage treatment station, etc. The construction period is expected to be 48 months. The project will be constructed in two phases, of which the first phase is 120 acres and the second phase is 100 acres. , the total construction period is expected to be 24 months, with the first phase reaching capacity in 2024 and the second phase in 2026.
Why is the new project in Jingzhou? According to industry experts, Jingzhou radiates to Wuhan, Xiangfan, Yichang and other cities in Hubei Province and Henan, Sichuan, Hunan, Jiangxi and other provinces. It has a small transportation radius and is one of the largest cloth distribution centers in the country. Jingzhou and surrounding areas such as Wuhan, Xiangfan, Yichang, Changde and other areas have developed textile and garment industries. Only 9 garment manufacturing companies in Jingzhou have an annual production capacity of more than 7 million pieces. Wuhan, Huangshi and other areas have greater garment production capacity, and can be found nearby. Digest the products of printing and dyeing enterprises entering the park.
In addition, Jingzhou is rich in cotton raw materials. The city’s annual cotton output is more than 125,000 tons, accounting for more than a quarter of Hubei Province. It has good quality, long fiber and low sugar content. There are more than 100 textile printing and dyeing enterprises above designated size in Jingzhou, with 1.5 million spindles, more than 8,400 looms, and 18 printing and dyeing production lines; the annual output is more than 100,000 tons of cotton yarn, 170 million meters of cotton cloth, 100 million meters of printing and dyeing cloth, and 1.5 million synthetic fibers. 10,000 tons, including 2,600 tons of wool and 1 million meters of wool fabric.
Fuchun Dyeing and Weaving believes that the construction of the company’s high-quality cheese dyeing construction project with an annual output of 60,000 tons will be conducive to strengthening, repairing and extending the chain of the textile printing and dyeing industry in Jingzhou Development Zone, forming a focus, distinctive features and orderly spatial expansion. Undertake high-quality development patterns and build a modern industrial system with strong competitiveness.
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