The semi-annual report disclosed by Xinxiang Chemical Fiber in the evening on August 10th showed that the income was due to the surge in spandex prices, and the performance in the first half of the year increased by nearly 25 times. Xiao Shubin, secretary of the company’s board of directors, said: “Spandex products have zero inventory and even need to queue up. The epidemic has broken the cyclical fluctuation characteristics of the textile industry. We need to continue to observe the future fluctuation patterns of the industry.”
In the first half of 2021, Xinxiang Chemical Fiber achieved operating income of 4.123 billion yuan, a year-on-year increase of 124.18%; net profit attributable to the parent company was 738 million yuan, a year-on-year increase of 2491.34%; earnings per share was 0.59 yuan, a year-on-year increase of 2495%. The financial report shows that Xinxiang Chemical Fiber’s net operating cash inflow in the first half of the year was 933 million, a year-on-year increase of 6981.86%.
The financial report shows that Xinxiang Chemical Fiber’s domestic business has grown rapidly, with revenue increasing by more than three times. In this regard, Xiao Shubin explained to reporters: “China has the best control over the epidemic. When foreign countries are still taking various measures to close cities and countries, the domestic economy first returns to normal operation, and sales through channels in the past are further concentrated in China. At least As of now, the company’s main profitable product, spandex, is still running at a high level, and the relationship between supply and demand is still tight.”
Data from the China Chemical Fiber Economic Information Network shows that the average price of spandex 40D in the first half of this year was 58,787 yuan/ton, a year-on-year increase of 101% from 29,199 yuan/ton in the same period in 2020. At the end of June, the price was raised to 71,500 yuan/ton, setting a record high since August 2010. So far, spandex prices have increased by 178%.
The epidemic has had a huge impact on the world, and it seems to be reshaping the cyclical fluctuation characteristics of the spandex industry. Xiao Shubin also expressed his confusion: “It used to have obvious cyclical fluctuation characteristics, because Clothing changes in spring, summer, autumn and winter, and the pigments, designs, and production used vary greatly from season to season. However, under the influence of the epidemic in 2020, the cyclical fluctuation characteristics have been disrupted. According to the rules of previous years, May and June July and July should be considered off-season, but this year’s off-season is not only not weak, but also very strong. How will it change in the future? Whether a new cycle will emerge? The company is still observing and collecting statistics, and no new rules can be seen yet. .”
As for the supply and demand situation, Xiao Shubin said: “So far, the company has zero inventory of spandex, and orders even need to be queued; viscose filament has some inventory, mainly due to previous shipments. The proportion is relatively large. The current resumption of work and production rate abroad is far from enough, so the export part has shrunk, resulting in the production of inventory.”</p
