Market Research: Operation Of Listed Companies In Industrial Textiles Industry In 2020

Industrial textiles industry is an important part of China's strategic emerging industries, providing key structural and functional material support for China's medical and health, environmental protection, infrastructure, safety protection, means of transportation, aerospace and civil military integration, etc It has played an important role in ensuring occupational safety and supporting national defense and military industry. In recent years, China has deeply implemented the innovation driven development strategy and made great achievements in national economic and social development. A number of industrial backbone enterprises have actively complied with the needs of national innovation system construction and the general trend of industrial transformation and upgrading. While benefiting from the rapid development, they have also accelerated the pace of landing on the capital market and derived diversified and multi-level financing needs, Become the most dynamic market subject. In 2020, the epidemic situation of new crown pneumonia will continue to spread around the world, and the demand for anti epidemic materials such as masks and medical protective clothing will surge, which will change the development environment of China's industrial textiles industry. The listed companies in the industrial chain of epidemic prevention materials do their best to ensure the production of epidemic prevention materials and related raw and auxiliary materials, deeply explore the domestic and foreign markets, and make important contributions to epidemic prevention and control; Listed companies outside the industrial chain of epidemic prevention materials strive to overcome many difficulties, such as the decline of market demand and price fluctuation of raw materials, strive to promote high-quality development, continuously strengthen R & D investment, strengthen operation management, effectively improve operational efficiency, and achieve stable operation overall.

　　 01 basic information of Listed Companies in industrial textile industry in 2020

By the end of 2020, there are 26 industrial textiles listed on the main board in China, which are mainly engaged in the fields of transportation textiles, medical and health textiles, filtering textiles, structural reinforcement textiles, nonwovens, construction textiles, leather substrates and synthetic leather. In 2020, four new listed companies, namely robust medical, Jinchun, Haoyue nursing and Baiya, will be added. In March 2021, Yuanchen Technology (sh688659) was listed on the sci tech Innovation Board of Shanghai Stock Exchange, mainly engaged in the research and development, design, production and sales of high-efficiency dust removal and filtration materials. In addition, a number of listed companies have also carried out the business of industrial textiles, but they have not been included in the scope of this statistics because the proportion of the business income generated by them in the total business income of the company is relatively low.

Table 1 overview of Listed Companies in China's industrial textiles industry (sorted by listing time)

Source: according to the 2020 annual report of listed companies

　　 02 overall performance is relatively stable, different sectors of the performance differentiation

In 2020, 26 listed companies in the industrial textiles industry achieved a total operating revenue of 86.29 billion yuan, an increase of 36.9% year-on-year; Operating profit was 13.6 billion yuan, up 203.9% year on year. The average gross profit margin of 26 listed companies was 33.3%, the average operating profit margin was 15.8%, and the average net profit margin was 12.6%, which were 9.2%, 8.7% and 7% higher than that in 2019, which were higher than the average level of Enterprises above the scale of industrial textiles industry, and their performance was significantly improved compared with that in 2019.

Table 2 overall performance of 26 listed companies in industrial textiles industry in 2020

Source: according to the 2020 annual report of listed companies

The sales scale of listed companies has been steadily expanded. Among the 26 listed companies, Shenda shares, Sinoma technology, Zhende medical and robust Medical Co., Ltd. ranked among the "10 billion level". Among them, Sinoma technology achieved a total of 18.71 billion yuan in 2020, the highest level of 26 listed companies. There are 16 companies with an operating income of 1 billion to 10 billion yuan, 3 of which have a business income of 500 million to 1 billion yuan, and the other three companies have a business income of less than 500 million yuan. Among the 26 listed companies, 12 of them have a growth rate of more than 30% and 8 of them have a growth rate of more than 50%. Driven by the production of epidemic prevention materials, Zhende medical and robust medical have significantly increased their business income by 4.6 times and 1.7 times respectively in 2020, leading 26 listed companies in growth rate. However, due to the impact of the epidemic situation, domestic and foreign market demand shrank, and the prosperity of the textile industry for transportation, structural strengthening and protective textile industry has declined, and the business pressure of enterprises is prominent, and the business income of 10 companies engaged in related industries has declined significantly.

The profit performance of listed companies is different. In 2020, 26 listed companies strive to overcome the adverse impact of the impact of the epidemic, the average profit increased by 196.9% year-on-year, and the overall profitability was significantly improved compared with that in 2019. In particular, the profit creation ability of Listed Companies in the industrial chain of epidemic prevention materials has been improved significantly, which has led to a substantial increase in the profits of relevant listed companies. In 2020, the total profits of Xinlong holdings and Xinlun technology increased by 250 times and 187.2 times, respectively, and the total profits of Zhende Medical Co., Ltd. increased by 16.7 times, and the profit growth of 10 listed companies reached more than 100%. Shenda shares, Xinlun technology and Huafeng super fiber are in a loss situation due to the decline of domestic and foreign market demand, part of goodwill impairment provision and price fluctuation of raw materials, and the total profit is significantly lower than that in 2019. From the perspective of gross profit margin, the gross profit margin of 26 listed companies in 2020 is mostly at a high level of 30% ~ 60%, which is mainly concentrated in the field of medical and health textiles. Among them, the robust medical gross profit margin reaches 59.5%, which is the highest level of 26 listed companies; In addition, the gross profit margin of HTC and Kuangda technologies, which are engaged in the R & D and production of automotive interior fabrics, are also at a high level, reaching 31.2% and 28.8% respectively.

From the perspective of ultimate shareholder income, Zhende medical, robust medical, Haoyue nursing and Jinchun shares have higher returns to shareholders. In 2020, the basic earnings per share are 12.50 yuan / share, 9.80 yuan / share, 6.95 yuan / share and 2.76 yuan / share, ranking among the top 26 listed companies.

　　 03 pay more attention to the comprehensive management, and the operation efficiency has increased steadily

In 2020, the total assets of 26 listed companies in the industrial textiles industry will reach 129.35 billion yuan, up 22.6% year on year. A total of 19 companies achieved year-on-year growth in asset scale, of which the highest growth rate was Haoyue nursing. In 2020, the total assets was 3.39 billion yuan, with a year-on-year increase of 224.1%. Due to the sales of subsidiaries and bankruptcy disposal and other factors, the asset scale of 7 companies such as Shenda shares and pioneer new wood decreased, but the production and operation situation did not encounter obvious fluctuations and difficulties.

In 2020, 26 listed companies will actively respond to the impact of the epidemic, pay more attention to improving the comprehensive management ability, take active measures to resist all kinds of market and capital risks, and the main operating indicators have significantly improved. From the inventory turnover rate, which reflects the smoothness of production and marketing convergence, the average inventory turnover rate of 26 listed companies is 5.3 times in 2020, which is 8.2% faster than that in 2019. Among them, the inventory turnover rate of Shenda shares and Jinchun shares reached more than 10 times, 12.9 times and 10.4 times respectively, significantly higher than the average level of 26 listed companies. In addition, the inventory turnover rates of Jiuding new materials, Jinmo technology and Zhende medical were 74.2%, 58.8% and 75.9% higher than those in 2019, indicating that the inventory occupation level of these enterprises is low, and the inventory liquidity and capital utilization efficiency have been improved, Production and marketing convergence and market supply capacity are relatively stable.

From the perspective of the turnover rate of accounts receivable, in 2020, the average turnover rate of accounts receivable of 26 listed companies is 7.3 times, which is 37.7% faster than that of 5.3 times in 2019, of which 15 listed companies are higher than the average level. Due to the impact of the epidemic, the demand for medical and health textiles surged, and the market demand for spunlaced nonwovens maintained a strong growth momentum. The turnover rates of accounts receivable of Xinlong holdings, Zhende medical, Ogilvy medical and Haoyue nursing were 14.1, 15.7, 16.1 and 44.2 times respectively, with a significant increase of 120.3%, 214.0%, 47.7% and 74.7% respectively. As the state has put forward new and higher requirements on environmental protection and resource utilization, the microfiber industry is subject to more stringent restrictions on raw materials and energy, and high-quality resources are further concentrated to the backbone enterprises. The accounts receivable turnover rates of shuangxiang, Huafeng and Tongda, which belong to the same super fiber synthetic leather industry, have reached 27.0 times, 8.2 times and 9.2 times respectively, Among the 26 listed companies, it is at a high level.

In terms of the total asset turnover rate, the average total asset turnover rate of 26 listed companies is 0.7 times in 2020, which is 16.7% faster than that in 2019. In 2020, the cost and financial risk control ability of 26 listed companies will be improved, with an average asset liability ratio of 42.5%, which is in a good range, better than the average level of 46.6% of Enterprises above the scale of industrial textiles industry; The average proportion of three fees is 11.4%, which is 2.9 percentage points lower than that in 2019.

Table 3 overall operation of 26 listed companies in industrial textiles industry in 2020

Source: according to the 2020 annual report of listed companies

　　 04 highlights of production and operation of Listed Companies in industrial textiles industry in 2020

(1) work together to fight the epidemic and ensure the production and supply of epidemic prevention materials

Facing the epidemic situation, the listed companies in the industrial chain of epidemic prevention materials give full play to their production and technical advantages, and do their best to ensure the production of epidemic prevention materials and related raw and auxiliary materials. Among them, the production line of robust medical was not shut down for 24 hours in the early stage of the epidemic, and the production lines of all medical protection products were in full load operation, providing the front-line doctors with "battle armour" and "war robes". It was called "anti epidemic military factory" by the medical material support group of the joint prevention and control mechanism of the State Council in response to the new coronavirus pneumonia epidemic. During the Spring Festival, Xinlong holdings called on all production line personnel to return to their posts, give priority to the delivery of orders on time, and provide raw materials for anti epidemic materials such as masks and medical protective clothing with the fastest speed. Zhende medical provided more than 60% of the supply of medical masks for Zhejiang Province during the epidemic period, and fully guaranteed the online supply of masks and other materials through the company's e-commerce platform. After learning about the shortage of epidemic prevention materials at the early stage of the epidemic, Ogilvy medical tried its best to resume the production of protective equipment and quickly realized full production; At the same time, the company also donated a large number of N95 masks and medical surgical masks to the prevention and control headquarters of Hubei Province, shelter hospital and other front-line units to help fight the epidemic. The superfine fiber produced by Huafeng super fiber is also the key material for some high-grade masks and surgical masks. During the epidemic period, the company started full power to ensure the production of nonwovens and ensure the uninterrupted supply of medical mask raw materials; At the same time, the company also donated a large number of medical protective clothing and cold protection clothing to the front-line work units of prevention and control. Jinchun Co., Ltd. has never had a holiday during the Spring Festival in 2020. The employees stick to the production workshop and work overtime to produce the raw materials needed for epidemic prevention and control articles, such as protective clothing and disinfection wipes. In addition, the company actively provided support materials for the medical rescue team of Anhui Province, and rushed to rescue medical personnel fighting in the front line of epidemic prevention and control in Wuhan. In the early stage of the epidemic, pioneer new materials developed kj00 series products. Functional elements that inhibit the growth of bacteria are added into the composite materials of fabric yarn coating layer, which can effectively block the spread of bacteria. After the completion of product research and development, vanguard new materials donated 1000 square meters of kj00 fabric to the anti epidemic front line, making contributions to the anti epidemic workers with technological innovation.

A number of listed companies actively respond to the call of the state to produce epidemic prevention materials. Among them, Shanghai automobile carpet factory Co., Ltd., a subsidiary of Shenda Co., Ltd., has adjusted and transformed some of its own workshops by taking advantage of its own workshop space and process technology, invested in the purchase of necessary equipment, and produced and supplied melt blown nonwovens for making core filter materials of masks. Xinlun technology gives full play to its R & D and manufacturing advantages of protective equipment. The production equipment is purchased and put into production. From planning the new production line to putting into production, Xinlun science and technology will catch up with the production of masks 24 hours a day to meet the market demand for masks.

The listed companies that do not have the conditions to change production also provide assistance and support to fight the epidemic through different forms. Sinoma technology, Hongda high tech, Kuangda technology, Haoyue nursing and mudigao donated money and materials to the local government to support the anti epidemic campaign with practical actions. Jinmo technology has successfully combined the efficient virus separation function of membrane products with scientific virus elimination scheme, and formed new operation process for tap water, reclaimed water and sewage treatment, which provides reference and Implementation for relevant membrane products and membrane system users, and provides remote guidance service.

(2) investment in R & D has been increased, and the ability of scientific and technological innovation has steadily increased

Industrial textiles is a technology-oriented industry. The advantages of product performance, quality and cost formed by technological innovation are the key to the success of Listed Companies in the fierce market competition. In 2020, the R & D expenses of 26 listed companies totaled 3 billion yuan, an increase of 49.34% compared with that in 2019. The proportion of R & D expenses in operating revenue reached 3.48%, an increase of 0.29 percentage points over that in 2019. In 2020, the proportion of technical personnel of 26 listed companies in the total number of employees is 11.05%.

Among the 26 listed companies, the R & D investment ratio of Jinmo technology, HTC high tech, pioneer new materials, Huafeng super fiber, Sinoma technology and Tongda shares all exceeded 5%. In terms of absolute investment, the R & D expenses of 15 listed companies exceeded 50 million yuan, and the R & D cost of Sinoma technology was the highest, reaching 958 million yuan.

(3) make reasonable plans and stick to the road of sustainable development

In the future, the competition of industrial textiles industry will change from low-cost advantage to high cost performance advantage, from scale and volume advantage to innovative application advantage, from breadth expansion advantage to depth leading advantage, from domestic manufacturing base to global manufacturing network. After the "baptism" of the epidemic situation, the listed companies of industrial textiles industry have a deeper understanding of sustainable development, and will continue to strengthen their core competitiveness from different aspects in the future. According to the information disclosed in the 2020 annual report of listed companies, the future development strategies and plans of 26 listed companies mainly focus on the following aspects:

(1) deepen the main business and improve the ability of scientific and technological innovation. As the foundation of enterprises, almost all of the 26 listed companies mentioned in their future plans that they would continue to focus on the development of their respective fields, increase investment in research and development of existing products, and constantly consolidate their dominant position in their respective fields.

(2) optimize the industrial layout and actively explore domestic and foreign markets. The epidemic situation has a structural impact on the global industrial pattern. Under the current "double cycle" new development pattern, 26 listed companies are actively improving their industrial layout according to their own strategic planning. The large group companies represented by Shenda Co., Ltd. further strengthen the industrial layout in China according to the industry characteristics and their own advantages, and continue to improve the supporting production capacity of the whole industrial chain in the global scope combined with the export business; The private enterprises, represented by Haoyue nursing, develop vertically and horizontally in the industrial chain through their own technical and product advantages, and carry out industrial and technical layout around the concentration areas of downstream customers at home and abroad.

(3) promote intelligent manufacturing and improve the level of intelligence and informatization in production and manufacturing. After years of training and practice, the industry and enterprises have a more rational and pragmatic understanding of intelligent manufacturing. Listed companies such as Sinoma technology, robust medical, Zhende medical, Haoyue nursing, Tianhua super clean and other listed companies give full play to their capital advantages, continuously promote the exploration and construction of intelligent manufacturing, improve the level of fine management, cultivate new business models, and further strengthen the efficient collaboration between upstream and downstream enterprises in the industrial chain.

(4) strengthen brand building and lead the high-quality development of the industry. Brand is not only the comprehensive embodiment of enterprise competitiveness, but also an important resource to participate in economic and trade. With the rapid development of industrial textiles industry in recent years, the brand awareness of industry enterprises is increasing, especially for the terminal consumer oriented sanitary products manufacturers, they pay more attention to the new needs of consumers and the constantly upgrading market demand. Among the 26 listed companies, robust medical, Ogilvy medical, Zhende medical, Haoyue nursing and Baiya all put forward brand building plans in the report, in order to enhance the popularity and influence of their own brands at home and abroad.

(source: China Industrial Textiles Association)