"Tiangong Kaiwu" once recorded: "Where cotton cloth is every inch of soil, and weaving is still Songjiang, and pulp dyeing is still Wuhu." ”
As the first company specializing in yarn dyeing and weaving to land on A shares, Fuchun Dyeing and Weaving (605189. SH) is from Wuhu, which has a deep pulp dyeing culture. In addition to its unique geographical advantages, Fuchun Dyeing and Weaving also leads the development of the industry with many advantages such as environmental protection and energy saving, process technology, brand and customer resources, product quality, etc., and helps the national industry.
Author | Li Baiyu
Source | Mustang Finance
In May this year, Fuchun Dyeing and Weaving officially landed on the A-share market, and it did not take long to hand over an eye-catching report card.
The semi-annual report recently disclosed by Fuchun Dyeing and Weaving shows that in the first half of this year, the company achieved revenue of 925 million yuan, an increase of 56.48% year-on-year, while the net profit of 103 million yuan, an increase of 318.87% year-on-year.
Fuchun Dyeing and Weaving said that in the first half of 2021, the domestic epidemic situation was controlled, the global trade order was gradually restored, the company gave full play to the competitive advantages of warehousing production, environmental protection, etc., the brand effect of scale and products gradually appeared, production and sales increased compared with the same period last year, and the performance grew rapidly.
(Fuchun dyeing and weaving listing map, picture source: Fuchun dyeing and weaving)
The main business of Fuchun dyeing and weaving is the research and development, production and sales of color yarn, which plays a role in connecting fiber raw materials and various fabrics, and undertakes an important part of textile production.
Since its inception in 2002, Fuchun Dyeing and Weaving adheres to the tenet of science and technology, green, professional and fashion, takes the market trend and customer demand as the guide, focuses on the independent brand "Tianwaitian", relies on the independently developed Fuchun standard color card covering more than 600 colors, and is committed to providing customers with high-quality color yarn series products through the business model of "warehousing production as the mainstay, order-based production as the supplement".
Fuchun Dyeing and Weaving also through the global procurement of high-quality raw materials, the introduction of advanced production, environmental protection equipment and information management system at home and abroad, independent research and development of dyeing and finishing new technologies and new processes, and constantly innovate product quality and improve service capabilities.
In particular, it is worth mentioning that while the performance of Fuchun Dyeing and Weaving has risen sharply, it is also marching strongly into the upstream spinning industry, and plans to build an intelligent precision spinning production project of 2 billion yuan.
<h1 class="pgc-h-arrow-right" data-track="120" > net profit increased by more than 3 times The original "warehouse production"</h1>
It can achieve a substantial increase in revenue and net profit, especially a good performance of net profit growth of more than 3 times. It is inseparable from the core competitive advantages promoted by the production and pricing models developed by Fuchun Dyeing and Weaving for many years.
Most of the general dyeing and weaving enterprises are customers who inform the needs first, and then the enterprise carries out yarn dyeing, that is, "order-based production". But Fuchun Dyeing and Weaving is different, it displays the various colors of yarn that have been dyed in the warehouse, like a "color yarn supermarket", and customers come to the store to buy.
In the face of many people's questions about whether the "warehouse production" will cause a backlog of goods, He Peifu, chairman of Fuchun Dyeing and Weaving, responded: "Our 'color yarn supermarket' can achieve 'two basics' because of understanding the market demand: one is that the customer comes to the order, and we basically have goods in the warehouse; the second is that the goods in the warehouse are basically flowing." ”
(Interior view of Fuchun dyeing and weaving factory, image source: Fuchun dyeing and weaving)
He Peifu said that compared with the traditional "order-based production" business model, the "warehousing production" business model can realize the standardization of color yarn and mass production, which can maximize resource savings, reduce energy consumption, and greatly shorten the delivery cycle.
With the original Fuchun standard color card covering more than 600 colors, and through the business model of "warehouse-based production, supplemented by order-based production", Fuchun Dyeing and Weaving has accumulated more than 1,000 long-term customers, including a large number of high-quality customers such as Mona and Lansha.
In addition, the pricing model of Fuchun dyeing and weaving yarn products is raw material price + processing fee, and the advantage of this model is that the processing fee is relatively fixed, so the gross profit margin of the product is basically stable.
<h1 class="pgc-h-arrow-right" data-track="119" > release the production capacity of the quasi-color yarn 2 billion yuan to lay out the upstream industrial chain</h1>
In 2017, it was listed on the New Third Board, applied for an IPO in 2019, and officially landed on the main board of Shanghai in 2021. In recent years, the capital road of Fuchun dyeing and weaving has also become wider and wider.
When it comes to leveraging the capital market, He Peifu believes that the printing and dyeing industry has changed from a capital-intensive industry to an industry with equal emphasis on capital and technology, and investment in technology and process research and development, factory automation and intelligent upgrading, transformation of environmental protection facilities, and expansion of business scale all require a lot of funds.
Indeed, Fuchun dyeing and weaving sales scale has grown steadily, the existing production capacity has tended to be saturated, to a certain extent limiting the company's ability to undertake orders, Fuchun dyeing and weaving this IPO plans to raise about 589 million yuan, mainly for the annual output of 30,000 tons of high-quality yarn production line construction projects, research and development center construction projects.
At present, Fuchun Dyeing and Weaving has a number of cylinder yarn production lines, with an annual output of 30,000 tons of high-quality cylinder yarn construction project is under orderly construction. With the new projects being put into production, it is expected that the company's production and sales scale will be further expanded in the future.
In addition to expanding the cylinder yarn production line, Fuchun dyeing and weaving is standing at a higher place, planning farther, and taking advantage of the trend to extend the industrial layout upstream.
It is understood that most of the raw materials required for fuchun dyeing and weaving processing - cotton yarn, are purchased from Pakistan, India, Vietnam, Indonesia and other countries, but due to the spread of the epidemic abroad, especially the reduction in production capacity in India, Vietnam and other countries, coupled with the rise in cotton prices, the price of cotton yarn in the first half of this year has gone all the way up, resulting in a situation that is almost difficult to find.
Fuchun dyeing and weaving people said that according to industry practices, the production and operation of printing and dyeing enterprises must require that there is a certain inventory of raw materials. At the end of June this year, Fuchun dyeing and weaving inventory remained more than 3,000 tons, only close to about 60% of the annual monthly output.
However, in the view of Fuchun Dyeing and Weaving, the shortage of color yarn is a challenge and an opportunity. After two months of listing, Fuchun Dyeing and Weaving began to plan to launch an intelligent precision spinning project and march into the upstream yarn industry.
On August 5, Fuchun Dyeing and Weaving released the feasibility report of the precision spinning project, investing a total of 2 billion yuan to build an intelligent precision spinning production project of 500,000 spindles in two phases. Among them, the first phase of investment is about 1 billion yuan, and the project construction cycle is expected to be 36 months.
After the completion of the project, the supply of high-grade yarns, raw materials upstream of Fuchun dyeing and weaving, has been guaranteed, and at the same time, it can effectively reduce costs. Fuchun dyeing and weaving people also said: "The products produced by the project have good strength, wear resistance, gloss and drape, and are the ideal yarns needed for the production of high-grade fabrics." ”
<h1 class="pgc-h-arrow-right" data-track="118" > 69 patents, 21 awards R&D expenses increased by 54.73% in the first half of the year</h1>
Self-built spinning project, no longer subject to the supply of raw materials from abroad, Fuchun dyeing and weaving shows the spirit of self-improvement of national enterprises. In fact, since its inception, Fuchun Dyeing and Weaving has been adhering to the belief of "independence, innovation, leading the development of industry technology, and helping the national industry".
He Peifu once said that he has been engaged in the yarn industry, that is, "a yarn to do to the end", under the guidance of this spirit of concentration, since its establishment 19 years ago, Fuchun dyeing and weaving has also deeply cultivated the field of color yarn, and has always attached importance to scientific and technological innovation, and constantly increased independent technology research and development and process improvement.
According to the data, the research and development expenses of Fuchun dyeing and weaving in 2018 were 47.9334 million yuan, and in 2020, they have increased to 51.4414 million yuan. In the first half of 2021, the R&D expenditure was 31.8285 million yuan, an increase of 54.73% year-on-year.
Fuchun Dyeing and Weaving has an independent R & D team, and actively improves its own R&D level through industry-university-research cooperation with Wuhan Textile University, Anhui Polytechnic University and other universities, focusing on dyeing technology, energy saving and emission reduction, intelligent manufacturing and other aspects of the formation of a series of competitive technical achievements, which strongly supports the rapid and healthy development of the company.
As of June this year, Fuchun Dyeing and Weaving has a total of 69 patents, including 28 invention patents, which fully reflects the company's important position in the industry.
In addition, as a national high-tech enterprise, Fuchun Dyeing and Weaving has a "Provincial Certified Enterprise Technology Center", which has won 17 high-tech products in Anhui Province, 2 new products in Anhui Province, 1 third prize of Science and Technology in Anhui Province, and 1 Excellent Award for Scientific and Technological Achievements of China Textile Industry Federation.
To help the national industry, Fuchun Dyeing and Weaving attaches great importance to brand building and product quality management.
In 2018, Fuchun Dyeing and Weaving's own brand "Tianwaitian" won the title of "China's Well-known Trademark" and contributed a promising national brand.
In addition to passing ISO9001 quality management system certification, ISO14001 environmental management system certification, OHSAS18001 occupational health and safety management system certification, Fuchun Dyeing and Weaving is also one of the few enterprises in the industry that has passed the global organic textile qualification certification (GOTS) and OEKO-TEXStandard100 certification.
<h1 class="pgc-h-arrow-right" data-track="92" > rated as an environmentally friendly and honest enterprise The water consumption of dyeing yarn is less than 22% of the national standard</h1>
Traditional printing and dyeing belongs to the high pollution, high energy consumption industry, its development in the early stage of entry threshold is low, industry concentration is low, resulting in low-end production capacity is generally overcapacity, environmental pollution and energy consumption problems are more serious situation. In view of this, in recent years, the state has paid more and more attention to ecological environmental protection, the environmental protection supervision of the printing and dyeing industry has become stricter, and the operating standards of printing and dyeing enterprises have been tightened.
Fuchun Dyeing and Weaving always adheres to the concept that environmental protection is the survival line and vitality, and attaches great importance to environmental protection work. Fuchun Dyeing and Weaving has set up a special environmental protection and safety department to be responsible for its environmental protection work as a whole, and actively implement the standards of pollutant control from high, far, strict and excellent.
Fuchun Dyeing and Weaving designed and built an efficient, energy-saving and low-consumption production device and a "three wastes" treatment device, especially the wastewater treatment process, which has formed a clear competitive advantage in terms of environmental protection governance level and environmental protection treatment facilities.
In Fuchun Dyeing and Weaving, the production wastewater enters the biological treatment sewage facility, and will be treated through the process of "collection well + regulation pool + anaerobic oxidation ditch + primary sedimentation tank + aerobic oxidation ditch + second sedimentation tank + high-efficiency inclined plate sedimentation tank", and after meeting the discharge standards, the pipe will be discharged to the sewage treatment plant in the park for centralized treatment. The entire sewage treatment process is highly automated, the operating cost is low, and the sludge is generated.
Fuchun dyeing and weaving boiler flue gas, sewage station odor, burning wool exhaust gas will be treated by a series of processes and discharged to meet the standards.
We know that environmental governance monitoring comes first. Fuchun Dyeing and Weaving has established an online monitoring system for wastewater, an online monitoring system for boiler flue gas, and networked with environmental protection departments to achieve information management of pollutant emissions. In addition, Fuchun Dyeing and Weaving also employs qualified environmental monitoring agencies to conduct third-party monitoring of its pollutant emissions on a regular basis.
In 2005, Fuchun Dyeing and Weaving passed the GB/T24001-2004/ISO14001:2004 environmental management system certification for the first time and re-certified the audit on schedule. In 2016, 2017 and 2019, Fuchun Dyeing and Weaving was rated as an environmental protection integrity enterprise.
In addition to ecological protection, Fuchun dyeing and weaving also pays special attention to saving high-quality resources.
He Peifu introduced that dyeing a ton of yarn, the national standard is to use 90 tons of water, and Fuchun dyeing and weaving can use only 70 tons of water. The reason why it can save so much water is due to the efficient water-saving measures of Fuchun Dyeing and Weaving.
Fuchun dyeing and weaving to implement rain and sewage diversion, sewage diversion, cold and hot diversion, the production workshop generally implements heat energy exchange, and the use of clean water treatment system for quality reuse treatment, the production process of cooling water, condensate recycling and reuse, the comprehensive water consumption per ton of yarn is lower than the industry standard value, to achieve the full use of water resources.
The data shows that China is not only the world's largest consumer of textiles but also the largest producer, which means that the demand and capacity of yarn are being released at the same time. Set environmental protection and energy saving, process technology, brand customer resources, product quality and other advantages in one, coupled with the financing channels after the listing has been opened, what do you think of the growth prospects of Fuchun Dyeing and Weaving? Let's talk in the message area.