I. Discussion and analysis of operating conditions
In the first half of 2020, the environment of chemical fiber industry and cross-border e-commerce industry will be more severe. Oil price fluctuation, Sino-US friction, COVID-19 epidemic and other factors have increased the risk and pressure of industry operation. In the difficult market environment, the company adheres to the concept of sustainable development, stabilizes the existing competitive advantage, and at the same time pays attention to the improvement of innovation ability, diligently practices internal strength, promotes management and improves the ability to resist risks.
During the reporting period, the company achieved an operating income of 4.753 billion yuan, a year-on-year increase of 29.05%, and a total profit of 654.38+0.004 million yuan, a year-on-year decrease of 38.64%. The net profit attributable to the parent company was 689,365,438+0.6 million yuan, down 46.00% year-on-year. Realize earnings per share of 0.06 yuan. Among them, the civil nylon filament business segment realized an operating income of 864 million yuan, a year-on-year decrease of 33.86%; The total profit was -6923 1 ten thousand yuan, a year-on-year decrease of119.48%; The net profit was-65,438+0,65,438+0,673 in 300 yuan, a year-on-year decrease of 65,438+042.69%.
The cross-border e-commerce business segment realized an operating income of 3.798 billion yuan, a year-on-year increase of 64.69%; Realized a profit of 865,965,438+million yuan, a year-on-year decrease of 30.47%; The net profit was 69,972,700 yuan, a year-on-year decrease of 3 1.89%.
In the first half of 2020, the company's civil nylon filament business segment was affected by the domestic COVID-19 epidemic in the first quarter, and the downstream operating rate was low and the demand was insufficient, resulting in a sharp drop in domestic sales compared with the same period last year. Therefore, the company adopts the strategy of "poor domestic sales, supplemented by export" to increase the receipt and delivery of foreign trade orders. After entering the second quarter, the domestic epidemic situation was effectively controlled, but the downstream demand still declined compared with the same period last year. The company took discount promotion, reduced inventory and accelerated commodity turnover, so the profit rate decreased.
The cross-border e-commerce business segment was mainly affected by the epidemic, and the international routes were greatly reduced, resulting in a sharp increase in freight rates; During the epidemic period, epidemic prevention products belong to new categories. In order to increase sales and speed up inventory turnover, advertising costs are high. The sales volume of epidemic prevention-related materials has increased significantly, and the service fee of its category platform is higher, which leads to the increase of platform service rate.
During the reporting period, the company focused on the following work:
Enrich product structure and stabilize product quality.
In the civil nylon filament business sector, we will adhere to the market orientation, further enrich the product diversification structure, continuously promote the research and development of functional fibers and green fibers under the premise of maintaining the stable development of traditional superior products, actively integrate resources, launch high-count and high-density series products, expand the new product market, and promote product upgrading and transformation. At the same time, according to customer feedback, we will tackle key technical problems of existing products to further improve product quality and customer satisfaction.
Optimize the order production mode and guard against capital risks.
In terms of civil nylon filament business, in order to cope with the complicated and changeable external economic environment and severe market situation in the first half of 2020, the company constantly improved the order taking and production mode of fragmented orders, focusing on receiving actual orders, preventing the capital risks of downstream enterprises, reducing inventory and optimizing the company's control over capital risks.
Seize the new opportunities of cross-border e-commerce and incubate its own brands.
The cross-border e-commerce industry will gradually mature, and vertical product classification and branding have become a trend, representing the future direction. Shenzhen Tongtuo Technology Co., Ltd. focuses on finding more potential categories, strengthening the development and listing of its own brand goods, and enhancing its core competitiveness. In the first half of 2020, the company adjusted its industrial layout according to the market situation, focusing on developing its own brands such as household daily products and small entertainment products commonly used by families.
Dig deeper into subcategories and explore emerging markets.
Cross-border e-commerce relies on the company's big data analysis system to dig deep into sub-categories, such as home products, beauty care, etc., and find new business growth points. According to the national foreign trade situation, adjust the layout, vigorously develop and consolidate the business in emerging markets such as Southeast Asia, the Middle East, South America and Africa, expand the sales scale and increase operating profits.
Second, possible risks
1, risks of macroeconomic situation and industry development and change
The company's industry belongs to a strong cycle industry, and its operating performance is closely related to the national macroeconomic situation and the change of industry prosperity. In the period of low cycle of macro-economy and industry development, the company will face the risks of weak revenue growth, compressed profit space and declining operating performance.
2. Policy and regulatory risks
Zhejiang Province, where the company is located, belongs to the economically developed area of China. The industry development plan formulated by the local government is more forward-looking and puts forward higher requirements for the company's development. The company will keep in touch with relevant departments, understand the strategic intention of the government in advance, and ensure that the company's development strategy is coordinated with the government's industry development plan.
3. Market competition risk
In recent years, the industrial chain structure of domestic polyamide has changed greatly, the self-sufficiency rate has been greatly improved, the market demand has increased, and the output and consumption of nylon fiber have increased to some extent. At the same time, the growth of nylon fiber production and sales further intensifies the market competition in the industry, compresses the profit space of enterprises in the industry, and makes the whole industry face the downside risk of operating performance.
4. Risks of new projects
Because there are still some uncertainties in the macro-economic situation, industry technical level, national industrial policy, domestic and international market environment and customer demand during the construction and operation cycle of the new project, the development and changes of the above factors will have an impact on the implementation progress and expected benefits of the new project; At the same time, the delay of project construction progress, the sudden change of market environment, the fluctuation of raw material prices and the shortage of human resources will also bring certain construction risks and operational risks to new projects.
5. Managing risks
With the further expansion of the company's asset scale and business scale, higher requirements are put forward for the company's management level. If the adjustment of the company's management personnel reserve and control system cannot meet the requirements of the rapid development of the company's business, it will have an adverse impact on the company's overall operation, thus affecting the normal development of the business, and the company has certain management risks.
6. Risks of foreign investment
With the implementation of the company's diversified strategic objectives, the company will gradually carry out cross-field operations. Due to some uncertainties such as market environment, industry characteristics, market competition, product technology, talent team and internal management, the company's foreign investment may be less than expected or the risk of investment failure.
7. Environmental risks
With the development of economy, citizens' awareness of environmental protection is increasing day by day, and the state has put forward higher requirements for environmental protection, and the supervision and inspection of enterprises are becoming increasingly strict. The company should ensure the technical level of equipment and the stable operation of related facilities, so as to minimize the adverse effects.
8. Major asset restructuring risks
Risks related to the failure of the transaction target to achieve performance commitments; Integration risk after M&A; Assess the risk of greater appreciation of the transaction target; The risk that the matching financing fails to be implemented or the raised amount is lower than expected; Risk of impairment of goodwill; The transaction dilutes the risk of immediate return and the operational risk of the target company.
9. Risks of preferential tax policies
In 2020, the company's high-tech enterprise qualification has expired. As of the disclosure date of the semi-annual report, the company has not obtained the qualification certification of high-tech enterprises. If the company cannot continue to be recognized as a high-tech enterprise before the end of the year, there is a risk that it will not be able to continue to enjoy tax incentives.
Three. Analysis of core competitiveness during the reporting period
After more than ten years of development and accumulation, the company's nylon industry has won market recognition with high-quality products and good market service, and established a high-end brand image and brand competitive advantage in the industry. The company's nylon filament production line adopts international advanced process design, with high innovation rate of mechanical equipment, advanced technology and high production efficiency. Since its establishment, the company has always put technological innovation in the first place. On the basis of introducing the most advanced foreign production line and engineering technology, through digestion, absorption and innovation, three core technologies with independent intellectual property rights have been formed: differentiated and functional civil nylon filament production technology, differentiated and functional product development platform construction technology, and equipment innovation and transformation technology. The company's nylon products include POY, HOY, FDY, DTY, ATY and ACY, with nearly 100 specifications, and the denier range can reach 5.5dtex-444dtex. The produced civil nylon filament has high weaving stability and dyeing uniformity, low product rejection rate, leading the industry level, reducing the maintenance times of downstream customers' looms, and the comprehensive performance of some varieties has surpassed that of similar foreign products.
The company has the only provincial-level technical center in the civil nylon filament industry in Zhejiang Province, and presided over the formulation of four industry standards: bright profiled nylon 6 high-oriented yarn, bright profiled nylon 6 drawn yarn, nylon 6 high-oriented yarn (HOY) and nylon 6 pre-oriented yarn (POY), and participated in the formulation of a number of industry standards, national standards and international standards. A number of leading products of the company were recognized as "high-tech products in Zhejiang Province", among which many products were included in the national torch plan and many products were rated as national key new products. The company's nylon civil silk products are of high quality and enjoy a high reputation in the industry.
Shenzhen tong Tuo Technology Co., Ltd., a wholly-owned subsidiary of the company's cross-border e-commerce industry, has been focusing on cross-border e-commerce for more than ten years, with a wide range of sales channels, ranking among the best in the major third-party sales platforms, and winning various awards on the platforms for many times. Tongtuo Technology has initially built a multi-dimensional and omni-directional three-dimensional business layout such as "cross-platform", "cross-category" and "cross-language", forming competitive advantages and core competitiveness such as complete product categories, strong development ability, diversified platforms, overseas warehouse layout, perfect systematic management and strong big data analysis ability. China is one of the pioneers of cross-border e-commerce and one of the most competitive enterprises.