The market showed signs of recovery in March after poor earnings in January and February. Listed companies in the textile machinery industry have recently released annual reports for 2022 and performance reports for the first quarter of this year, showing this common feature.

On the whole, due to the order settlement reason profit will be delayed to cash, so the first quarter of listed companies in the spinning machine is not bright, operating income and net profit mostly showed a significant decline. Among them, Jinlun, Yuejian intelligence appeared different degrees of losses, indicating that the development of the enterprise is still facing greater pressure.

No matter how the performance is in the report period, with the economic recovery and steady improvement of development quality since the beginning of this year, many listed enterprises still adhere to combine their own industrial characteristics and professional advantages, around the requirements of high-quality development, to improve quality and efficiency, innovation-driven, intelligent transformation as the focus, to accelerate the pace of transformation and upgrading.

Revenue growth slowed

Jingwei Textile Machinery Co., LTD. (hereinafter referred to as "Jingwei Textile Machinery") recently disclosed the first quarter performance announcement shows that Jingwei Textile machinery operating revenue of 1.761 billion yuan, down 7.10% year-on-year; Net profit attributable to shareholders of listed companies was 97,48,600 yuan, down 28.32% year on year; Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 890.94 million yuan, down 30.58% year on year. In the first quarter, revenue and net profit attributable to shareholders of the listed company fell year-on-year due to increases in receivables for goods sold and input material expenses.

According to Jingwei's annual report for 2022, during the reporting period, the company achieved an operating revenue of 7.95 billion yuan, with a year-on-year growth of 6.31%. Net profit attributable to shareholders of listed companies was 454 million yuan, down 24.42% year-on-year. In 2022, despite the impact of the epidemic, Jingwei's revenue in 2022 increased to a certain extent thanks to a series of measures such as continuous promotion of informatization strategy, strengthening the deep integration of marketing services and informatization, and expanding the application of quality management informatization.

The revenue of Ningbo Cixing Co., LTD. (hereinafter referred to as "Cixing Shares") in the first quarter of 2023 was about RMB 530 million, with a year-on-year increase of 12.01%; Net profit attributable to shareholders of the listed company was approximately 38.14 million yuan, an increase of 29.36% year-on-year. This is an improvement from 2022. In 2022, the flat knitting machine industry will face great downward pressure as the demand of the downstream consumer market continues to decline and the production, logistics and transportation of flat knitting machine enterprises are constrained by the overall environment. Therefore, Cixing shares that year achieved revenue of 1.901 billion yuan, down 10.8% year on year; Net profit of 77.0746 million yuan, an increase of 4.98%; Net profit attributable to shareholders of listed companies reached 91,264,600 yuan, up 3.50% year on year.

Hangzhou Honghua Digital Technology Co., LTD. (hereinafter referred to as "Honghua Digital Technology") released the 2022 annual report and the report of the first quarter of 2023, in 2022, the revenue of Honghua digital Technology was 895 million yuan, down 5.15% year on year; The net profit of returning mother was 243 million yuan, up 7.24 percent year-on-year. In the first quarter of 2023, Honghua Digital Technology achieved a revenue of 283 million yuan, with a year-on-year growth of 2.59%; Net profit of returning mother was 64 million yuan, down 12.16 percent year on year.

In 2022, due to the prominent advantages of industrial chain extension, the profitability of Honghua Digital Technology has been greatly improved, with the comprehensive gross profit rate reaching 47.2%, a year-on-year growth of 4.6%; Net interest rate reached 28.01%, up 3.8% year-on-year. Affected by the domestic market downturn and other factors, Honghua ink plate to achieve contra growth, sales growth of 30.24%, revenue growth of 18.14%. In 2022, the overseas demand performance of Honghua Digital Technology was better, and the export revenue of the main business increased by 31.01% year-on-year, accounting for 51.39%. In the first quarter of 2023, the performance of Honghua Digital technology improved, mainly due to the promotion of digital printing process replacement rate driven by the company's digital printing equipment and matching ink products sales continued rapid growth.

According to the 2022 annual report and 2023 quarterly report released by Beijing Dahao Technology Co., LTD. (hereinafter referred to as "Dahao Technology"), the business revenue of Dahao Technology in 2022 was 1.598 billion yuan, with a year-on-year growth of 6.16%. Among them, the revenue of electronic control system of knitting machinery was 416 million yuan, accounting for 26.03% of the total revenue. In the first quarter of 2023, Dahao Technology achieved further growth, operating income of 426 million yuan, a year-on-year growth of 7.26%.

Focus on innovation track

During the reporting period, a number of listed textile companies regarded R&D and innovation as an important strategy. In terms of science and technology, the spinning machine enterprises continue to research and develop and adopt new technologies and processes, improve production efficiency and product quality by means of digitalization, intellectualization and automation, and inject more scientific and technological content into the spinning machine products.

In 2022, Jingweft will continue to strengthen R&D and innovation investment to improve the automation and intelligent technology level of spinning machine equipment. Relevant technologies have been applied in spinning, twisting, warp knitting and other processes as well as packaging and conveying, and continue to create and bring value to customers. Not long ago, the project "Complete Equipment Robot and Internet of Things Technology Application in the whole Process of Spinning Industry" declared by Jingwei Spinning Machine won the first prize of the first State-owned Enterprise Digital Scene Innovation Professional Competition, and the project "Intelligent Spinning Workshop whole Process Management System based on Industrial Internet of Things" won the second prize.

Accelerate transformation and upgrading

"In the face of uncertain international market environment and increasingly fierce competition, enterprises need to strengthen their innovation ability and market development ability, promote high-quality and differentiated development of equipment, avoid homogeneous competition, and achieve complementary and collaborative development." China Textile Machinery Association vice president Liu Song said.

For the spinning machine industry, in the current situation of shrinking the overall market size, the competitive situation is bound to be more intense, and the competitive advantage of the leading enterprises in the segmented industries will also be more prominent.

Jingwei said that according to the three-year action plan to revitalize the spinning machine, it put forward the idea of "perfecting the main business, strengthening the enterprise, and doing a good job of efficient collaborative service headquarters". It will mark the world's first-class spinning machine enterprises, give full play to the complete set of advantages, and accelerate the construction of a professional and flat development platform with the whole industrial chain of the spinning machine as the core. Accelerate the transformation from traditional manufacturing enterprises to service-oriented enterprises and digital technology enterprises, and improve the core competitiveness and profitability of the main business. At the same time, we will promote enterprise exit and hierarchical reduction, and concentrate effective resources on main industries by optimizing layout and adjusting structure.

In 2022, Honghua Digital Technology will continue to strengthen its core competitiveness by developing new products, upgrading old products, improving the efficiency of hardware and software, and other measures. The printing speed of Single Pass ultra-high speed industrial printing machine for high-end market will be increased by more than 30%, and its cost advantage and environmental protection will be significantly improved compared with traditional process equipment. It is helpful to realize the green substitution of traditional screen printing. In 2023, Honghua Digital Technology will actively explore the extension of the application of digital printing technology, the development of digital printing equipment and digital printing equipment, which is expected to continue to contribute to the company's growth point.

Yuejian Intelligence said, the next will continue to deepen the main industry, layout of the main advantages of the industry, based on the advantages of the field, timely follow up customer needs on the basis of the development of active marketing strategy, through the continuous digital, information, intelligent upgrading, implementation of lean management, efforts to further improve the quality of operation, production efficiency and management level.