The reporter of "China Textile News" combed the semi-annual reports of several leading dyestuff enterprises. Although the "One Brother" Zhejiang Longsheng Group Co., Ltd. maintained a growth trend with a year-on-year increase of 7.87% in operating income, its net profit fell sharply by 43.56%.

The veteran listed company Zhejiang Jihua Group Co., Ltd. has both decreased its revenue and net profit. The company achieved revenue of 1.143 billion yuan in the first half of the year, down 1.57% year-on-year; net profit loss was 14.019 million yuan, down 110.04% year-on-year.

The Annoqi Group, which had previously made great progress, also stopped its pace of progress. In the first half of the year, its revenue was 450 million yuan, a year-on-year decrease of 17.99%; its net profit was 46.8393 million yuan, a year-on-year decrease of 26.77%.

The “newcomer” Hangzhou Flaiant Co., Ltd., which was only listed last year, nearly halved its net profit. In the first half of the year, it achieved operating income of 552 million yuan, a year-on-year decrease of 4.13%; net profit was 56.4499 million yuan, a year-on-year decrease of 45.47%.

The performance of the semi-annual report is not only a reflection of the operating conditions of listed companies, but also a microcosm of the operating conditions of the entire industry in the first half of the year.

The industry survey information recently released by the Secretariat of China Dyestuff Industry Association pointed out that since 2021, the growth rate of the total profit of the dyestuff industry has begun to drop sharply, and the total profit for the year has generally experienced negative growth. In 2022, the profits of some listed dyestuff companies will drop seriously or even lose money, and the dyestuff industry will be exhausted.

In order to cope with the decline in performance and the challenges of the industry's downturn, dye companies are accelerating the pace of innovative technology research and development while reducing costs and increasing efficiency. In an interview with reporters, the heads of many companies said that whether they have their own core products and technologies not only determines the level of corporate profits, but also the key to whether the company can further improve and become stronger.

Taking Zhejiang Longsheng as an example, the reporter learned that the company's competitiveness is mainly reflected in the integration advantages of the industrial chain and the leading environmental protection technology. Zhejiang Longsheng takes the integration of the industrial chain as the core, expands the production of related intermediates such as resorcinol and p-phenylenediamine, and expands production capacity and market share. At the same time, the company also develops aromatic amine intermediates such as reductants, integrates and expands the upstream of the dye supply chain, and strengthens the status of strategic intermediate raw materials. In terms of environmental protection, the disperse dye water saving and cost reduction project implemented by Zhejiang Longsheng has effectively enhanced the market core competitiveness of the disperse dye business. The development of a series of key technologies for high-salt and high-COD (chemical oxygen demand) wastewater treatment, and the development of new green and clean technologies for dye supporting intermediate projects, not only relieves the environmental protection concerns of enterprises, but also greatly reduces production costs.

"While actively seeking market opportunities, dyestuff companies should be cautious to maintain low-speed operation and go through this difficult period smoothly." Chen Zhihua, president of China Printing and Dyeing Industry Association, suggested that the entire industry should adjust the industrial structure and compete in an orderly manner. At the same time, all enterprises should strengthen management, practice their internal skills, do their best to reduce material consumption and energy consumption, reduce the emission of "three wastes", improve product quality, develop characteristic products, and reduce the harm caused by homogeneous competition.