2020 annual reports of viscose listed companies

The COVID-19 outbreak in 2020 exerted unprecedented impact on viscose industry chain and VSF price has hit new lows since the 21st century. VSF companies suffered huge losses and let’s take a look at the details of annual reports disclosed by listed companies.

Aoyang Healthy: Funing Aoyang Technology Co., Ltd as the subsidiary that operates chemical fiber business sees 1.177 billion yuan of revenue and -420 million yuan of net profit (-546 million yuan one year before). The annual output and sales volume totals 134kt and 142.4kt respectively, down 1.27% and 7.4% year on year. The inventory decreases by 58.29% on the year to 5.359kt, which is mainly due to better market performance and increasing orders at the end of third quarter of 2020. It is noteworthy that the company on Apr 9, 2021 announced that it intends to sell the viscose business.

Jilin Chemical Fiber: VFY and VSF as the company's main business whose revenue is respectively 1.7 billion yuan and 694 million yuan, down 25.89% but up 1028.18% on yearly basis. The total output of the two is 146kt, up 90.63% year on year. Sales volume increases by 106.91% to 137.2kt.

Nanjing Chemical Fiber: Jiangsu Jinling Cellulose Fiber Co., Ltd, a wholly-owned subsidiary that produces and sells VSF, has only maintained single-line operation since Feb. VSF production and sales volume respectively totals 30.5kt and 34.5kt, down 17.53% and 18.24% year on year. It is noteworthy that the 40kt/yr lyocell fiber project is expected to start commissioning in the third quarter of 2021. The substantial increase in the company's net profit is mainly due to government subsidies and the sale of equity.

Sanyou Chemical: VSF production and sale volume is respectively 749.6kt and 761kt, down 8.69% and 6.72% year on year. The net profit of VSF sector is -124 million yuan, which is -408 million yuan one year before.

Xinxiang Chemical Fiber: the company produces 60.787kt of VFY during the period under review, a decrease of 635 tons year on year. Now the company focuses on the production and sales of VFY and spandex without VSF production.

Zhongtai Chemical: the production of viscose fiber and viscose yarn is respectively 474.6kt (down 25.77%) and 291.3kt (up 0.94%). The revenue of the two is respectively 1.595 billion yuan (down 52.54%) and 3.126 billion yuan (down 14.78%).

VSF companies in the first three quarters of 2020 are jailed due to the COVID-19 outbreak and other factors. Fortunately, the epidemic in China is well controlled after the National Day holiday, coupled with improving market activity of viscose industry chain and gradually increase of most products. The sharp increase of VSF profits reverses the weakness.