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Not long ago, the well-known Xiamen sanitary ware company Songlin Technology released its financial report that it achieved an operating income of 1.378 billion yuan in the first three quarters of this year, a year-on-year increase of 9.55%; net profit was 192 million yuan, an increase of 15.65%. The reporter learned that since the beginning of this year, affected by the epidemic, the export of the sanitary ware industry was slow and sales restricted. Today, many Xiamen sanitation companies have not only overcome difficulties, they have even managed to “fly against the wind.”
Many companies achieve growth against the trend
According to the third quarter 2020 report released by Songlin Technology, in the first three quarters of this year, it achieved an operating income of 1.378 billion yuan, a year-on-year increase of 9.55%; Net profit attributable to shareholders of listed companies was 192 million yuan, an increase of 15.65% year-on-year. Among them, the operating result in the third quarter was 542 million yuan, a year-on-year increase of 16.51%; Net profit attributable to shareholders of listed companies was 81.758 million yuan, an increase of 58.85% over the same period last year. Songlin Technology is reported to have achieved contrary growth in revenue and earnings for two consecutive quarters and has attracted market attention.
Songlin Technology said that behind the contrary growth, on the one hand, the company’s product-based research and development technology has been at the forefront of the industry for a long time, and its functions are closer to customer needs; on the other hand, the company has built an underlying manufacturing exchange platform to maximize the value of manufacturing resources. In addition, diversified foreign markets have provided opportunities, and the company’s products have always maintained a leading position in foreign markets such as Europe, North America, and South America.
Another publicly traded company in the sanitary ware industry in Xiamen-Jianlin Home Furnishing is also achieving growth against the trend. According to the company’s third-quarter results announcement, in the first three quarters of this year, the company’s revenue was approximately 2.682 billion yuan, a year-on-year increase of 7.33%; net profit was approximately 261 million yuan, an increase of 6.56% year-on-year. According to the analysis of Jianlin Home Furnishing, it is less affected by the epidemic and has enough orders available.
Furthermore, it is understood that Bejet’s recent orders in Tonga have also ushered in a relatively significant increase, and the value of production in the first half of this year has increased by almost 30% year-on-year.
Xiamen is one of the main bases of the domestic sanitary ware industry. So far, there are more than 160 sanitary ware enterprises (excluding upstream and downstream supporting enterprises) with an annual output value of more than 30 billion yuan. Since the beginning of this year, due to the impact of the epidemic, the exports of Xiamen sanitation companies have been affected for a while, but many of them have overcome difficulties and managed to “fly against the wind.”
At the same time, as a major sanitary ware production area in Xiamen, the growth of Haicang’s sanitary ware industry has also turned from negative to positive this year. According to data from the relevant Haicang departments, from January to October this year, Haicang Sanitary Ware completed an industrial production value of 6.23 billion yuan, a year-on-year increase of 0.6%.
Take the opportunity to develop a smart bathroom
In the face of the epidemic, how can sanitation companies “fly against the wind”? In this regard, a relevant person from Luda (Xiamen) Industrial Co., Ltd. said that although the company’s production decreased slightly in the first quarter, production increased strongly in April and May. Not only was the performance of the first half of this year unaffected by the first quarter, but there were still some ups. According to this person, in the epidemic situation, more and more countries and regions attach importance to cleanliness and hygiene, and the frequency of replacement of faucets has accelerated significantly. At the same time, smart sanitary products are very popular, especially some non-contact sensory smart sanitary products, which are very popular in Europe and the United States, driving sales.
Songlin Technology also stated that in order to maintain its foreign market share, the company immediately launched a variety of automatic induction and sterilization faucets to seize the opportunities in the epidemic prevention market and achieved opposite growth in the second and third quarters. of this year.
Jiumu Sanitary Ware also said that the smart products developed by the company in the first half of this year achieved the most striking performance, with an increase of more than 50%, ahead of other products.
In addition, under the trend of the domestic business cycle, many sanitary ware companies are also making efforts in the domestic market. During the “Double Eleven” period of this year, Xiamen AXIS “touched the Internet” for the first time and promoted e-commerce turnover to exceed 10 million yuan on the day of the “Double Once” through live streaming and other methods. . On the other hand, Jiumu closed at the “August 15 Bathroom Live Festival” with sales of more than 1 billion yuan, breaking the industry record for live streaming sales.
Out of the epidemic haze, raise capital and expand production
Step out of the haze and go against the trend. The reporter learned that many sanitary ware companies in Xiamen are currently increasing capital and expanding production. Among them, Xiamen Ruierte Company has applied for 50,000 square meters of industrial land and plans to invest 530 million yuan to build an annual output of 100,000 sets of smart bathroom products. Once it reaches its maximum capacity, it is expected to reach 2.7 billion yuan in revenue; Yidian Technology has an annual output of 100 10,000 sets of smart toilets and 1 million sets of smart cover production line projects; Excellent Bathroom Kitchen Establishes Group Headquarters and Smart Bathroom Products Industrial Park Project; Jiayu Ceramics generates an annual output of 1 million high-end smart toilet sets and toilet lid production line projects …
The reporter learned that the bathroom and kitchen industry is one of 13 tens of billions of industrial chains in Xiamen. The above “Various Measures to Promote Accelerated Development of Kitchen Industry in Xiamen” clearly stated that Xiamen Professional Industrial Park for Kitchen and Bath will be planned and built in Tongan District. The reporter learned that more than 40 sanitary ware companies have applied to set up shop, expand existing factories and increase production capacity, with a total investment of nearly 3 billion yuan. In the future, Xiamen’s bathroom industry is expected to usher in further development. (Hexi Morning Post reporter Ye Zishen)
Original Title: Many Sanitary Ware Companies in Xiamen Seek Opportunities in Crisis Situations
Editor in Charge: Fang Di
