Brands are pursuing net-zero carbon emissions, and textile fiber factories are accelerating the expansion of green products with higher gross margins. The market pointed out that in recent years, Far East New (1402), New Fiber (1409), Lili (1444), and Jisheng (1455) have released green textile products. The volume of goods is growing at a double-digit rate every year, and it is expected that the gross profit margin in the second half of the year should have room for improvement of 0.5 to 1 percentage point.
According to analysis by textile fiber industry players, the price of environmentally friendly recycled textile fiber products is 30% higher than the price of traditional virgin products.
According to new statistics from Far East, green product revenue in the first half of this year reached 26.5 billion yuan, an annual increase of 9.6%; last year, the proportion of green products in the overall production business reached 33%, an increase of 5 percentage points from 2022.
Benefiting from the continued growth in the shipment ratio of green products with high average unit prices, Far East New's operating gross profit margin in the first half of this year reached 19.56%, an increase of 1.25 percentage points from the same period last year.
After the new fiber plant was put into production in Thailand, the proportion of solid polyester granule revenue from green products increased from 25% to 30% to 50% in one go.
After Lili's environmentally friendly recycled polyester fiber entered Apple's supply chain, the proportion of recyclable green products has increased by 15% to 20% in the past three years.
Lili's operating gross profit margin in the first half of this year was 3.52%, which was much better than the operating gross loss rate of 1.22% in the same period last year, showing a significant improvement in profitability, among which the increase in green textile shipments was the key.
Processed yarn and nylon factory Jisheng hopes to increase the proportion of green products in revenue to 20% within three years by recycling old clothes, discarded nylon yarn and other recycled products.
Jisheng said that high-value products are the main tool to increase the company's gross profit. In the past year, Jisheng has not only transformed PA6 nylon granules into high-end spinning grade PA66, but also continued to increase its investment in green product production capacity expansion.
Jisheng's green products include recycled PET bottle polyester pellets (annual output of approximately 4,600 tons), recycled nylon and nylon pellets made from recycled fishing nets (annual output of approximately 550 tons).
In line with the global trend of carbon reduction, strengthening the sales of green products to meet customer needs, Jisheng continues to expand green products, including used clothing recycling, bottle flakes, waste nylon yarn and other recycled products. Jisheng pointed out that in the next two years, the revenue share of green products will grow at a high double-digit rate every year, and the goal is to increase the proportion of green products in revenue to 20% next year.
Jisheng's operating gross profit margin in the first half of this year was 3.16%, which was significantly improved compared to the operating gross loss rate of 3.17% in the same period last year. In addition to the transformation and production of high-value textiles, the continuous expansion of production capacity for recycling and environmentally friendly reused textiles, it was also Momentum for gross profit margin improvement.
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