The local dye leader, Zhejiang Longsheng group Limited by Share Ltd (hereinafter referred to as "Zhejiang Longsheng"), released the first half performance report in 2018 in the evening of August 16th. During the reporting period, the company realized total revenue of 9 billion 650 million, an increase of 5.2% over the same period, and realized a net profit of 2 billion 530 million, an increase of 36.2% compared with the same period last year, and the earnings per share were 0.79 yuan. During the reporting period, the gross profit margin of the company was 47%, an increase of 2.7 percentage points over the same period, and the net interest rate was 26.3%, an increase of 4.6 percentage points over the same period last year.
During the reporting period, non recurring gains and losses totals 480 million yuan, which has a greater impact on net profit. After deducting the non recurring gains and losses, the net profit of the returned parent was 2 billion 50 million yuan, up 13.1% over the same period.
Financial reports show that Zhejiang Longsheng business costs 5 billion 120 million, an increase of 0.2% over the same period, lower than the growth rate of 5.2% of operating income, resulting in a 2.7% increase in gross margin. The period cost rate is 18.5%, which has not changed much compared with last year. Operating cash flow increased from -3.3 billion to 3 billion 10 million, an increase of 1022.6% over the same period last year.
From the perspective of business structure, "De Shi Da" is the main source of Zhejiang Longsheng business income. Specifically, the "sta" business income is 3 billion 950 million, revenue accounted for 34.5%, gross margin 34%.
For the growth of net profit, Zhejiang Longsheng explained that the price of dyes and intermediates rose during the reporting period, operating profit was relatively good, and the non recurring gains and losses were 480 million yuan.
The industry believes that the environmental protection and safety supervision will not change. The price of dye will remain high. At present, the intermediate business has become an important pillar of Zhejiang Longsheng's profit, and the follow-up will continue to expand.
Yu Yuanyuan, an analyst at Bank of China Securities, said that domestic dyestuff production decreased by 28.27% in the first half of the year as a result of the capacity relocation of Dao Xu factory area. During the reporting period, Zhejiang Longsheng dyestuff sold a total of 101 thousand and 300 tons, down 12.4% from the same period last year. But affected by price increases, sales of dyestuff business realized 5 billion 355 million yuan, up 4.6% over the same period last year. The average price of dyes was 52 thousand and 900 yuan / ton, up 19.4% over the same period last year. Affected by the downturn in downstream demand, the price of dyes has dropped. But overall, the dye industry is still in tight supply in 2019, and the price of dye is expected to remain high. As a leader, the company has benefited significantly.
In addition, Zhejiang Longsheng sold 55 thousand and 800 tons of intermediate products in the first half of the year, down 4.6% from the same period last year, and the average price of intermediate products was 42 thousand and 600 yuan / ton, up 36.3% from the same period last year. Zhejiang Longsheng currently has 30 thousand tons of resorcinol production capacity, and 65 thousand tons of inter amine two amine production capacity. Since 2015, it has been the focus of the creation of the intermediate business plate, has become an important source of company earnings significantly improved. In the future, Zhejiang Longsheng plan has expanded the production capacity of benzene two amine to 100 thousand tons / year, the production capacity of resorcinol has expanded to 50 thousand tons / year, and at the same time, it expanded the production of related intermediates with integration as the core. The intermediate business will become an important source for the long-term development and profitability of the company.
In manufacturing, during the reporting period, Zhejiang Longsheng global dye sales volume of 101 thousand and 300 tons, intermediate sales volume of 55 thousand and 800 tons;
In real estate business, the company has obtained the approval of partial adjustment of regulatory detailed planning in Jingan District, Shanghai, and will further optimize the overall design plan. The project of Datong base project is advancing in an orderly way, and quality and safety are strictly controlled. It is expected to start pre-sale next year. The first phase of the Mount Huangshan road project will be closed down, so as to ensure the realization of this year's delivery and recognition of revenue.
Public information shows that Zhejiang's Longsheng main dyestuff industry has become the world's largest producer of textile chemicals, with more than 300 thousand tons of dye production and an annual production capacity of about 100 thousand tons of auxiliaries, ranking first in the global market. The company has an annual capacity of 110 thousand tons of intermediate capacity, the cost and environmental advantages of integrated production, so that the company's intermediates business to maintain sustained and rapid growth.