Weiqiao Textile Co., Ltd. Made A Lot Of Profits In The First Half Of The Year

Weiqiao Textile Co., Ltd. (hereinafter referred to as "Weiqiao textile"), the largest cotton textile enterprise in the world, released its mid-term report for the first half of the year up to June 30, 2020 on August 14. During the reporting period, the company realized an operating income of about 5.430 billion yuan, a decrease of 30.24% compared with that of 7.783 billion yuan in the same period of last year, and the profit of shareholders was about 155 million yuan, Compared with 206 million yuan in the same period of last year, it decreased by 24.92%, and the basic earnings per share was about 0.13 yuan.

According to the financial report, the reporter noticed that: in terms of products, the sales revenue of cotton yarn products was 1.395 billion yuan, which was 1.970 billion yuan in the same period of last year, with a gross profit income of 67.718 million yuan and a gross profit rate of 4.9%, while that of grey fabric products was 1.991 billion yuan, 2.637 billion yuan, 1.184 billion yuan and 5.9% respectively, compared with 1.568 billion yuan in the same period of last year The gross profit rate was 5.9%; the sales revenue of denim products was 206 million yuan, which was 410 million yuan in the same period of last year, and the gross profit rate was 28.593 million yuan, 13.8% and 34.584 million yuan, 8.4% in the same period of last year; the sales revenue of electric power and steam products was 1.836 billion yuan, 2.765 billion yuan, 432 million yuan, 23.5% and 702 million yuan, 25.4% respectively 。

By region, Weiqiao textile's overseas sales accounted for about 33.5% of the revenue, and domestic sales accounted for about 66.5%. Compared with the same period last year, there was no significant change in the proportion of domestic and foreign sales.

Compared with the same period last year, the production of grey cotton yarn in Weiqiao period decreased by about 12.000% to about 1740.000 million tons compared with the same period of last year, about 16.000 million tons of denim yarn was reduced compared with the same period of last year.

The reporter noted that the revenue of cotton yarn, grey cloth and denim products decreased sharply. Weiqiao textile explained that due to the adverse impact of the epidemic situation, the domestic and foreign textile markets continued to be weak, which led to the decline in demand for textiles, resulting in a corresponding decrease in the company's three types of textile revenue; while the decline in electricity and steam revenue was mainly due to the adverse impact of the epidemic, and the downstream customers' demand for electricity decreased The company's electricity sales decreased accordingly.

Weiqiao textile explained that the change in the gross profit of textile sales during the reporting period was mainly due to the government's introduction of a number of preferential policies in response to the impact of the epidemic situation. Thanks to the phased reduction and exemption policy of enterprise social insurance premium issued by the Shandong provincial government, Weiqiao textile's social security expenditure decreased and labor cost decreased; the gross profit change of power and steam sales was mainly caused by the company's power and steam sales The decrease in volume resulted in an increase in unit fixed costs over the same period last year.

The reporter noted that the financial report showed that as of June 30, 2020, Weiqiao textile had about 47000 employees, a decrease of about 5000 compared with the same period last year. Weiqiao textile explained that the decrease in personnel was mainly due to the normal personnel flow during the period. During the reporting period, the total cost of Weiqiao textile staff was about 136900000 yuan, which was about 15.7% lower than that of 1624000000 yuan in the same period last year On the one hand, the company's employees are reduced and their wages are correspondingly reduced; on the other hand, the company enjoys the periodic reduction and exemption policy of enterprise social insurance premium, resulting in the corresponding reduction of social security expenditure.

Zhang Hongxia, chairman of Weiqiao Textile Co., Ltd., said that during the reporting period, the continuous spread of the epidemic had a significant impact on the global economic operation and market demand, which greatly affected the demand of the textile and garment industry. As for the export market, since the middle and late April 2020, overseas customers cancelled or reduced orders or asked for postponement of delivery, etc., up to the end of June The situation of overseas epidemic prevention and control has not improved significantly, and the market demand has not been effectively improved. China's textile and garment enterprises are still facing certain pressure in obtaining new export orders. As for the domestic market, the situation of epidemic prevention and control has been basically stable by the end of June, the production order of the industry has been basically restored, and the domestic demand market has gradually recovered.

Zhang Hongxia frankly said that due to the adverse impact of the epidemic, the domestic and foreign textile market continued to be weak, which led to the decline in demand for textiles. The sales volume of cotton textile products of Weiqiao Textile Co., Ltd. decreased year on year, and the sales price decreased compared with the same period last year. The sales volume of electric power also decreased year on year, making the company's business income and net profit decrease correspondingly.

In terms of textile business, Weiqiao textile has built and put into operation a green and intelligent integrated production line from spinning to weaving in 2019, which has realized "intelligent production process", "intelligent control system", "informatization online detection" and "green manufacturing process", and further improved the equipment level. Weiqiao textile, according to the market demand orientation, combined with the popular trend, continues to attach importance to the research and development of new products. The new products of cotton antibacterial denim fabric and twistless super soft knitting series have been developed by combining daily and functional closely. The high count and high density domestic Lyocell home textile series products and antaibe antibacterial yarn series developed in cooperation with scientific research institutes have successfully achieved mass production.

For the second half of 2020, Zhang Hongxia said that Weiqiao textile will further strengthen the intelligent construction on the basis of the existing green intelligent textile production line, promote the digital and intelligent transformation of enterprises, so as to further reduce the production cost and improve the economic benefits. In terms of product renewal, it will continue to strengthen the cooperation with textile professional colleges or research institutions, increase investment in scientific and technological research, and strengthen the collaborative development of production, teaching, research and application; enhance the enterprise's innovation ability, focus on the research and development of functional fabrics, and promote the optimization and upgrading of product structure; at the same time, Weiqiao textile will continue to improve the production efficiency and operation level of its own power plant, so as to improve the overall income.

Shandong weiqiqiao Textile Co., Ltd. and weiqiqiao Electric Power Co., Ltd. are mainly engaged in the production and sales of Shandong weiqiaoqiao Textile Co., Ltd. and weiqiqiao Electric Power Co., Ltd.