Exchange Earnings To Boost The Performance Of Multi Industry Listed Companies

Exchange earnings to boost the performance of multi industry listed companies

The continued appreciation of the renminbi last year has had a positive impact on many listed companies involved in foreign currencies.

According to incomplete statistics from China Securities Journal, in the listed companies that have disclosed the annual reports, 576 listed companies have realized positive gains of 5 billion 387 million yuan, up 71.73% over the same period.

In addition to the financial sector, many companies in aviation, textile, clothing and paper industries have benefited from the appreciation of the renminbi, and the exchange earnings have increased significantly over the past year, which has a positive impact on their performance.

Outstanding earnings from financial industry

Benefiting from exchange rate changes, there are favorable changes in foreign exchange profit and loss items of listed companies involving many foreign currencies, including financial services, textile, clothing and paper industries.

The net income of the 15 financial services listed companies in the year 2011 amounted to 4 billion 800 million yuan, while the net return of these companies in the 2010 year was a loss of 306 million yuan.

Among them, the exchange earnings of Agricultural Bank of China (601288) in 2011 were 2 billion 686 million yuan, an increase of 56% over the previous year, mainly due to the increase in foreign exchange settlement and sale.

The Construction Bank (601939) annual report shows that the Group actively promoted foreign currency business development in 2011. In the environment of RMB appreciation, the net income of remittance was 1 billion 451 million yuan, while the exchange loss of the company in 2010 was 611 million yuan.

The company said that this was mainly due to the increase in net income from behalf of customers and self operated foreign exchange pactions.

The difference is that China's Ping An (601318) 2011 net exchange loss amounted to 434 million yuan, an increase of 3 times compared with the same period last year.

The company said that due to the directional issuance of 272 million H-shares to Jin Jun limited, the assets of the Hong Kong dollar increased, resulting in net foreign exchange losses of 434 million yuan in the foreign currency denominated assets.

The 15 listed companies in the textile and garment industry that have already disclosed their annual reports have realized a total exchange rate of 37 million 22 thousand and 200 yuan in 2011, while the total exchange losses of these companies amounted to 20 thousand and 900 yuan in 2010.

The exchange earnings of the 6 paper industry listed companies in 2011 were 50 million 333 thousand and 100 yuan, up 2.11 times compared with the same period last year.

Because more than 70% of the products of A (000726) are exported, and the market covers more than 30 countries and regions of the world. Although the proportion of profit and loss is not high, the impact of exchange rate changes on the exchange gains and losses is also obvious.

The company's annual report shows that the net profit of the company's remittance in 2011 was 21 million 737 thousand yuan, an increase of 1.78 times compared with the same period last year.

But because of the increase in interest expenses, the company's financial expenses rose by 25.71% to 49 million 139 thousand and 800 yuan.

Yueyang forestry paper (600963) realized exchange earnings of 23 million 215 thousand and 800 yuan in 2011, up 2.67 times compared with the same period last year, accounting for more than 15% of the company's net profit during the same period.

Boost airline performance

The appreciation of the RMB exchange rate has brought huge exchange earnings to many listed companies in the air pport industry, and has supported the performance of these companies.

Eastern Airlines (600115) annual report shows that the net return of the company in 2011 was 1 billion 872 million yuan, accounting for 37.24% of the company's net profit for the year, compared with the 2011 year, an increase of nearly 800 million yuan, an increase of more than 74%.

The company said it was mainly influenced by the appreciation of the RMB exchange rate.

In the 2011 year, the financial cost of the company reduced by 202.27% and the financial cost to -4.41 billion.

In addition, as CITIC sea (000099) purchased helicopters, the main source of funds was foreign currency loans (Hong Kong dollar loans), while the payment of air material procurement, protection and other expenses were mainly euro, interest rates rose and increased expenses, and exchange rate fluctuations had great impact on the company's exchange gains and losses.

CITIC sea annual report shows that the company achieved net profit of 139 million yuan in 2011, an increase of 12.89% over the same period last year. One of the main reasons for the rise in its performance is the increase in exchange earnings.

Data show that the company's exchange earnings were 36 million 434 thousand and 300 yuan, an increase of 47.39% over 2010, accounting for about 26% of the company's net profit during the same period.

Due to the substantial increase in exchange gains and losses, the company's financial cost in 2011 was -2143.73 yuan, a decrease of 8 million 237 thousand and 100 yuan over the previous year.

In the expectation of the future, CITIC sea is a reminder of investors. The proportion of non operating factors (exchange earnings) in the company's profits is not small. Once the RMB has stopped appreciating or depreciated, the company will face obvious pressure of business and performance.