Feng Bamboo Textile Business Profits Plummeted 5 To 50 Million Government Subsidies To Help Profits

August 28th evening Phoenix Bamboo textile In the report, the China Daily reported that during the reporting period, the company achieved operating income of 411 million 517 thousand and 400 yuan, down 6.99% compared to the same period last year, operating profit -3278.82 million yuan, down 450.89% compared with the same period last year, and realized the net profit attributable to the owner of the company 1 million 237 thousand and 700 yuan, an increase of 24.68% over the same period last year.

Although Feng Zhu textile realized profits in the first half of the year, the main business of the company was losing money, but it was only 34 million 108 thousand and 700 yuan of government subsidies and 3 million 466 thousand and 300 yuan of income from Xingye venture capital that it realized profit.

As for the sharp decline in operating profits, the reason for Feng Zhu textile explanation is that because of the decline in external demand and the sluggish domestic demand, the difference in domestic and foreign cotton prices has led to a decline in export competitiveness of products, resulting in a decrease in sales revenue, a decrease in production and an increase in unit fixed costs. At the same time, the increase in labor costs has led to a significant decrease in gross profit margin of the company compared with the same period.

According to the China Daily, only four of the company's main products in the first half of the year are Do spinning The business revenue has increased by 3.52%, and the sales revenue of the other three main products has declined. Among them, weaving business revenue decreased by 4.99%, bleaching and dyeing business income decreased by 33.07%, and yarn dyed business income decreased by 20.31%.

Feng Bamboo textiles occupy a geographical advantage in Fujian, but in the first half of the year, the company's revenue in Fujian was reduced by 30.58% over the previous year. At the same time, the company's revenue abroad has also shrunk by 11.46%. The company's revenue in other parts of the country has increased by 35.71% over the previous year.

The performance of the main business is so bad that it can not be related to the sharp decline in gross margin.

The announcement shows that the gross profit margin of the main business is 1.79%, a decrease of 8.3 percentage points over the same period last year. Mainly weaving. Finished cloth The business decreased by 8.11%, the bleaching and dyeing business reduced by 17.54%, the spinning business decreased by 9.38%, and the yarn dyed business decreased by 2.43%. The main reason for the decrease in gross margin was the decline in external demand and the sluggish domestic demand; the difference in domestic and foreign cotton prices led to a decline in export competitiveness, resulting in a decline in production, an increase in unit fixed costs, and a rise in the cost of labor, resulting in a significant decline in gross margin of the company's products.