Huafu Color Spinning Both Upstream And Downstream Were Unsatisfactory. Net Profit Fell Sharply.

The three quarterly report of Huafu color spinning is also lower than expected. Cotton price The continuous decline and the increase in domestic and foreign spreads resulted in a sharp decline in net profit of Huafu color spinning.

The China Daily reported that Huafu color spinning H1 income was 2 billion 792 million, down 0.84% compared to the same period last year, net profit 51 million, down 78.78% compared with the same period last year, close to the upper limit of the company's May performance correction notice (decrease 50%-80%), net operating cash flow 109 million, down 233.62% compared to the same period last year; EPS0.06 yuan per share, a decrease of 79.31% compared to the same period last year; H1 gross profit margin 12.60%, net profit margin 1.83%, compared with the same period, respectively, dropped by 7.30, 6.74 percentage points respectively.

The total Q2 revenue of the company was 1 billion 566 million, an increase of 11.77% over the same period last year. Net profit was 16 million, down 88.91% from the same period last year, exceeding the expectation of Q2 in the revised forecast of the company's performance.

Overall, although the company's Q2 is more than Q1, revenue has rebounded, but profits have declined significantly.

Compare the Customs General Administration in 2011 and 2012. Spin Yarn export data, according to the financial weekly reporter, last year exported a total of 94 billion 700 million U.S. dollars, and as of September this year, textile yarn exports amounted to 71 billion 100 million U.S. dollars, down 25%.

The main product of the textile yarn, Hua Fu color spinning, of course, has been a lot of influence. A decline in cotton prices has led to lower prices for yarn downstream customers and forced sale of yarns, while the increase in intra and extra cotton prices has led to a relative rise in product costs. The income of Huafu color spinning is only slightly down, mainly due to the company's efforts to strengthen customer development and marketing strategy.

Huafu color spinning is not only vulnerable to price cuts, but also facing difficulties in stockpiling goods.

Data show that in the first half of 2012, 64 textiles clothing The total raw materials of listed companies are as high as 8 billion 99 million yuan. Among them, 18 companies have over 100 million raw materials, and the raw materials of Huafu color spinning are up to 1 billion 125 million yuan.

During the reporting period, the company achieved operating income of 2 billion 791 million 576 thousand and 600 yuan, down 0.84% from the same period last year, and realized net profit of 62 million 209 thousand and 400 yuan, down 74.39% from the same period last year. Among them, the net profit attributable to parent company was 51 million 178 thousand and 400 yuan, a decrease of 78.78% compared with the same period last year.

Under resistance to external pressure, Huafu color spinning Actively practicing "internal strength" is mainly through strengthening brand strategy and planning marketing highlights, and developing two or three line brand.