The Total Assets Of Xingye Technology Decreased By 10.49% Compared With The Same Period Last Year.

The latest performance report released by Xingye technology shows that in 2016 1-6, Xingye technology realized business income of 1 billion 26 million yuan, an increase of 8.37% compared with 947 million yuan in the same period last year, and realized net profit attributable to shareholders of listed companies 9 million 600 thousand yuan, down 32.36% compared with 14 million yuan in the same period last year.

During the reporting period, the total assets of Xingye technology reached 2 billion 282 million yuan, down 10.49% compared with 2 billion 549 million yuan in the same period last year.

Societe Generale technology said that in the 1-6 month of this year, the main reason for the decline in company performance was mainly affected by the slowdown in economic growth.

The market continues to slump, the downstream industry has no obvious improvement trend, and the price of products is also difficult to upgrade.

During the reporting period, the company continued to push ahead with the construction and commissioning of the fund-raising investment projects as planned.

However, Societe Generale technology disclosed that the company's 1 million 500 thousand high-grade leather finishing and new technology processing projects and the company's annual processing of 150 tons of blue wet skin expansion project (An Dongyuan) during the construction period and trial production period, the utilization rate of the production capacity is not high, and the efficiency has not been fully reflected. Fujian rizen Leather Co., Ltd. has processed 1 million 200 thousand raw cattle skin and 30 thousand million blue wet skin items in the year of processing, and the existing projects are only processed 120 million pieces of cattle skin to the blue segment, and the capacity and commitment efficiency of the original project is no longer applicable.

As the three projects were not fully realized, they failed to achieve the expected benefits. With the continuous implementation of the project, the benefits will be gradually reflected.

Researcher Li Jie said today that since the beginning of this year, the price of cattle raw leather and the price of downstream orders have been basically stable, and the impact of raw material prices has basically been digested. It is estimated that the gross profit margin of the company will be gradually warmer in the second half of the year, and the annual performance in 2016 will be greatly improved.

At the same time, the company improved its loan structure and reduced US dollar borrowing, thereby reducing its financial expenses. The cost rate of 0.73PCT decreased by 0.73PCT to 7.27% during the first quarter.

But Li Jie also believes that as the demand for the downstream footwear market is weak and orders are difficult to raise, the overall performance of the company will not be achieved overnight until 2014 and before.

In this interview, reporters also learned that most of the raw leather used for Xingye technology products was purchased abroad. In recent years, the import price of raw leather has risen sharply, exceeding 20%.

It is more sensitive to cost, and also lacks the power to develop high-end products, which in turn leads to lower bargaining power of the company. Moreover, although online consumption is growing faster, the price of its products is relatively low, which means that the low end demand structure occupies a higher proportion.

Therefore, it is not difficult to understand that the decline in gross margin will lead to a decline in earnings growth.

Xingye technology is a company engaged in the development, production and sale of medium and high grade cattle top shoe upper leather.

The market share of cattle shoe upper leather has ranked first in China for 8 consecutive years. The main products include the Napa series, the natural throw series and the special effect leather series, and the three major series contribute to the company's main business income of 90% or more.

At present, the company's customers include AOKANG, Kangnai, BELLE, golden monkey, rich birds, Teenmix, Daphne, Jin Mai Wang, Mu Lin Sen, camel, Montagut,

There are nearly twenty well-known domestic enterprises, such as spider king.

Reporters recently reviewed footwear listed companies' earnings and noticed that some of the listed footwear companies that had already announced their performance did not reverse the downward trend. Daphne, a listed company on the Hong Kong stock market, issued a performance warning earlier, saying that the same store sales in the first half of 2016 had dropped by 11.7%, and 450 stores had closed. The annual report of BELLE international 2015/2016 showed that the net profit attributable to shareholders of listed companies fell by nearly 40% after the decline in footwear business, and A shares listed footwear companies on Saturday and shares also issued interim results notice, and the net profit pre fall rate reached 30%.

According to the insiders, the sharp decline of Xingye technology performance also indicates that it is still time for local footwear listed companies to reverse the unfavorable situation in the future.