Weixing Shares, Which Were Supplied To Semir, Earned 300 Million Last Year. Its Beidou Navigation Products Supply The Chinese Military.

Zhejiang Weixing industrial development Limited by Share Ltd (hereinafter referred to as "Weixing shares"), the leading enterprise in the field of local apparel accessories industry, released its 2018 performance forecast in January 18th. It is estimated that the company's net profit in 2018 will be 292 million yuan to 328 million yuan, compared with 365 million yuan in the same period last year, down 20% to 10% over the same period last year.

Weixing shares said that the main reason for this performance notice revision is:

1, as China's Beidou satellite navigation system is in the second generation to the third generation technology upgrading process, coupled with the military system reform and industry cycle and other factors, the company's subsidiary ZOJE Beijing Aviation Technology Co., Ltd. (hereinafter referred to as "ZOJE era") in 2018, the number of orders from the military and other core customers has been reduced.

Affected by the above factors, the operating performance of ZOJE in the 2018 era dropped sharply compared with the same period last year.

In 2 and May 2016, the company acquired a goodwill assets of 145 million 21 thousand and 900 yuan due to the acquisition of 51% stake in ZOJE era. After the 2016 performance of ZOJE era, the value of goodwill was reduced by 7 million 104 thousand and 800 yuan.

By the end of the three quarter of 2018, the net value of goodwill resulting from the acquisition of ZOJE era was 137 million 917 thousand and 100 yuan.

Based on the principle of prudence, the company judges the risk of impairment of the goodwill and plans to prepare the corresponding goodwill impairment provision at the end of the year.

However, Shi Hongmei, an analyst at Orient Securities, has said that the growth rate of Weixing shares has slowed down in 2018. Besides the slowdown in demand growth, the product mix is also an important reason.

Weixing shares, as the leader of the global garment accessories industry, has gone through several rounds of industry reshuffle. In the past few years, we have continuously strengthened production automation and information pformation to enhance operational efficiency and expand production capacity. From the historical experience, the weak industry environment is conducive to Weixing to consolidate its competitive advantage and further enhance its market share. In July 2018, the production of Bangladesh Industrial Park will lay the foundation for the expansion of the overseas business of the company. Since the two quarter, the depreciation of the RMB against the US dollar has also brought some benefits to the company's export business (increased exchange earnings).

According to public information, Weixing stock was founded in 1988. It is committed to the design, manufacture and service of high-end clothing accessories products. It is one of the largest garment accessories enterprises in China. Its advantages in buttons, zippers and metal products are obvious.

With the first-class technology and equipment at home and abroad, there are four production bases in Zhejiang and Shenzhen area, forming an annual production capacity of 10 billion buttons and 400 million zippers.

First textile network reporter learned here that Weixing shares "SAB" accessories brand is China's well-known trademark, and has a high reputation in the clothing industry.

The company aims to create "world-renowned accessories and accessories suppliers" as the goal, and constantly open up high-end brand customers at home and abroad. Most of the well-known brand clothing enterprises in China are Weixing's customers. Most of its well-known Brand Company are customers of the company, such as Bosideng, Hai Lan's home, Semir dress, wedding bird, Lining, etc. at the same time, the number of international customers is also increasing. In addition, according to the announcement of military materials procurement information (2015 No. tenth), the company officially entered the list of suppliers at the military level in February 12, 2015.

The products of ZOJE era are all applied to China's national defense field, including positioning and navigation of aircraft, submarines, ships, vehicles and other equipment; precise guidance of guns, missiles, missiles and other weapons; positioning and scheduling of troops or individual units; accurate timing of reconnaissance and early warning radar, and communication and command of short messages during wartime.

The research and development process of Beidou navigation military product is mainly divided into pre research stage, development stage and mass production stage. At present, most products in the ZOJE era are in the development stage, and some main products are still in the small production stage. The revenue mainly comes from the technological R & D service revenue and the sales revenue of small quantities of products to customers, so the profit situation in the past few years is less or even less.

Beginning in 2015, the ZOJE era is committed to meeting the needs of the military and gradually realizing the batch production and sale of pre development stereotypes.

Analysts once thought that the ZOJE era, as a new manufacturing company of aerospace and equipment, benefited from the rapid development of the Beidou navigation industry, but also benefited from the construction of the "modern aerospace defense system" of the national defense industry.

Weixing shares, on the basis of the steady growth of its main business, has successfully entered the growth industry sector through mergers and acquisitions in the ZOJE era.

In the next few years, the mass production and sales revenue of ZOJE products will become a new growth point of Weixing share.

Executives from Weixing share also disclosed that in 2018, the business objective of the company's button business was revenue growth of 10%-20%, and the zipper business revenue was expected to achieve two digit growth. The growth mainly came from the expansion of new overseas businesses and the growth of orders from existing domestic customers (currently the major brands in the country are already customers of the company). The growth of military business in 2018 has a certain pressure, but its contribution to the company's performance is not large, so the impact is not large.

From the point of view of production capacity, Weixing share capacity is about 10 billion buttons, 4.5-5 billion zipper (strip zipper).

In recent years, domestic production capacity is mainly through internal equipment upgrading, automation upgrading and process optimization to achieve endogenous growth. In the long run, Weixing shares will take part of the external production mode to increase production capacity and meet fast demand.

In terms of layout abroad, Bangladesh's capacity has increased.

Specifically, the total investment of Bangladesh Industrial Park in Weixing shares is estimated to be US $50 million, which will achieve an annual output value of US $about 60000000 after completion. It will be completed in three phases. It is expected that the first phase will be completed in the second quarter of 2018 and the latest three will be completed in 2020.

The establishment of the Bangladesh Industrial Park is mainly to provide services and guarantees for the promotion of the internationalization strategy.

At the same time, considering that Bangladesh has more international brands and political stability, the company itself has many customers in Bangladesh.

With the effective promotion of the internationalization strategy, Weixing shares will also increase the capacity layout of the international market.