Huafu Fashion Revenue In 2018 Exceeded 14 Billion 300 Million, The Downstream Customer Orders Carefully To The Main Yarn Business Downturn!

Huafu fashion Limited by Share Ltd, the world's largest supplier and manufacturer of colored textiles, has recently released its 2018 annual performance bulletin. During the reporting period, Huafu fashion realized business income of 14 billion 306 million yuan, an increase of 13.57% compared with the same period last year. The net profit attributable to shareholders of listed companies is 779 million yuan, an increase of 15.14% compared with the same period last year.

As of December 31, 2018, the total assets of Huafu fashion increased by 13.07% over the same period last year, and the owners' equity of the listed companies increased by 0.92% over the same period last year. The net assets per share attributable to shareholders of the listed companies increased by 0.88% and the financial condition was good.

During the reporting period, the total share capital of Huafu fashion increased by 50% over the reporting period, mainly due to the implementation of the 2017 profit distribution plan.

The company's profit distribution plan in 2017 is: with the total share capital of 1 billion 12 million shares as the base, the cash dividend is distributed to 5 yuan (including tax) for every 10 shareholders, and the capital reserve is added to capital stock, and 5 shares are added to every 10 shares.

The above profit distribution plan was implemented in June 6, 2018.

The industry believes that from the single quarter revenue, Huafu fashion in the first quarter, the two quarter and the three quarter of 2018, the total revenue was 3 billion 34 million yuan, 3 billion 756 million yuan and 3 billion 944 million yuan, the growth rate was 30.96%, 21.12% and 14.23%, respectively, and revenue growth slowed down quarterly.

GF Securities researcher Mi Hanjie believes that the decline of Huafu's fashionable business revenue is mainly due to trade friction, which leads to cautious orders for downstream customers. The main yarn business of the company is expected to decline. In addition, considering the continued weakening of cotton prices in the second half of 2018, the company's front-end network chain business is pre programmed to control its development from the perspective of risk prevention.

The change of operating profit is basically the same as that of business revenue. It is expected that the operation of the company will be effectively controlled by the company.

In addition, as of February 22, 2019, Huafu fashion investment project "Huafu (Vietnam) 160 thousand high-grade color spinning project" has been completed.

The total amount of investment raised by the project is 130 million US dollars, and the total amount actually invested is 98 million 919 thousand and 300 US dollars. The balance fund is used to replenish the working capital permanently.

At present, the yarn production capacity of the company is all over the five production areas of Zhejiang, Huang Huai, Changjiang, Xinjiang and Vietnam. In the future, it is expected to rely on the national "one belt and one way" strategy to form a global balanced layout.

Huafu fashion was founded in 2000, and was listed on the backdoor market in 2008. It has become the first Chinese A share listed company in the color textile industry.

As early as 2010, Huafu began to enter Xinjiang to invest and build factories.

In 2013, the company further expanded its overseas market and established Vietnam's production base.

In 2016, the company launched the whole network chain business to build an industrial Internet platform.

The industry believes that Huafu fashion insists on the main industry and shares the industry, and considers that Xinjiang and Vietnam can not be neglected.

Xinjiang is a supply market aimed at upgrading domestic consumption. Vietnam is an industry pfer to overseas markets.

The company fully grasped the opportunities of the two regions and made considerable progress.

Huafu fashion focuses on manufacturing and supplying high-grade new yarn. It is one of the largest yarn dyed yarn enterprises in the world. In 2017, the income of the company's color spun yarn reached 5 billion 886 million yuan, an increase of 12.90% over the same period last year, and the growth trend was good. During the same period, the company's color spun yarn reached 1 million 800 thousand ingots, accounting for 23.9% of the total yarn productivity of the national colored yarn, accounting for about 40% of the domestic high-end yarn dyed yarn production, and one of the two oligarchs in the domestic colored spinning industry.

Financial reports show that in 2014, the price of cotton fell sharply, and Huafu fashion revenue declined significantly.

Since 2014, cotton prices have been stable and rising gradually, while the company has actively expanded the capacity of Vietnam and Xinjiang, and production and sales have increased at the same time.

Huafu fashion business income increased from 6 billion 133 million in 2014 to 8 billion 837 million in 2016, with an average annual compound growth rate of 20.04%.

Since 2016, the company has started the whole network chain business, and its revenue growth has been further accelerated.

As of the three quarter of 2018, the company achieved operating income of 10 billion 734 million yuan, an increase of 21.01% over the same period last year.