In 2018, The Revenue Of Wei Qiao Textile Was 16 Billion 400 Million, And The Total Cost Of 52 Thousand Employees Was Over 3 Billion 300 Million.

The largest textile enterprise in the world, the Wei Qiao textile Limited by Share Ltd (hereinafter referred to as "Wei Qiao textile"), announced the annual performance announcement for the year ended December 31, 2018. During the reporting period, the company realized revenue of 16 billion 456 million yuan, an increase of 0.5% over the same period, a gross profit of 1 billion 720 million yuan, a decrease of 2.9% over the same period last year, and a net profit of 644 million yuan for the company owners, an increase of 23.3% over the same period last year. The basic and diluted earnings per share of the company were 0.54 yuan, and the final dividend of the company was 0.1656 yuan, which was expected to be issued at the end of March 15th.

Wei Qiao textile is mainly engaged in the production and sale of cotton yarn, grey cloth and denim, as well as the production and sale of electricity and steam.

In terms of textile business, Wei Qiao textile is sticking to the new development concept. It always centers on improving the quality and efficiency of development, speeds up structural adjustment, pformation and upgrading, and continues to take a new step in pushing forward the development of high quality. It has gone out of the road of pformation and upgrading of traditional manufacturing industry, and has launched 1912 new products throughout the year.

A series of new products of the group has won various awards.

Cotton products were named "single champion products in manufacturing industry" by the Ministry of industry and commerce.

The company has also been selected by the China Textile Industry Federation quality award on-site audit and selected as the first batch of pilot enterprises for intelligent manufacturing in textile industry.

At the same time, Wei Qiao textile industry will seize the opportunity of pformation and upgrading of the industry, continuously strengthen the capacity advantages, continuously promote management innovation, technological pformation and reduce costs and increase efficiency, improve automation level and production efficiency, reduce labor intensity and production costs, and enhance business competitiveness and competitiveness.

Wei Qiao textile will continuously increase R & D investment, improve product structure, extend to the high end of the industrial chain, and continue to introduce high value-added and high technology fiber and fabric products, leading the pformation of textile manufacturing industry.

In terms of power and steam business, Wei Qiao textile promotes management efficiency, reduces related losses, and further optimizes the production efficiency of self owned power plants.

The Group actively promotes green development, and sets up a flue gas dedusting device and a desulphurization and denitration device for all its generating units, so as to fully realize ultra-low emission.

At the same time, the group will accelerate the pformation of desulphurization wastewater zero discharge and circulating water defluoridation project.

Wei Qiao textile will also constantly optimize the production efficiency and operation level of the self owned power plant, and continuously enhance the overall revenue of the company.

At the same time, we must continue to fulfill the social responsibilities of energy conservation and environmental protection with high standards and strict demands. We must adhere to green development, continuously increase environmental protection investment, and implement environmental protection in a bid to raise standards and pform, so as to lay a good foundation for the long-term healthy development of the group.

In addition, Wei Qiao textile will further strengthen capital management and optimize debt structure. Under the premise of maintaining the group's continuous operating capacity and sufficient liquidity, it will further reduce the level of debt and capital costs and increase the return on equity so as to maximize the interests of shareholders.

In the future, Wei Qiao textile will focus more on innovation driven, intelligent manufacturing and green development. It will promote high quality development, reduce costs and increase efficiency, strive to build high-quality teams and create value for shareholders.

As of the end of December 31, 2018, the income of Wei Qiao textile cotton yarn increased from the same period last year, mainly because the group adjusted its production plan according to market conditions and increased the sales of cotton yarn. The decline in grey fabric revenue was mainly due to factors such as rising cost of production factors and trade friction, which led to a lower demand for textile downstream compared with the same period last year, and sales decreased year-on-year.

The growth of denim revenue was higher than that of the same period last year, mainly due to the adjustment of product structure by Wei Qiao textile in accordance with the market demand, and the digestion of some stocks, resulting in increased sales of denim.

During the reporting period, Wei Qiao textile continued to implement the sales strategy of both internal and external sales. Overseas sales accounted for about 33.6% of the income of textile products, and domestic sales accounted for about 66.4%.

There is little change compared with last year, maintaining balance.

During the reporting period, the output of weimqiao textile cotton yarn was about 421 thousand, an increase of about 6.9% compared with the same period last year, and the output of grey cloth was about 897 million meters, a decrease of about 2.6% compared with the same period last year. The denim output was about 70 million meters, which was basically the same as that of the same period last year.

During the reporting period, the installed capacity of Wei Qiao thermoelectric assets is 2760 MW, which is consistent with the same period last year.

In 2018, the power generation capacity of Wei Qiao was about 18 billion 548 million kwh, representing an increase of about 6.3% over the same period last year.

Electricity sales of about 16 billion 102 million kwh, an increase of about 6.5% over the same period last year, mainly due to the increase in electricity generated by Wei Qiao textile market according to market demand and the corresponding increase in electricity sales.

By the end of December 31, 2018, the sales of electricity and steam from Wei Qiao textile company were about 5 billion 938 million yuan, up about 5.4% from the same period last year, generating a gross profit of about 1 billion 439 million yuan, a decrease of about 2.4% compared with the same period last year.

The gross profit of electricity and steam decreased compared with the same period last year, mainly due to the rising cost of raw materials and other factors during the year.

By the end of December 31, 2018, the gross profit of Wei Qiao textile and textile products was reduced by about 4.7% from last year to about 281 million yuan, mainly due to the increase in the cost of raw materials and the increase in staff costs in Wei bridge during the year.

The gross profit of electricity and steam sales decreased by about 2.4% compared with the same period last year, to about 1 billion 439 million yuan, and the gross margin was about 24.2%, representing a decrease of 2 percentage points over the same period last year, mainly due to the rising cost of raw materials and other factors.

By the end of December 31, 2018, the cost of sales and distribution of Wei Qiao textile was about 166 million yuan, an increase of about 4.4% over the same period last year of about 159 million yuan.

Transportation costs decreased by about 2.9% yuan from around 104 million yuan last year to about 101 million yuan.

Sales staff salaries of about 38 million yuan, an increase of about 11.8% compared with the same period last year, about 34 million yuan, mainly due to the Wei Qiao textile increased the sales staff salaries and welfare during the year.

The sales commission is about 16 million yuan, up about 23.1% from about 13 million yuan in the same period last year, mainly due to the increase in export sales of Wei Qiao textile through intermediaries, and the corresponding increase in the Commission.

As of December 31, 2018, the administrative cost of Wei Qiao textile was about 277 million yuan, an increase of about 7.8% compared to that of last year's RMB 257 million yuan, mainly due to the increase in wages and benefits of Wei Qiao textile administrative staff.

As of December 31, 2018, the financial cost of Wei Qiao textile was about 376 million yuan, about 28.1% less than that of the same period last year, which was about 523 million yuan.

The main reason is that Wei Qiao textile further reduced its debt level and optimized its debt structure during the year, repaying part of the interest bearing bank loans and corporate bonds.

Wei Qiao textile mainly used cash inflow to meet the needs of working capital. During the reporting period, the net cash inflow of Wei Qiao textile business activities was about 1 billion 996 million yuan, and the net cash flow from investment activities was about 181 million yuan, and the net cash flow from financing activities was about 4 billion 942 million yuan.

As of December 31, 2018, the cash and cash equivalents of Wei Qiao textile were approximately 9 billion 597 million yuan, representing a decrease of about 24.6% compared to the cash and cash equivalents in December 31, 2017 of about 12 billion 723 million yuan, mainly due to the repayment of some interest bearing bank loans and corporate bonds by the group during the year.

The group will continue to take effective measures to ensure adequate liquidity and financial resources to meet business needs and maintain a sound financial position.

By the end of December 31, 2018, the liabilities of Wei Qiao textile were mainly about RMB 1 billion 925 million yuan (December 31, 2017: about 3 billion 262 million RMB) and about 963 million yuan (about 3 billion 963 million yuan) in December 31, 2017, with cash and cash equivalents of about 9 billion 597 million yuan (December 31, 2017: about 12 billion 723 million yuan).

As of December 31, 2018, the capital liability ratio (net liabilities (interest bearing bank loans and other borrowings excluding cash and cash equivalents) divided by the total value of equity) was about -36.4% (December 31, 2017: about -30.6%).

In terms of capital operation, Wei Qiao textile further reduced its debt level and optimized its debt structure. It paid 3 billion yuan of domestic corporate bonds at maturity, and at the same time repaid part of the interest bearing bank loans, which correspondingly reduced the financial cost.

Wei Qiao textile uses interest rate and interest rate debt portfolio to manage interest costs. By the end of December 31, 2018, about 86.8% of bank loans of Wei Qiao textile company were calculated at fixed rate, and the remaining 13.2% was calculated at floating rate.

During the year, the net repayment of bank loans by Wei Qiao textile was about 1 billion 337 million yuan, and the redemption of corporate bonds was about 3 billion yuan.

In the future, Wei Qiao textile will further strengthen its capital management and optimize its debt structure, and further reduce its debt level under the premise of maintaining the group's continued operation capability and sufficient liquidity.

In the 2019 year, Wei Qiao textile has about 963 million yuan of corporate bonds which will expire. At that time, Wei Qiao textile is expected to repay the principal and interest of the bonds in full and on time with cash in cash.

After repayment of these bonds, it is expected that the liability of Wei Qiao textile will further decline.

Wei Qiao textile will also consult with the banks concerned to further optimize the debt structure and reduce the level of debt.

As of December 31, 2018, Wei Qiao textile had about 52000 employees, representing a decrease of about 3000 compared with the same period last year.

The reduction of personnel is mainly due to normal personnel turnover in the year. During the reporting period, the total cost of Wei Qiao textile staff was about 3 billion 332 million yuan, an increase of about 14.7% compared to the corresponding period of 2 billion 904 million yuan in the same period last year, mainly due to the continuous improvement of staff benefits and the increase of staff salaries in Wei bridge during the year.

Looking forward to 2019, Zhang Hongxia, chairman of Wei Qiao textile, said that the global macroeconomic environment is expected to improve gradually. However, the growth kinetic energy is expected to be weakened, and the economic and trade environment is complex and changeable.

The export environment of Chinese textiles will be more complicated. However, the pformation and upgrading of the domestic market will continue to provide the textile industry with sustained development momentum.