Changshan North Ming (000158):2018 Net Profit Decreased 47.61% To 186 Million Yuan In The First Quarter Of 13 Million Yuan -1500 Loss

Ge Long Hui April 14th Changshan North Ming (000158.SZ) issued 2018 annual performance bulletin, operating income of 9 billion 656 million yuan, a year-on-year decrease of 14.20%; total profit of 275 million yuan, a decrease of 20.72% over the same period; net profit attributable to shareholders of listed companies 186 million yuan, a year-on-year decrease of 47.61%; base earnings per share of 0.11 yuan.

The main reason for the decline in operating income is that the textile sector, while focusing on improving the quality and efficiency of trade management, has also had a certain impact on the scale of trade operations.

The main reasons for the decline in net profit are: (1) the 2017 disposal of shares in the textile sector resulted in a year-on-year decrease in the investment income, as well as the sale of inventory commodities and disposal of fixed assets in the current period. The provision for deferred income tax has been increased over the same period, resulting in a decrease in net profit.

(2) the main reason for the software sector is to increase market expansion and other reasons this year, resulting in an increase in management fees and sales expenses, as well as increased borrowing costs and rising financing costs, resulting in an increase in financial expenses over the same period, resulting in a year-on-year decrease in operating profits.

In addition, the company expects a net loss of 13 million yuan in the first quarter of 2019 to shareholders of listed companies, -1500 yuan, a loss of 21 million 690 thousand yuan in the same period last year.

In the first quarter of 2019, the net profit attributable to shareholders of listed companies was the main reason for the reduction of net profit over the same period last year. The textile sector promoted revenue and profit growth through measures such as optimizing the variety structure, precise control and strict examination. Software sector revenue increased steadily on the basis of the same period last year, maintaining good growth momentum and driving gross profit growth. In addition, the recovery of accounts receivable in the current reporting period rushed back to the provision for bad debts, which increased profits.