Xinye Textile, Which Has More Than 1 Billion 400 Million Revenue In The First Quarter, Will Raise 570 Million To Build 165 Thousand High-End Spinning Projects In Xinjiang.

Henan Xinye textile Limited by Share Ltd (hereinafter referred to as "Xinye textile") announced a quarterly report in 2019 on the evening of April 18th. During the reporting period, the company achieved operating income of 1 billion 479 million yuan, an increase of 13.74% over the same period, and a net profit of 77 million 560 thousand yuan attributable to shareholders of listed companies, an increase of 47.93% over the same period last year.

Basic earnings per share.095 yuan.

For the performance changes during the reporting period, Xinye textile explained:

1, monetary funds decreased by 36.86% compared with the beginning of the year, mainly due to the return of bonds and loans in the first quarter.

2, accounts payable and accounts payable increased by 38.39%, mainly due to increased notes payable.

3, the non current liabilities due within one year will be reduced by 43.91% compared with the beginning of the year, mainly due to the return of bonds and loans.

4, operating profit, total profit and net profit attributable to the parent company increased by 55.83%, 55.48% and 48.47% respectively over the same period last year, mainly due to the increase in sales in 2019 compared with the same period last year, the increase in gross margin and the more government subsidies received, and the related costs were reduced.

5, the net cash flow generated by business activities in 2019 was 210.10% higher than that in the same period last year, mainly in 2018 cotton annual centralized purchase. Compared with the same period, cash purchases for goods purchased and receiving services during the current period were reduced.

6, the net cash flow from investment activities in 1-3 months in 2019 was -1208.50 million, compared with -8198.68 million in the same period last year, mainly due to the fact that fixed assets, intangible assets and other long-term assets were paid less cash.

7, the net cash flow generated by fund-raising activities is -104999.47, compared with -37131.96 million in the same period last year, mainly due to the increase in cash payments for debt repayment.

At the same time, Xinye textile announced a public offering convertible bond plan, the total amount of raised funds does not exceed 570 million yuan. After deducting the issuance cost, it will invest in the 165 thousand spinning high-end spinning project of Akesu new cotton industry (hereinafter referred to as "the recruitment and investment project").

Reporters learned here that the total investment scale of the total investment project is 610 million yuan, the project is divided into two phases, the first phase of the project is to build 65 thousand spindle combed compact spinning production line, and the two phase of the project is to build 100 thousand spindle combed compact spinning production line.

After the completion of the construction, the production scale of 165 thousand grade high grade yarns will be formed. The project will make full use of the special advantages and industrial foundation of Xinjiang in raw materials, energy and land, so as to promote the long-term healthy development of the company and further enhance the comprehensive competitiveness of the company.

At present, the project has already obtained the record registration certificate issued by the Awati county development and Reform Committee of the Awati development and Reform Committee and the Ardi ring letter [2018]194 issued by the Akesu Regional Environmental Protection Bureau, "on the approval of the environmental report form for the 165 thousand spindle spinning construction project of the Akesu NEW hair cotton industry limited liability company."

Xinye textile said that the issuance of convertible bonds would further expand the company's asset size and business scale.

After raising funds, the company's total assets and total liabilities have increased. With the gradual conversion of convertible bonds, the size of the company's net assets will continue to increase, the company's asset liability ratio will further reduce, and the ability to resist risks will be enhanced.

Public information shows that Xinye textile is one of the leading textile enterprises in the country, one of the 520 major enterprises in the country and one of the 50 key supporting enterprises in Henan province. The largest shareholder of the company is Xinye County Finance Bureau, with a holding ratio of 27.3%.

It has 8 wholly-owned subsidiaries, 1 holding subsidiaries and 1 equity joint ventures.

The main businesses include cotton spinning, cottonseed processing, cotton processing and marketing, logistics, trade and so on. It belongs to the leading enterprises of cotton spinning and weaving industry, and the company mainly produces and sells yarn and grey cloth.

According to the financial report, in 2018, Xinye textile realized business income of 6 billion 59 million 900 thousand yuan, an increase of 16.64% compared with the same period last year. The net profit attributable to shareholders of listed companies was 386 million yuan, an increase of 32.27% over the same period last year. The net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 363 million yuan, an increase of 32.47% over the same period last year; the basic earnings per share were 0.4731 yuan; and every 10 shares were distributed with a cash dividend of 0.50 yuan (including tax).

Xinye textile explained that during the reporting period, the main driving factors of the company's performance were: stable growth of yarn business, 2018 yuan yarn revenue 3 billion 819 million yuan, an increase of 32.28% over the same period; the knitted fabric project was put into operation, bringing about the growth of fabric business, and the fabric fabric realized 1 billion 495 million yuan in the reporting period, an increase of 13.75% over the same period.

In the industry view, the increments of Xinye textile revenue during the reporting period mainly come from two aspects: first, the two phase of Xinjiang Jinyuan (100 thousand spindles and 5000 rotor spinning) projects and the climbing capacity of the 120 thousand spindles intelligent spinning project, two of which is the commissioning of the high-end knitted fabric project.

According to the financial report, in 2018, Xinye textile yarn business income increased 32.27% to 3 billion 820 million yuan, an increase of about 12.7 percentage points, and revenue increased 7.45 percentage points to 63.04% over the same period last year.

The downstream demand of white yarn is relatively stable, and the demand for large customers is strong. The company has achieved the operational efficiency enhancement of yarn business through continuous research and development, maintaining a relatively high proportion of new products and precise marketing.

During the reporting period, yarn production increased by 12.76% over the same period last year, sales grew by 24.78% year-on-year, lower than the revenue growth rate of 32.27%, while the yarn production and sales rate increased by 8.22 percentage points to 85.36% compared with that of the previous year, while the gross profit margin of yarn business was 18.70%, a slight decrease of 0.46 percentage points compared with that of the previous year, and was relatively stable.

The domestic knitted fabric industry has been slowing down in recent years. Combined with the consideration of the balance of production and marketing and the expected revenue, the company reduced the capacity of the high-end knitted fabric project in 2016 (30 thousand tons reduced to 20 thousand tons). The project was completed and put into operation at the end of 6 in 2018.

During the reporting period, the company's gray fabric business income increased 13.77% to 1 billion 495 million yuan, an increase of 11.5 percentage points compared with the same period last year, and the gross profit margin increased by 0.37 percentage points to 18.64% over the same period.

It is expected that the project will reach full production in the second half of 2019, and there will be room for further growth in the performance scale of the grey fabric business.

Chen Bo, a Fortune Securities analyst, said that as the leading producer of white yarn, Xinye has a higher rate of new textile products and faster growth of yarn business. In 2019, Xinjiang's 165 thousand spindles spinning project is expected to go into operation and bring about incremental performance. In addition, Xinye textile's 20 thousand ton high-end knitted fabric project is expected to reach full production in the second half of 2019, and the performance scale of grey fabric business is expected to further increase.

At present, Xinye textile has a total capacity of more than 170 million spindles, and Xinjiang and Henan new field headquarters are all distributed. The advantages of cost subsidies, such as government subsidies and income tax concessions brought by certification of new and high technology enterprises, are still more prominent in 2019.

"Productivity driven" + "production and sales booming" performance growth logic unchanged.

However, when cotton prices are rising for a long time, the impact of policy changes on the industry and Xinye textile industry is worth the industry's attention.