Wei Qiao Group Profit 8 Billion 700 Million Down 33.8% Pieces Of The Son Of The Son Of The Pass

In May 17th, 02698.HK, a listed company, was condemned by the Listing Committee for violating certain listing rules.

This is the "richest man in Shandong" after Zhang Shiping announced his retirement. Wei Qiao textile was punished by the regulatory authorities for the first time.

As early as last September, Zhang Shiping announced the retirement of "cross rod" to his son Zhang Bo.

Not long ago, in May 15th, some media reported that Zhang Shiping was sent to hospital for treatment because of advanced cancer.

The pcript submitted by Wei Qiao group after the handover is not very satisfactory.

In 2018, the annual sales revenue of Wei Qiao group was 283 billion 500 million yuan, and its profit was 8 billion 700 million yuan, down 21% and 33.84% respectively compared with the same period last year.

In addition, Wei Qiao group has stepped on the environmental protection red line many times.

Whether or not the advantage of the Wei Qiao group leaving Zhang Shiping's helm can be sustained, capital and market are watching.

Recently, the Listing Committee of the stock exchange condemned that Wei Qiao textile violated the listing rules, and did not comply with disclosure and shareholder approval requirements for some related pactions and delayed financial reporting.

The Committee further condemned Zhang Hongxia, chief executive officer and chairman of the company, Zhao Suwen, chief financial officer, and Zhang Chun Lei, the company's secretary, who violated the responsibilities of the directors' statements and commitments.

The Committee issued a number of instructions to the company, including the company's need to appoint an independent compliance consultant who is satisfied with the listing department in the next two months. It will continue to provide advice on compliance with the Listing Rules in the next two years, as well as 24 hours of training on compliance matters and directors' duties.

This is the "richest man in Shandong" after Zhang Shiping announced his retirement. Wei Qiao textile was punished by the regulatory authorities for the first time.

Under the Zhang Shiping family, there are three listed companies, Wei Qiao textile, China Hongqiao and hongchuang holdings.

Industry across the two major industrial clusters of textiles and aluminum and the industrial scale is among the highest in the world.

The 2018 Hurun rich list shows that the Zhang Shiping family ranked twenty-sixth in the country with 65 billion yuan in wealth and continues to reclaim the throne of Shandong's richest man.

According to public information, Wei Qiao group is located at the south end of Lubei plain. It is a large enterprise with 11 production bases, including textile, dyeing and finishing, clothing, home textiles, thermoelectric and other industries.

Since 2012, Wei Qiao group has been selected as the top 500 in the world in six consecutive years. In 2017, the group also ranked thirty-sixth in the top 500 of Chinese enterprises, and third in China's 500 private enterprises, second only to HUAWEI and Suning.

Wei Qiao group started its own textile industry, from self spinning mill to Wei Qiao textile, to self owned power plant and self built power grid.

Wei Qiao group has triggered a major discussion on the power supply system because the average electricity price level is more than 30% lower than that of the national grid.

Wei Qiao group also reduced its production cost by running alone, and opened up many new industries such as aluminum, heating, clothing, printing and dyeing.

But at the same time, because of its own power plant, Wei Qiao group was repeatedly named by the environmental protection department.

Statistics show that in August 2017, Wei Qiao group was punished by the Environmental Protection Bureau of Zouping, Binzhou, for storing hazardous waste such as electrolyzer, slag and slag in red mud.

At the end of 2017, Wei Qiao group was criticized by the environmental Inspectorate group for its "illegal construction of its own power plant".

The founder was in danger and his listed company disclosed the violation.

Can the advantages of the giant Wei bridge continue?

With the disclosure of the annual reports of its three listed companies, the operation of the Wei Qiao group is also clear at a glance.

From the group level, at the end of 2018, Zhang Shiping disclosed the operating performance in 2018 at the Wei Qiao group company conference: sales revenue was 283 billion 500 million yuan, and profit was 8 billion 700 million yuan.

In 2017, the sales revenue of Wei Qiao group was 359 billion yuan, and its profit was 13 billion 150 million yuan.

Sales fell 21.03% in 2018, and profits fell by 33.84%.

As the main business of Wei Qiao group, Wei Qiao textile announced its annual report recently. In 2018, its income was 16 billion 456 million yuan, up by 0.5% compared with the same period last year. Gross profit 1 billion 720 million yuan decreased by about 2.8% compared with the same period last year; net profit 644 million yuan, an increase of 23.4% over the same period last year.

As a pillar industry of Wei Qiao group, China's macro bridge revenue has declined.

The annual report shows that in 2018, China's macro bridge revenue was about 90 billion 110 million yuan, a decrease of about 7.9% compared with the same period last year. Gross profit was about 15 billion 400 million yuan, a decrease of about 6% compared to the same period last year, and the net profit attributable to shareholders was about 5 billion 410 million yuan, an increase of about 5.4% compared to the same period last year.

China Hongqiao said the decline in revenue was mainly due to the closure of some aluminum alloy production lines in response to the supply side reform of China's aluminum industry in the second half of 2017, resulting in the reduction in output and sales of aluminum products during the year compared with the same period last year.

It is worth noting that in 2018, sales of China Hongqiao aluminum alloy products declined.

The annual report shows that China's sales of Hongqiao aluminum products reached about 5 million 865 thousand tons, down about 18% from about 7 million 155 thousand tons a year ago.

During the year, the sales volume of aluminum alloy products reached about 493 thousand tons, up about 31.1% from 376 thousand tons a year ago, and the sales volume of alumina products reached about 4 million 90 thousand tons, up 1 million 877 thousand tons compared with the same period last year, representing an increase of about 117.9% over the same period last year.

China's Hongqiao was affected by the reduction in sales of aluminum products, gross profit decreased by about 980 million yuan compared with the same period last year and the exchange loss was 790 million yuan in the year.

However, due to the closure of some aluminum alloy production lines in 2017, the impairment loss of property, plant and equipment included in other expenses during the year was still significantly lower than that of the same period last year, resulting in an increase in net profit attributable to shareholders of the company this year.