Phoenix Bamboo Textile Profits In The First Half Of 17 Million 680 Thousand, Foreign Sales Revenue Growth

Recently, Fujian Feng Zhu textile Polytron Technologies Inc (Stock Code: 600493) issued the semi annual report for 2019. During the period, the business income of Phoenix Bamboo reached 512 million yuan, an increase of 17.27% compared with the same period last year. The net profit attributable to shareholders of listed companies was 17 million 683 thousand and 960 yuan, a decrease of 27.61% compared with the same period last year. Net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 15 million 687 thousand and 600 yuan, a decrease of 24.68% compared with the same period last year; and the basic earnings per share were 0.0650 yuan.

Feng Zhu said that the operating income increased by 17.27% during the reporting period, mainly due to the increase in foreign sales revenue. The main reason for achieving a 26.46% reduction in operating profit is the implementation of the policy of "coal to gas" by the parent company. The use of natural gas increases the cost of the ton steam, increases the production cost of dyeing and finishing steam and decreases the gross profit margin of the products; two, the operating profit of Jiangxi subsidiary is reduced compared with the same period. The company's net profit decreased by 27.61%, mainly due to reduced operating profit.

During the period, the total assets of Phoenix Bamboo reached 1 billion 432 million yuan, an increase of 4.33% compared with the same period last year, and net assets of 730 million yuan, an increase of 0.95% over the same period last year. The increase in net assets is mainly due to the net profit and dividends in the reporting period.

Steady growth, technology and energy industry upgrading

Feng Zhu said that in the first half of 2019, faced with the complex internal and external environment such as trade situation, exchange rate fluctuations, raw and auxiliary materials price fluctuations, environmental pressures and other complicated internal and external environment, Feng Zhu management did not forget to take the initiative, stick to its main business, upgrade the direction of industrial upgrading with technology empowerment and intelligent environmental protection, and continue to optimize and upgrade in production, marketing and management, so as to ensure stable growth of business objectives.

In terms of production management and control, phoenix bamboo has further eliminated backward production capacity, introduced advanced technology, technology and equipment, improved the technical content and quality of products, reduced energy consumption and realized green production. The company has intensified absorption of professional talents, constantly transformed technology into productive forces, and improved the competitiveness of core businesses. Feng Bamboo has further strengthened production site management, continuously improved production efficiency, saved production costs, mobilized the enthusiasm of production staff through various channels, and completed production tasks of Feng Bamboo by quality and quantity.

In terms of marketing, Feng Zhu has adhered to the brand philosophy of "focusing on details, achieving perfection", and adhered to the quality policy of "strive to provide customers with more satisfied products". On the one hand, Feng Zhu actively participates in various textile and fabric exhibition and industry exchange visits at home and abroad, strengthens the market promotion of new products, enhances the brand awareness of the new products, strives to expand new customers, improves market share, optimizes the product mix, increases the value added products, and continuously expands the brand customers. On the other hand, Feng Zhu strengthens and consolidates the original customer groups, conscientiously maintains the relationship between the original customers and ensures the realization of the business objectives; at the same time, strengthens the links with the upstream and downstream businesses; according to the demand information and trends, mastering production volume and inventory through order mode, improving the proportion of high grade, high quality, functional and environmental friendly fabric business, and strengthening the marketability and profitability of the products.

In terms of subsidiary management, Feng Zhu further strengthens the production management of Jiangxi Feng Zhu cotton spinning Co., Ltd., standardizing the business process and approval process, defining the responsibilities of the post, reducing the cost of raw materials through scientific cotton blending, and reducing consumption in the production process and improving the quality of cotton yarn by strengthening production management, technological transformation and upgrading; and promoting sales through developing new products and new customers.

Focus on change and multilevel potential

Feng Zhu said that the situation at home and abroad is still grim: the environment at home and abroad is more complicated during the reporting period, and the Chinese economy still suffers from multiple adverse factors such as trade war impact and insufficient supply of real economy. In the second half of 2019, Phoenix Bamboo may still face the impact of uncertainties at home and abroad on the market environment.

The price of cotton and cotton yarn fluctuated. In January, -4 months showed a slight oscillation in the range, and showed a downward trend in May. With the normalization of trade friction and the irrational fluctuation of dyestuff prices in recent years, Feng Zhu expects that in the second half of 2019, it may still be faced with the risk that the uncertainty of the cost of raw materials and auxiliary materials will bring to fabric costs.

In addition, with the advance of new project of phoenix bamboo, the risk of investment control risk and financial cost increase may be faced in the second half of 2019.

At the same time, we should set up reasonable cotton and cotton distribution structure, reduce the cost of raw materials and enhance competitiveness; start from the change of market demand, fully tap the potential of the company, strengthen the development and cultivation of the market, constantly focus on the RMB exchange rate trend, make full use of all kinds of financial tools to reduce the impact of RMB fluctuations on profits, continue to increase green technology research and development, maintain environmental indicators, meet the needs of many banks, create a variety of financing channels, ensure the company's capital needs, reduce financing costs, strengthen staff building, build stable and high-quality workforce, optimize labor costs, do well inspection and testing, quality certification and other international standards, and strengthen risk management and control of new projects. For this reason, Feng Zhu will pay attention to the global economic situation and domestic economic policies, and make preparations at all times; focus on the relevant information of raw and auxiliary materials such as cotton and dyestuff, and strive to accurately grasp the market and reduce procurement.