Tianhong Textile (02678.HK): Medium Term Net Profit Of 21.81% To 471 Million Yuan To Be Sent Medium-Term Interest Per Share 18 Hong Kong Cents.

02678.HK announced that by June 30, 2019, six months ended in June 30, 2019, the company achieved 10 billion 191 million yuan (the same unit), a year-on-year increase of 15.66%; gross profit 1 billion 381 million yuan, 6.51%, 13.5% gross profit margin, 3.3 percentage points; the company owner should account for 471 million yuan and 21.81%; the net profit rate 4.8%, down 2.1 percentage points, and the basic profit 0.51 per share; a mid-term dividend of 18 Hong Kong cents per share.

Group income is still dominated by yarn sales, but the proportion of the group's total revenue has gradually declined with the development of the downstream business. In the review period, yarn sales revenue was about 7 billion 730 million yuan, an increase of about 5.7%, accounting for about 83% of the total revenue of the group from the same period last year to about 75.8%. In the middle and lower reaches, sales of woven fabrics increased fastest and sales revenue exceeded RMB 1 billion 200 million yuan, an increase of 2.9 times compared to the same period last year, mainly due to the acquisition of North American fabric trade business in the second half of 2018, and the completion of the acquisition of Qing Ye Co., Ltd. and Zhejiang Qing Mao textile printing and dyeing Co., Ltd. in April 2019, and the merger of related businesses. Although the group's downstream business has recorded a good growth, sales and profitability need to be further improved.