In The First Half Of 19 Years, Xinye's Net Profit Dropped By 15.09%, And Asset Liability Ratio Reached 56.10%.

Henan Xinye Textile Group Co., Ltd. (hereinafter referred to as "Xinye textile" Stock Code: 002087) published its "2019 semi annual report" in August 29th, according to semi annual report, in the first half of 19 years, due to the fluctuation of cotton prices in trade wars and international markets, business conditions declined, net profit and other indicators declined to varying degrees.

Xinye textile is one of the leading textile enterprises in the country. It is one of the 520 key enterprises in China and 50 in Henan province. It passed the ISO9002 quality system certification in 2001. The company's shares were listed on the Shenzhen SME board in November 30, 2006. Its controlling shareholder is Xinye County Finance Bureau, holding 223 million shares, pledged 111 million shares, accounting for 49.56% of its holdings. The company's main business is engaged in the production and sale of medium and high grade cotton textiles. The main products include grey fabric series products and yarn series products.

According to its semi annual report 2019, the company achieved a total revenue of 2 billion 866 million in the first half of 2019, down 10.75% from the same period last year, and realized net profit of 150 million, a decrease of 15.1% compared with the same period last year, and the earnings per share were 0.19 yuan. During the reporting period, the gross profit margin of the company was 16.2%, an increase of 0.6 percentage points compared with the same period last year, with a net interest rate of 5.2%, basically maintaining the same level in the same period last year.

In addition, non recurring gains and losses totals -1584.6 million, which has a greater impact on net profit. After deducting the non recurring gains and losses, the net profit to the mother was 170 million yuan, a slight decrease of 0.37 percentage points. The 2019 half year business cost of the company was 2 billion 400 million, down 11.4% from the same period last year, higher than the decline rate of operating income 10.7%, and the gross profit margin increased by 0.6%. Total assets decreased by 4.67% to 930 million yuan over the same period last year, of which the main yarn product revenue was 1 billion 815 million yuan in the current reporting period, accounting for 63.31% of the total revenue. As of the reporting period, the liabilities of the company were 5 billion 219 million yuan and the asset liability ratio was 56.10%. Xinye textile in its semi annual report shows that the development of the textile industry will still face greater pressure, and the textile industry has entered a new normal from the rapid growth to the medium speed growth stage.

In the next few years, the core of the development of the industry is to promote transformation and upgrading, change the dependence on investment driven and factor driven, and turn to rely on innovation in technology, brand, management, system, mechanism and business mode to promote the development of the whole industry. It also suggests risk. In the next few years, the company will face the following two risks: (1) the risk of domestic and foreign economic and market environment changes; (2) the risk of raw material price fluctuation. In the first half of 19, the operation of the company declined, and Xinye textile responded in its semi annual report: since 2019, influenced by many factors, such as domestic and international economic situation, Sino US trade war and market demand changes, the price of cotton has been fluctuating violently, thus increasing the difficulty of the company's cost control, and to a certain extent, it has affected the company's profit level.