Huamao Shares (000850): Three Quarter Profit Fell 16-19 Times Compared With The Same Period

In October 14th, Huamao shares disclosed the performance forecast for the first three quarters of 2019.

The company expects net profit of 230 million yuan to 280 million yuan attributable to shareholders of Listed Companies in the first three quarters, an increase of 71.86% to 109.22% over the previous year, and a basic earnings per share of about 0.244 yuan to 0.297 yuan. It is estimated that the net profit of the shareholders belonging to the listed companies and the shareholders of listed companies will be -3000 yuan to -2500 million in the third quarter, a decrease of 1638.94%-1946.72% from the same ratio, and the basic earnings per share will be about -0.032 yuan to -0.026 yuan.

Huamao shares said that during the reporting period, the proceeds from the sale of some shares held by Guotai Junan Securities and the net proceeds from the dividends identified by the company under the accounting standards increased the net profit attributable to shareholders of the listed companies in accordance with the accounting standards. At the same time, the company actively pushed forward the structural adjustment and transformation and upgrading of the textile business, and the textile business profits rebounded steadily. Since January 1, 2019, the company has implemented the new accounting standards for financial instruments. The financial assets of Guotai Junan, Guang Fa securities, Tuwei information and network software such as Guotai Junan, GF Securities, Tuo Wei information and net Da software, which were accounted for by fair value, were reclassified to account for the financial assets that were measured in fair value and included in the current profits and losses.

In addition, the company said that during the reporting period, the increase in the fair value of such financial assets increased the net profit attributable to shareholders of the listed companies this year. The profit from July 1, 2019 to September 30, 2019 was negative, mainly because of the implementation of the new accounting standards for financial instruments. The decrease in the share price of the stock financial assets held during the above-mentioned period resulted in a decrease in the fair value change.