Industry Downturn? This Chinese Cotton Textile Competition 20 Strong Last Year Net Profit 198 Million

Anhui's Huamao textile Limited by Share Ltd, which has been among the top 20 enterprises in China's cotton textile industry for many years, is the latest annual report released in 2019 in April 22nd. Its annual operating income is 2 billion 979 million yuan, up 7.1% over the same period last year. The net profit attributable to shareholders of listed companies is 198 million yuan, up 66.59% over the same period last year. Basic earnings per share of 0.21 yuan.

　　 For the performance changes during the reporting period, Huamao shares explained that the increase in the company's performance was mainly due to an increase in non operating profits and losses, as follows:

1. During the reporting period, the company realized the proceeds from the sale of some shares held by Guotai Junan Securities and the investment income recognized by the dividends of the participating companies according to the accounting standards, which increased the net profit attributable to shareholders of the listed companies in the current period.

2. Since January 1, 2019, the company has implemented the new accounting standards for financial instruments. It will be included in the fair value of the stock financial assets of Guotai Junan, GF Securities, Tuwei information and network software, which are accounted for by the fair value. During the reporting period, the increase in the fair value of such financial assets increased the net profit attributable to shareholders of listed companies.

3, the government subsidies received increased year-on-year.

The above items belong to non recurring profit and loss projects, which affect the net profit attributable to shareholders of listed companies by about 400 million yuan.

The first textile net reporter learned from the financial reports that during the reporting period, Huamao shares were awarded 18 million 590 thousand yuan by Guotai Junan Guotai Junan dividend, 4 million 100 thousand yuan of GF Securities dividends, 4 million yuan of Huizhou Merchants Bank dividends, 2 million 780 thousand yuan of Optics Valley lease financing, 2 million yuan of Chongqing gravel dividends, 72 thousand yuan of net software dividends, and 20 million 25 thousand and 600 shares of Guotai Junan Securities, earning 113 million of investment income. At the end of the reporting period, Huamao shares held 67 million 600 thousand shares of Guotai Junan, holding 20 million 500 thousand shares of GF Securities, holding 3 million 271 thousand and 500 shares of Tuwei information, holding 2 million 400 thousand shares of Internet software, and holding 71 million 486 thousand and 900 shares of Hui Merchants bank, Huamao shares held 421 million yuan.

In 2019, facing the complex and changeable macro environment, unilateral downward market test and operating pressure, Huamao shares focuses on the main business, develops cohesiveness, strengthens management, improves quality and efficiency, and maintains stable development of enterprises.

During the reporting period, Huamao shares constantly accelerate the transformation of industrial intelligence through the transformation and expansion of smart textiles and technological transformation, and enhance the kinetic energy and promote innovation. At the same time, the company continues to promote management innovation and technological innovation. The spinning factory realized seamless connection between online monitoring system and SAPERP, effectively improved management efficiency, and achieved new results in technological innovation. The "multiple spinning technology and its application" project won the first prize of the Anhui provincial science and Technology Progress Award in 2019.

The company's 150 thousand spindles intelligent spinning project, after obtaining the Ministry of industry's "intelligent manufacturing pilot demonstration", was awarded the title of "double innovation" demonstration platform of the Ministry of Commerce in 2019. The company also won the title of "national intellectual property demonstration enterprise" and "the hundred invention patents in Anhui".

New achievements have been made in the development of varieties. "Two kinds of black and green hills snow" were awarded the 2019 China International fabric design competition and the 2020 spring summer China finalists award. The three varieties of "snowflake red, azure white, and charming black gold" were awarded the 2019 China International fabric design competition and the 2020/21 autumn and winter China fashion fabric finalists Award; the "two sided opposite sex" was the best creative development of 2019/20 yarn dyed fabric new product. The first prize, "the lakes and mountains, cloud windows, fog and lattice" three varieties won the best creative development award of 2019/20 in the new year.

During the reporting period, Huamao shares declared 51 patents, including 29 invention patents and 22 utility model patents. There are 14 authorized patents, including 2 invention patents and 12 utility model patents.

Hua Mao said that the company takes innovation as the driving force and focuses on transformation and upgrading of the "126" project strategy: that is, giving full play to the synergy effect of the industrial chain, creating a new textile industry system with core competitive advantages; making the best of "industrial capital" and "financial capital"; implementing the intelligent chemical plant demonstration project, the boutique fabric brand project, and the international business expansion project. Capital platform integration project, technological management innovation, upgrading engineering and talent team building, strengthening the project and other six key projects.

According to public information, Huamao parent company, Anhui Huamao Group Co., Ltd. was founded in 1958. It is a large enterprise group with textile industry chain with cotton, spinning, weaving, fabrics, clothing and nonwoven fabrics. The group has a total assets of over 10 billion, and owns more than 20 holding companies. So far, it has achieved 44 consecutive years of profit.

Huamao stock focuses on pure, blended yarn and its fabrics, knitwear, clothing, printing and dyeing of cotton, wool, linen, silk and man-made fibres; sales of textile equipment and accessories, home textiles, and investment management. Our products include yarn series, grey fabric series, yarn dyed fabric series and functional industrial cloth.

Huamao shares produce an annual output of "Ne5-600" high-grade yarn 65 thousand tons, "silver wave" brand 120-360 cm wide high-grade grey cloth and fabric more than 10000 million meters. Both yarns and grey fabrics have won the title of "China's famous brand products" and "national customer satisfaction products". The high-grade textile fabrics produced by the company's own high quality grey fabric are made up of the international advanced dyeing and finishing technology and functional finishing technology, which are based on the high-end market, and are mainly matched with well-known clothing brands at home and abroad; functional non-woven materials. And consumer products are mainly used in the field of medical and health daily use.