Xinhua Jin (600735):2019 Net Profit Of 78 Million 423 Thousand And 600 Yuan, An Increase Of 2.59%

Xinhua Jin (600735) released the 2019 annual report on April 28th evening. During the reporting period, the company achieved operating income of 1 billion 416 million yuan, an increase of 3.71% over the same period, and the net profit attributable to shareholders of listed companies was 78 million 423 thousand and 600 yuan, an increase of 2.59% over the previous year. The basic earnings per share were 0.2086 yuan, up 2.60% over the same period. The company intends to pay 0.63 yuan (including tax) for every 10 shares.

Steady growth in performance, insisting on cash dividends and return shareholders

In 2019, in the face of severe and complicated international trade environment, Xinhua Jinhua actively layout Kampuchea hair products and Bangladesh textile production base by means of capital increase and cooperation, so as to achieve overseas orders and overseas shipments for us as far as possible, optimize supply chain management at the same time, strengthen cooperation with core suppliers, and enhance the response speed and quality control level of product supply chain system. 。 The company also tap potential from the inside to increase efficiency, effectively reduce management costs, thereby reducing the impact of unfavorable factors in the international trade environment on the company's business development to a minimum.

During the reporting period, Xinhua brocade continued to focus on the processing and export of hair products and textiles. Its hair products business continued to grow, achieving a revenue of 1 billion 110 million yuan, an increase of 12.46% over the same period last year. The textile business realized a revenue of 294 million yuan and a gross margin of 11.84%, representing an increase of 2.49 percentage points over the same period last year.

Xinhua said that in order to share business results with all shareholders of the company, the company intends to distribute cash dividends of 0.63 yuan (including tax) for every 10 shares in 2019, and the cash dividends amount to 23 million 687 thousand and 500 yuan, accounting for 30.20% of the company's net profit attributable to shareholders of listed companies in 2019.

It is worth mentioning that Xinhua Jinhua has paid cash dividends to shareholders for three consecutive years, and the dividend payout ratio is above 30%.

Fully expand the used car business, actively layout new graphite materials industry

In August 2019, Xinhua Jinhua Automobile Trading Co., Ltd., a wholly owned subsidiary of Xinhua Jinan, obtained the second-hand vehicle export license issued by the competent commercial department. It was put on record as one of the first "second-hand car export enterprises in Qingdao" and completed the export business of Qingdao's first single used car.

Automobile trading companies utilize the advantages of overseas customers and the advantages of foreign trade channels to study and analyze the customer demand and vehicle preferences of the used car exporting countries, and determine the export strategy based on commercial vehicles. By the end of 2019, the company had declared 46 second-hand cars exported. The number of export cars ranked the top of the second-hand car export pilot enterprises in Qingdao, accounting for more than 50%, and initially formed a second-hand car export business mode with differentiated competitive advantages.

In addition, Xinhua and Japan's well-known second-hand car listed company Carchs business cooperation, joint venture set up a second-hand car joint venture company Xin Chi automobile company, with Carchs company in second-hand car inspection, inspection, evaluation, leasing and sales of rich experience, jointly promote the second-hand car export business, as soon as possible to expand the scale of second-hand car export business.

In order to achieve diversified development of the company's business, in February 2020, Xinhua bought its 50% stake in Qingdao sinhui graphite Co., Ltd., with its own funds to the related party Shandong Xinhua Jinxin Mstar Technology Ltd, and completed the registration of industrial and commercial changes in April 16th.

Xinhua said that after the completion of the above M & a business, the company will start from graphite deposit assets, concentrate on energy and resources for the layout of new graphite materials industry, enhance the added value of graphite products through independent research and development, technological innovation, build up a new graphite material chain through external M & a, and establish a multi-level graphite product system, so as to effectively reduce the international market. The impact of trade environment and unexpected factors on the existing export business of the company.