Tianhong Textile (02678.HK) Expects Medium Term Turnover To Decrease By 20~30%

In June 23rd, 02678.HK announced that the company expected to achieve its performance in the balance of payments in the 6 months ended June 30, 2020, compared with the group's net profit of 486 million yuan in the same period last year.

The group's performance has been largely retrogressive, mainly due to the adverse effects of new coronavirus pneumonia. Under the outbreak of an epidemic in the world, consumption is weak, resulting in reduced sales volume. In the same period of 2019, a one-time accounting income from acquisition was about 209 million yuan, but there was no relevant income during the current period. The board estimates that the turnover will decrease by 20% to 30% over the same period in 2019.

Despite the difficult business environment, since May 2020, the board has noticed that sales orders are picking up and consumption is improving. In addition, the group's liquidity is still abundant. The board estimated that the cash and cash equivalents of the group in June 30, 2020 would be no less than 3 billion yuan, while in December 31, 2019 it would be about 1 billion 800 million yuan. The group will closely monitor the development of market conditions and new coronavirus pneumonia, and will focus on making full use of the existing capacity for the rest of the year to enhance the profitability and enhance financial stability of the group.