Nanfang Stock (600250): Double Main Business Strategy Promotes Transformation And Upgrading

Field direct to Nanfang stock shareholders meeting: "double main industry" strategy to boost transformation and upgrading

Nanfang stock (600250) landed on the main board of the Shanghai Stock Exchange in 2001. It is the first foreign trade listed company in Nanjing, mainly engaged in the import and export business of textile, silk, knitting, clothing, machinery and electrical equipment, light industry, chemical industry, medicine and so on. Last year, on the basis of the original trade business, Nanfang textile company entered the cultural tourism industry through buying 51% stake in Qinhuai scenery, forming a "tourism + trade" double main business development mode. So what is the profit of the acquired Qinhuai scenery? How big is the impact of the epidemic this year? How to achieve the "double main business" synergy development in the future?

Enter the cultural tourism industry to achieve transformation

On the afternoon of June 29th, the annual shareholders meeting of Nanfang shares in 2019 was held at the conference room on the third floor of No. 18 Bridge East Street in Qinhuai District, Nanjing. After the meeting, Zhang Jinyuan, deputy director of Nanfang Textile Co., received an interview with the mass media reporter.

As a traditional large foreign trade enterprise, the main industry transformation of Nanfang shares has been attracting much attention from investors in recent years. In 2019, with the slowdown of Global trade growth, the escalation of Sino US trade frictions, and the severe situation of domestic and foreign trade, especially the textile and garment trade, Nanfang Textile Co., Ltd. successfully implemented the restructuring and transformation and entered the cultural tourism industry.

In June 10th last year, as a platform for the securitization of tourism assets of tourism group, Nanfang shares planned to issue shares to buy 51% stake in the new three board company owned by Confucius Temple Wen brigade, and raised the matching funds to the tourism group's non-public offering shares by no more than 80 million yuan. The project was approved at the end of November and implemented at the end of the year, which is one of the fastest restructuring projects in the restructuring of state assets in recent years.

After the completion of the acquisition, Nanfang shares officially entered the cultural tourism industry, and cultural tourism business became one of the main businesses. In recent years, the original trade main industry of Nanfang textile has gradually transferred to the subsidiary Nanjing Nanfang and its three joint venture companies. Through the successful acquisition of the 51% equity interest of Qinhuai scenery, the "tourism + trade" double main industry development mode has been initially constructed.

Due to the completion of restructuring at the end of December last year, the merger of Qinhuai scenery incorporated into Nanfang stock annual report was only a few days, and it was hardly reflected in the annual report of Nanfang stock. Annual report data show that in 2019, Nanfang shares realized 905 million yuan in business revenue, down 10.58% from the same period last year, and realized net profit of 109 million yuan, down 41.44% from the same period last year.

What is the profitability of Qinhuai's scenery? Is there any further layout of the tourism industry this year? How will the two main industries be coordinated in the future?

"The profit of Qinhuai's scenery is related to the letter, and the concrete data still need to wait for the Qinhuai scenery and the company's semi annual report in 2020." Zhang Jinyuan told the public securities reporter.

For this year's further layout of the tourism industry, Zhang Jinyuan said: "according to the medium and long-term development strategy to the cultural tourism industry transformation, and the tourism group's commitment to promote the transformation of listed companies, Nanfang shares will continue to promote the tourism group to inject excellent tourism assets resources into the company in 2020, and introduce professionals to actively carry out the integration of internal resources. External quality tourism project mergers and acquisitions, and strive to promote the transformation of the company. Specific investment in M & A projects can focus on company announcements.

Foreign trade and cruise business are gradually recovering.

Entering the 2020, the new crown pneumonia epidemic brought challenges to the development strategy of the double main business of "tourism + trade". The epidemic has great impact on the tourism industry which has been developing rapidly in recent years. As a tour item in the core scenic spot of the Confucius temple - Qinhuai scenic area, Qinhuai scenery and pleasure boat business is inevitably affected.

Data show that in the first quarter of 2020, Nanfang shares realized 113 million yuan of business revenue, down 22.86% compared to the same period, and a net loss of 12 million 223 thousand and 700 yuan. Then, how did the company suffer from the epidemic in the two quarter and whether it weakened or not? What is the extent of the impact of the epidemic on the company's annual performance in 2020? What measures do the management of the company have to deal with the adverse effects of the epidemic?

"A new crown outbreak in 2020 has had an impact on various sectors of the national economy, and the tourism industry and trade industry of the company has been greatly affected. With the improvement of domestic epidemic situation, the company's foreign trade and cruise business is gradually recovering. The impact of the epidemic on the company's 2020 annual performance is not yet expected. Zhang Jinyuan said that in the face of the epidemic situation, the company has formulated a series of marketing promotion, product innovation and service improvement measures according to different business classification policies. The trade business focuses on innovating business models, expanding trade channels and optimizing trade structure. At the same time, it strictly controls cost and costs, and strives for favorable policy support, and strives to bring the epidemic situation into effect. The noise dropped to a minimum.

Zhang Jinyuan further said that the Qinhuai scenery was resumed in late February, and Nanfang textile company took active marketing measures to promote consumer confidence with the promotion of scenic spots. The follow-up will continue to implement epidemic prevention and safety work on the one hand, and on the other hand, to meet the student tide from July to August, the peak of the National Day golden week, and the growth of tourist scale and the weekend evening peak after recovery. Carrying capacity reserves. At the same time, we should increase sales of shipping tickets through various channels, dig deeper into tourist demand, develop diversified tourist products and enhance business scale.

In recent years, the two level market of Nanfang shares has been in a doldrums, and the share price has dropped to below 6 yuan. Whether the performance of stock price reflects the value of Nanfang shares and whether there is any market value management measures in the future, Zhang Jinyuan said: "the fluctuation of stock prices in the two tier market is influenced by multiple factors such as market, industry, policy and investors. Since the outbreak of the outbreak, the production and operation of the company has been affected, and now it has been fully resumed and resumed production. The internal production and operation order is normal, and the fundamentals of the company have not changed significantly. The management of the company is diligent and conscientious, and continuously strives to improve the company's management and profitability, and strive to create better value returns for all shareholders.