Weiqiao Textile (02698): Net Profit In 2021 Increases By 199.5% Year On Year

Weiqiao textile (02698. HK) announced that for the year ended December 31, 2021, revenue increased by about 27.6% over the same period last year to about RMB 16.263 billion. The net profit attributable to owners of the company increased by 199.5% over the same period last year to about 614 million yuan. Earnings per share increased by about 200.0% from last year to about 0.51 yuan. The board of Directors proposes to pay the final dividend of RMB 0.18 per share (including tax) for the year ended December 31, 2021.

The group's revenue increased by about 27.6% over the same period last year; Among them, the textile revenue increased by about 32.5% year-on-year, mainly due to the gradual recovery of domestic and foreign textile and clothing market consumption, the overall increase in textile demand, the group's sales volume of major textile products increased year-on-year, and the sales price also increased compared with the same period last year. Electricity and steam revenue increased by about 17.4% year-on-year, mainly due to the rise in the price of raw materials and coal. The group raised the electricity sales price according to the established sales price mechanism.

The net profit attributable to owners of the company increased by 199.5%, mainly due to (1) the gradual recovery of domestic and foreign textile and clothing market consumption, the overall increase in demand for textiles, the group's sales volume of major textile products increased year on year, and the sales price also increased compared with 2020; In 2020, due to the adverse impact of the epidemic, the group's net profit level is at a low level; And (2) the group's electricity business on the one hand, the demand of downstream customers for electricity is reduced, resulting in a decrease in the group's electricity sales compared with that in 2020; On the other hand, the fluctuation of coal price of main raw materials leads to the rise of electricity production, and the electricity sales price adjusted according to the established sales price mechanism lags behind. Under the influence of the above factors, the group's gross profit on electricity sales decreased significantly compared with the same period last year.