Lian FA Shares Shirt Sales Steady, Textile Exports Decline

Jiangsu joint development

The limited company was in January 11, 2008, the registration bureau of foreign invested enterprises of the State Administration for Industry and Commerce issued the letter of the Nantong Administration for Industry and Commerce of Jiangsu Province on the authorization registration and management of the Jiangsu joint development textile Limited by Share Ltd. [industrial and commercial enterprises' letter (2008) 10], in January 23, 2008, the company completed the registration of industrial and commercial registration in Nantong Administration for Industry and commerce, and obtained the business license of enterprise legal person with a registration number of 320600400006064. The registered capital of the company was 80 million 900 thousand yuan.

Luen Fat shares (002394) announced 2012 August 6th semi annual report.

The company announced the 2012 China Daily: in the first half of 2012, the company achieved operating income of 1 billion 214 million yuan, operating profit of 120 million yuan, a decrease of 9.56% and 20.78% compared to the same period last year, and realized a net profit of 83 million yuan, representing a decrease of 25.36% compared with that of the parent company. The net profit attributable to the parent company after deducting non recurring gains and losses was 81 million yuan, down 27.97% from the same period last year.

According to the existing share capital, earnings per share are 0.38 yuan, net assets per share is 9.86 yuan, and net assets yield is 3.91%.

Bonus plan: 10 to send 1.5 yuan (including tax).

In addition, the company intends to distribute cash to all shareholders on the basis of the total share capital as at the end of June 30, 2012, sending RMB 1.5 yuan (including tax) for every 10 shares and paying 32 million 370 thousand yuan for cash, and this profit distribution plan will not be converted into capital stock.

Sales are stable and textile export orders are declining: revenue mainly comes from clothing (shirts) and textiles (dyed fabrics, dyeing and weaving and cotton yarn) sales.

In the first half of 2012, the sales of the shirts made by the company accounted for 169 million yuan, an increase of 9.49% compared with the same period last year, and the gross profit margin increased by 6.96 percentage points to 28.02%.

In contrast, the textile business of the company was slightly inferior, of which the income of yarn dyed fabric decreased by 16.15%, to 852 million yuan, and that of printing and dyeing fabrics decreased by 13.38% to 97 million yuan.

About 7 of the company's products are exported, mainly for the European and American markets.

In the first half of the year, exports to the US, Europe and Japan fell by 15.79%, 8.31% and 21.46% respectively, due to the downturn in Europe and the United States and the impact of the Japanese earthquake.

The increase in taxes and fees has reduced the company's operating profit by 20.79% over the same period last year, which is larger than the 9.56% decline in revenue.

Yes

The unfavorable factors will continue. The company is facing performance pressure: the economic downturn in Europe and the United States, the slowdown in domestic economic growth, the larger difference between inside and outside cotton prices, and the continuous rise in labor costs.

These factors will continue to affect the development of domestic textile industry. Downstream demand changes are the main pressure facing the company, which will have an impact on the company's performance.

The company expects net profit in the first three quarters of 2012 to decrease by 20%-40% compared to 189 million yuan a year ago, and the improvement of the company's performance still needs to pick up the downstream demand.