Tianhong Textile Medium Term Revenue Is 8 Billion 812 Million Yuan Denim Clothing Business Growth Of 75% Yuan

In the afternoon of August 13th, (02768.HK) released the first half of 2018.

According to the financial report, the total revenue in the first half was 8 billion 812 million yuan, an increase of 18.3% over the same period, the gross profit margin increased by 1.4% to 16.8%, and the net profit margin fell 1.8% to 6.9%.

Shareholders should earn 602 million yuan in profits.

Interim dividend of 23 Hong Kong cents per share.

It is worth noting that, if the 2017 acquisition is deducted.

The impact of the one-time revenue, equity holders should account for an increase of profits of about 20.9% yuan, 104 million yuan, net profit margin will rise 0.1%.

Tianhong textile is mainly engaged in manufacturing and sales.

Fabric and clothing.

Business areas include mainland China, Hongkong, Macao, Vietnam, Kampuchea and Nicaragua.

Classification, the company sells mainly yarn.

In the first half of the year, yarn sales revenue was 7 billion 310 million yuan, accounting for 83% of total revenue.

According to the results of the report, the yarn production is 340 thousand tons, and the new yarn production can only meet the external demand after meeting the internal demand.

As part of the yarn is used for weaving within the group, the number of yarn sold abroad has increased slightly by 5.1% to about 317 thousand tons.

The abnormal market demand in the same period last year did not appear in the review period this year, and the gross profit margin of yarn returned to the normal range of 18.3%.

Grey cloth, in the second half of 2017, after the beginning of trial production of the grey fabric factory in northern Vietnam, although the production capacity is still in the adjustment stage during the review period this year, the sales of gray fabric increased by about 58.4% to more than 44 million meters over the same period last year. Thanks to the partial vertical integration of Vietnam's cloth mill and the cotton mill, the gross profit margin of grey cloth has also increased significantly to 15.6%.

With the more effective vertical integration of Vietnamese factories and the enhancement of product value, the gross profit margins of grey fabrics still have room for improvement.

In terms of fabric, in the second half of 2017, in the second half of 2017, the North Vietnamese woven fabric factory began trial production. In May 2017, it completed the acquisition of 51% stake in Nicaragua's woven fabric factory, which was purchased from the Asian cowboy business of the Taiwan Xingxing group, and completed the acquisition of 700 million of the joint venture company engaged in knitting and dyeing and finishing business at the end of the year. After sales, the fabric sales revenue reached about 700 million yuan in the review period, up by more than 2 times than that of last year, of which the sales were self-produced.

19 million 300 thousand meters and knitted fabrics 7425 tons, fabric trade volume is 1 million 900 thousand meters and 981 tons.

In terms of clothing business, the acquisition of cowboy clothing business was completed in May 1st last year, during the review period this year, together with the original production base in Shandong Province, cowboy.

The sales amount is about 392 million yuan, an increase of 75% over the same period last year, with sales exceeding 8 million 400 thousand.

In addition, due to the uncertainty of Sino US trade friction in the first half of the year, the uncertainty will continue to China.

Bring about negative effects.

According to the statistics of the National Bureau of statistics, in the first half of this year, the textile industry scale business recorded a total revenue of 1 trillion and 530 billion yuan, an increase of 1.1% compared with the same period last year, and the total profit of the industry reached 65 billion 130 million yuan, representing a decrease of 1.1% over the same period last year.

China's textile industry invested 314 billion 900 million yuan in fixed assets in the first half of this year, an increase of 0.8% over the same period last year.

According to the data released by the State General Administration of customs, in the first half of this year, textile and apparel exports totaled 127 billion 524 million US dollars, an increase of 3.24%, of which 58 billion 332 million US dollars in textile exports increased by 10.28%.

Exports of US $69 billion 192 million decreased by 2.03%.

In terms of output, in the first half of the year, 16 million 738 thousand tons of yarn, an increase of 1.4% over the previous year, and 26 billion 720 million tons of cloth production, an increase of 2% compared with the same period last year, and 24 million 611 thousand tons of chemical fiber production, an increase of 8.4% over the same period last year.