Sharp decline in orders: China's largest textile machinery manufacturer's net profit fell by 50% in
Sharp decline in orders: China's largest textile machinery manufacturer's net profit fell by 50% in the first half of the year!
News on July 10: Jingwei Textile Machinery Co., Ltd. (hereinafter referred to as "Jingwei Textile Machinery") released its performance forecast for the first half of 2020 on the evening of 10th. It is estimated that the net profit during the reporting period will be 166 million-176 million yuan, which is 53.26% - 50.44% lower than that of 354 million yuan in the same period of last year.
As for the reasons for the performance changes, Jingwei Textile Machinery explained that during the reporting period, due to the impact of the epidemic situation, export orders of the textile industry decreased sharply, the construction was seriously insufficient, and the enterprise's willingness to invest in fixed assets decreased; under the downward pressure of the economy, the overall business volume of the trust industry fluctuated greatly. In this environment, the textile machinery business and financial business of the company were affected by the decrease of customer demand, resulting in a year-on-year decrease in revenue, resulting in a decrease in operating profit, and a year-on-year decrease in net profit attributable to shareholders of listed companies.
Jingwei Textile Machinery said that in the second quarter, the company strengthened the work of key projects in the textile machinery market, promoted the balanced development of trust product types and capital investment direction, and its business situation was better than that in the first quarter.
According to the financial report previously released by Jingwei Textile Machinery Co., Ltd., in 2019, the total business income of Jingwei Textile machinery was 9.335 billion yuan, compared with 10.196 billion yuan in the same period of last year, with a year-on-year decrease of 8.44%. Among them, the operating revenue was 4.687 billion yuan, 6.043 billion yuan in the same period of last year, with a year-on-year decrease of 1.356 billion yuan (textile machinery business revenue was 4.163 billion yuan, with a year-on-year decrease of 334 million yuan; and that of financial business was 524 million yuan, with a year-on-year decrease of 1.022 billion yuan). The company realized a net profit of 490 million yuan belonging to the parent company, with a year-on-year decrease of 267 million yuan. The net operating cash flow was 16 million yuan, with a year-on-year decrease of 4.776 billion yuan.
In the first quarter of 2020, the total business income of Jingwei Textile Machinery Co., Ltd. was 662 million yuan, a year-on-year decrease of 60.33%, and the net profit attributable to the parent company was 51.3404 million yuan, with a year-on-year decrease of 7.18 billion yuan. During the reporting period, the decrease in operating revenue compared with the same period of last year was mainly due to the impact of the epidemic and the restriction on the production and delivery of the company's products.
According to the public information, Jingwei Textile Machinery Co., Ltd., formerly known as the former Jingwei Textile machinery factory with a history of more than 60 years, is a leading enterprise in the domestic textile machinery manufacturing industry. The company has the core technology of cotton spinning complete sets of equipment. For a long time, it adheres to the research and development direction of digital intelligence, high speed and high efficiency, labor reduction and environmental protection, and vigorously cultivates the core with independent intellectual property rights Technology and high-end products, cotton spinning equipment intelligent key technology has made a major breakthrough, the company also through information technology to continuously improve the management level and efficiency, in the domestic textile machinery manufacturing enterprises to strengthen the leading position, in the foreign textile machinery market influence continues to enhance.
However, our textile machinery for polyester yarn will be updated very quickly. Once the epidemic situation is over, there will be a new outbreak point.