With the dual benefits of the recovery of the domestic shoe and clothing consumer market and the return of overseas orders, Xingye Technology achieved a performance explosion in the first half of this year.
On the evening of July 7, the company released its semi-annual performance forecast, predicting that the net profit in the first half of the year would be 100 million yuan to 120 million yuan, a year-on-year increase of 4681.49% – 5637.78%, setting the best half-year performance record since listing.
The company made the above prediction based on the following reasons:
In the first half of 2021, benefiting from the recovery growth in domestic footwear and clothing consumption and the return of some overseas orders to China due to the epidemic, the industry’s prosperity has improved.
The company continues to make efforts in product research and development, develop new products according to downstream market needs, improve original products, and increase product added value; Organize leather shows and other forms to strengthen interactions with downstream customers, further expand the market, and improve customer service quality.
During the reporting period, the company’s product sales and operating income achieved substantial growth, and product profitability increased significantly. On the market, Xingye Technology closed at 14.26 yuan today, up 1.35%.
Xingye Technology is mainly engaged in the research and development, production and sales of natural cow head leather. Its products are mainly leather for shoe uppers and bags. Bag leather, military leather, furniture leather and special functional leather, etc. Customers include Belle, Senda, Red Dragonfly, Desana, Hong Kong Times, Lilang, Wanlima, Jihua Group, Kangnai, Aokang, Baozi, Well-known brands such as Qianbaidu.
Why is the increase so large?
The reason for such a huge increase is that on the one hand, due to the impact of the epidemic in 2020, the company’s net profit base was low, only 2.0914 million yuan; More importantly, the driving factor is the continued improvement of industry prosperity.
Even compared with the half-year performance in 2019 that was not affected by the epidemic, Xingye Technology’s performance growth rate in the first half of this year is still very impressive. Data shows that the company’s net profit for the first half of 2019 was 69.34 million yuan. If the forecast results can be fulfilled as scheduled, the first half of this year will increase by 44%-73% compared with the same period in 2019.
In fact, as early as the first quarter of this year, Xingye Technology had achieved great results. The first quarter report shows that Xingye Technology achieved a net profit of 19.998 million yuan in the first quarter, a year-on-year increase of 493%.
Xingye Technology said that the domestic shoe and clothing consumer market is currently experiencing restorative growth, and some overseas orders have returned to China due to the epidemic. The company’s product sales and operating income have both increased. Achieved substantial growth and significantly improved product profitability.
Xingye Technology, the full name of the company is Xingye Leather Technology Co., Ltd., which was established on December 14, 1992. The current general manager is Sun Huiyong. Its main business is mid-to-high-end Niutou. Development, production and sales of layered shoe upper leather.
Xingye Technology subsidiary plans to set up a company in Indonesia
On April 6, Xingye Leather Technology Co., Ltd. issued an announcement: In order to expand into emerging markets, the company’s wholly-owned subsidiary Xingye Investment International Co., Ltd. (registered in Hong Kong, referred to as “Industrial International”), intends to jointly invest with CV.CISARUA Company to establish a company (hereinafter referred to as the “Target Company”) in Zhanyu County, West Java Province, Republic of Indonesia (referred to as “Indonesia”). Industrial International intends to use its own funds CV.CISARUA plans to invest RMB 9 million and hold 90% of the shares of the target company. CV.CISARUA plans to invest RMB 1 million and hold 10% of the shares of the target company.
It is reported that in order to seize market opportunities and expand emerging markets, from business formal wear Leather shoes entered the sports shoe market. Xingye International chose to cooperate with CV.CISARUA Company and jointly funded the establishment of a company in Zhanyu County, West Java Province, Indonesia. Relying on the company’s many years of cow leather production management experience and technology research and development advantages, and with the help of CV.CISARUA The company serves as a sales channel for world-renowned sports brand suppliers and carries out local production and processing of cow leather. The finished leather is mainly supplied to local sports shoe manufacturing companies, thereby expanding the market field of the company’s cow leather products.