The latest 2019 annual report of Anhui Huamao Textile Co., Ltd. (hereinafter referred to as “Huamao Co., Ltd.”), which has been among the “Top 20 Competitive Enterprises in China’s Cotton Textile Industry” for many years in a row, showed on April 22 that its operating income was 29.79 billion, a year-on-year increase of 7.1%; net profit attributable to shareholders of listed companies was 198 million yuan, a year-on-year increase of 66.59%. Basic earnings per share were 0.21 yuan.
As for the performance changes during the reporting period, Huamao Co., Ltd. explained that the company’s performance changes increased in the same direction mainly due to the increase in non-operating profits and losses, as follows:
During this reporting period, the company’s gains from selling part of its shares in Guotai Junan Securities and the investment income from dividends from joint-stock companies recognized in accordance with the “Accounting Standards” increased the net profit attributable to shareholders of listed companies for the current period;
Since January 1, 2019, the company has implemented the new accounting standards for financial instruments, including Guotai Junan, GF Securities, and Tuowei that were originally measured at fair value and included in the accounting for available-for-sale financial assets. Stock-type financial assets such as information and Wangda software are reclassified to be accounted for as trading financial assets. During the reporting period, the gains from changes in the fair value of such financial assets increased the net profit attributable to shareholders of listed companies for the period;
The government subsidies received increased year-on-year.
The above items are non-recurring profit and loss items, and their total impact on the net profit attributable to shareholders of the listed company is approximately 400 million yuan.
During the reporting period, Huamao Shares received dividends of 18.59 million yuan from Guotai Junan Guotai Junan, 4.1 million yuan from GF Securities, 4 million yuan from Huishang Bank, and 2.78 million yuan from Optics Valley Financial Leasing. Yuan, Chongqing Gravel paid a dividend of 2 million yuan, Wangda Software paid a dividend of 72,000 yuan, disposed of 20,025,600 shares of Guotai Junan, obtained investment income of 113 million yuan, and withdrawn 421 million yuan of funds. As of the end of the reporting period, Huamao Holdings held 67.6 million shares of Guotai Junan. , holds 20.5 million shares of GF Securities, 3.2715 million shares of Tuowei Information, 2.4 million shares of Wangda Software, and 71.4869 million shares of Huishang Bank.
In 2019, faced with the complex and changing macro environment, unilateral downward market tests and operating pressures, Huamao Co., Ltd. focused on its main business, concentrated on development, strengthened management, and improved Quality and efficiency increase, maintaining the stable development of the enterprise.
During the reporting period, Huamao Co., Ltd. continued to accelerate the industrial intelligent transformation through intelligent textile reconstruction and expansion, technological transformation, etc., and enhanced momentum to promote innovation. At the same time, the company continues to promote management innovation and technological innovation. The textile factory has achieved seamless connection between the online monitoring system and SAPERP, effectively improving management efficiency; technological innovation has achieved new results. The “Multiple Concentrated Spinning Technology and Its Application” project won the first prize of the 2019 Anhui Provincial Science and Technology Progress Award. After the company’s 150,000-spindle smart spinning project won the title of “Intelligent Manufacturing Pilot Demonstration” from the Ministry of Industry and Information Technology, in 2019, it also won the title of “Cotton Spinning Intelligent Manufacturing ‘Mass Entrepreneurship’ Demonstration Platform” from the Ministry of Industry and Information Technology. The company also won the title of “National Intellectual Property Demonstration Enterprise” and “Top 100 Invention Patents in Anhui Province”. New results were achieved in variety development. Two varieties, “Suikong Black and Qingshan Woxue”, won the 2019 China International Fabric Design Competition and the 2020 Spring and Summer Chinese Popular Fabrics Finalist Jury Excellence Award. Three varieties, “Snowflake Red Plaid, Azure Sun White, and Charming Dark Gold”, won the 2019 China International Fabric Design Competition and 2020/21 Autumn and Winter Chinese Popular Fabrics were shortlisted for the Jury Excellence Award; “Double-Sided Opposite Sex” won the first prize for the best creative development of new yarn-dyed fabric products in 2019/20, “Lake and mountain scenery, clouds, windows and fog grids, inlaid word grids” Three varieties won the 2019/20 Best Creative Development Award for New Yarn-dyed Fabric Products.
During the reporting period, Huamao Co., Ltd. applied for 51 patents, including 29 invention patents and 22 utility model patents. Obtained 14 authorized patents, including 2 invention patents and 12 utility model patents.
Huamao shares stated that the company’s “126” project strategy is driven by innovation and focuses on transformation and upgrading: that is, to leverage the synergy of the industrial chain and create a company with core competitive advantages. New system for the textile industry; optimize and strengthen “industrial capital” and “financial capital”; implement smart factory demonstration projects, premium fabric brand projects, international business expansion projects, capital platform integration projects, technology management innovation and improvement projects, and talent teams Construction and strengthening projects and other six key projects.
Public information shows that Anhui Huamao Group Co., Ltd., the parent company of Huamao Co., Ltd., was founded in 1958. It owns cotton, spinning and weaving. It is a large-scale enterprise group in the textile industry chain such as fabrics, clothing, non-woven fabrics, etc. The group’s total assets exceed 10 billion and it owns more than 20 holding companies. It has achieved 44 consecutive years of profitability so far.
Huamao Co., Ltd. focuses on pure and blended yarns of cotton, wool, linen, silk and man-made fibers and their fabrics, knitwear, clothing, printing and dyeing processing; textile equipment and accessories , home textile sales; investment management. The company’s products include yarn series products, gray fabrics andseries products, yarn-dyed fabric series products and functional industrial fabrics, etc.
Huamao Co., Ltd. has an annual output of 65,000 tons of “Chengfeng” brand Ne5-600 high-grade yarn, and more than 10,000 tons of “Yinbo” brand high-grade gray fabrics and fabrics with a width of 120-360 cm. Thousands of meters. Both yarn and gray fabric products have won the titles of “China Famous Brand Product” and “National Customer Satisfaction Product”; they are produced using the company’s own high-quality gray fabric as raw material and using internationally advanced dyeing and finishing clean production technology and functional finishing technology. High-end textile fabrics, based on the mid-to-high-end market, are mainly matched with well-known domestic and foreign clothing brands; functional non-woven materials and consumer products are mainly used in the medical and sanitary daily fields.