Recently, several listed companies in the textile machinery industry have released their 2019 annual reports and first quarter performance forecasts for this year.
Generally speaking, due to the impact of the new coronavirus pneumonia epidemic, listed textile machinery companies generally under-operated in the first quarter of this year, product production and delivery were restricted, and operating income and net profit both experienced significant declines. Among them, Cixing Co., Ltd. and Jinggong Technology suffered losses, and Cixing Co., Ltd. turned from profit to loss in the same period last year, indicating that corporate development is still facing greater pressure.
In the face of the sudden attack of the new coronavirus pneumonia epidemic, listed textile machinery companies, on the one hand, combined their own industrial characteristics and professional advantages, played an irreplaceable role in key links, and contributed their textile machinery strength to the fight against the epidemic. On the other hand, it continues to focus on the requirements of high-quality development, focusing on improving quality and efficiency, innovation-driven, and intelligent transformation, and accelerating the pace of transformation and upgrading.
Significant decline in revenue and profit
Enterprise development is under great pressure
Jingwei Textile Machinery Co., Ltd. (hereinafter referred to as “Jingwei Textile Machinery”) recently disclosed its performance forecast for the first quarter of 2020. The net profit attributable to shareholders of listed companies is expected to be 50 million yuan to 52 million yuan, a year-on-year decrease of 71.43% to 72.53%. Affected by the COVID-19 epidemic, Jingwei Textile Machinery did not start operations sufficiently in the first quarter, and product production and delivery were restricted. The revenue from the textile machinery business and the financial business decreased, and the profit declined, resulting in a year-on-year decrease in net profit attributable to shareholders of the listed company.
The 2019 annual report previously released by Jingwei Textile Machinery showed that during the reporting period, the company achieved operating income of 9.335 billion yuan, a year-on-year decrease of 8.44%; it achieved a net profit attributable to shareholders of the parent company of 490 million yuan, a year-on-year decrease The company’s gross profit margin was 25.6%, a decrease of 13.0 percentage points from the previous year, and the net profit margin was 34.3%, basically maintaining the previous year’s level. During the reporting period, Jingwei Textile Machinery’s operating costs were 3.49 billion yuan, a year-on-year decrease of 6%, which was lower than the 22.4% decline in operating income; the expense rate during the period was 84.8%, an increase of 18.4% from the previous year, which was a drag on the company’s performance. Operating cash flow dropped significantly by 99.7% to 16.151 million yuan. The company’s R&D investment in this period was 200 million yuan, a year-on-year increase of 16.2%.
From the perspective of business structure, financial trust is the main source of operating income of Jingwei Textile Machinery. Its operating income is 5.01 billion yuan, a year-on-year increase of 36.58%. The textile machinery business achieved operating income of 3.714 billion yuan, a year-on-year decrease. 7.84%.
The performance forecast for the first quarter of 2020 disclosed by Ningbo Cixing Co., Ltd. (referred to as Cixing Co., Ltd.) is expected to be a net loss of 20 million yuan to 25 million yuan attributable to shareholders of the listed company, compared with the same period last year. Profit was 42.7286 million yuan. The reason for the performance change is that due to the impact of the new coronavirus pneumonia epidemic, the company and its upstream and downstream enterprises have delayed the resumption of work, which has had a significant impact on market sales, resulting in a decline in the company’s operating income in the first quarter and a loss of net profit attributable to shareholders of the listed company. During the reporting period, the impact of non-recurring gains and losses on net profit is expected to be about -2.4 million yuan, mainly due to the decrease in financial management income and the company’s donation of 3 million yuan to the Cixi Red Cross for the prevention and control of the new coronavirus.
Cixing Co., Ltd.’s 2019 annual performance report shows that Cixing Co., Ltd.’s total operating income in 2019 was 1.499 billion yuan, down 11.23% from the same period last year; the net profit attributable to shareholders of the listed company was -7.73 billion, 153 million yuan compared with the same period last year, turning from profit to loss. According to the announcement, Cixing’s total assets were 4.066 billion yuan, down 25.94% from the beginning of this reporting period; basic earnings per share were -0.96 yuan, compared with 0.19 yuan in the same period last year.
It is understood that during the reporting period, changes in the performance of Cixing Co., Ltd. were mainly due to the actual operating conditions and industry policies of the mobile Internet business of its subsidiaries Hangzhou Youtou Technology Co., Ltd. and Hangzhou Duoyile Network Technology Co., Ltd. It is judged that due to the impact of changes and other changes, the company has made large provisions for impairment of goodwill and intangible assets due to the acquisition of two companies. It is estimated that the amount of impairment provisions made by the above two companies is about 650 million yuan. In addition, due to intensified market competition and Factors such as the accelerated model update of computerized flat knitting machines are expected to result in inventory impairment losses of approximately 100 million yuan.
The performance forecast of Zhejiang Jinggong Technology Co., Ltd. (Jinggong Technology for short) in the first quarter of 2020 shows that it is expected to lose 15 million yuan to 20 million yuan, compared with a loss of 27.2982 million yuan in the same period last year, a year-on-year decrease of 53.55% ~25.69%. The financial report shows that in 2019, Zhejiang Jinggong achieved total operating income of 878.43 million yuan, net profit attributable to shareholders of the parent company -108.63 million yuan, and basic earnings per share -0.24 yuan.
Jinggong Technology stated that due to factors such as the COVID-19 epidemic and the Spring Festival holiday, the company’s overall business was relatively sluggish during the reporting period, which affected the improvement of the company’s overall operating performance. At the same time, the company’s administrative expenses, R&D expenses, etc. continued to increase year-on-year during the reporting period, causing the company to continue to suffer losses during the reporting period.
The performance forecast for the first quarter of 2020 disclosed by Jinlun Blue Ocean Co., Ltd. (Jinlun for short) predicts that the net profit attributable to shareholders of the listed company in the first quarter is 0.0 to 5 million yuan, a year-on-year change of -100.00% ~-73.98%.
In the first quarter of 2020, affected by the COVID-19 epidemic, the resumption of work of Jinlun Holdings and upstream and downstream enterprises was delayed. The company’s production and operation time in the first quarter was significantly reduced compared with the same period last year, and there were traffic problems after the resumption of work. Due to restrictions, poor logistics and other conditions, the company’s operating income in the first quarter fell by about 23% year-on-year, and the net profit attributable to shareholders of listed companies fell year-on-year.
Performance report displayThe company and Wuhan Yudahua Textile Co., Ltd. jointly built and completed the Ministry of Industry and Information Technology’s spinning intelligent production line project. The project achieved three key technological breakthroughs: a full-process automatic logistics transportation system, a full-process intelligent waste collection and payment system, and a full-process quality traceability system. The number of workers in the 10,000-spindle yarn production line has been reduced from 50 to 60 people in the past to 15 people. The world’s first parallel comb system has been launched, which enables unattended operation at night and automatic operation of the equipment. The level of automation and intelligence of the spinning production line has reached a new level. milestone.
In 2020, Jingwei Textile Machinery will continue to improve the automation and intelligence level of equipment and provide high-quality complete sets of equipment to global textile customers. Continue to deepen the transformation from manufacturing to manufacturing service enterprises, establish complete sets of intelligent demonstration factories, and select textile clusters to set up service centers and spare parts centers to increase overseas market share and enhance the profitability of the textile machinery business. </p
