Deep Textile A (000045): Net Profit Increased By 278.9% In The Third Quarter.

Shenzhen textile A (000045.SZ) announced that it expects net profit of 17 million 766 thousand and 400 yuan to shareholders of Listed Companies in the first three quarters of 2019, an increase of 44.81% over the same period, of which the net profit of shareholders belonging to listed companies in the third quarter was 9 million 934 thousand and 100 yuan, up 278.90% over the same period last year. The reasons for the change are as follows:

1. During the reporting period, the net profit attributable to shareholders of listed companies increased a bit from the same period last year, mainly due to the increase in non recurring gains and losses. The company expects the impact amount to be about 28 million 984 thousand and 100 yuan, mainly for government subsidy income and disposal income of illiquid assets.

2, during the reporting period, the company's operating income increased considerably over the same period last year. The main reasons were: first, the TFT-LCD two phase 6 line was put into operation in the second half of 2018, the capacity was released in the current year, the sales volume increased year-on-year; two, the import trade business that had been prepaid equipment in the year 2018 was completed in the current reporting period, and the bulk trade income increased from the same period last year. However, the price of Polaroid products has been running low after the sharp decline in 2018. The main product order structure adjustment has not reached the expected level. In addition, the price of TN/STN products has been greatly reduced due to the shrinking of the market sales, and the increase of the purchasing cost and the increase of exchange losses caused by the depreciation of the RMB exchange rate have offset the contribution of its sales increase to net profit.