Turn Losses Into Profits! China'S Most Cattle Textile Giant INTERCHINA Group Made A Net Profit Of 61 Million 100 Thousand In 2019.

Jihua Group Limited by Share Ltd (hereinafter referred to as "China Group") has issued its 2019 performance notice. After preliminary calculation by the financial department, it is estimated that the net profit attributable to shareholders of Listed Companies in 2019 will be turned into a profit in comparison with the same period last year. It is expected that the net profit attributable to shareholders of listed companies will be 61 million 100 thousand yuan to 90 million 650 thousand yuan. In the same period last year, the net profit attributable to the shareholders of China International Group was -6796.89 million yuan.

The group said that the main reason for earnings in the reporting period lies in the company's further optimization of asset allocation, the optimization of the ownership structure of key projects, the arrangement of some asset transactions, the disposal of assets, and the receipt of government subsidies.

According to public information, the China International Group is a light manufacturing enterprise with dual military and civilian production, leading the industry in the munitions industry. The company is mainly engaged in R & D, production and sales of products such as professional wear, professional footwear, leather shoes, textile printing and dyeing, protective clothing, brand clothing and so on.

According to the financial report, thanks to the strong manufacturing capacity and the large demand for the munitions market, in the 2013-2018 years, China's group's business income remained between 22 billion and 27 billion, far exceeding the industry average level; the net profit of 2013-2016 years remained between 900 million yuan and 1 billion 200 million yuan. In recent years, the company's income and profits fluctuated from the macro economic downturn and the construction of Huayuan garden. But the core competitiveness of the company can still ensure that the company is in a favorable position in the market competition.

In addition, the group is the only company in the country that owns all kinds of military products, including raw materials, textile, printing and dyeing, garment making, shoes making, clothing and so on. It has strong production capacity and channel advantages. In recent years, the company has changed its development strategy, initiatively contracted its business, adhering to the tradition of its own munitions enterprises, adapting to the needs of the target group of ex servicemen, active duty personnel and military fans, and actively creating a first-class military fashion brand. At the same time, we should vigorously develop the business of professional wear with the advantage of group to meet the special needs of the production enterprises.

Munitions: INTERCHINA group occupies 60% of the market share. The products mainly include: military and armed police uniform, dress, functional clothing and rank badges, combat footwear, special vehicles, bulletproof products, etc.

In terms of civilian products, the China group business includes all kinds of fashion clothing, footwear, textiles, medicine and medical devices.

Trade: the new China International Trade Co., Ltd., which belongs to the China International Group, has the qualification of military supplies export, mainly engaged in the trade business of clothing, shoes, fabrics, harness and other products.

In 2018, Ji Hua Group's munitions achieved a revenue of 4 billion 530 million yuan, accounting for 19.6%, and civilian product revenue of 8 billion 970 million yuan, accounting for 38.7%, far exceeding munitions business and maintaining growth momentum. In recent years, the company has launched the trade and logistics business which is mainly domestic and international trade. At present, trade has become the main source of revenue for the company, accounting for up to 41.7%.

In the first half of 2019, Jihua Group achieved business income of 10 billion 74 million yuan, occupying 17.45% of sales occupation wear, occupying 12.89% of professional footwear, 8.34% of leather shoes, 8.71% of textile and printing, 9.01% of protective clothing, 43.60% of trade and other businesses. In the same period, the company realized a total profit of 78 million yuan, a decrease of 76.40% compared with the same period last year. The net profit attributable to shareholders of listed companies was 18 million yuan, which was 92.30% lower than that of the previous year. The net profit after deducting non recurring gains and losses was -0.97 billion yuan, a decrease of 197.24% over the same period last year. The basic earnings per share were 0.004 yuan, down 92.59% from the same period last year.

From the point of view of production capacity, the China Group has annual production capacity of 56 million 30 thousand sets of clothing and clothing, 75 million 210 thousand pairs of professional shoes and boots, and the utilization rate is reasonable and healthy, basically around 70%-80%. With the gradual transformation of intelligent and automatic production equipment, the company will gradually reduce the production capacity of mid and low end products, and the utilization rate of capacity will be further consolidated. (first textile net)