Huamao Shares (000850): Net Profit Increased By 71.86%-109.22% In The First Three Quarters.

000850.SZ announced that the net profit attributable to shareholders of Listed Companies in the first three quarters of 2019 was 230 million yuan -2.8 billion, an increase of 71.86%-109.22% over the same period, and a basic earnings per share of 0.244 yuan -0.297 yuan. In the third quarter, the net loss attributable to shareholders of listed companies was 30 million yuan -2500 million, compared with net profit of 1 million 624 thousand and 500 yuan in the same period last year, and a loss of 0.032 yuan -0.026 yuan per share.

During the reporting period, the company realized the proceeds from the sale of some shares held by Guotai Junan Securities and the investment income recognized by the dividends according to the accounting standards, which increased the net profit attributable to shareholders of listed companies this time. At the same time, the company actively promoted the structural adjustment and transformation and upgrading of the textile industry, and the textile business profits rebounded steadily.

Since January 1, 2019, the company has implemented the new accounting standards for financial instruments, and has included the fair value in the assets of Guotai Junan, Guang Fa securities, Tuo Wei, and Internet software in the sale of financial assets. It has been reclassified into financial assets that are measured in fair value and whose changes are included in the current profits and losses. During the reporting period, the increase in the fair value of the class financial assets is attributable to the net profit of the shareholders of the listed company.

From July 1, 2019 to September 30, 2019, earnings were negative, mainly due to the implementation of the new accounting standards for financial instruments. The decline in share prices of equity assets held during the period led to a decrease in fair value changes.