Weiqiao Textile (02698): Mid Term Net Profit Of 155 Million Yuan, A Year-On-Year Decrease Of 24.8%

On August 14, Weiqiao textile (02698. HK) announced that as of June 30, 2020, the company's revenue was 5.43 billion yuan, a year-on-year decrease of 30.2%; the net profit attributable to shareholders of the company was 155 million yuan, a year-on-year decrease of 24.8%; the gross profit margin was about 7.6%, which was about 0.2% lower than that of the same period last year; the profit per share was 0.13 yuan.

During the period, due to the adverse impact of the epidemic situation, the textile market at home and abroad continued to be weak, resulting in a decline in demand for textiles. The sales volume of cotton textile products of the group decreased year-on-year, and the sales price decreased compared with the same period last year. The sales volume of electricity also decreased year on year, resulting in a corresponding decrease in the group's revenue and net profit.

During the review period, the group adjusted the production plan according to the market demand. The cotton yarn output of the group is about 174000 tons, which is about 12.1% lower than that of the same period last year; the output of grey cloth is about 352 million meters, which is about 12.7% lower than that of the same period last year; the output of denim is about 26 million meters, which is about 16.1% lower than that of the same period last year.

On 30 June 2020, the installed capacity of the group's thermal assets was 2760 MW, the same as that at 31 December 2019. During the review period, the group's power generation was about 6149000000 kwh, about 30.0% lower than the same period last year. The group's electricity sales was about 5088 million kwh, a decrease of 33.5% compared with the same period last year. The main reason is that due to the adverse impact of the epidemic, the demand for electricity from downstream customers decreased and the power sales volume decreased accordingly.