Fengzhu Textile Co., Ltd. Made Only 9.04 Million Yuan In The First Half Of The Year

Fujian Fengzhu Textile Technology Co., Ltd. (hereinafter referred to as "Fengzhu textile") released its annual report for the first half of 2020 on August 10. During the reporting period, the company realized a revenue of 420 million, a year-on-year decrease of 18.1%; the net profit attributable to the parent company was 9.04 million, a year-on-year decrease of 48.9%, and the decline rate was larger than that of the same period last year.

During the reporting period, the operating cost of Fengzhu textile was 350 million, a year-on-year decrease of 20.2%, which was higher than the decline rate of 18.1% of operating income, and the gross profit rate increased by 2.2%. The period expense rate was 11.1%, an increase of 2.1% over the previous year, which had a drag on the company's performance.

As for the reasons for the performance changes during the reporting period, Fengzhu textile explained that: the decrease of operating income was mainly affected by the epidemic situation, and the sales revenue of Jiangxi subsidiary decreased significantly year on year; the decrease of net profit by 48.88% was mainly due to the decrease of operating profit; the decrease of operating cost compared with the same period of last year was mainly due to the decrease of sales revenue of the company, but the decrease of operating cost was higher than that of sales revenue The decrease of the company's gross profit rate indicates the rise of the company's gross profit rate. The main reason for the increase of gross profit rate is the reduction of cotton yarn cost and production cost of dyeing chemicals per ton of cloth.

As of June 30, 2020, the total assets of Fengzhu textile are 1.699 billion yuan, an increase of 0.64% compared with the beginning of the period. The increase of total assets is mainly due to the influence of Anton project investment. The net assets of the company reached 743 million yuan, an increase of 0.12% compared with the beginning of the period. The increase of net assets is mainly due to the increase of net profit and the influence of dividend.

According to the public information, Fengzhu textile is one of the top 100 key industrial enterprises in Fujian Province. The company has been selected as one of the "top 500 competitive enterprises of China's textile and garment enterprises" and "the top 10 competitive enterprises of China's knitting industry" for many years. The company's products are mainly used as fabrics for making various children's wear, sportswear, underwear and outerwear. The company is located in the middle and high-end product market, the main market and customers are concentrated in Fujian Province, and radiate to the whole country. 70-80% of the company's products are indirectly exported to Hong Kong, Taiwan, the Middle East, Europe, America and Japan in the form of clothing.