Wei Qiao Achieved Revenue Of 7 Billion 784 Million Yuan In The First Half Of The Year, And Its Net Profit Fell By 32%.

Recently, Wei Qiao textile (02698.HK) announced its interim results in August 16th, saying its revenue decreased by about 7.4% compared with the same period last year, to about 7784000000 yuan. The net profit of the company's owner decreased by about 32% compared to the same period last year, to about 206000000 yuan. Earnings per share were about 0.17 yuan (a year ago: about 0.25 yuan).

Wei Qiao textile is mainly engaged in the production and sale of cotton yarn, grey cloth and denim, as well as the production and sale of electricity and steam. The company said that during the reporting period, under the influence of the changing foreign trade situation and weak domestic demand, the gross profit of textile products had dropped considerably, but the power business remained stable. During the period, the group's revenue was about 7784000000 yuan, a decrease of about 7.4% compared with the same period in 2018. The net profit of the company's owners should be about 206000000 yuan, a decrease of about 32% compared to the same period in 2018 and a profit of about 0.17 yuan per share.

In terms of textile business, the group continued to strengthen internal management, optimize product structure and enhance the level of intelligence. In July 2019, Wei Qiao textile was successfully selected as the "Shandong quality benchmark" list in 2019 based on its management experience of intelligent process control and high-end textile brand management. To further improve production efficiency, the Group invested in the construction of an automatic and intelligent production line. The production line is expected to be put into operation in October 2019, so as to achieve the integration of spinning and weaving and intelligent control of the whole process. The group has continued to attach importance to the research and development of new products, and has developed a series of green environmental protection products through cooperation with the national textile product development center, Qiingdao University and independent research and development, including seaweed fiber textiles, segmented yarn, yarn and hollow functional yarn, and so on.

In terms of power and steam business, the Group continues to improve management efficiency and reduce related losses through meticulous and modular management. In the first half of this year, the price of coal also had a downward trend, which reduced the cost of the power business to a certain extent.

Looking forward to the second half of this year, the group is still facing the impact of multiple factors such as poor global economic growth, intensified trade frictions, weak terminal consumption and rising labor costs, but it is expected that overall textile business and power and steam business will remain stable.