Weiqiao Textile expects gross profit margin to rise steadily in the second half of the year, paying attention to export tax rebates
Although Weiqiao Textile (2698)'s interim net profit increased by 27.3% compared with the same period of last year, the gross profit margin fell to 15.5%. The company expects gross profit margins to stabilize in the second half of the year. In addition, Wei Qiao Textile said that there is no share placement plan in the next two years. Waffle Towels,Waffle Towel Golf,Turkish Towel Waffle,Bath Towel Waffle Changshu Aijia Knitting Products , https://www.microfiber-lovejoy.com
Weiqiao Textile's net profit attributable to the interim shareholders was 601 million yuan (RMB, the same below), up 27.3%, and the basic earnings per share was 0.51 yuan, but no interim dividends were distributed. Wei Qiao said that due to the funds used to repay the loan, there is no dividend, and it is expected that the dividend payout ratio will remain at 35% this year.
However, its gross profit margin decreased to 15.5% from 17.3% in the same period last year. The company explained that due to the fierce competition in the cotton yarn market in the first half of the year, and the increase in sales of high-grade grey fabrics and the reduction of sales of high-grade cotton yarns, the gross profit of cotton yarns plummeted. Although the company's overall gross profit margin fell in the first half of the year, Zhang Hongxia, who just took the chairmanship, said at the performance conference yesterday that the company's gross profit margin is expected to rise steadily in the second half of the year as the company increases production of value-added products in the second half of the year. She expects the company's turnover to record double-digit growth in the future.
Wei Qiao is also worried that the textile export tax rebate measures will be implemented, which may have an impact on its gross profit margin. Zhao Suwen, the company secretary, said on the same occasion that if the tax rebate rate drops by two percentage points, it is expected that the future export gross profit margin will fall by 0.82%. According to the current export accounted for 34% of the overall turnover, the company's overall gross profit margin will fall by 0.28%. .
Zhang Bo, a former chairman and current executive director who attended the performance briefing, said that the company's capital expenditure for the year was 3 billion yuan. In the first half of the year, it had invested 1.3 billion yuan. Last month, the company signed a bank loan of 280 million US dollars, of which 1.6. The US$100 million is used to repay bank loans in the past two years. At present, the company has sufficient cash flow, so it is believed that there will be no share placement plan in the next two years.