Textile And Apparel Contributed Nearly 80% Of Joint Venture Shares In 2018.

In the evening of April 22nd, Luen Fat shares (002394) issued an annual report. In 2018, the company achieved operating income of 4 billion 169 million yuan, up 4.12% over the same period last year, and realized operating profit of 508 million yuan, up 11.4% over the same period last year. Net profit of 391 million yuan, up 9.71% over the same period.

It is understood that the joint venture shares landed on the capital market in April 2010.

In addition to cotton cultivation, the company is a large high-tech enterprise with the whole industry chain of ginning, spinning, dyeing, weaving, finishing, knitting, home textile, printing and dyeing, clothing, thermoelectricity, sewage treatment, brand operation and warehousing and logistics.

It has the production scale of 210 thousand spindles, producing 160 million meters of dyed cloth, 60 million meters of printing and dyeing cloth, 11 million pieces of garments, and 6000 tons of knitted yarn and knitted fabric dyeing each year.

The products are sold to more than 20 provinces and municipalities nationwide, and 55% of the main products are exported to more than 30 countries and regions, such as Japan and the United States.

By the end of 2018, the total assets of the joint stock company were 4 billion 249 million yuan, and the net assets were 3 billion 199 million yuan, up 1.48% and 4.87% compared to the same period last year.

In 2018, all business segments of Luen Fat share company developed steadily.

In terms of industry, textile and garment industry contributed 3 billion 282 million yuan in revenue, up 3.15% from the same period last year, accounting for 78.73% of the total revenue. The sales revenue of thermoelectric power reached 70 million yuan, up -15.87% from the same period last year, accounting for 1.67% of the total revenue. Other businesses achieved 817 million yuan in revenue, up 10.55% from the same period last year, accounting for 19.60% of total revenue.

In terms of regional distribution, the export and domestic sales of the joint venture share accounted for half of the total.

Domestic revenue was 1 billion 889 million yuan, an increase of 16.39% over the same period, accounting for 45.32% of total revenue. European revenue was 600 million yuan, an increase of 23.61% over the previous year, accounting for 14.41% of total revenue. The US revenue was 790 million yuan, up 16.50% over the previous year, accounting for 18.96% of total revenue.

Reporters noted that during the reporting period, the company's financial expenses amounted to 9 million 858 thousand and 600 yuan, a sharp decrease of 89.33%.

It is mainly caused by the change in the exchange rate of the RMB against the US dollar.

In addition, in 2018, R & D expenditure accounted for 2.55% of the sales revenue of the consolidated statement.

In response, the joint venture said it was mainly used for R & D institution building, equipment acquisition, high-level talent introduction, industry university research cooperation, new product development, new technology extension and new achievements pformation.

It is worth mentioning that while the main business is stable, the company also actively develops diversified layout of production bases.

The company has built a cotton processing plant and a spinning mill in Xinjiang. During the reporting period, the production of high-grade home textile grey cloth and supporting yarn has been approved. The project is expected to achieve the production capacity of 28 million mm / year home textile grey cloth.

The joint venture said that after the completion of the above projects, the company will improve the home textile industry chain, enhance the competitiveness of the home textile products, and support the home textile industry to become bigger and stronger.

In 2019, the Xinjiang project was completed at an early date.