Sifangda: Oil tablets continue to increase their sales, traditional breakthroughs and M&A transformation

Abstract In the first half of the year, the company achieved operating income of RMB 95 million, a year-on-year increase of 19.62%; operating cost of RMB 52 million, an increase of 8.56%; net profit attributable to the parent company was RMB 22 million, an increase of 37.95% over the same period of last year;
In the first half of the year, the company achieved operating income of 95 million yuan, a year-on-year increase of 19.62%; operating costs of 52 million yuan, an increase of 8.56%; net profit attributable to the parent company was 22 million yuan, an increase of 37.95%; EPS was achieved in the first half of the year. Among them, the company achieved operating income of 0.49 billion yuan in the second quarter, up 6.74% year-on-year, and the growth rate in the first quarter was 36.73%; operating cost was 28 million yuan, down 1.09% year-on-year, and the year-on-year growth rate was 23.05% in the first quarter; The net profit of the parent company was RMB 0.1 billion, an increase of 27.29% year-on-year. The growth rate in the first quarter was 47.97%; the EPS in the second quarter was RMB 0.02, and the EPS in the first quarter was RMB 0.03.

The oil sheet continued to increase in volume, and the performance in the first half of the year increased year-on-year. As the leader in the domestic super-hard materials field, the company's main products are super-hard composite materials and their products, including diamond diamond sheets for drilling, diamond wire drawing dies, and PCD tools for woodworking. The company's revenue in the first half of the year increased by 19.62% year-on-year, and net profit increased by 37.95% year-on-year. This was mainly due to the continued heavy volume of high-profit super-hard composite materials. Since the oil price decline in 2014, the company's oil film products have successfully entered the international oil giant procurement supply. Since the establishment of the company, the company's oil film products continued to grow high, and the proportion of high-profit products increased, which further increased the company's comprehensive gross profit margin by 5.54 percentage points. However, due to management has not been straightened out, the company purchased Zhengzhou Huayuan Company still failed to avoid losses in the first half of the year, the net profit loss reached 3.48 million yuan, a loss of 1.5 million yuan in the same period last year. In the first half of the year, the company's non-net profit was 57.31% compared with the previous year. Compared with the company's equity incentive unlocking conditions, there is still a lot of gap in the target of 166% year-on-year growth.

In the single quarter, the company's 2Q results improved year-on-year and the chain fell. Both were due to the relatively change in gross profit margin: benefiting from the increase in sales of high-profit oil products, the gross profit margin in the second quarter increased by 4.63 percentage points year-on-year; or by downstream real estate, mining, etc. The sector's economic downturn, the gross profit margin in the second quarter fell by 8.19 percentage points.

Deepening the expansion of the oil film overseas market, tradition and transformation go hand in hand: With continuous technological advancement, customer expansion, and the opportunity of falling international oil prices, the company's oil film overseas market has expanded smoothly in recent years.

In addition, the company set up the Chenhui New Economic M&A Fund to participate in TMT, large consumption and innovation and upgrade of traditional industry equity investment, as well as mergers and acquisitions related to the upgrade and transformation of listed companies, including collaborative acquisitions, leveraged buyouts and equity investments. Going to M&A investment and sharing the market gains of M&A. On the other hand, it can integrate the industrial chain through M&A funds to promote the rapid development of the company's main business. Finally, the company's relatively high unlocking equity incentive program also highlights the company's confidence in future development.

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SUZHOU CREATION SPACE INTELLIGENT TECHNOLOGY CO.,LTD , https://www.mypkey.com

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