Huamao Shares 2019 Net Profit In The First Three Quarters Of 230 Million -2.80 Billion, Textile Business Profits Rebounded Steadily

Huamao shares (000850) released the performance forecast for the first three quarters of 2019: the net profit is expected to reach up to 280 million yuan, an increase of 109.22% over the same period last year.

The announcement shows that during the period of performance forecast: in September 30th January 1, 2019 -2019, the net profit attributable to shareholders of listed companies was 230 million yuan -2.80 billion yuan, an increase of 71.86%-109.22% over the same period last year, and the basic earnings per share were about 0.244-0.297 yuan.

The reason is that during the reporting period, the proceeds from the sale of shares held by Guotai Junan (17.990, -0.09, -0.50%) securities and the net proceeds of dividends attributable to the shareholders of the listed companies under the accounting standards were increased, and the net profit attributable to shareholders of listed companies increased. At the same time, the company actively promoted the structural adjustment and transformation and upgrading of the textile business, and the textile business profits rebounded steadily. Since January 1, 2019, the company has implemented the new accounting standards for financial instruments. The financial assets of Guotai Junan, Guang Fa securities, Tuwei information and network software such as Guotai Junan, GF Securities, Tuo Wei information and net Da software, which were accounted for by fair value, were reclassified to account for the financial assets that were measured in fair value and included in the current profits and losses. It is understood that performance changes During the reporting period, the increase in the fair value of such financial assets increased the net profit attributable to shareholders of listed companies this year. The profit from July 1, 2019 to September 30, 2019 was negative, mainly due to the implementation of the new accounting standards for financial instruments. The decrease in the value of equity assets caused by the decrease in the value of equity financial assets held during the above-mentioned period led to a decrease in the fair value.