Changshan Beiming (000158): Expected Loss Of 70-90 Million Yuan In The First Half Of The Year

On July 14, Changshan Beiming (000158) announced the semi annual performance forecast of 2020: last year, it is estimated that the loss will be 70 million yuan to 90 million yuan, and the profit in the same period of last year will be 30.08 million yuan, which will change from profit to loss compared with the same period of last year.

According to the announcement, in the first half of 2020, the company's business performance declined to a certain extent compared with the same period of last year, mainly due to the impact of Xinguan epidemic, customers' delay in returning to work, and short-term impact on business development. In the first quarter, the net profit attributable to shareholders of listed companies was -98.9496 million yuan, a decrease of 575.71% compared with the same period of last year. In the second quarter, with the domestic epidemic situation under control and customers returning to work normally, the company took various effective measures to fully guarantee the business development under the premise of strictly preventing the epidemic situation, and strive to minimize the impact of the epidemic situation. In the second quarter, the company's net profit attributable to shareholders of listed companies is expected to be between 8 million yuan and 28 million yuan, and its performance is significantly improved compared with that in the first quarter.

Textile business: the textile industry has been significantly affected by the new crown epidemic, and the terminal demand has declined seriously. Textile enterprises have generally seen a decline in operating rate and production and sales volume. As a result, the demand for orders from downstream customers of the company has been reduced, which has affected the achievement of the company's sales target in the first half of the year, and the operating income has decreased more than that in the same period of last year. At the same time, the unit cost of the company's products increased due to the reduction of capacity utilization, resulting in the decrease of gross profit margin of the company's sales. Although the business situation in the second quarter was greatly improved compared with that in the first quarter, it failed to turn around the deficit, and the performance in the first half of the year was still at a loss.

Software business: in the second quarter, with the epidemic situation under control, the company closely grasped the market situation, accelerated the transformation of market business opportunities and the progress of project implementation, quickly achieved stable operation, improved the gross profit margin of main business, and realized profit from the net profit attributable to the owner of the parent company in the first half of the year. At the same time, in order to maintain and expand the company's leading edge in technology, the company continued to strengthen the investment in R & D projects. During the reporting period, the R & D expense expense was about 97 million yuan, an increase of about 53 million yuan over the previous year, making the performance of the first half of the year lower than that of the previous year. Excluding the factors of increase in R & D expenses, the profitability of the software business in the first half of the year was better than that of the same period last year.

Data show that Changshan Beiming is mainly engaged in software and information technology services.