Announcement time of this financial report: 2023-10-27 15:54:18

Fengzhu Textile (stock code: 600493) is a mid-stream textile enterprise located in Fujian Province, mainly engaged in knitting, weaving colored cloth, bleaching and dyeing, spinning, dyeing yarn, printing processing and other businesses, and sales of self-produced products. Its products are mainly divided into knitted fabric, knitted finished fabric and package color yarn three categories, mainly for the high-end product market, customers are mainly concentrated in Fujian Province, and radiation to the whole country. 70-80% of the company's products in the form of clothing indirectly exported to Hong Kong and Taiwan, the Middle East, Europe and the United States and Japan and other markets.

In terms of assets and liabilities, in the third quarter of 2023, the total assets of Fengzhu Textile were 2.033 billion yuan, down from 2.058 billion yuan at the end of last year, and the total liabilities were 1.131 billion yuan, down from 1.215 billion yuan at the end of last year. Net assets were 902 million yuan, up from 843 million yuan at the end of last year. The asset-liability ratio was 55.62%, down from 59.05% at the end of the previous year. These figures show that the company's total assets and liabilities have declined, net assets have increased, and the asset-liability ratio has also declined, indicating that the company's financial position is improving.

In terms of profit, in the third quarter of 2023, the operating income of Fengzhu Textile was RMB 718 million yuan, down from RMB 938 million yuan in the same period last year. Operating profit was 90.092 million yuan, up sharply from 35.7062 million yuan in the same period last year. Operating costs were 642 million yuan, down from 812 million yuan in the same period last year. The net profit was 67.5433 million yuan, up sharply from 27.5838 million yuan in the same period last year. Gross profit margin was 10.6%, down from 13.47% in the same period last year. Net interest rate was 9.41%, up sharply from 2.94% a year earlier. Return on equity (ROE) was 7.74%, a significant increase from 3.29% at the end of the previous year. These data show that although the company's operating income has declined, due to the reduction of operating costs, the company's operating profit and net profit have increased significantly, net interest rate and return on net assets have also increased significantly, indicating that the company's profitability is improving.

In terms of cash flow, in the third quarter of 2023, the net cash flow generated from operating activities of Fengzhu Textile was CNY 27.7694 million, which was significantly lower than CNY 89.6839 million in the same period of last year. Cash inflow from operating activities amounted to 675 million yuan, down from 1.03 billion yuan in the same period last year. Cash outflow from operating activities amounted to 647 million yuan, down from 941 million yuan in the same period last year. These figures show a decrease in the Company's net cash flow from operating activities, mainly due to a decrease in sales and purchases.

In summary, although Fengzhu Textile's operating income decreased in the third quarter of 2023, due to the reduction of operating costs, the operating profit and net profit of the Company increased significantly, and the net interest rate and return on net assets also increased significantly, indicating that the profitability of the Company was improving. At the same time, the company's total assets and liabilities have declined, net assets have increased, asset-liability ratio has also declined, indicating that the company's financial position is improving. However, the Company's net cash flow from operating activities declined, mainly due to a decrease in sales and purchases, which is a matter of concern.

For investors, Fengzhu Textile's performance is stable, profitability is improving, financial situation is improving, it is worthy of attention investment object. However, the decline in net cash flow from operating activities of the company may have a certain impact on the company's operations, which is a risk point that investors need to pay attention to.

This article only represents the judgment made by the analyst himself or the analyst on the basis of AI analysis, and can not be used as any investment index, nor does it constitute any investment advice. The original intention of this paper is to help investors analyze and judge the capital market data in the most intuitive and fast way and from the most professional perspective.