According to the semi annual report of Donghua test, in the first half of this year, the company realized 69.652 million yuan of operating revenue, an increase of 15.09% over the same period of last year, and a net profit of 3.4709 million yuan, an increase of 68.22% over the same period of last year.
as for the company’s net profit, Xiong Weihua, general manager of the company, said that as the provider of overall scheme for structural mechanical property test in China, the company customized major equipment for domestic military industrial projects in the first half of the year, and also provided customized testing scheme for some major domestic projects. These important projects have increased the overall production efficiency of the company by nearly 40% in half a year.
However, Xiong Weihua also admitted that the company’s sales were also affected by the new coronavirus epidemic in the first half of the year. Donghua test products sales accounted for 36% of military industry, 22% of universities, 21% of civil scientific research and engineering testing, and 21% of enterprises. In the first half of the year, due to the epidemic situation, colleges and universities were not allowed to enter, which affected the promotion and sales of Donghua test products. Therefore, the company said that it would continue to pay close attention to the business of colleges and universities in the second half of the year, and take the university business as the driving force to drive the military industry to promote the business of enterprises, scientific research institutions and testing units. Xiong Weihua also believes that if the epidemic situation in the second half of the year can maintain the current control level, Donghua test is optimistic about the performance of the second half of the year.
it is worth mentioning that in the first half of this year, the net cash flow generated by the company’s operating activities was – 28.61 million yuan, compared with – 14.71 million yuan in the same period last year. In response to this data, Liu Shigang, chairman of the company, responded to shareholders including reporters from the financial association that the company has raised funds in recent years and has not been converted into working capital, and the company has no loans at present.
in addition, according to the semi annual report of Donghua test, the company’s accounts receivable during the reporting period were 84.67 million yuan, an increase of 46% over the same period last year. In this regard, the company said that the increase in accounts receivable, due to the increase in sales, payment recovery period extended.
However, the reporter of CFA noted that while sales increased, Donghua test inventory was 93.96 million yuan, an increase of 26% year-on-year. In view of this data, Liu Shigang said that the company’s inventory increased in the first half of the year, mainly adding chips needed for future production.
for the future development of the company, Liu Shigang said that at present, the investment in national defense is increasing, and this part of the market will be further expanded; as for domestic enterprises, whether in the field of construction machinery or in the information market, the demand for products tested by Donghua is very large.
However, Liu Shigang also believes that although the market prospect is good, the company will not easily choose capital expansion in the future. If a merger and acquisition is carried out, it must focus on the main business and find a suitable target. What’s the truth behind the loss making underwear store’s use of altruistic thinking to build a community and make more than 200000 yuan a month