As the haze of the epidemic fades, Ruhong is optimistic that operations will improve quarter by quarter
As the impact of the epidemic gradually recedes, Ruhong said that the most difficult month of April has passed, and revenue has recovered in May, leaving the bottom of the operation, and will improve quarter by quarter in the second half of the year. . In addition, some customers previously requested delayed shipments, and 70% of the deferred orders will be shipped as scheduled, indicating that the pace of recovery is better than expected.
Ruhong held a shareholders’ meeting on June 17, during which it passed a cash dividend of 11 yuan per share. Ruhong’s revenue in 2019 was 28.125 billion yuan, with the garment business accounting for about 70% of the overall revenue; net profit was 4.299 billion yuan, a slight decrease of 1.84% from 2018, and earnings per share was 15.67 yuan.
Affected by the epidemic, Ruhong’s revenue in April and May both declined by more than 20% compared with the same period last year. However, Chairman Hong Zhenhai pointed out that the most difficult month has already been However, there was no loss in April. Revenue in May was 2.093 billion yuan, a monthly increase of 36.8%. Customer orders have changed, and operations have been off the bottom.
Hong Zhenhai said that the outlook was the least optimistic during the May legal meeting, but now it seems that the most severe impact of the epidemic has passed, and June will be better than May In March, the third quarter will perform better than the second quarter, and the fourth quarter will perform even better, showing an overall upward trend.
He added that due to the impact of the epidemic, some customers requested that orders be deferred to next year, but 70% of the originally deferred orders were shipped as scheduled. Due to good sales of leisure and sports products, the pace of order recovery is faster than expected.
Hong Zhenhai admitted frankly that this year’s performance will not be easy to catch up with last year’s level. It is estimated that there will still be inventory to be digested in the first quarter of next year, and it will truly return to normal in the second quarter of next year at the earliest. .
Looking to the future, Hong Zhenhai pointed out the trends and changes in the post-epidemic era. First, the proportion of e-commerce will gradually increase. Customers will no longer rely solely on physical stores and will expand to online platforms. Sales proportion.
Manufacturers will no longer set up factories for a single customer, and production will adopt a global diversified layout to avoid trade and political frictions between countries, and to disperse uncertainties such as the epidemic. impact caused by factors.
In addition, the product development time will be shortened than before. Customers will not place large orders for a single style. “More styles, less orders” will become a trend, reducing single inventory. pressure. In the post-epidemic era, manufacturers and supply chains must have rapid response capabilities.
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