Zhejiang Longsheng (600352):2019 Net Profit Rose 22.17% To 5 Billion 23 Million Yuan To 10 Yuan 2.5 Yuan.

In April 24th, Zhejiang Longsheng (600352.SH) released its annual report in 2019, operating income of 21 billion 365 million yuan, an increase of 12% compared with the same period last year. The net profit attributable to shareholders of listed companies was 5 billion 23 million yuan, an increase of 22.17% over the same period last year. Net profit attributable to shareholders of listed companies after deducting non recurring losses was 4 billion 261 million yuan, an increase of 15.03% over the same period; the basic earnings per share was 1.5766 yuan, and every 10 shares were sent. The cash dividend is 2.5 yuan (including tax). Net cash flows from operating activities amounted to 6 billion 589 million yuan, up 512.24% over the same period last year.

The main manufacturing business of the company is mainly the special chemical business. The procurement mode is mainly centralized procurement by the purchasing center of the headquarters of the company. The subsidiary companies sign contracts with suppliers respectively, and other subsidiary materials are purchased by the subsidiaries themselves, and the purchase cost is strictly controlled. The mode of production is mainly based on the mode of fixed production, and the sales department combines the market sales situation and the customer order plan to formulate production plans, and produce them in a rational and orderly manner. The sales mode is divided into two markets at home and abroad. The mode of distributor operation and direct sales is mainly used in China, and the foreign sales mode is mainly based on the direct sale of end customers.

The company's main dyestuff industry experienced a complex business environment in 2019. The Xiangshui accident and Sino US trade negotiations made product prices and sales fluctuate and increased the difficulty of operation. The company's main intermediates industry, high technical barriers, and strict requirements for safety in production, especially after the Xiangshui serious accident has undergone hundreds of government departments at all levels of safety inspection, production has been stable operation, thereby ensuring the rapid growth of intermediate business performance, and become an important source of company earnings growth.

In the manufacturing sector, the company has sold 219 thousand and 900 tons of dyestuff worldwide and 104 thousand and 100 tons of intermediates. Dyestuff and intermediate business has become the main source of company profits, especially the stable and safe production of the intermediate division, which has played a decisive role in the growth of the annual performance.

In real estate business, the company focuses on Huaxing new town project, Datong base project and Mount Huangshan road project in Shanghai. Among them, Huaxing new town project has obtained the approval of partial adjustment of project control detailed plan, and the demolition work has been completed by now. The Datong base project will start pre-sale in the second half of 2020, and it is expected that there will be large inflow of operating cash. The first phase of Mount Huangshan road project has been completed in 2019 and confirmed revenue; the two phase has already won land and will continue to promote project construction.