Shenzhen Textile Issued Semi Annual Report In 2012, And Profit Indicators Fell Year After Year.

In August 3, 2012,

The semi annual report 2012 was released.

During the reporting period, the company achieved operating income of 375 million 430 thousand yuan, an increase of 17.62% over the same period last year, and realized a net profit of -1874 million attributable to shareholders of listed companies, down 157.89% from the same period last year. At the same time, it is estimated that the accumulated net profit in the next reporting period will be 11000~9000 yuan.

According to the China Daily report, the main reason for the company's first half profit decline in the first half of 2012 and the sharp loss in the three quarter were mainly due to the trial production of line 4 of the company's "TFT-LCD polarizer project", which increased the purchase of raw materials, R & D expenses and other related costs, resulting in a sharp decrease in operating profits.

Relevant people in the industry said that the deep textile "TFT-LCD polarizer first phase project" is currently in the trial production ramp up stage. Due to the process optimization, customer authentication, and the improvement of the rate of good quality, there is a process of upgrading the production rate. Before the formation of mass production, the increase in related costs leads to the decline of company profits. This is also a necessary stage for the project to mature. And the overall speed up of the first phase of the project will help the company to become a TFT-LCD polarizer supplier in the mainstream panel factory as soon as possible.

At the same time, the company focuses on optimizing and integrating resources, eliminating the low value-added industries, and completely withdrawing the wholly-owned subsidiary of Shenzhen golden orchid Decoration Industry Co., Ltd.

Business has further accelerated the pace of strategic pformation.

Public information shows that in February this year, Shenzhen textile announced a non public issuance plan, to raise no more than 1 billion 471 million yuan, to increase capital Sheng Bo Photoelectric Construction "TFT-LCD polarizer two phase project", has successfully passed the shareholders' meeting and received the Commission's acceptance.

At the same time, the company's "TFT-LCD polarizer phase I" is progressing smoothly.

Line 4 (wide) mainframe equipment works normally, reaches the design speed, completes the acceptance smoothly, and has entered the first stage of trial mass production. The products of line 4 have been verified by the optical indicators and reliability of some downstream panel manufacturers. Customers have made small orders to the company, and line 4 is scheduled to enter mass production in December 2012.

Line 5 has completed the installation of main equipment, and is commissioning the main equipment and other auxiliary equipment. It is expected to enter the trial mass production stage in October 1st.

In addition, the product certification of Shenzhen textile "TFT-LCD polarizer phase I" is in good condition. The company is making close cooperation with BOE, Huaxing Optoelectronics (002179), Longteng optoelectronics, Shanghai Tianma and Hanyu Caijing and other major panel manufacturers through product technology exchange and joint product development.

At present, Shenzhen textile has signed a cooperation agreement with the main downstream manufacturers such as BOE and hibo.

At present, the haze of the European debt crisis has not yet dissipated, and the external economic environment continues to be grim. In the second half of this year, the pressure of deep textile companies will be further increased. Especially, the company's "TFT-LCD polarizer phase I project" is in the trial production ramp up period, and still needs a lot of financial support in the future.

Facing complex business environment, deep

The management of the company said that it would try to shorten the climbing period of the first phase project of the polarizer for TFT-LCD, and strive to reduce the cost. At the same time, we should do a good job in the non-public offering work, accelerate the progress of the two phase project construction of polarizing film, and realize the pformation and upgrading of the enterprise as soon as possible.