Optical fiber manufacturer Xinmao Technology turned losses into profits in 2015, with net profit increasing by 196% year-on-year
Xinmao Technology, a major northern optical fiber manufacturer, recently announced 2015 financial report.
The financial report shows that in 2015, it achieved revenue of 1.608 billion yuan, a year-on-year increase of 60%; net profit was 138 million yuan, successfully turning losses into profits, a year-on-year increase of 196%.
Xinmao Technology has gradually divested its non-main businesses in recent years and focused on the manufacturing of optical fiber and cables. The business model adopts the "production based on sales" model. Optical fiber products are mainly produced by the company. Tianjin YOFC Xinmao Optical Communications Co., Ltd., an optical fiber manufacturing company jointly established with YOFC, produces and sells optical fibers. The company has two wire drawing production plants. The construction of a new ultra-high-speed wire drawing tower in the second factory has been basically completed, with a total annual capacity of It has a production capacity of 24 million core kilometers of optical fibers; optical cable products are produced and sold by Tianjin Changfei Xinmao Optical Cable Co., Ltd., an optical cable manufacturing company jointly invested by the company and YOFC, with a production capacity of approximately 4 million core kilometers.
Changxin Optical Fiber Company and Changxin Optical Cable Company purchase raw materials from upstream suppliers based on orders and production needs, and then Changxin Optical Fiber Company and Changxin Optical Cable Company purchase raw materials according to orders and production needs. According to the order requirements of downstream customers, optical fibers and optical cables are manufactured and sold.
It is understood that these products are mainly sold to YOFC. In 2015, they sold 1.134 billion yuan to YOFC, accounting for 95% of the sales of Xinmao Technology’s optical communication products.
The announcement shows that Xinmao Technology's optical fibers, optical cables and quartz materials and products have basically achieved full production and sales. It has produced 18.87 million core kilometers of optical fibers, a year-on-year increase of 53%; it has sold 19.27 million core kilometers of optical fibers, a year-on-year increase of 55%, achieving Optical fiber sales revenue was 870 million yuan, a year-on-year increase of 8 5%; produced 3.46 million core kilometers of various types of optical cables, a year-on-year increase of 32%, sold 3.43 million core kilometers of optical cables, a year-on-year increase of 37%, and achieved optical cable sales revenue of 350 million yuan, a year-on-year increase of 35%; Langfang Jiuzhi Company achieved quartz material this year The production and sales of quartz products were 50.8 million yuan, a year-on-year increase of 10%.
However, the contribution to turning losses into profits is not the growth of business. The report shows that in 2015, Xinmao Technology transferred 100% of the equity of Tiancai Hotel Company to Xinmao Group Company, and it has been completed Industrial and commercial transfer; at the same time, the property located in Areas A and C of Tiancai Software Building, No. 1, Rongyuan Road, Huayuan Science and Technology Park, Binhai High-tech Zone, Tianjin, and its land use rights (also known as "Xinmao Tiancai Hotel Building") were transferred to Tiancai Hotel Company.
The above-mentioned asset transfer has contributed approximately 260 million yuan in net profit to Xinmao Technology this year. As of now, the property transfer procedures have been completed, making an important contribution to the company's turnaround this year.
Data shows that the gross profit margin of Xinmao Technology's optical communication business, including optical fibers and optical cables, was 5.44% in 2015, -1.31% in 2014, and -1.31% in 2013.The year is 9.18%.
