Ruhong’s revenue in December 2019 was NT$2.743 billion, a new monthly high, an annual increase of 7.6%, driving fourth-quarter revenue of NT$7.752 billion, an annual increase of 2.6%, a new single-quarter high, and the full year was 281.37 100 million yuan is the highest in history. In 2019, Ruhong set a record of “three highs”.
Benefiting from the strong demand from brand customers, the net profit after tax in the first three quarters of last year was 3.163 billion yuan, an increase of 0.8% over the same period last year. The net profit after tax per share was 11.54 yuan. The legal person expected that with the increase last year Operations are off to a good start in the fourth quarter, and there is an opportunity to boost profits in 2019 to record highs as well.
Due to the bumper harvest in 2019, Ruhong said that the year-end bonus payment level in 209 will be about 3-4 months. This year’s performance growth is expected to be better than last year.
Last year, two major optimistic factors supported Ruhong’s performance. First, the sales performance of Nike, a leading sports brand, was booming, which led to an increase in Ruhong’s orders; second, brand customers implemented a centralized supply chain policy, and Ruhong suddenly became a top 5 brand. As a large supplier, Ruhong’s shipments are booming due to the centralized order factor.
Looking forward to this year’s operations, Ruhong Chairman Hong Zhenhai has previously mentioned that this year, the kinetic energy of ready-made garments will be greater than the kinetic energy of fabrics. In its own factories, it will actively remove bottlenecks and increase production capacity by 15%. In addition, it will appoint Outsourced energy will also be expanded simultaneously by 24 production lines, and it is estimated that the average monthly production capacity will be increased by 1.8 million to 2.2 million pieces this year.
Therefore, after the Lunar New Year, the manpower will be gradually replenished. Since Ruhong has increased the salary level, most of the currently recruited manpower are experienced and qualified. The subsequent learning curve will be greatly shortened, and it is even expected to go online immediately.
Hong Zhenhai pointed out that the momentum given by brand customers this year will be better than that of distributors. Judging from the orders Ruhong has on hand, this year’s operating conditions will be higher than last year.
As for the Indonesian integrated investment project, the garment factory was originally scheduled to mass-produce in the second quarter of 2021. However, the civil engineering found that the local soil quality was poor and improvement projects had to be put in first, so it had to be postponed to the third quarter. According to reports, the fabric factory will be set up in 2022. Currently, it is positioned to only accept medium and large orders in Indonesia and provide quick response style orders.
