Ruyi Group (002193.SZ) net profit in the third quarter pre-decline of 70.86%-77.59%

On October 14, 2020, Ruyi Group (002193.SZ) announced that it expects a net loss attributable to shareholders of listed companies in the first three quarters of 2021 of 43.19 million yuan – 43.55 million yuan, compared with a profit of 20.6357 million yuan in the same period last year; of which the net profit attributable to shareholders of listed companies in the third quarter was 1.2 million yuan – 1.56 million yuan, down 70.86% - 77.59% year-on-year. The reasons for the change in performance are as follows:

1. At present, the global new crown pneumonia epidemic is normalized, the company's performance in the first half of the year is still affected, the company's industry terminal consumption recovery in the second half of the year, overseas orders return, the third quarter of the company's overseas business compared with the first half of the year has a significant improvement, the company's performance has a favorable impact.

2. Change the order receiving mode and reduce related party transactions. Since 2021, in order to reduce related party transactions, the company has instead undertaken the professional wear business on its own, and in addition to the contracts being executed, it will no longer use Shandong Ruyi Technology Group Co., Ltd. as a platform to participate in the bidding for the professional wear business. Due to the limitation of the scale of operation and the company's own historical performance of undertaking professional wear orders, the market and customers need time to verify and accept the replacement of the order subject, and the transition period has a certain impact on the company's professional wear order business, especially on the domestic sales business of the clothing sector in the first half of 2021, the domestic sales orders in the third quarter have a significant improvement compared with the second quarter, and the company's domestic sales performance will fully enter the recovery stage in the future.

3. Change the settlement mode and reduce accounts receivable. In 2021, in order to strengthen the management of accounts receivable, the company will adopt the method of cash withdrawal and tightening the customer credit policy to improve the turnover rate of accounts receivable, and the credit policy tightening transition period will adversely affect the company's performance.

The above factors had a greater impact on the performance of the reporting period, and due to the series of countermeasures taken by the company in the third quarter results, the company will continue to increase the development of overseas markets; enhance the relevant qualifications of bidding and bidding, increase the number of orders received by the professional wear business, and enhance the company's performance.

This article originated from Grand Gateway