Ink and Internet business under pressure Letong's operating profit fell 89%
release date: Source: Daily Economic editor: Yu Jia browsing times: 1978 copyright and disclaimer
core tip: on August 28, Letong's interim report showed that the company achieved a revenue of 248 million yuan in the first half of the year, a year-on-year decline of 7.59%; The operating profit was 2.07 million yuan, a year-on-year decrease of 89.2%. The company explained that this was mainly due to the fierce competition in the ink industry and the rise in the price of raw materials, which led to an increase in operating costs
[China Packaging News] on August 28, the interim report released by Letong shares shows that the company achieved a revenue of 248 million yuan in the first half of the year, a year-on-year decrease of 7.59%; The operating profit was 2.07 million yuan, a year-on-year decrease of 89.2%. The company explained that this was mainly due to the fierce competition in the ink industry and the rise in the price of raw materials, which led to an increase in operating costs
in addition to the traditional ink industry, the Internet marketing business of Letong shares also performed poorly. In the first half of the year, the operating revenue of the company's Internet advertising and marketing business was 76.99 million yuan of heat-resistant polymer, and the revenue and profit fell year-on-year
a relevant person from the Securities Department of Letong shares explained to the daily economy that everyone is optimistic about internet marketing and wants to share this cake. Naturally, there are more and more competitors, resulting in a slight year-on-year decline in the company's business
government subsidies account for nearly 30% of net profits.
according to the semi annual report of Letong shares, the company achieved an operating revenue of 248 million yuan from January to June this year, of which the revenue of ink chemical industry was 168 million yuan, accounting for 67.89% of the company's total revenue, and the revenue of Internet business was 76.99 million yuan, accounting for 31.06% of the company's total revenue. In the case of year-on-year decline in operating income, the company achieved a net profit of 726.3 attributable to shareholders of Listed Companies in the first half of the year. The solution is to check whether the power line connected to the experimental machine is normally connected; Check whether the emergency stop switch is screwed up; Check whether the power supply voltage connected to the experimental machine is normal; Check whether the insurance on the machine socket burned out 70000 yuan, an increase of 29.95% year-on-year. The reason for the increase in net profit was the increase in the acquisition of minority interests in subsidiaries and government subsidies
it is understood that Letong received a government subsidy of 2.0274 million yuan in the first half of the year, accounting for nearly 30% of the company's net profit, while the company received a government subsidy of only 646300 yuan in the same period last year
it is worth noting that the net profit of the company after non deduction in the first half of the year was 3.9147 million yuan, a year-on-year decrease of 66.81%. In addition, the operating profit of the company fell by 89.2% year-on-year in the first half of the year. The company explained that this was mainly due to the fierce competition in the ink industry, the rise in the price of raw materials, the increase in operating costs and the decline in gross profit margin
the leading product of Letong is gravure printing ink, which is mainly used in beverage packaging and food packaging printing. Gravure printing ink is the main source of the company's operating income. According to the semi annual report of Letong shares, the revenue of ink business in the first half of the year fell by 1.61% year-on-year. In terms of product categories, the revenue of special ink and flexo ink fell the most. It is understood that special inks are mainly used in cigarette packaging and are positioned at the high end
in an interview with the daily economy, the relevant staff of the Securities Department of Letong said that due to the economic downturn, the prosperity of the ink downstream industry has declined, coupled with fierce competition in the industry, and the cost of raw materials is also rising, resulting in the performance of the ink sector is significantly lower than before. "The ink sector is generally stable now, and the fluctuation is not very large, but it is not as good as before."
the company's business is facing a "pinch"
under the background of the decline of the traditional ink industry, in order to improve the company's performance, Letong entered the field of Internet marketing by acquiring 75% equity of Beijing Xuanxiang Siyue Media Advertising Co., Ltd. (hereinafter referred to as Beijing Xuanxiang Siyue). Subsequently, Internet marketing has indeed become the main source of the company's net profit
in May 2015, Letong shares plans to raise no more than 2.454 billion yuan by issuing shares for the Internet advertising business of overweight company. However, the fixed increase was terminated in May 2016. At present, the main body of Letong's Internet marketing business is still Beijing Xuanxiang Siyue company
in the first half of this year, the Internet marketing revenue of Letong's "profit cow" business also fell year-on-year. From January to June, the company's Internet marketing business revenue fell 19.27% year-on-year, and the total profit was 24.7684 million yuan, down 13.88% year-on-year. The company said that the fierce competition in the Internet advertising market, the large number of competitors in the same industry and the diversification of promotion forms have put some pressure on the company's advertising marketing business
Letong further said, "Beijing Xuanxiang Siyue will urge the sales department to go out and actively seize the market opportunity; improve the decision-making procedures of various affairs, and improve the internal control system according to relevant requirements to further reduce internal friction."
in addition, it is also noted that Beijing Letong Internet Technology Co., Ltd. (hereinafter referred to as Letong Internet), another Internet advertising subsidiary of Letong, has been in a state of loss since its establishment in 2015. In response, the relevant staff of the Securities Department of Letong said, "at present, the Internet marketing business is mainly done by Beijing Xuanxiang Siyue, and Letong Internet is only an auxiliary, which also needs to see the subsequent arrangements of the company's leaders."
as for the current industry competition of Internet marketing, the staff member also said that the good prospect of the industry led to a surge of "stakeholders", which also led to increasingly fierce competition. However, she also stressed that "(performance) has declined year-on-year, but it does not mean that the industry is bad, and we are still optimistic."
how will the company cope with the downturn of the company's ink business and the "attack" of fierce marketing competition with the development of domestic experimental technology in recent years? The staff member said, "at present, ink is still the main business of the company, and the overall development strategy in the later stage depends on the decision of the leadership."