Aankondiging • Mar 20
Shandong Weiqiao Pioneering Group Co.,Ltd completed the acquisition of remaining 36% stake in Weiqiao Textile Company Limited (SEHK:2698). Shandong Weiqiao Pioneering Group Co.,Ltd agreed to acquire remaining 36% stake in Weiqiao Textile Company Limited (SEHK:2698) for HKD3.5 per share on December 4, 2023. The payment of the total consideration will be financed by internal cash resources and/or external debt financing. CICC acted as financial advisor to Shandong Weiqiao Pioneering Group Co.,Ltd. Elstone Securities Limited acted as Financial advisor to Independent Board Committee. Shandong Weiqiao Pioneering Group Co.,Ltd completed the acquisition of remaining 36% stake in Weiqiao Textile Company Limited (SEHK:2698) on March 19, 2024. Aankondiging • Dec 06
Shandong Weiqiao Pioneering Group Co.,Ltd agreed to acquire remaining 36% stake in Weiqiao Textile Company Limited (SEHK:2698) for HKD3.5 per share. Shandong Weiqiao Pioneering Group Co.,Ltd agreed to acquire remaining 36% stake in Weiqiao Textile Company Limited (SEHK:2698) for HKD3.5 per share on December 4, 2023. The payment of the total consideration will be financed by internal cash resources and/or external debt financing. CICC acted as financial advisor to Shandong Weiqiao Pioneering Group Co.,Ltd. New Risk • Dec 06
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 30% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (30% average weekly change). Earnings have declined by 62% per year over the past 5 years. New Risk • Oct 24
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.5% average weekly change). Earnings have declined by 62% per year over the past 5 years. Reported Earnings • Aug 13
First half 2023 earnings released: CN¥0.42 loss per share (vs CN¥0.54 loss in 1H 2022) First half 2023 results: CN¥0.42 loss per share (improved from CN¥0.54 loss in 1H 2022). Revenue: CN¥7.95b (down 4.1% from 1H 2022). Net loss: CN¥504.3m (loss narrowed 22% from 1H 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 101 percentage points per year, which is a significant difference in performance. Aankondiging • Aug 03
Weiqiao Textile Company Limited to Report First Half, 2023 Results on Aug 11, 2023 Weiqiao Textile Company Limited announced that they will report first half, 2023 results on Aug 11, 2023 Aankondiging • Jul 31
Weiqiao Textile Company Limited Provides Earning Guidance for the First Half Ended June 30, 2023 Weiqiao Textile Company Limited provided earning guidance for the first half ended June 30, 2023. For the period, the Group is expected to record a net loss for the six months ended 30 June 2023, the main reasons for which are as follows: (1) in the first half of 2023, under the adverse impact of the global macro market environment, the profit margin of the Group's cotton textile products remained under pressure, and hence the Group would continue to record a gross loss in its textile business in the first half of the year; and (2) in the first half of 2023, although the Group maintained a profit in the electricity business, under the impact of the macro demand, the sales volume of electricity decreased correspondingly as compared to the same period last year, leading to a period-on-period decrease in gross profit; meanwhile, based on the condition of the electricity assets, the Group made an impairment provision for certain of them. Based on the above main reasons, the Board expects that the Group will record a net loss of approximately RMB 500 million to RMB 600 million for the six months ended 30 June 2023. Reported Earnings • Mar 19
Full year 2022 earnings released: CN¥1.30 loss per share (vs CN¥0.51 profit in FY 2021) Full year 2022 results: CN¥1.30 loss per share (down from CN¥0.51 profit in FY 2021). Revenue: CN¥16.6b (up 1.9% from FY 2021). Net loss: CN¥1.56b (down 354% from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Aankondiging • Feb 04
Weiqiao Textile Company Limited Provides Preliminary Unaudited Group Earnings Guidance for the Year Ended 31 December 2022 Weiqiao Textile Company Limited provided preliminary unaudited group earnings guidance for the year ended 31 December 2022. For the year, the group expects to record a loss for the annual results, the main reasons for which are as follows: in 2022, on one hand, under the adverse impacts of factors including the recurrence of the global COVID-19 pandemic as well as the changes in the textile market supply chain landscape caused by the international trade tensions, the domestic and overseas textile markets continued to weaken, leading to an overall decline in the demand for textile products, which resulted in a corresponding decrease in the purchase orders for the group's cotton textile products and thus a period-on-period decrease in the sales volume; on the other hand, the group recorded a substantial increase in the production costs for its textile products as the price of cotton lint, the major raw material for the production of the group's textile products, first increased and then decreased in the year with a period-on-period increase in the average price, and an increase in staff costs as compared with the same period last year. Despite the slight period-on-period increase in the sales prices of the Group's cotton yarn and denim products, the Group's textile business recorded a gross loss in the year of 2022 as such increase in sales prices was exceeded by the sharp increase in the production costs and there was a period-on-period decrease in sales price of grey fabric, resulting in a corresponding increase in the group's inventory provision for decline in value, but such inventory provision for decline in value is not a realised loss; and in 2022, although the group maintained a profit in the electricity business, since the price of coal, which is the major raw material, fluctuated at high price levels, there was a substantial increase in the costs of electricity generation, thereby leading to a decrease in the unit gross profit from electricity generation in accordance with the electricity supply agreement. Based on the main reasons as aforesaid, the Board expects that the Group will record a loss of approximately RMB 1.6 billion for the year ended 31 December 2022. The Board will pay close attention to the overall development of the textile industry in China in 2023, and will make timely adjustments to the Group's operation strategy according to the overall situation of the industry, fully utilise its characteristics and advantages, and continue to make great efforts in aspects including management innovation, cost reduction and efficiency improvement, investments in research and development activities as well as green and intelligent manufacturing, in order to enhance its competitiveness in domestic and overseas markets. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 7 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Non-Executive Director Yanzhao Liu was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 20
First half 2022 earnings released: EPS: CN¥0 (vs CN¥0.49 in 1H 2021) First half 2022 results: EPS: CN¥0 (down from CN¥0.49 in 1H 2021). Revenue: CN¥8.29b (up 11% from 1H 2021). Net loss: CN¥650.0m (down 212% from profit in 1H 2021). Aankondiging • Aug 09
Weiqiao Textile Company Limited to Report Q2, 2022 Results on Aug 19, 2022 Weiqiao Textile Company Limited announced that they will report Q2, 2022 results on Aug 19, 2022 Buying Opportunity • Jul 16
Now 30% undervalued after recent price drop Over the last 90 days, the stock is down 26%. The fair value is estimated to be €0.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years, while earnings per share has been flat. Aankondiging • Jul 15
Weiqiao Textile Company Limited Provides Earning Guidance for the Interim Results for the Six Months Ended 30 June 2022 Weiqiao Textile Company Limited provided earning guidance for the interim results for the six months ended 30 June 2022. The board of directors of the Company informed the shareholders of the Company and the potential investors that, based on the unaudited management accounts of the Group for the period from January to June, the Group is expected to record a loss for the interim results for the six months ended 30 June 2022, the main reasons for which are as follows: in the first half of 2022, on one hand, under the adverse impacts of factors including the recurrence of the global COVID-19 pandemic as well as the changes in the textile market supply chain landscape caused by the international trade tensions, the domestic and overseas textile markets continued to weaken, leading to an overall decline in the demand for textile products, which resulted in a corresponding decrease in purchase orders for the Group's cotton textile products and thus a period-on-period decrease in sales volume; and, on the other hand, the Group recorded a substantial increase in production costs for its textile products due to the persistently high price of cotton lint, which is the major raw material for production of the Group's textile products, and an increase in staff costs as compared with the same period last year. Despite the period-on-period increase in the sales prices of the Group's textile products, the Group's textile business recorded gross loss in the first half of the year as such increase in sales prices was exceeded by the sharp increase in the production costs; and in the first half of 2022, although the Group maintained profitability in the electricity business, since the price of coal, which is the major raw material, fluctuated at high price levels, there was a substantial increase in the costs of electricity generation, thereby leading to a decrease in the unit gross profit from electricity generation in accordance with the electricity supply agreement. Based on the main reasons as aforesaid, the Board expects that the Group will record a loss ofapproximately RMB600 million to RMB700 million for the six months ended 30 June 2022. The Board will pay close attention to the overall development of the textile industry in China during the second half of the year, and will make timely adjustments to the Group's operation strategy according to the overall situation of the industry, fully utilize its characteristics and advantages, and continue to make great efforts in aspects including management innovation, cost reduction and efficiency improvement, investments in research and development activities as well as green and intelligent manufacturing, in order to enhance its competitiveness in domestic and overseas markets. Buying Opportunity • Jun 25
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 15%. The fair value is estimated to be €0.27, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years, while earnings per share has been flat. Buying Opportunity • Jun 07
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 9.3%. The fair value is estimated to be €0.27, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.9% over the last 3 years, while earnings per share has been flat. Aankondiging • May 28
Weiqiao Textile Company Limited Approves Final Dividend for the Year Ended 31 December 2021, Payable on 24 June 2022 Weiqiao Textile Company Limited will pay the final dividends of RMB 0.18 (tax inclusive) per Share for the year ended 31 December 2021. Such final dividends will be paid by the Receiving Agent and will be mailed by Computershare Hong Kong Investor Services Limited to the holders of H Shares who are entitled to receive the same by ordinary post at their own risk on 24 June 2022. Upcoming Dividend • May 24
Upcoming dividend of CN¥0.18 per share Eligible shareholders must have bought the stock before 31 May 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 35% and the cash payout ratio is 97%. Trailing yield: 10%. Within top quartile of German dividend payers (4.2%). Higher than average of industry peers (1.7%). Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 6 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Non-Executive Director Yanzhao Liu was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Aankondiging • Apr 07
Weiqiao Textile Company Limited, Annual General Meeting, May 27, 2022 Weiqiao Textile Company Limited, Annual General Meeting, May 27, 2022, at 09:00 China Standard Time. Location: the conference hall 401 on the Fourth Floor Company Office Building, No. 1 Wei Fang Road, Zouping Economic Development Zone Zouping Shandong Province China Agenda: To consider and approve the report of the board of directors of the Company (the Board) and the report of the supervisory committee of the Company for the year ended 31 December 2021; to consider and approve the consolidated audited financial statements of the Company and its subsidiaries for the year ended 31 December 2021; to consider and approve the profit distribution proposal of the Company and the relevant declaration and payment of a final dividend for the year ended 31 December 2021; and to consider any other matter thereof. Reported Earnings • Mar 12
Full year 2021 earnings: Revenues in line with analyst expectations Full year 2021 results: Revenue: CN¥16.3b (up 28% from FY 2020). Net income: CN¥614.2m (up 200% from FY 2020). Profit margin: 3.8% (up from 1.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Aankondiging • Mar 03
Weiqiao Textile Company Limited to Report Fiscal Year 2021 Results on Mar 11, 2022 Weiqiao Textile Company Limited announced that they will report fiscal year 2021 results on Mar 11, 2022 Aankondiging • Jan 30
Weiqiao Textile Company Limited Provides Unaudited Group Earnings Guidance for the Year Ended December 31, 2021 Weiqiao Textile Company Limited provided unaudited group earnings guidance for the year ended December 31, 2021. For the period the company expects increase of approximately 200% in the net profit of the group for the year ended December 31, 2021 as compared to the net profit recorded for the year ended December 31, 2020. Driven by the overall increase in the demand for textile products as consumption in the domestic and overseas textile and apparel markets gradually recovered, the sales volume of the group's main textile products recorded a year-on-year increase, and the sales price for the year also increased as compared to that for year 2020; also, the net profit of the group was at a low level for year 2020 due to the adverse impacts brought by the COVID-19 pandemic during that period, and as to the electricity business of the group, on one hand, the sales volume of electricity for theyear decreased as compared to that for year 2020 due to the decrease in demand for electricity by the downstream customers as a result of the pandemic on the other hand, the production costs of electricity lagged behind the timing of sales price of electricity adjusted according to the established electricity pricing mechanism due to the fluctuations in the prices of coal, which was used as main raw material, during the Year. Due to the combined effect of the aforesaid factors, the Group recorded a substantial decrease in the gross profit generated from sales of electricity for the Year as compared to that for year 2020, but still continued to maintain steady profitability. Reported Earnings • Sep 23
First half 2021 earnings released: EPS CN¥0.49 (vs CN¥0.13 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥7.50b (up 38% from 1H 2020). Net income: CN¥583.1m (up 276% from 1H 2020). Profit margin: 7.8% (up from 2.9% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Aankondiging • Jun 17
Weiqiao Textile Company Limited Provides Unaudited Group Earnings Guidance for the Six Months Ended June 30, 2021 Weiqiao Textile Company Limited provided unaudited group earnings guidance for the six months ended June 30, 2021. For the period, the group expects an increase of over 200% in the net profit as compared to the corresponding period of 2020, the main reasons for which are as follows: as the global COVID-19 pandemic has been brought under control, consumption in the domestic and overseas textile and apparel markets gradually recovered, leading to an overall increase in the demand for textile products. The sales volume of the group's cotton textile products recorded a significant year-on-year increase, and the sales prices also increased as compared to the same period of last year; and the net profit of the group was at a low level due to the adverse impacts brought by the pandemic during the same period of last year; and the group's electricity business continued to maintain steady profitability. Executive Departure • Jun 07
Independent Non-Executive Director Shuwen Chen has left the company On the 28th of May, Shuwen Chen's tenure as Independent Non-Executive Director ended after 7.0 years in the role. We don't have any record of a personal shareholding under Shuwen's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 12.54 years. Executive Departure • Jun 04
Chairman of the Supervisory Board Xiaoyun Wang has left the company On the 28th of May, Xiaoyun Wang's tenure as Chairman of the Supervisory Board ended after 6.0 years in the role. We don't have any record of a personal shareholding under Xiaoyun's name. Xiaoyun is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 13.83 years. Aankondiging • May 29
Weiqiao Textile Company Limited Approves Final Dividend for the Year Ended 31 December 2020 Weiqiao Textile Company Limited's AGM has approved a resolution to pay the final dividends of RMB 0.061 (tax inclusive) per share for the year ended 31 December 2020. The payment shall be made to the Shareholders whose names appear on the register of members of the Company at the close of business on 11 June 2021. The Company will pay to Bank of China (Hong Kong) Trustees Limited (the "Receiving Agent") the final dividends declared for payment to the holders of H Shares. Such final dividends will be paid by the Receiving Agent and will be mailed by Computershare Hong Kong Investor Services Limited to the holders of H Shares who are entitled to receive the same by ordinary post at their own risk on 29 June 2021. Upcoming Dividend • May 27
Upcoming dividend of CN¥0.061 per share Eligible shareholders must have bought the stock before 03 June 2021. Payment date: 29 June 2021. Trailing yield: 3.6%. Within top quartile of German dividend payers (3.2%). Higher than average of industry peers (1.0%). Reported Earnings • Apr 15
Full year 2020 earnings released: EPS CN¥0.17 (vs CN¥0.18 in FY 2019) The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2020 results: Revenue: CN¥12.7b (down 16% from FY 2019). Net income: CN¥204.8m (down 6.2% from FY 2019). Profit margin: 1.6% (up from 1.4% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Aankondiging • Mar 21
Weiqiao Textile Company Limited Recommends Payment of Final Dividend for the Year Ended December 31, 2020, Payable on 29 June 2021 The Directors of Weiqiao Textile Company Limited recommended the payment of a final dividend of RMB 0.061 (inclusive of tax) per share for the year ended 31 December 2020, to shareholders of the company whose names appear on the register of members of the company as at close of business on 11 June 2021, and the dividend will be paid on 29 June 2021. The 2020 Final Dividend is subject to the approval at the coming annual general meeting of the company. Reported Earnings • Mar 20
Full year 2020 earnings released The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2020 results: Revenue: CN¥12.7b (down 16% from FY 2019). Net income: CN¥204.8m (down 6.2% from FY 2019). Profit margin: 1.6% (up from 1.4% in FY 2019). The increase in margin was driven by lower expenses. Aankondiging • Mar 09
Weiqiao Textile Company Limited to Report Fiscal Year 2020 Results on Mar 19, 2021 Weiqiao Textile Company Limited announced that they will report fiscal year 2020 results on Mar 19, 2021 Is New 90 Day High Low • Feb 25
New 90-day high: €0.25 The company is up 35% from its price of €0.18 on 27 November 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 5.0% over the same period. Is New 90 Day High Low • Feb 08
New 90-day high: €0.23 The company is up 31% from its price of €0.17 on 10 November 2020. The German market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is down 5.0% over the same period. Aankondiging • Oct 18
Weiqiao Textile Company Limited Enters into the Renewed Cotton Yarn, Grey Fabric and Denim Supply Agreement with Agreement with Weiqiao Textile Company Limited and Shandong Weiqiao Chuangye Group Company Limited (Parent Company) entered into the Old Cotton Yarn, Grey Fabric and Denim Supply Agreement on 17 October 2017, pursuant to which the Company agreed to supply or procure its subsidiaries to supply cotton yarn, grey fabric and denim to the Parent Group for the production of downstream cotton textile products for the period from 1 January 2018 to 31 December 2020 (both days inclusive). The Board announces that, on 16 October 2020, the Company entered into the Renewed Cotton Yarn, Grey Fabric and Denim Supply Agreement with the Parent Company for a term of three years commencing on 1 January 2021 and ending on 31 December 2023 (both days inclusive),pursuant to which the Company will continue to supply or procure its subsidiaries to supply cotton yarn, grey fabric and denim to the Parent Group. The terms and conditions of the Renewed Cotton Yarn, Grey Fabric and Denim Supply Agreement are basically the same as those of the Old Cotton Yarn, Grey Fabric and Denim Supply Agreement. Aankondiging • Aug 04
Weiqiao Textile Company Limited to Report First Half, 2020 Results on Aug 14, 2020 Weiqiao Textile Company Limited announced that they will report first half, 2020 results on Aug 14, 2020 