Yizumi Preliminary Earnings Estimate: Revenues and Profits Reached Double Growth in 2019

2020-03-02

Abstract:

Recently, Yizumi released the 2019 annual preliminary earnings estimate. During the reporting period, company’s revenues kept increasing, the gross revenue reached 2113.8513 millions, 4.91% increase year on year; operating profits reached 222.1912 millions, 6.89% increase year on year; The net profit that belongs to shareholders was 190.2516 millions, 8.50% rise over the same period last year.

The dominant factors affecting operation performance:

（1）Chinese economic situation is still complicated,the situation of the slack demand in company’s industry sector still exists. Company operation is exposing to a great challenge. Under this adverse situation, the whole company works hard, striving to expand the market. The business operation in 2019 matched expectation, besides, revenues and profits both had an increase.

（2）Company’s expenses in this reporting period went up year on year, which influence the overall profits. The main reasons are listed bellow: the increasing of R&D expenses caused by the increasing investment; the increasing of fixed assets investment that leaded to the increased loan stocks, which caused the increased interest exchange; The volatilities of RMB exchange rate caused the increasing of financial expenses, etc.

（3）During the reporting period, the company’s equity investment and subsidy received by government increased, having a positive influence for overall profit in 2019.

Special Reminder：the 2019 financial data in this report was only accounted preliminarily by company’s financial department, without accounting firm’s auditing, which may cause differences compared with the final data released from the 2019 annual report. Investors please pay attention to the risks.