The general manager of Ruhong (1476), a leading textile factory, said at a conference today that as new brand development and new product launches gradually show results, the proportion of revenue from new customers has increased from about 10% previously to 11%. Some products have entered the mass production preparation stage, and existing customer demand is stable, driving overall operational growth. Looking forward to 2027, Ruhong maintains a cautiously optimistic view and continues to promote the third phase of Indonesia's factory expansion plan to prepare for future growth.
Hong Ruiting pointed out that although the initial order size of the new customers is not large, they are actively cooperating with the Ruhong R&D team to develop new products, and the market penetration is positive. There are still several potential new customers under negotiation, and some cases have a high probability of success. Further explanations will be made after the prototype and development process are officially entered. The average selling price and gross profit margin of new brand customers are relatively high, but due to smaller order sizes, higher product complexity, and relatively higher operating costs, the company will continue to seek a balance between growth and efficiency.
Regarding the operating outlook for 2027, Hong Ruiting believes that the current order visibility is about 6 months, which is equivalent to the past. With the release of the U.S. election results, uncertainty over tariff policy has declined, and the company is cautiously optimistic about future operations. However, brand customers have not yet made significant additional orders, and relevant policy changes will still take time to ferment.
Hong Ruiting observed that industrial inventory levels are gradually declining, and some brands have slightly adjusted the selling prices of their end products in response to tariffs and inflation. However, there are still uncertainties in oil prices in the European market and the Middle East. The company will continue to observe end consumer demand and strengthen cooperation with brand customers on new product development and mid- and long-term strategies. As for the specific operating growth target and gross profit margin guidance for 2027, it is expected to be explained at the next legal meeting after completing an internal review at the end of the year.
In terms of production capacity layout, Ruhong plans to use the third phase of Indonesian plant expansion as the main expansion project from 2027 to 2028. It is still in the design and environmental assessment stage and is moving towards the goal of breaking ground at the end of this year. The capital expenditure in 2027 is estimated to be 1 billion to 1.2 billion yuan. Hong Ruiting said that in addition to expanding the factory in Indonesia, the production bases in Vietnam and Cambodia will also continue to optimize product portfolios, adjust production capacity and introduce automation. In the future, there are plans to establish vertical integration capabilities in fabrics in Indonesia, and relevant investment methods are still under evaluation.
Ruhong's third-quarter revenue was 10.57 billion yuan, an annual increase of 9.74%, a new high since the third quarter of 2022 and the third highest in history; gross profit margin was 31.18%, an annual increase of 2.52 percentage points, operating profit margin was 20.69%, an annual increase of 1.59 percentage points, after-tax net profit was 1.744 billion yuan, an annual increase of 5.55%, and earnings per share was 6.36 yuan. The cumulative revenue in the first three quarters was 30.278 billion yuan, an annual increase of 5.41%, the net profit after tax was 5.1 billion yuan, an annual increase of 30.48%, and the earnings per share was 18.7 yuan.
