Nanshan Life recognized a profit of 7.554 billion yuan, and Baocheng made a huge profit of 10.774 billion yuan in the first three quarters

Shoemaker Baocheng (9904) announced today that its consolidated revenue for the first three quarters was 187.671 billion yuan, and its net profit after tax was 10.774 billion yuan, an increase of 4.809 billion yuan from the same period last year, an annual increase of 80.6%, and earnings per share of 3.66 yuan.

Baocheng said that the consolidated operating gross profit in the first three quarters was 39.693 billion yuan, a decrease of 3.976 billion yuan from the same period in 2014, or an annual decrease of 9.1%. The consolidated operating gross profit margin dropped from 23.2% in the same period in 2014 to 21.2%. This was mainly due to factors such as the decline in revenue scale of the footwear manufacturing business, uneven production capacity load, and rising manufacturing costs.

Affected by the decrease in consolidated operating gross profit, despite continued strict control over expenses, consolidated operating expenses in the first three quarters still increased slightly by 0.6% compared with the same period in 2014, and consolidated operating net profit dropped to 4.633 billion yuan, a decrease of 4.182 billion yuan from the same period in 2014, a year-on-year decrease of 47.4%. The consolidated operating net profit margin also dropped from 4.7% in the same period in 2014 to 2.5%.

In terms of non-operating income and expenses, the investment income recognized in the first three quarters was 9.03 billion yuan using the equity method, an increase of 6.692 billion yuan compared with the same period in 2014. This mainly came from the recognition of 7.554 billion yuan in related transfer income of Nanshan Life Insurance, which directly and indirectly held 18.09% of the shares, an increase of 6.947 billion yuan compared with the same period in 2014.

In addition, the net loss of financial products measured at fair value through profit and loss increased by 738 million yuan compared with the same period in 2014, the net profit from the disposal of related enterprises decreased by 421 million yuan, and the net foreign currency exchange loss increased by 257 million yuan, etc.

Therefore, the consolidated non-operating net income in the first three quarters was 10.288 billion yuan, an increase of 5.318 billion yuan from the same period in 2014, an annual increase of 107%, driving Baocheng's net profit after tax in the first three quarters to 10.774 billion yuan, an annual increase of 80.6%, and earnings per share of 3.66 yuan.