Nanshan Fashion reports a net profit of nearly 200 million yuan in 2024

Nanshan Fashion (300918) released its 2024 annual report last week, indicating that the company achieved an operating income of 1.616 billion yuan in 2024, a year-on-year increase of 0.98%. The net profit attributable to shareholders of the listed company was 191 million yuan, a decrease of 5.82% compared to the previous year. The net profit attributable to shareholders after deducting non-recurring gains and losses was 183 million yuan, down 7.80% year-on-year, with basic earnings per share of 0.54 yuan. The company plans to distribute a cash dividend of 1.5 yuan (including tax) for every 10 shares to all shareholders.

The decline in net profit was mainly due to increased interest expenses resulting from the capitalization of interest for the ultra-high phase II convertible bonds. Additionally, the performance of downstream apparel brands was weak, leading to a 9.54% year-on-year decrease in operating income from the fine woolen fabric business. However, through enhancing orders for high value-added products and controlling costs, the gross profit margin reached 35.54%, an increase of 1.54% year-on-year.

On March 12, Nanshan Fashion announced that it had signed a joint venture contract with PT TIDEZEN NEW TEXTILE MATERIALS for the establishment of a new apparel production and processing project in Indonesia.

The project is located in the Karangbatang Economic Special Zone on Bintan Island in the Riau Islands Province of the Republic of Indonesia, covering an area of 26.78mu. It aims to create an apparel processing base that integrates efficient production with modern management. The project will utilize fabrics produced domestically by Nanshan Fashion and promote coordinated development of the upstream and downstream of the industrial chain through effective linkage between domestic and international markets.

The project has completed a series of preliminary preparations, including due diligence, feasibility studies, external negotiations, and investment decisions, and is about to enter the substantive construction phase. Once completed, it is expected to produce a total of 160,000 suits, workwear, and shirts annually.

In terms of foreign markets, Nanshan Fashion's products are primarily sold to the United States, the European Union, Japan, Russia, and other countries. The implementation of this apparel production and processing project in Indonesia will leverage the company's existing foreign trade customer resources to further explore overseas markets, expand apparel production capacity, improve industrial layout, and effectively enhance Nanshan Fashion's influence and service capabilities in overseas markets, aiding the company in accelerating the establishment of a new development pattern that focuses on domestic circulation while promoting dual circulation of domestic and international markets.