China Liansu 2019 revenue of 26.345 billion yuan, an increase of 11%

the evening of March 27, 2019 China Liansu released annual results announcement 2019 annual revenues of 26.345 billion yuan, an increase of 11.0%, gross profit increased 21.0% to 7.537 billion yuan, gross profit margin increased to 28.6%, the company owner attributable profit increased 21.4% to 3.025 billion yuan.

China Liansu said the report period, the Group continued to seize the opportunities brought about national policy and the real estate industry, continue to promote the development of plastic pipe systems business, and actively explore home building materials business and environmental services, broaden the Group to achieve revenue base and achieve sustained growth.

2019, in southern China continue to contribute the majority of the revenue for the China United Plastics Group roots in southern China, continue to consolidate the leading market position in the region. As of December 31, 2019 for the year ended, the number of independent exclusive dealer in China Liansu from all over the country in 2018 increased to 2,276 names of 2,193 names, revenue from southern China and other parts of the Group's total revenue was 53.8% and 46.2%.

At the same time, China Liansu actively expanding plastic pipe markets in other parts of the country, continue to optimize the product mix to increase market share and promote the overall business growth. Financial report pointed out that the Group continued to improve production automation and intelligence level, with effective procurement strategy, efforts to control raw material and production costs of inflationary pressures, and strive to achieve economies of scale maximization.

plastic piping systems, revenues increasing by 11.1% to 23.709 billion yuan (2018 to 21.343 billion yuan), accounting for 90.0% of Group revenue (2018 89.9%).

China Liansu said that as of December 31, 2019 year ended, to benefit the needs of China's construction industry continued to stabilize, especially in the second half of construction projects in southern China to re-active, faster construction, and the government actively promote urban renewal and rural water supply and drainage projects, infrastructure investment is also picking up, with the overall performance and stable development of real estate, driven by increasing the number of orders for plastic piping systems, plastic pipes and systems business group to maintain steady growth throughout the year.

building materials and home products business, the business segment remained stable development, recorded revenue of 1.519 billion yuan, accounting for total revenue of the Group 5.8%. China Liansu pointed out that in 2019, the Chinese government continues to take regulatory measures, intensify downward pressure on the real estate industry. Significant policy tightening signal, the real estate industry growth continued to slow down the overall size of sales area and sales declined. Negatively affected by macroeconomic factors, building materials and household products markets remain under pressure during the year. However, the real estate industry for bulk purchases paradigm shift completion rate gradually pick up in the second half of real estate, building materials and household products will help drive the sales increase, the number of new orders for satisfactory growth, improved overall business performance.

Looking to 2020, China Liansu said it would actively grasp the opportunities brought about by new urbanization and urban redevelopment projects, building materials and household products to promote revenue growth and enhance the contribution of business to the Group's total revenue. Meanwhile, to further consolidate ties with current customers, and actively develop new customers, by offering diversified products to increase sales revenue. Benefit from the new Chinese urbanization continues to advance, China Liansu home building materials products business will achieve synergy with other existing product line, a long-term driving force for the steady development of the business.

(Source: Netease news, invasion deleted)