Dazhong Transportation Reports Negative Growth From Main Business

The profile of the company:

Dazhong Transportation (Group) Co., Ltd. [900903:CH] is a Chinese based company that mainly focuses in offering different transportation service. The business activities of the company comprises of offering tourist catering services and modern logistics. The company also engages in other businesses such as the development of real estate and offering financial services. The company conducts its businesses within the Chinese domestic regions precisely in the Shanghai, Jiangsu, Anhui, Zhejiang, Beijing and Guangdong Provinces of China and no involvement in the oversea regions. The company was established and incorporated on September 1988 while its headquarter is located at Shanghai, China. The executive leader of the company is Guoping Yang with up to about 7,494 other employees currently working for the company.

Performance of different business activities:

The financial report of the company for the Fy20 and Fy19 periods are been diversified as regards to the revenues generated from the different business specialties of the company. The financial data that was showcased by marketscreener, reveals that in

2020 Report: The total revenue generated from business during that period decreased to CNY1.33 billion and CNY896.15 million respectively from the transportation and real estate business. This poor performances in the company’s revenue generated from business was attributed to the temporarily closure of business activities due to the outbreak of the contagious corona virus. During that period business activities were closed to avoid the spread of the contagious virus.

2019 Report: The total revenue generated from business during that period decreased to CNY1.46 billion and CNY1.78 billion respectively from the transportation and real estate business. This poor performances in the company’s revenue generated from business was attributed to the temporarily closure of business activities in the fourth quarter due to the outbreak of the contagious corona virus. During that period, the first wave of the outbreak was experienced.

1Q21 and 2Q21 financial performance of the company:

The financial performance of the company for the first and second quarter of Fy21 highlights steady and consistent decrease. The financial reports are been explain as regards to the major financial indicators

The financial report of the 1Q21 period shows that the total income raised by the company during that period amounted to about CNY570.97 million, representing a decrease by % year-on-year when compared and analyzed from the CNY684.89 million that was reported in the 4Q20’s financial result. The financial report of the company targeting the 1Q21 period also highlighted that the total profit during that period strongly reduced to CNY181.72 million, representing a decrease by % year-on-year when compared and analyzed from the CNY219.82 million that was reported in the 4Q20’s financial result.

The financial data of the 2Q21 also revealed that the total income raised by the company during that period amounted to about CNY542.24 million, representing a decrease by % year-on-year when compared and analyzed from the CNY570.97 million that was reported in the 1Q21’s financial result. The financial report of the company targeting the 2Q21 period also highlighted that the total profit during that period strongly reduced to CNY177.66 million, representing a decrease by % year-on-year when compared and analyzed from the CNY181.72 million that was reported in the 1Q21’s financial result.

The company’s stock performance:

The performance report from the Chinese stock market reveals that the stock of Dazhong Transportation (Group) Co., Ltd. [900903:CH] is sold at about CNY3.47 per stock which signifies a 24 hours price decrease of about 1.70% as compared to the price of the stock as at same period on yesterday. The current price of the stock also signifies a 12 months price magnitude of about +9.01% as compared to the price of the stock as same period in the previous year. The company’s stock trends with a 52-weeks high of about CNY3.48 per stock while the 52-weeks low price amounts to about CNY3.23 per stock.

References: https://www.reuters.com/companies/600611.SS/financials/income-statement-quarterly, https://www.marketscreener.com/quote/stock/DAZHONG-TRANSPORTATION-G-9950206/company/ and https://www.bloomberg.com/profile/company/900903:CH