Home / Knowledge / News / Textiles / Weiqiao Textile maintains its market leadership in 2011
Weiqiao Textile maintains its market leadership in 2011
26
Mar '12
Weiqiao Textile Company Limited and its subsidiaries, the largest cotton textile producer in China, announced its annual results for the year ended December 31, 2011.

During the Period under Review, the sluggish recovery of the global economy and the sovereign debt crisis in Europe led to depressed demand for textile products and apparel in overseas markets. The growth in export value of textile products and apparel in China decelerated and the increase in export volumes was negligible. According to the figures released by the China Customs, the accumulated export of textile products and apparel in 2011 amounted to approximately US$248 billion, representing an increase of 20.1%.

Yet the growth rate declined by 3.5 percentage points compared to that in 2010. In particular, exports of textile products amounted to approximately US$94.7 billion, representing an increase of 22.9% and a decrease of 5.6 percentage points in growth rate over last year; while exports of apparel amounted to approximately US$153.3 billion, representing an increase of 18.4% and a decrease of 2.5 percentage points in growth rate over last year. Weakened demand from overseas markets together with the shifting of export orders from China to its neighboring countries gradually due to production cost consideration, resulted in a more fierce competition for global textile companies.

In 2011, a turbulent year for the textile industry, the inventory level of Weiqiao increased substantially due to weak market demand. Profits were negatively affected by a provision against inventory due to a significant decline in product prices.

For the year ended 31 December 2011, the Group's revenue was RMB15,232 million, a decrease of 14.8% compared with 2010. Profit attributable to owners of the parent was RMB246 million, representing a substantial decrease of 84.9% compared with 2010. Earnings per share were RMB0.21, representing a decrease of 84.6% compared with the previous year. The Board recommended payment of a final dividend for the year ended 31 December 2011 of RMB0.0594 per share (including tax), down 86.4%.

In 2011, the Group's production volume of cotton yarn, grey fabric, and denim were approximately 618,000 tonnes, 1,165 million meters and 102 million meters respectively. The production of cotton yarn and grey fabric decreased 14.2% and 10.9%, respectively, over last year. The production volume of denim remained at the same level as last year.

Commenting on the 2011 annual results performance, Ms. Zhang Hongxia, Chairman of Weiqiao Textile, said, "2011 was a challenging year for China's cotton textile industry. On the one side, the prices of raw materials fluctuated in the domestic market and production costs including that of labour increased. At the same time, in order to dampen domestic inflation, the PRC government tightened monetary policy, and with the appreciation of RMB, the financing costs reached an even higher levelfor textile companies and exports of textile products were adversely affected. In particular, the high volatility of the cotton price negatively affected the industry across the board."

"As a result, sales were weaker, the potential for inventory losses greater, and profits lower for most cotton textile enterprises. Furthermore, the adverse impact was felt throughout the industry value chain, affecting both confidence and operations."

Click here to read more details:

Weiqiao Textile Company Limited

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search