Largest cotton textile producer Weiqiao Textile Company Limited announced its unaudited consolidated interim results for the six months ended June 2005 (the "Period"). In the review period, the Group recorded a turnover of RMB 6,916 million, representing an increase of 51.1 percent over the same period of 2004. Net profit attributable to equity holders of the parent was RMB 472 million, a substantial increase of 32.2 percent over the same period of 2004. Basic earnings per share were RMB 0.54.
Zhang Bo, Chairman of Weiqiao Textile, commented, "The sharp increase in net profit was primarily a result of the Group's ever expanding scale of production and enhanced sales momentum. With continuous improvement in production facilities, equipment and technology standards, the Group managed to produce more value-added products to meet the demand of the international and domestic markets."
The increase in the proportion of grey fabric in the Group's turnover to 52.2 percent and the decrease in the proportion of denim were due to the Group scaling up the production of grey fabric in response to market demand and the use of some of the denim production equipment to produce grey fabric. The increase in the proportion of cotton yarns sales to 39.6 percent from 36.6 percent last year was mainly due to increased sales of high-end cotton yarns as the Group was able to cope with thriving market demand for high end cotton yarn.
Earlier, Management had anticipated such an increase in demand and prepared for it by adopting flexible marketing strategies and adjusting its marketing structure. In the review period, the gross profit margin of cotton yarn increased from 23.5 percent at the end of the first half of 2004 to 24.4 percent at the end of the first half of 2005. While the gross profit margin of grey fabric decreased from 13.7 percent at the end of the first half of 2004 to 10.6 percent at the end of the first half of 2005, the gross profit ratio of Denim increased from 20.9 percent to 26.4 percent.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
