Home / Knowledge / News / Textiles / 'We will improve our operating efficiency' - Weiqiao Chairman
'We will improve our operating efficiency' - Weiqiao Chairman
30
Mar '09
Ms. Zhang Hongxia, Chairman
Ms. Zhang Hongxia, Chairman
The Board of Directors of Weiqiao Textile Company Limited, the largest cotton textile producer in China, is pleased to announce the annual results of the Company and its subsidiaries for the year ended 31 December 2008.

For the year ended 31 December 2008, the Group's revenue was approximately RMB16,453,000,000, representing a decrease of 11.5% when compared with last year. Net profit attributable to shareholders of the Company was approximately RMB596,000,000, representing a decrease of 68.1% as compared with the previous year and earnings per share amounted to RMB0.50. The decrease in net profit attributable to shareholders of the Company was mainly attributable to the decrease in demand from the external textile product market, more intense competition in the domestic textile product market as a result of the effect of the general economic environment and the selling price reduction strategy adopted by the Group to gain the market share and client resources, leading to a decrease in profit margin. The Board proposed a final dividend of RMB0.1569 per share for the year ended 31 December 2008.

Commented on the Group's annual results, Ms. Zhang Hongxia, Chairman of Weiqiao Textile, said, “The global financial tsunami triggered by the US subprime crisis in 2008 had a heavy impact on the global economy. Although the Chinese government took decisive measures to sustain the stable development of the national economy by easing monetary policy, increasing infrastructure investment and expanding domestic demand in the second half of the year 2008, the growth of the Chinese economy slowed down under the influence of the economic recession in Europe and the US. In this difficult and changing market environment, Weiqiao Textile's operational results were also significantly affected.”

For the year ended 31 December 2008, the Group's production volume of cotton yarn, grey fabric and denim were approximately 819,000 tons, 1,452,000,000 meters and 167,000,000 meters, representing a decrease of 8.1%, 11.8% and 7.2%, respectively, as compared with last year. This was mainly attributable to an increase in medium-to-high-end products as a result of the adjustment made by the Group to the product portfolio in accordance with the market demand, which led to a slight decrease of production volume. During the period under review, the proportion of revenue from grey fabric and denim increased as compared with last year.

Such increase was mainly due to the adjustment of products' portfolio by the Group according to the change in market demand. And the revenue of cotton yarn decreased as compared to last year, which was mainly attributable to the continuous contraction of the cotton yarn export markets under the impact of the global financial crisis. In particular, demand for the knitwear market was sluggish with more intensive competition, the Company adopted price reduction strategy to boost sales, resulting in a decrease in the sales revenue from cotton yarn.


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Eamonn Tighe
Nature Works LLC

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search