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'We will improve our operating efficiency' - Weiqiao Chairman
30 Mar '09
5 min read
During the Period under Review, the Group continued to actively expand its market share and consolidate its customer base. As at 31 December 2008, the Group had a total of 8,300 domestic customers and over 810 overseas customers, both representing a growth of approximately 3.8% as compared with last year, reflecting the comprehensive sales network and well-founded customer base of the Group.
The Group has been emphasizing on cost saving and securing stable energy supply. On 14 January 2008, the Company entered into an asset transfer agreement with its parent company, pursuant to which the Company agreed to acquire the thermal power assets of the parent company at an aggregate consideration of RMB2,210,000,000.
In addition, the Company entered into an asset swap agreement with Zouping Gaoxin Thermal Power Co., Ltd. on 4 September 2008 and acquired the thermal power assets owned by Gaoxin Thermal Power at a consideration of RMB1,599,017,500, and transferred the assets making up the Weiqiao First Thermal Power Plant of the Company to Gaoxin Thermal Power for RMB291,476,160 as payment of part of the consideration, and the remaining consideration would be offset by supplying electricity to Gaoxin Thermal Power. During the period under review, the Company received revenue of approximately RMB357,000,000 (inclusive of VAT) from electricity sales in 2008, which offset part of the remaining consideration.
In view of the sluggish global economy and the difficulties faced by the textile industry, the State Council promulgated an economic stimulus plan with a total amount of RMB4 trillion in November 2008, which aimed at stimulating the Chinese economy by expanding domestic demand. It also approved in principle the stimulus plan for the textile industry on 4 February 2009 to adjust and revitalize China's textile industry through various specific measures. In addition, the rate of export tax rebate for certain textile clothing will increase from 15% to 16%, with effect from 1 April 2009. The Group believes that all these measures will help alleviate the pressure on operation for textile enterprises.
Ms. Zhang concluded, “Looking ahead, the market environment will remain very challenging in 2009 and the prospects will continue to be overcastted by uncertainties. In this challenging market environment, Weiqiao Textile will continue to actively upgrade its production facilities, improve operating efficiency and strengthen cost control, so as to enhance the Group's core competitiveness. The Group will also strive to expand the market share of medium-to-high-end products to maintain and strengthen its position as the first-choice supplier in China and around the world for international purchasers. We will continue to make efforts to enhance the scale and strength of Weiqiao Textile, promote more healthy and stable corporate development of the Group and to continuously create value for the shareholders.”
The Group has been emphasizing on cost saving and securing stable energy supply. On 14 January 2008, the Company entered into an asset transfer agreement with its parent company, pursuant to which the Company agreed to acquire the thermal power assets of the parent company at an aggregate consideration of RMB2,210,000,000.
In addition, the Company entered into an asset swap agreement with Zouping Gaoxin Thermal Power Co., Ltd. on 4 September 2008 and acquired the thermal power assets owned by Gaoxin Thermal Power at a consideration of RMB1,599,017,500, and transferred the assets making up the Weiqiao First Thermal Power Plant of the Company to Gaoxin Thermal Power for RMB291,476,160 as payment of part of the consideration, and the remaining consideration would be offset by supplying electricity to Gaoxin Thermal Power. During the period under review, the Company received revenue of approximately RMB357,000,000 (inclusive of VAT) from electricity sales in 2008, which offset part of the remaining consideration.
In view of the sluggish global economy and the difficulties faced by the textile industry, the State Council promulgated an economic stimulus plan with a total amount of RMB4 trillion in November 2008, which aimed at stimulating the Chinese economy by expanding domestic demand. It also approved in principle the stimulus plan for the textile industry on 4 February 2009 to adjust and revitalize China's textile industry through various specific measures. In addition, the rate of export tax rebate for certain textile clothing will increase from 15% to 16%, with effect from 1 April 2009. The Group believes that all these measures will help alleviate the pressure on operation for textile enterprises.
Ms. Zhang concluded, “Looking ahead, the market environment will remain very challenging in 2009 and the prospects will continue to be overcastted by uncertainties. In this challenging market environment, Weiqiao Textile will continue to actively upgrade its production facilities, improve operating efficiency and strengthen cost control, so as to enhance the Group's core competitiveness. The Group will also strive to expand the market share of medium-to-high-end products to maintain and strengthen its position as the first-choice supplier in China and around the world for international purchasers. We will continue to make efforts to enhance the scale and strength of Weiqiao Textile, promote more healthy and stable corporate development of the Group and to continuously create value for the shareholders.”
Weiqiao Textile Company Limited
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