Home / Knowledge / News / Textiles / President of China Linen pleased with financial results for 2009
President of China Linen pleased with financial results for 2009
20
Aug '10
China Linen Textile Industry, Ltd., a China-based company engaged in the production and sale of linen yarn and various types of linen fabric, announced its financial results for the year ended December 31, 2009.

Revenue
Revenue for the year ended December 31, 2009 totaled $29.4 million, up approximately 28.1% from $22.9 million for the year ended December 31, 2008. The company added 7 customers during 2009 and increased sales by 5% in new geographic areas. The increase in revenue was primarily attributable to increased sales volume of linen fabric.

Cost of Goods Sold
Cost of goods sold amounted to $20.7 million for 2009, or 70.4% of revenues, compared to $17.6 million, or 76.9%, of revenues for 2008. The Company was able to drive down cost of materials by further development of the Company's proprietary technology reducing the amount of raw material lost in production process, improving production efficiency and resulting in a product mix with higher gross margins. The Company anticipates that cost of goods sold will remain consistent with 2009 levels or be lower during 2010 due to economies of scale due to the expanded capacity.

Gross Profit
Gross profit for 2009 was $8.7 million, up 64.5% from $5.3 million for 2008. The increase in gross profit was mainly attributable to increased sales in 2009, and to revenue-per-unit outpacing costs. Gross margin for the year ended December 31, 2009 was approximately 29.6% as compared to gross margin of approximately 23.1% for the year ended December 31, 2008.

Operating Expenses
Operating expenses decreased 25.2% to $1.6 million in 2009 from $2.2 million in 2008, which included approximately $0.8 million, or 43.1%, in stock-based compensation which was not present in 2009. Management was able to prudently manage expenses and was able to increase volume.

Operating Income increased 127.5% to $7.1 million for 2009 and operating margins were 24.1% compared to 13.6% in 2008.

Other Income
Other income decreased by 16.5% to $0.8 million for the year ended December 31, 2009 from $1.0 million in the year ago period as a result of decrease in government subsidies received by Lanxi Sunrise, the majority-owned subsidiary through which China Linen conducts all of its business operations. During 2009 and 2010, Lanxi Sunrise received or expects to receive government subsidies on local income taxes paid equal to 40% of its total annual income tax paid for each such year.

Provision for Taxes
Provision for taxes was $2.1 million for 2009, as compared to $1.2 million for 2008, an increase of approximately 77.5%, with an effective tax rate of 27.2% and 29.7% in each respective period.

Net Income
Net income was $5.7 million for the year ended December 31, 2009 as compared to $2.9 million for the year ended December 31, 2008, representing an increase of approximately 100.6%. Earnings per share in 2009 amounted to $0.28, up 86.7% from $0.15 in 2008, based on weighted average shares outstanding of 20.1 million and 19.5 million respectively.


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

February 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search