Production volume of cotton yarn & grey fabric up, Weiqiao Textile
The Board of directors of Weiqiao Textile Company Limited and its subsidiaries, collectively called the "Group";, the largest cotton textile producer in China, announced its unaudited consolidated interim results for the six months ended 30 June 2010.
In the first half of 2010, the PRC economy maintained steady and yet relatively fast growth momentum. The PRC government timely implemented a series of positive fiscal policies and stimulus measures to expand domestic demand and accelerate the change of the economic development model and structural adjustment and therefore. The domestic economy maintained positive momentum in general.
Driven by the PRC government's policies to expand domestic demand, the domestic sales market performed well. The external trade of textile products in the PRC experienced a relatively fast recovery as well. Based on the statistics released by China Customs, in the first half of 2010, with the rising demand and increasing prices, the accumulated exports of the PRC textile and apparel products amounted to approximately US$88.9 billion, representing a period-on-period growth of approximately 22.0%.
During the review period, the Group's production volume of cotton yarn, grey fabric and denim were approximately 336,000 tons, 612,000,000 meters and 46,000,000 meters respectively. Cotton yarn and grey fabric grew by approximately 15.5% and 11.3% YoY respectively, while denim decreased.
The Group's revenue was approximately RMB8,304 million, representing an increase of approximately 30.2% YoY. Net profit attributable to equity holders of the parent was approximately RMB545 million, representing an increase of approximately 38.0% YoY. Earnings per share amounted to approximately RMB0.46. The Board of the Company recommended no payment of the interim dividend for the six months ended 30 June 2010.
Commenting on the first half of 2010 interim results performance, Ms. Zhang Hongxia, Chairman of Weiqiao Textile, said, "To overcome these market challenges is to capture the opportunities in the domestic and overseas markets to further expand the market share domestically and abroad.
The Group will continue to accelerate operational advancement, improve operating efficiencies, seek breakthrough in product and technology innovation and brand building as well as continue to improve production technology standards to manufacture products that are in line with high global standards. With respect to the overseas market, the Group will continue to expand the geological coverage of its business to maintain its market share internationally by leveraging on the advantage of the economies of scale and optimization of product mix."
Weiqiao Textile's Chairman, Ms. Zhang concluded, "Uncertainties will still remain in the PRC textile industry in the second half of 2010. In the second half of 2010, with the continuing recovery of the PRC economy, RMB is likely to resume appreciation. In addition, in face of the challenges such as rising cotton prices, increasing labor costs and energy costs, the profit margin of the PRC textile enterprises may be squeezed further. Trade friction, to a certain extent, may also affect the future growth of the industry.