Home / Knowledge / News / Textiles / Linen market will continue to expand; China Linen Chief
Linen market will continue to expand; China Linen Chief
May '11
China Linen Textile Industry Ltd, one of China's leading linen fabric and linen yarn producers and exporters, announced financial results for the first quarter ended March 31, 2011.

• Q1 2011 revenues increased 79% to $15.8 million.
• Q1 2011 gross profit increased 109% to $5.7 million, gross margin up 507 basis points to 36.0%
• Q1 2011 net income increased 50% to $3.2 million; diluted EPS of $0.46 vs. $0.36 a year ago.

"The first quarter of this year was marked by continued growth in revenues and net income, which benefitted from both volume increases and price improvements. We successfully expanded the sales and distribution channels for our linen fabric and yarn during the past year and utilized new capacity brought on-line through the Lanxi Tianxianfang Linen Co. acquisition. We also began to realize cost saving benefits from the integration of this business," said Mr. Gao Ren, Chairman and CEO of China Linen.

"Through the addition of a bleaching factory and our recently upgraded linen yarn dyeing facility, we are becoming a vertically integrated linen producer, which enables to us to capture more of the value chain while meeting increasing demand for our products both in China and abroad. International sales comprised 58% of revenues and were driven by growth in India and Turkey, including new markets such as Spain and Thailand, while higher domestic demand for linen products also drove revenue growth."

Three Months Ended March 31, 2011 Financial Results

Revenue for the three months ended March 31, 2011 totaled $15.8 million, up approximately 79% from $8.8 million for the three months ended March 31, 2010. The increase in revenue was primarily attributable to increased sales volume of both linen yarn and linen fabric, increased sales from the acquisition, increased sales from new products and new customers.

Gross profit for the first quarter of 2011 was $5.7 million, up 109% from $2.7 million from the first quarter of 2010 and was driven by sales growth. Gross margin for the three months ended March 31, 2011 was 36.0%, an increase of 507 basis points from 30.9% for the three months ended March 31, 2010, mainly due to sales price increases and our ability to efficiently control production costs.

Operating expenses increased 131% to $1.2 million in the three months ended March 31, 2011 from $0.5 million in 2010, mainly due to an increase in sales expenses, research and development costs, depreciation and amortization in connection with the increase of fixed assets.

Operating income increased 103% to $4.4 million for the first quarter of 2011 from $2.2 million in the same period of 2010, while operating margins increased 332 basis points to 28.1%.

Net income was $3.2 million for the three months ended March 31, 2011 as compared to $2.1 million for the three months ended March 31, 2010, representing an increase of approximately 50%, representing diluted earnings per share of $0.46, compared to $0.36 in the same period of 2010, an increase of 28%.

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search