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Weiqiao further strengthens leading position in industry
30 Mar '10
4 min read
Business Review
In 2009, despite various uncertainties in the market, Weiqiao Textile continued to consolidate its business growth by strengthening internal management and cost control, optimizing capital structure and improve products mix according to market demand under the recovering and steady economic development. Given its solid customer base, the Group successfully secured its market share which effectively restrained the decline in profitability.
Cotton yarn, grey fabrics and denim are key products of the Group. The proportions of revenue generated from the sales were 46.7%, 45.3% and 7.9% respectively.
For the year ended 31 December 2009, the proportion of revenue generated from the sales of cotton yarn increased; and the proportion of the revenue generated from the sales of grey fabrics decreased, which was mainly due to the low demand from the grey fabrics market under the impact of the financial crisis, resulting in a decline in export orders. The proportion of revenue from denim slightly decreased. This was mainly due to the decrease in overall market demand under weakening export demand and intensifying competition.
Selling and Distribution Expenses
The Group's selling and distribution costs decreased by 28.0% to approximately RMB249,000,000 for the year ended 31 December 2009 from approximately RMB346,000,000 in the previous year. In particular, transportation cost decreased by 27.5% to approximately RMB195,000,000 from approximately RMB269,000,000 in 2008. This mainly resulted from a decline in sales of the Group. On the other hand, the unit cost of transportation also decreased. Sales commission was approximately RMB17,000,000 a decrease of approximately 50.0% as compared with approximately RMB34,000,000 over last year. This was primarily due to the decrease in export sales of the Group.
Administrative Expenses
Administrative expenses of the Group for the year ended 31 December 2009 amounted to approximately RMB190,000,000, which was basically about the same as approximately RMB193,000,000 recorded in the previous year.
Finance Costs
For the year ended 31 December 2009, the Group's finance costs were approximately RMB 514,000,000, representing a decrease of 26.3% as compared with RMB 697,000,000 for 2008. This was mainly due to the corresponding decrease in interest expenses of the Group as a result of the reduction in lending rates of the financial institutions.
In 2009, despite various uncertainties in the market, Weiqiao Textile continued to consolidate its business growth by strengthening internal management and cost control, optimizing capital structure and improve products mix according to market demand under the recovering and steady economic development. Given its solid customer base, the Group successfully secured its market share which effectively restrained the decline in profitability.
Cotton yarn, grey fabrics and denim are key products of the Group. The proportions of revenue generated from the sales were 46.7%, 45.3% and 7.9% respectively.
For the year ended 31 December 2009, the proportion of revenue generated from the sales of cotton yarn increased; and the proportion of the revenue generated from the sales of grey fabrics decreased, which was mainly due to the low demand from the grey fabrics market under the impact of the financial crisis, resulting in a decline in export orders. The proportion of revenue from denim slightly decreased. This was mainly due to the decrease in overall market demand under weakening export demand and intensifying competition.
Selling and Distribution Expenses
The Group's selling and distribution costs decreased by 28.0% to approximately RMB249,000,000 for the year ended 31 December 2009 from approximately RMB346,000,000 in the previous year. In particular, transportation cost decreased by 27.5% to approximately RMB195,000,000 from approximately RMB269,000,000 in 2008. This mainly resulted from a decline in sales of the Group. On the other hand, the unit cost of transportation also decreased. Sales commission was approximately RMB17,000,000 a decrease of approximately 50.0% as compared with approximately RMB34,000,000 over last year. This was primarily due to the decrease in export sales of the Group.
Administrative Expenses
Administrative expenses of the Group for the year ended 31 December 2009 amounted to approximately RMB190,000,000, which was basically about the same as approximately RMB193,000,000 recorded in the previous year.
Finance Costs
For the year ended 31 December 2009, the Group's finance costs were approximately RMB 514,000,000, representing a decrease of 26.3% as compared with RMB 697,000,000 for 2008. This was mainly due to the corresponding decrease in interest expenses of the Group as a result of the reduction in lending rates of the financial institutions.
Weiqiao Textile Company Limited
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