HONG KONG: Weiqiao Textile FY soars on domestic demand
- FY revenues jumped 24.8$ to CNY17.89bn (US$2.7bn)
- Profit surged 82.4% to CNY1.63bn
- Growth driven by government stimulus measures
Weiqiao Textile Company Limited, the largest cotton textile producer in China, has nearly doubled its full-year profit thanks to government policies to stimulate domestic demand.
The company said revenues in the 12 months to 31 December jumped 24.8$ to CNY17.89bn (US$2.7bn), while profit surged 82.4% to CNY1.63bn.
Growth was driven by government policies and stimulus measures to expand domestic demand, according to company chairman Ms Zhang Hongxia.
“The textile industry in China showed a steady growth momentum last year. Since the outbreak of the financial crisis, the government’s policies and measures to support the textile industry began to take effect, resulting in a recovery in the market, alongside with growing sales orders.”
As a whole, China’s textile industry grew steadily in 2010 it said, citing Customs statistics that showed exports of textile products and apparel rose 23.6% to US$206.5bn, helped by higher demand and rising prices.
During the year, the group’s production volume of cotton yarn and grey fabric rose by 11.1% and 10.2% respectively over the previous year, while denim production fell 2.9% as it offloaded some “low-efficiency and obsolete denim production machinery and equipment.”
Looking ahead, Ms Zhang expects China’s textile industry to “enter a new era of development which focuses on industrialisation, acceleration of structural adjustment, further investment in technology, enhancement of innovation capabilities, brand building and increase in added value of products,” in 2011.
Weiqiao Textile is located in Shandong, China’s second largest cotton producing province. It has four production bases in Weiqiao, Binzhou, Weihai and Zouping and employs around 113,000 people. Annual production stands at 720,000 tons of cotton yarn, 1.3bn metres of grey fabric and 102m metres of denim.
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