Weakened domestic and overseas demand for textile products and volatile cotton price fluctuations weighed on results for Weiqiao Textile Company in the first half of the year. 

China's largest cotton textile producer said earnings reached CNY343m (US$39.2m) in the six months to the end of June, a 9.2% increase on the prior year. 

Sales, however, fell 9.9% to CNY4.38bn. The company said demand for textile products remained weak during the period, while the sale price of Chinese textile products hovered at a low level.

The percentage of revenue contributed by the group's cotton yarn, grey fabric and denim remained the same at 34.4%, 55.9% and 9.7%, respectively. The proportion of Weiqiao's domestic and overseas revenue also remained relatively stable, at 69.3% and 30.7%, respectively.

East Asia was the only region to record sales growth, with a jump of 32.2% in the period. Mainland China sales were down 8.1%, while Hong Kong and South East Asia saw declines of 11.6% and 50.9%, respectively.

Weiqiao said the global economy recovered slowly during the six month period, with "persistently sluggish" demand. The overall domestic economy maintained a stable momentum, with steady advances in supply-side structural reform and economic upgrades and transformation as well as the characteristics of the "new normal" being more evident. 

The company adjusted its production plans according to market conditions. As a result, production of Weiqiao's cotton yarn was up 4.3% to 168,000 tons, denim was up 5.4% to 39m tons, and grey fabric was down 9.4% to 46m. 

"Looking forward to the second half of 2016, despite all the challenges faced by the industry such as uncertainties around the growth of the global economy, lacklustre demand in the textile product market, rising labour costs and shortage in quality cotton supply, the Chinese textile product and apparel industry is well posed to maintain overall stable operation," said chairman Zhang Hongxia. 

"Facing the challenges and opportunities under the new environment, Weiqiao Textile will continue to focus on innovating management approaches, reducing costs and enhancing efficiency, improving productivity and increasing the added value of the products."