• H1 net profit falls 21.1% to CNY210m 
  • Revenues down 10.9% to CNY5.97bn 
  • Hong Kong revenues slump 63.9%

Lower sales volumes of yarn and grey fabric resulted in a double-digit first-half profit decline for China's largest cotton textile producer Weiqiao Textile Company.

Net profit attributable to owners of the parent of the group amounted to CNY210m (US$34.1m) for the six months to 30 June, compared to CNY266m in the same period of last year.

During the period, the adjustment to the cotton policy by the Chinese government resulted in a downward cotton price expectation, which triggered a strong wait-and-see sentiment from downstream textile manufacturing companies and decreased market demand.

As a result, the company said sales volume of cotton yarn and grey fabric fell year-on-year, leading to a 10.9% drop in revenue to CNY5.97bn.

Hong Kong reported the biggest revenue decline (-63.9%), followed by East Asia (-17.5%) and Mainland China (-5.1%). Southeast Asia, however, saw revenues more than double to CNY1.27bn from CNY451m in the prior year.