China’s largest privately-owned cotton textile producer, Weiqiao Textile Company Limited has announced its unaudited consolidated interim results for the six months ended June 2005, posting a turnover of RMB 6,916 million ($854 million), an increase of 51.1% over the same period of 2004. Net profit was RMB 472 million, a substantial increase of 32.2% over the same period of 2004.

Mr. Zhang Bo, chairman of Weiqiao Textile, commented, "The sharp increase in net profit was primarily a result of the group's ever expanding scale of production and enhanced sales momentum. With continuous improvement in production facilities, equipment and technology standards, the group managed to produce more value-added products to meet the demand of the international and domestic markets."

The increase in the proportion of grey fabric in the group's turnover to 52.2% and the decrease in the proportion of denim were due to the group scaling up the production of grey fabric in response to market demand and the use of some of the denim production equipment to produce grey fabric. The increase in the proportion of cotton yarns sales to 39.6% from 36.6% last year was mainly due to increased sales of high-end cotton yarns.

With respect to the protective measures adopted by the United States and the EU, Mr Zhang Bo said, "These factors will have a limited impact on the group primarily because Weiqiao Textile is positioned in the upstream sector and these protective measures are aimed at downstream products such as fashion.”

Weiqiao, located in Shandong, specialises in the production, sales and distribution of cotton yarn, grey fabric and denim.

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