Commenting on the year's performance, Mr. Zhang Bo, Chairman of Weiqiao Textile, said, "We had significant growth in turnover and net profit as a result of an aggressive expansion of value-added products and marketing. We upgraded equipment, meeting customer demand for more sophisticated products. We were fortunate that both the political and market environment for textiles improved. Textile agreements were signed with the United States and European Union, allowing trade to flow freely and cotton prices stabilised.”

The Chinese government provided significant tax relief for the group's investments in technology upgrading. The company and its non-wholly owned subsidiary Binzhou Industrial Park were granted tax relief by the local tax bureau in an aggregate amount of approximately RMB287, 689,000 in 2005, owing to its investment in domestic equipment.

Weiqiao Textile Company Limited, a non state-owned enterprise, is said to be the largest cotton textile producer in the PRC, specialising in the production, sales and distribution of cotton yarn, grey fabric and denim. Based in Shandong it has four production bases in Weiqiao, Binzhou, Weihai and Zouping and employs more than 140,000 people.