Weiqiao Textile announces 2007 results
Weiqiao Textile, the largest cotton producer in China, has announced its annual results for the period ended December 31, 2007.
The company said that during the year, demand in the textile market decreased owing to the appreciation of the renminbi, the decrease in export tax refunds and other global economic factors. Revenue decreased 6.2% to $2.6 billion. Gross profit decreased 19.9% to $370 million.
Commenting on the performance, company chairman, Ms Zhang Hongxia, said: “In 2007, reductions in exports and the rises in production costs led to more intense market competition. The appreciation of the renminbi, the changes to the export tax refund policy and a rise in raw materials costs all posed certain challenges for the textile industry in China.
“Despite poor market conditions, the Weiqiao Group achieved steady results in a challenging textile market, in part as a result of effective cost control measures. Leveraging on our economies of scale and technological transformation, we successfully increased operating efficiencies by improving equipment and facilities and optimizing our product mix.”
