Weiqiao Textile Releases 2006 Financials

Hong Kong-based Weiqiao Textile Co. Ltd. recently released its 2006 financial results. The company and its subsidiaries achieved a year-end sales figure of RMB 19.8 billion (US$2.6 billion), which represents a 46-percent increase over 2005 figures. Gross profits rose 48.1 percent over 2005, to RMB 3.3 billion (US$431 million). In addition, Weiqiao was able to reduce its operating costs, which led to a 63.1-percent increase in operating profit to RMB 3.0 billion (US$391 million).

"In 2006, the group worked to enhance its marketing effort," said Zhang Hongxia, chairman, Weiqiao Textile. "As a result, utilization rate of our production facilities was further improved. We also focused on continuously upgrading our production facilities and technology in order to provide the markets with more high-end products. Such efforts proved effective as we reached record-high revenues and net profits since our listing."

Greige fabric production of 1.6 billion meters contributed RMB 9.8 billion (US$1.3 billion), or 49.5 percent to total company revenue in 2006. Weiqiao's other core products in 2006 - 882,000 tons of cotton yarn and 175 million meters of denim fabric - contributed RMB 8.3 billion (US$1.1 billion) and RMB 1.7 billion (US$216 million), respectively, or 41.8 percent and 8.4 percent to total revenue. In 2006, the group was granted tax relief in the amount of RMB 163 million (US$21 million) because it chose to purchase China-made machinery and equipment for growth and technology upgrades.

Weiqiao experienced domestic sales growth in 2006, which the company attributes to strong industry growth and demand in China during the year, as well as a modified sales strategy and increased domestic marketing efforts. At the end of 2006, Weiqiao had 720 overseas customers - an increase of 20 percent over 2005 - in addition to its 7,500 domestic customers, which grew by 29.3 percent when compared to its customer base in 2005.

"As a company with an intense focus on its global customers' needs and high adaptability, we will speed up product innovations and industrial upgrading, stressing new technology, new processes and the use of new raw materials, so as to provide high-quality services to more customers; consolidate our market and industry position; ensure harmonious development for our employees, the textile industry and society; and continue to increase shareholder value," Zhang said.

May/June 2007

 

Related Files:
Download this article in Chinese.