The largest cotton textile producer in China, Weiqiao Textiles, is also the largest textile company in China that is publicly traded in Hong Kong. This allows for a full reporting of its results, which indicated a very successful period. Total revenues soared 45.9 percent to 13.584 billion yuan. Cotton yarn sales increased 52.8 percent to 8.291 billion yuan. The gross profit margin fell to 13.6 percent from 21.7 percent the previous year, which was attributed to changing from high-end yarn sales and, instead, placing the emphasis on using the yarn in Weiqiao´s own mills and increase the output of high-end cotton grey fabrics. Sales of grey fabric surged 40.4 percent to 9.811 billion yuan. The gross margins increased from 12 percent to 19.1 percent.

Weiqiao´s denim business recovered, with sales expanding 54.5 percent to 1.668 billion yuan -- gross profit margins of 18.7 percent were achieved. Sales of other products declined 38.2 percent to 54.100 million yuan. Operating profits increased 63.1 percent to 3.027 billion yuan. China accounted for 65.6 percent of all sales in 2006, with domestic sales up 77.3 percent from a year ago, while Hong Kong accounted for 15.1 percent of sales, East Asia 9.6 percent and the remainder of the world at 9.8 percent.

Source: globecotnews