TEXHONG INTL GP released its interim results, with profit attributable to shareholders of 419 million yuan, an increase of 53.33% year-on-year
TEXHONG INTL GP released its interim results for the period ending June 30, 2025, with revenue of RMB 11.034 billion, a year-on-year decrease of 1.86%; profit attributable to shareholders was RMB 419 million, a year-on-year increase of 53.33%. Yarn sales revenue was approximately RMB 8.6222 billion, a year-on-year decrease of 2.2%; sales revenue from woven fabrics significantly increased by approximately 17.9%. The group actively develops products that meet market demand, with yarn sales volume increasing by approximately 3.6% year-on-year, reaching about 385,000 tons, and the average gross profit margin rising from 12.5% to 13.9%
According to the Zhitong Finance APP, Texhong International Group (02678) announced its interim results for the six months ending June 30, 2025, with revenue of RMB 11.034 billion, a year-on-year decrease of 1.86%; profit attributable to shareholders of RMB 419 million, a year-on-year increase of 53.33%; and basic earnings per share of RMB 0.46.
The announcement stated that the group's revenue is primarily from yarn sales, while the mid-to-downstream business mainly focuses on woven fabric sales targeting overseas markets. During the review period, due to a year-on-year decline in sales prices, yarn sales revenue decreased by approximately 2.2% compared to the same period last year, amounting to about RMB 8.6222 billion. In contrast, woven fabric sales revenue significantly increased by approximately 17.9% compared to the same period last year, causing the proportion of yarn sales revenue to total revenue to slightly decrease from 78.4% in the same period last year to 78.1%.
Looking at industry consumption trends, with the increasing popularity of outdoor sports, the demand for functional sportswear continues to rise; consumers' attention to the functionality, health, and environmental friendliness of textiles is also increasing, driving the yarn industry towards differentiation and high-end transformation, bringing structural growth opportunities for related yarn products.
During the review period, the group actively seized such market opportunities, developing products that meet market demands, which led to a year-on-year increase of approximately 3.6% in yarn sales volume, reaching about 385,000 tons.
The group's yarn order volume and capacity utilization rate (especially in overseas factories) have improved compared to the same period last year; coupled with a flexible raw material procurement strategy, the average gross profit margin for yarn increased significantly from 12.5% in the same period last year to 13.9% during the review period
