De Cotton Shares: Net Profit Decreased By 44% During The Same Period.

In August 26th, the German cotton shares issued semi annual results. During the reporting period, the company achieved operating income of 419 million yuan, net profit of 7 million 460 thousand yuan, and basic earnings per share of 0.042 yuan, representing a decrease of 9.67%, 43.70% and 44% compared with the same period in 2007.

The report shows that the main reasons for the decline of the company's economic efficiency are roughly as follows: one is the common influence of RMB appreciation, the subprime mortgage crisis in the United States and the continued weakness of the domestic market, and the production and sales volume of the company decreases and the product structure changes. The two is the continuous rise of the cost of raw materials and auxiliary materials, the cost of energy, and the labor cost of the company, which leads to the increase in the cost of comparable products. The three is that the State implements tight monetary policy, strictly controls the total amount of credit and money, and puts in rhythm. The increase in interest rates and the tightening of bank credit have led to an increase in the company's financing.

The company expects that the second half of 2008 will be affected and restricted by the domestic and international economic environment. Many unfavorable factors will still exist, and the impact on the company's economic efficiency will remain great.

The main business scope of the company is: spinning and weaving; wholesale and retail of textile raw materials, textiles, clothing, textile equipment and accessories, testing instruments, textile technical services and consulting services (excluding intermediaries), and self import and export business within the approved scope.