Compared With Last Year, Wei Qiao Textile Material Profits Fell Sharply In The Medium Term.

(02698) medium term profit will be significantly lower than that of the same period last year. Share prices weakened this morning, or fell to 3.97% to HK $2.9, with a total turnover of 260 thousand shares.

According to Wei Qiao textile production surplus police, it is expected that the profit will be significantly lower than that of the same period last year for the 6 months ended June 30, 2012, mainly due to the continued weakness of the domestic and foreign textile market in the first half of 2012, resulting in an overall decline in demand for textiles. And since September 2011, cotton prices in China have remained low, and at the same time, the international price of cotton has remained low.

Sharp decline.

In this case, the price of cotton textile is difficult to upgrade, resulting in a sharp decline in group profits.

However, the Board believes that the overall operation of the group is still sound and complete.

According to the management account of the group as at May 31, 2012,

Sales of grey fabrics and denim increased compared with the same period last year, and inventories declined compared with December 31, 2011.

By the end of May 31, 2012, the group's cash and cash equivalents were about 2 billion 800 million yuan, and the financial situation of the group remained steady.

At the same time, Wei Qiao textile said that the 98.5% Binzhou Industrial Park, with a cost of 698 million yuan (about HK $862 million), pfers the thermoelectric assets to the Binzhou Economic Development Zone, and expects to sell 2 million 740 thousand yuan.

The proceeds are intended to be used as general working capital.

After completion, the company still has 1410 megawatts installed capacity generating units, which can fully meet the requirements of production and operation, and will not affect production and operation.