Cai Jianzhong, The Founder, Resigned As An Exchange Of Textiles. The Knitting Giant Will Smash 13 Billion New Bases In Vietnam.

The local knitting giant, mutual Textiles Holdings Limited (hereinafter referred to as "mutual textiles") announced in June 13th that the company received Mr. Cai Jianzhong's notice that Mr. Cai was resigned to office as a non-executive director and all his duties because of his advanced age. He will take effect from June 12, 2019.

Up to now, the executive directors of mutual textiles are Yin Huilai, Duke Wei and Ishii Toshiya; the non-executive directors are Liu Yaotang, and the independent non-executive directors are Chen Yuguang, Wu Qinghua and Shi Guo Rong.

Cai Jianzhong was born in 1936 as one of the non-executive directors and co founders of the textiles exchange. Cai Xian was born in 1997 and co founded with other members of the Pacific textiles company. He was founded as a chairman of Pacific textiles during 2005.

At present, he is the honorary chairman of Pacific textiles and director of the inter Pacific Affiliated Companies. He has about 50 years' experience in the textile industry.

In 2010, he was awarded the China knitting industry's lifetime achievement award by the fourth council of China knitwear industry association.

In April 2018, Cai Jianzhong was awarded the gold medal Tinct Ind. by the British bleaching and dyeing division and the printing and dyeing Institute, which has contributed a lot to the printing and dyeing industry and education in Southeast Asia.

According to the financial report, the total income of mutual textiles reached HK $6 billion 98 million in the year ended March 31, 2018, an increase of 1.74% compared with the same period last year. The gross profit of the company was HK $947 million, a decrease of 15.17% compared with the same period last year. The company's owners should earn HK $744 million, down 23.73% from the same period last year, and HK $0.51 per share in basic and diluted earnings.

The final dividend is expected to be HK $18.5 per share.

Mutual textiles said that the decrease in profits was due to the fact that the year was not refunded from the provision of an associate's rights and interests allowance. The expenses incurred in response to the higher cost of fixed costs caused by the suspension of production in Vietnam and the expenses incurred by customer claims increased by about 100 million Hong Kong dollars. In addition, production costs increased, such as yarn, chemical products, labour, coal and RMB appreciation.

The first textile network reported earlier that it was announced not long ago, announced that in order to meet future expansion and risk diversification, the company is preparing to choose a suitable location in northern Vietnam to establish a new production base.

Limited by the geographical conditions of site selection, the cost and production plan of building plants and environmental protection facilities (or with the market conditions at that time) will be estimated at about HK $600 million to HK $1 billion 300 million.

If the land acquisition plan is to be completed in the next financial year, the expected production time of the new plant will start from 2022 to 2024. If the new plant is put into production, the total production capacity of the new plant will increase by about 3 million pounds to 8 million pounds per month.

According to the reporter's understanding, the meeting of the board of directors of mutual textiles will be held in June 20th, which will approve the announcement of the annual performance of the ice company and its Affiliated Companies for fiscal year 2019.

Before the press release, mutual textiles closed at HK $6.21 / share, down 1.43%, and HK $8 billion 982 million.