Wei Qiao Textile (02698.HK): Net Profit Is Expected To Expand Further In The Second Half Of The Year.

Wei Qiao textile (02698.HK) issued a notice, such as the reasons for the company's previous earnings warning notice, although the group's electricity business maintained stable operation in the first half of 2019, but affected by unfavorable factors such as trade protectionism warming, the global economic growth was weak and market consumption weakened, resulting in a weak demand for China's cotton textile market and a pressure on the entire textile industry, thereby negatively affecting the gross profit margin and gross margin of the group.

In the second half of 2019, although the power business of the group continued to be stable, the downward trend of cotton prices was generally affected by the continuous decline of cotton prices. The demand for cotton textile products continued to slump, leading to further pressure on the sale price of cotton textile products, thereby reducing the gross profit and gross profit margin of the group cotton textile products further. The net profit of the second half of 2019 is expected to decline further than the first half of 2019.