Weiqiao Textile Released The First Half Of The Performance Forecast, Significantly Lower Than The Same Period Last Year

On July 7, Weiqiao textile issued a profit warning, according to its unaudited management accounts, it is expected that the group's interim performance for the six months ending June 30, 2020 will be significantly lower than that in the same period in 2019.

The main reasons are as follows:

(1) In the first half of 2020, due to the negative impact of the global new coronavirus pneumonia epidemic, the domestic and foreign textile market continued to be weak, resulting in the overall decline in the demand for textiles. The group's cotton textile products sales volume decreased year on year, and the sales price also decreased compared with the same period last year

(2) In the first half of 2020, although the power business of the group maintained a profit, under the impact of the epidemic, the electricity sales volume decreased year on year.

The announcement also said that the board of directors will pay close attention to the overall industry dynamics of China's textile industry in the second half of the year, timely adjust the group's operation strategy according to the overall situation of the industry, give full play to its own characteristics and advantages, continue to make great efforts in management innovation, cost reduction and efficiency improvement, R & D investment and green intelligence, so as to enhance its competitiveness in domestic and foreign markets.

Weiqiao Textile Co., Ltd., established on December 6, 1999, is the largest cotton textile manufacturer in China, and was officially listed on the stock exchange of Hong Kong on September 24, 2003. Mainly engaged in the production and sales of cotton yarn, grey cloth and denim business. Weiluqiao Textile Co., Ltd. and weihaiqiao Textile Co., Ltd. Through its subsidiaries, the company is also engaged in the production and sales of polyester yarn and related products.