Sep 06, 2023
One of the world's largest cotton textile manufacturers, Texhong International Group, recently announced that its wholly-owned subsidiary will transfer its textile fabric company in Vietnam for approximately 78.592 million US dollars (adjustable). The project is located in Haihe Industrial Zone, Guanghe Town, Haixia District, Haining County, Quang Ninh Province, Vietnam, with a land area of approximately 249,904.4 square meters.
Texhong International's revenue declined by 10% to 23.8 billion RMB last year, while its net profit plummeted by 90% to 201.2 million RMB. The downward trend continued into the first half of 2023. According to the company's performance forecast, it was expected to incur a net loss of approximately 800 million RMB for the six months ending June 30, 2023, compared to a net profit of approximately 1 billion RMB in the same period last year. The company attributed the losses mainly to weak demand for textile products in overseas markets during this period, resulting in weak product prices and low capacity utilization, thereby affecting the unit production cost and gross profit margin of the group. However, the situation began to improve in the second quarter of 2023, and with stable cotton prices, the group's profitability is expected to gradually improve.