Industry

Chinese Listed Textile Companies Achieve Good Growth In Q1

In the first quarter of this year, Chinese stock exchange listed textile manufacturing companies achieved a collective operating income of approximately Yuan 30.95 billion, up 9.8 percent year on year.

Total net profit of these companies stood at Yuan 1.79 billion in the first three months of 2024, a year-on-year increase of 20.32 percent,” China News Service reported, quoting a report of Bohai Securities.

“The textile manufacturing sector’s performance was under pressure last year, but its performance in the first quarter of this year has gone up,” Mi Hanjie, an analyst at GF Securities said.

“This is mainly because overseas demand has picked up, while the Yuan exchange rate has weakened, which is beneficial to listed textile companies that mainly focus on the export business,” he added.

There are Chinese listed textile companies who have managed to even report massive net profits in the first quarter of the ongoing year.

In the quarter under review, Korrun achieved revenue of Yuan 910 million, up 22.92 percent year over year, while its net profit was Yuan 71.06 million, up by a massive 102.95 percent.

While, Vosges, another textile manufacturing company achieved a net profit of Yuan 90.44 million, soaring by 263.13 percent from a year ago quarter.

“With global brands restocking their shelves, revenues of these textile companies will grow rapidly and will also be able to increase production,” Yang Ying, an analyst at Guosheng Securities also said.

“The utilisation rate is expected to improve significantly year-on-year, which is expected to drive rapid growth in full-year performance of listed companies,” Ying too added.

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